A Smyrna man, along with a partner in Michigan, was arraigned in federal court on charges of committing mail and wire fraud, mail fraud, and aggravated identity theft in a COVID-related scheme to file for unemployment benefits in multiple states.
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The alleged crime was carried out at the peak of the COVID-19 pandemic.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the unemployment insurance program. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“This case is another example of criminals trying to take advantage of a bad situation for their benefit,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this steals money, legitimate applicants are unable to get those funds to help themselves and their families.”
“The alleged actions of the defendants to defraud a government program designed to provide financial assistance is criminally reprehensible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will aggressively go after bad actors who utilized the COVID-19 pandemic as an opportunity to commit fraud for their own financial gain.”
The press release from the U.S. Department of Justice states that between about July 1, 2020, and continuing through October 5, 2020, the Smyrna man and a partner in Oak Park Michigan “caused fraudulent applications for UI benefits to be submitted electronically to workforce agencies in various states, including California, Georgia, and Michigan. The applications fraudulently listed the names, Social Security numbers, and other personal identifying information of individuals without their knowledge and consent.”
“After claims were approved, the state workforce agencies paid the benefits by depositing the funds onto debit cards issued through the approving state workforce agency. The debit cards were mailed to residential addresses and P.O. Boxes located at addresses in Smyrna, Georgia and in Michigan that were controlled by [the two men]. After receiving the debit cards, both [the two men] withdrew the UI funds, in part, through ATM cash withdrawals.”
“Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial,” the press release continued.
ons fraudulently listed the names, Social Security numbers, and other personal identifying information of individuals without their knowledge and consent.”
“After claims were approved, the state workforce agencies paid the benefits by depositing the funds onto debit cards issued through the approving state workforce agency. The debit cards were mailed to residential addresses and P.O. Boxes located at addresses in Smyrna, Georgia and in Michigan that were controlled by [the two men]. After receiving the debit cards, both [the two men] withdrew the UI funds, in part, through ATM cash withdrawals.”
“Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial,” the press release continued.
The press release listed the organizations involved in the investigation and prosecution of the case:
This case is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Homeland Security Investigations, and U.S. Postal Inspection Service. Special assistance was provided by the Federal Bureau of Investigation – Sacramento, California.
Assistant U.S. Attorneys Tracia M. King and Thomas J. Krepp are prosecuting the case.
This case was sponsored by the Georgia Unemployment Insurance Task Force. The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefits Fraud.
