Fraudulent Scheme to Obtain COVID-19 Unemployment Benefits Exposed

Strategic Insights -

Joseph Osei, a 30-year-old Canadian citizen, has been sentenced to 54 months in prison for engaging in a scheme to obtain COVID-19 pandemic-related unemployment insurance benefits using stolen identities. The trial evidence revealed that Osei fraudulently obtained over $200,000 in unemployment benefits from the New York State Department of Labor between August 2020 and November 2020. The scheme also extended to defrauding state workforce agencies in California, Rhode Island, and Arizona, using stolen identities to apply for and obtain pandemic unemployment insurance benefits.

Key Takeaways:

  • Joseph Osei was sentenced to 54 months in prison for engaging in a fraudulent scheme to obtain COVID-19 pandemic-related unemployment insurance benefits.
  • Osei used stolen identities to obtain over $200,000 in unemployment benefits from the New York State Department of Labor between August 2020 and November 2020.
  • The scheme also involved defrauding state workforce agencies in California, Rhode Island, and Arizona.
  • Osei was found guilty on all counts, including four counts of mail fraud, one count of access device fraud, and two counts of aggravated identity theft.
  • The court ordered Osei to pay restitution to the State of New York and State of Arizona in the total amount of $211,360.
  • USPIS Inspector in Charge Ketty Larco-Ward stated that the relief programs stolen from by Osei were created as lifelines during the COVID pandemic and were used to victimize unsuspecting people.
  • HSI Special Agent in Charge Erin Keegan said that the prosecution of Osei will serve as a deterrent to anyone else who thinks about trying to steal from New Yorkers and government programs.
  • Jonathan R. Mellone, Special Agent-in-Charge, Northeast Region, USDOL-OIG, stated that safeguarding the integrity of the unemployment insurance program remains a top priority for the Office of Inspector General.

Statistics:

  • Osei obtained over $200,000 in unemployment benefits from the New York State Department of Labor.
  • The scheme also involved defrauding state workforce agencies in California, Rhode Island, and Arizona.
  • Osei was ordered to pay restitution to the State of New York and State of Arizona in the total amount of $211,360.
  • The court sentenced Osei to 54 months in prison.
  • Osei was found guilty on four counts of mail fraud, one count of access device fraud, and two counts of aggravated identity theft.

Sources:

  • United States Attorney's Office for the Northern District of New York
  • United States Postal Inspection Service (USPIS)
  • Homeland Security Investigations (HSI)
  • Office of Inspector General, United States Department of Labor (USDOL-OIG)
  • United States Customs and Border Protection's New York Field Office
  • New York State Department of Labor's Office of Special Investigations