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COVID-19

Six Individuals Charged with Conspiracy to Commit Wire Fraud and Identity Theft Relating to COVID-19 Relief Fraud

Strategic Insights

— 2 min read

Erek L. Barron, the U.S. Attorney for the District of Maryland, announced the indictment of six individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance claims. The indictment alleges that the defendants and their co-conspirators engaged in a scheme to defraud the United States and multiple financial institutions by submitting false and fraudulent claims for UI benefits to the Maryland Department of Labor. The defendants are accused of obtaining and attempting to obtain over $500,000 through the submission of fraudulent UI claims.

Key Takeaways:

  • The indictment charges six individuals, including two Maryland state Department of Labor subcontractors, with conspiracy to commit wire fraud and identity theft relating to COVID-19 relief fraud.
  • The scheme allegedly involved submitting false and fraudulent claims for UI benefits to the Maryland Department of Labor, resulting in the disbursement of over $500,000.
  • The defendants allegedly used computers issued by Company 1 to access nonpublic UI data and databases maintained by the MD-DOL, allowing them to change information on existing UI claims and approve documents submitted in support of fraudulent UI claims.
  • If convicted, the defendants face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy, as well as additional charges of wire fraud and aggravated identity theft.
  • The indictment highlights the ongoing effort by law enforcement to combat pandemic-related fraud, including the work of the COVID-19 Strike Force, which is one of five nationwide strike forces established by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud.
  • The case is an example of the results being obtained by the U.S. Attorney's Office's COVID-19 Strike Force, which has been designated to fight pandemic-related fraud.
  • United States Attorney Erek L. Barron commended the DOL-OIG and the FBI for their work in the investigation and thanked the Maryland Department of Labor for its assistance.

Statistics:

  • The indictment alleges that the defendants and their co-conspirators obtained and attempted to obtain over $500,000 through the submission of fraudulent UI claims.
  • The defendants allegedly used computers issued by Company 1 to access nonpublic UI data and databases maintained by the MD-DOL.
  • The COVID-19 Strike Force has been designated to fight pandemic-related fraud, and has obtained results such as this indictment.
  • The U.S. Attorney's Office has thanked the Maryland Department of Labor for its assistance in the case.

Sources:

  • https://www.justice.gov/usao-md/pr/six-individuals-including-two-maryland-state-department-labor-subcontractors-facing
  • https://www.justice.gov/coronavirus
  • https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

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