Former Gansevoort man admits to insurance fraud [The Post-Star, Glens Falls, N.Y.]

Jun. 30—ALBANY — A former Gansevoort man has pleaded guilty in federal court to engaging in a money laundering conspiracy to conceal proceeds from a multi-state unemployment insurance fraud scheme.

Christopher L. Vandermark, 57, admitted in U.S. District Court in Albany on Tuesday that he had been corresponding through online text messages for over a year with a person who represented herself to be a woman living in North Carolina. The woman told Vandermark to open accounts at multiple financial institutions and directed him to provide her with routing information for his existing accounts, according to a news release.

From June 2020 through early April 2021, Vandermark's accounts received transfers of more than $88,000 in fraudulently obtained unemployment insurance benefits from six states.

Vandermark purchased of hundreds of gift cards from local retailers using the money, photographed the identifying numbers on the cards and sent them to the woman. Then, the numbers could be used to sell the gift cards online to conceal the original source of the funds, authorities said.

Vandermark admitted to continuing these activities even after receiving multiple warnings from financial institutions that he was participating in a fraudulent scheme. On April 15, 2021, a federal law enforcement agent and a state investigator interviewed Vandermark at his residence regarding approximately $37,000 in fraudulently obtained unemployment insurance benefits transferred to his account at a local bank. He had denied holding the account and receiving the funds. Those statements were determined to be false.

Afterward, authorities said Vandermark opened an account with a different institution and received another $13,734 in benefits from three states, which were deposited into two accounts and used to purchase more gift cards.

He has agreed to pay restitution to the affected states.

Vandermark could face up to 20 years in prison and a fine of up to $500,000 when sentenced on Oct. 27.

The case was investigated by the Department of Homeland Security-Office of the Inspector General, with assistance from the Social Security Administration Office of the Inspector General and the Office of the New York State Comptroller. It is being prosecuted by Assistant U.S. Attorney John Chisholm.

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