Libby man denies stealing unemployment benefits

A Libby man accused of stealing thousands of dollars in unemployment benefits after authorities say he walked away from a job pleaded not guilty Monday in Lincoln County District Court.

Austin Joel Zugg, 46, is charged with two felonies, including making false claims to public agencies and theft.

Zugg was represented by Todd D. Glazier. Zugg’s arraignment was scheduled for Dec. 12 and then Jan. 3 because he did not have legal representation.

Weston Young, of the state Office of the Public Defender, previously said his office had attempted to find an attorney to represent him, but three attorneys had declined.

Zugg's next court hearing is scheduled for March 27.

According to the charging document filed by Lincoln County Deputy Attorney Jeff Zwang against Zugg, Montana Department of Labor and Industry Lead Fraud Investigator Michelle T. Sergeant wrote in a report that Zugg voluntarily quit his job with a Great Falls company.

Sergeant wrote that after quitting, Zugg allegedly misrepresented his employment status. From May 2, 2020, to July 18, 2020, Zugg allegedly made 12 separate weekly requests for payment of unemployment benefits. He received benefit payments totaling $13,824.

Sergeant wrote in her report that, “Based on the fact Zugg voluntarily quit his employment, he was not eligible to apply for, or receive, any UI benefits.

The maximum penalty for a conviction on felony theft and making false statements to public agencies is 10 years in the Montana State Prison.