Indictment Unsealed Against Woman Charged with Multi-Faceted Fraud Scheme

A federal grand jury has indicted Hopelyn Rhiannon Ausk, 24, of Stockton, California, on 17 counts of mail fraud, bank fraud, aggravated identity theft, and obstruction of justice. According to the indictment, Ausk engaged in two separate fraud schemes that targeted the Unemployment Insurance program and identity-theft victims in Northern California. The schemes resulted in significant financial harm and damage to the program.

Ausk's first scheme targeted the Unemployment Insurance benefit program administered by the California Employment Development Department (EDD) in 2020. She obtained the personally identifiable information (PII) of at least 20 individuals and filed fraudulent unemployment insurance benefit claims under their identities. EDD approved many of these applications and mailed benefits in the form of prepaid debit cards to addresses under Ausk's control. Once received in the mail, she activated the cards and spent the benefits on herself.

The second scheme involved theft of U.S. mail, identity theft, and fraudulent use of stolen bank cards between 2019 and 2020. Ausk manufactured counterfeit U.S. Postal Service keys to break into cluster mailboxes and steal mail containing victim PII, financial information, and bank cards. She then used the bank cards and victim accounts to obtain cash and purchase merchandise for herself. Some of the stolen mail also included U.S. Economic Impact Payment checks (i.e., stimulus checks) mailed to California residents.

Key Takeaways:

• Ausk faces 17 counts of mail fraud, bank fraud, aggravated identity theft, and obstruction of justice.
• The indictment alleges that Ausk engaged in two separate fraud schemes that targeted the Unemployment Insurance program and identity-theft victims in Northern California.
• The schemes resulted in significant financial harm and damage to the program, including the theft of U.S. mail and identity theft.
• At least 20 individuals' personally identifiable information (PII) was used to file fraudulent unemployment insurance benefit claims.
• Ausk manufactured counterfeit U.S. Postal Service keys to break into cluster mailboxes and steal mail.
• The stolen mail included U.S. Economic Impact Payment checks (i.e., stimulus checks) mailed to California residents.
• Ausk faces a maximum statutory penalty of 20 years in prison for mail fraud, 30 years in prison for bank fraud, and 20 years in prison for obstruction of justice.
• She also faces a mandatory additional sentence of two years in prison if convicted of aggravated identity theft.

Statistics:

• 17 counts of mail fraud, bank fraud, aggravated identity theft, and obstruction of justice have been charged against Ausk.
• The indictment alleges that Ausk engaged in two separate fraud schemes.
• At least 20 individuals' personally identifiable information (PII) was used to file fraudulent unemployment insurance benefit claims.
• $250,000 is the maximum fine on each count.

Sources:

• United States Attorney's Office for the Eastern District of California
• United States Postal Inspection Service
• Stockton Police Department
• California Employment Development Department, Investigation Division