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COVID-19

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

Strategic Insights

— 2 min read

A federal grand jury in Maryland has returned an indictment charging six individuals with conspiracy to commit wire fraud and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance claims. The indictment, which was returned on October 24, 2023, and unsealed today upon the arrests of several defendants, alleges that the individuals obtained and attempted to obtain over $500,000 through the submission of false and fraudulent claims for UI benefits.

Key Takeaways:

  • The indictment charges six individuals with conspiracy to commit wire fraud and aggravated identity theft relating to the submission of fraudulent CARES Act unemployment insurance claims.
  • The defendants, including Lawrence Nathanial Harris, Ahmed Hussain, Zakria Hussain, Terry Chen, Kiara Smith, and Bryan Nushawn Ruffin, allegedly obtained and attempted to obtain over $500,000 through the submission of false and fraudulent claims for UI benefits.
  • The indictment alleges that the defendants possessed and used computers issued by Company 1 to access nonpublic UI data and databases maintained by the Maryland Department of Labor (MD-DOL).
  • The defendants used their access to MD-DOL databases to change information on existing UI claims, upload and approve documents in support of fraudulent UI claims, remove fraud holds on UI claims, and certify weeks for determining UI benefits.
  • If convicted, the defendants face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.
  • The case is part of the Maryland COVID-19 Strike Force, one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud.
  • The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.

Statistics:

  • The indictment charges six individuals with conspiracy to commit wire fraud and aggravated identity theft.
  • The defendants allegedly obtained and attempted to obtain over $500,000 through the submission of false and fraudulent claims for UI benefits.
  • The defendants are charged with 18 counts of wire fraud and aggravated identity theft.
  • If convicted, the defendants face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy.
  • The case is part of the Maryland COVID-19 Strike Force, which was established by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud.

Sources:

  • United States Attorney's Office for the District of Maryland
  • U.S. Department of Labor - Office of Inspector General
  • Federal Bureau of Investigation (FBI)
  • Maryland Department of Labor
  • U.S. Department of Justice

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