Reports

Federal inmates Jason Haddox, age 40, and Jonathan Henry, age 32, pleaded guilty to conspiracy to commit wire fraud and mail fraud, and Henry also pleaded guilty to aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance benefits. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.

U.S. District Judge Brendan A. Hurson sentenced Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype”, age 29, of Laurel, Maryland, yesterday to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and for aggravated identity theft, related to a Maryland and California unemployment insurance (“UI”) fraud scheme totaling more than $1.5 million. Judge Hurson also ordered Makoge to forfeit over $297,400 and to pay restitution of $2,094,319.

HONOLULU – On September 5, 2023, Oseola Vakameilalo, was arraigned in federal court and pled not guilty to all 12 charges in an indictment relating to fraud in connection with the Pandemic Unemployment Assistance (PUA) unemployment insurance program.

U.S. District Judge Brendan A. Hurson sentenced Dementrous Von Smith, a/k/a “Meecho” and “El Meecho,” age 36, of Waldorf, Maryland, to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and aggravated identity theft, in relation to the submission of fraudulent CARES Act unemployment insurance claims in Maryland, California and Arizona totaling at least $1.5 million.

The federal CARES Act created new federal unemployment compensation (UC) programs including Pandemic Emergency Unemployment Compensation, Pandemic Unemployment Assistance, and Federal Pandemic Unemployment Compensation, increasing the weekly benefit amount, and expanding eligibility to claimants not otherwise eligible for unemployment benefits. From March 15, 2020, through June 30, 2022, the Unemployment Insurance Agency (UIA) paid $39.9 billion in UC claims from 5.8 million claims created for 3.48 claimants. This audit report is the fourth of a series of five audit reports on UIA claims...

During the COVID-19 pandemic, claims for unemployment insurance benefits increased significantly, and many claimants experienced lengthy delays in receiving payments. The unprecedented volume of claims made delays inevitable, but the Georgia Department of Labor’s (GDOL) claims management and customer service systems were also factors. GDOL should continue planned improvements to both.

CAMDEN, N.J. – A Camden County man today admitted to schemes to submit fraudulent Payroll Protection Program (PPP) and unemployment insurance applications.

On September 1, 2021, the Legislative Audit Commission adopted Resolution Number 158 requiring a performance audit of the unemployment programs administered by the Illinois Department of Employment Security (IDES) during the period of March 1, 2020, to September 6, 2021. The audit found that overpayments (which include fraud, non-fraud, and identity theft) were an issue in both the regular UI and PUA programs. IDES reported overpayments for FY20 to FY22 that totaled $5.24 billion; regular UI accounted for $2.04 billion and PUA accounted for $3.20 billion. Considering gross benefits associated...

SALT LAKE CITY, Utah – An indictment was unsealed after a California man was arrested and is scheduled to appear in a Salt Lake City federal courthouse. The eight count indictment charges the defendant for unlawfully collecting unemployment insurance during COVID-19 from California while living and working in Utah. He also allegedly assisted others in committing the same acts for a cut of their unemployment insurance funds administered under the CARES Act.

Jackson, Miss. – Judith Ann Middleton, 70, of Ridgeland, Mississippi, was indicted by a federal grand jury and charged with multiple violations of federal law involving unemployment insurance benefits fraud.