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Department of Justice

Romanian National Pleads Guilty to $5 Million Covid Relief Fraud

SAN DIEGO – Constantin Sandu of Romania pleaded guilty in federal court today, admitting that he masterminded a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.
Department of Labor OIG

COVID-19: ETA Needs to Improve its Oversight of States' Efforts to Identify UI Fraud Using Deceased Persons' Social Security Numbers

As of September 2022, the OIG reported $45.6 billion in unemployment fraud, including $139.5 million from claims using deceased individuals' Social Security numbers. DOL OIG found that fraudulent unemployment insurance claims were filed using deceased individuals' Social Security Numbers by 10 State Workforce Agencies (SWAs). The Employment and Training Administration (ETA) failed to effectively monitor or report on these claims, which hindered efforts to identify high-risk fraud areas. DOL OIG found $586,782 in benefits paid, with $302,686 confirmed as fraudulent. Although no new...
Department of Justice

Ohio Man Sentenced to Prison for Unemployment Insurance and Bank Fraud

Darmani Hawkins, 21, of Aurora, was sentenced to 60 months in prison after pleading guilty to conspiracy to commit wire fraud and mail fraud; conspiracy to commit bank fraud; and mail theft as part of schemes to fraudulently obtain COVID-era state unemployment benefits and, separately, to steal checks from the mail, alter them, and deposit them.
Department of Labor OIG

COVID-19: ETA Needs a Plan to Reconcile and Return to the U.S. Treasury Nearly $5 Billion Unused by States for a Temporary Unemployment Insurance Program

Department of Justice

Eight Individuals Indicted and Arrested for Unemployment Benefits and Pandemic Unemployment Assistance (PUA) Fraud

SAN JUAN, P.R. – On October 27 and 28, 2021, the Federal Grand Jury in the District of Puerto Rico returned six separate indictments charging eight (8) individuals with fraud against the Unemployment Insurance and Pandemic Unemployment Assistance Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. These cases were investigated by various federal agencies, including the Federal Bureau of Investigation (FBI), the United States Postal Inspection Service (USPIS), the United States Department of Labor Office of Inspector General (USDOL-OIG), and the Social Security...
Department of Justice

Florida Man Who Bought Diamond-Studded “Grills” With Fraud Cash Sentenced to 71 Months in Federal Prison

A federal district judge in South Florida has sentenced an Orlando man to almost six years in prison for leading a scheme that defrauded California’s Employment Development Department of over $4 million in state and federal unemployment insurance benefit money.
Department of Justice

Middlesex County Women Charged with COVID-19 Fraud Scheme

NEWARK N.J. – A Middlesex County, New Jersey, woman was arrested on charges that she fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds and unemployment insurance benefits totaling $694,212.
Department of Justice

Middlesex County Women Charged with COVID-19 Fraud Scheme

NEWARK N.J. – A Middlesex County, New Jersey, woman was arrested on charges that she fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds and unemployment insurance benefits totaling $694,212.
Department of Labor OIG

Alert Memorandum: Employment and Training Administration Needs to Ensure State Workforce Agencies Report Activities Related to CARES Act Unemployment Insurance Programs

Department of Justice

Victorville Woman Sentenced to 2½ Years in Federal Prison for Using Inmates’ Info to Illegally Obtain Over $500,000 in COVID Jobless Aid

A San Bernardino County woman was sentenced today to 30 months in federal prison for fraudulently obtaining more than $500,000 in pandemic-related unemployment insurance benefits by using the names of inmates locked up the California state prison system.