Attorney General Laxalt Announces Sentencing of Sparks Man for Unemployment Insurance Theft Scheme

May 22, 2015

Carson City, NV – Nevada Attorney General Adam Paul Laxalt announced that Kyle Gabelman, 32, of Sparks, was sentenced this week for theft in relation to unemployment fraud, a category “C” felony. His codefendant and mother, Drema Sue Smith, is expected to be sentenced for her role in the crime this June. The fraud was committed between January and December 2012.

    Smith and Gabelman schemed to obtain unemployment benefits, despite his ineligibility, while Gabelman was incarcerated in both the Washoe County Detention Center and in a Nevada prison. Together, they obtained more than $7,000 in fraudulent unemployment benefits.

      “Not only was our office able to close this investigation with a successful prosecution, but we were able to recover the entirety of the amount stolen from the state,” said Laxalt. “Those considering defrauding the state of Nevada should think twice, and note that attempts to swindle taxpayers will not be tolerated by this office.”

        Second Judicial District Court Judge Scott Freeman sentenced Gabelman to the maximum sentence of 24-60 months for his crime. Judge Freeman also sentenced Gabelman to 2-10 years in prison for a burglary charge prosecuted by the Washoe County District Attorney’s Office. The two sentences were ordered to run consecutively.

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

            To read the criminal Information, click here. To file a complaint about someone suspected of committing a fraud, click here.

              GABELMAN, KYLE 
              2015-05-22 Gabelman Kyle

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