Attorney General Laxalt Announces Guilty Plea of Convict for Unemployment Insurance Fraud

April 3, 2015

Carson City, NV – Nevada Attorney General Adam Paul Laxalt announced that Kyle Jason Gabelman, 32, of Sparks, pleaded guilty last week to theft, a category C felony,for his role in fraudulently obtaining and using unemployment insurance benefits. The fraud occurred between January and December 2012, while Gabelman was incarcerated for crimes previously committed.

    “This type of fraud is an attack on our taxpayers that will not be tolerated by this office,” said Laxalt. “We continue to work with other public agencies to ensure the aggressive prosecution of those who abuse assistance programs, and to ensure taxpayers are not cheated in the future.”

      Despite his ineligibility for unemployment benefits, Gabelman continued to receive benefits with the assistance of his mother. His mother would then withdraw the benefits from his account and use them for Gabelman and her own personal expenses. Upon the termination of his incarceration, Gabelman had drained the balance of his account, using up all of the fraudulently obtained funds. His mother previously pleaded guilty to attempted theft, a category D felony, for her role in the scheme. As part of their pleas,Gabelman and his mother agreed to pay back more than $7,000 in restitution to the Department of Employment, Training and Rehabilitation.

        As part of their pleas, Gabelman and his mother are set to be sentenced separately in May 2015.

          The investigation of this case was a joint effort of investigators from the Nevada Attorney General’s Office and the Nevada Department of Employment, Training and Rehabilitation. The Washoe County Detention Center and the Nevada Department of Corrections also assisted with the investigation. This case is being prosecuted by Deputy Attorney General Ross E. Armstrong.

            To file a complaint with our office, click here. To view the criminal Information, click here.

               2015-05-22 Gabelman Kyle

              GABELMAN, KYLE

                (Photo courtesy of the Washoe County Sheriff’s Office)