Six Individuals Indicted for Conspiracy to Commit Wire Fraud and Identity Theft in CARES Act Unemployment Insurance Claims

Strategic Insights -

As part of a significant crackdown on pandemic-related fraud, six individuals have been charged with conspiracy to commit wire fraud and identity theft in connection with the submission of false and fraudulent unemployment insurance claims under the CARES Act. The indictment, unsealed on October 24, 2023, alleges that the defendants and their co-conspirators obtained and attempted to obtain more than $500,000 through the submission of fraudulent claims for benefits.

Key Takeaways:

  • The indictment charges six individuals with conspiracy to commit wire fraud and identity theft in connection with the submission of false and fraudulent unemployment insurance claims under the CARES Act.
  • The defendants, Lawrence Nathanial Harris, Ahmed Hussain, Zakria Hussain, Terry Chen, Kiara Smith, and Bryan Nushawn Ruffin, allegedly obtained and attempted to obtain more than $500,000 through the submission of fraudulent claims for benefits.
  • The indictment alleges that the defendants and their co-conspirators used their access to MD-DOL databases to change information on existing UI claims, upload and approve documents submitted in support of fraudulent UI claims, and remove fraud holds on UI claims.
  • If convicted, the defendants all face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy, with an additional two years for aggravated identity theft.
  • The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act.

Statistics:

  • More than $500,000: The amount allegedly obtained and attempted to be obtained by the defendants through the submission of fraudulent claims for benefits.
  • 6: The number of individuals charged with conspiracy to commit wire fraud and identity theft.
  • 20 years: The maximum potential sentence for wire fraud conspiracy.
  • 2 years: The mandatory additional sentence for aggravated identity theft.
  • 5: The number of strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act.

Sources:

  • Federal Bureau of Investigation (FBI) State Crime Alerts
  • Coronavirus Aid, Relief, and Economic Security (CARES) Act
  • United States Department of Labor -- Office of Inspector General
  • U.S. Department of Justice - National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721
  • NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.