Amended Plea Agreement — No. 1:23-cr-00043 (Dkt. 14, E.D. Tenn.)

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An amended plea agreement filed June 8, 2023 in United States v. Dana Adkins, also known as "Dana Morris," Case 1:23-cr-00043, in the U.S. District Court for the Eastern District of Tennessee, signed by Adkins, counsel Mitchell Carter and Assistant United States Attorney Steven S. Neff. Adkins agrees to waive indictment and plead guilty to a bill of information charging Count One, mail fraud under 18 U.S.C. § 1341, which carries up to 30 years, a fine of up to $1,000,000 and restitution. The factual basis describes the unemployment insurance system, the expansion of UI benefits beginning in March 2020 and Pennsylvania's program, overseen by the Pennsylvania Department of Labor and Industry.

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE
AT WINCHESFER ©) A TPA NOGA
UNITED STATES OF AMERICA
j #:23-cr- iS)

Judge A ke hi. “ji ee

DANA ADKINS;
Also known as, “Dana Morris”

<

Amended? PLEA AGREEMENT

The United States of America, by the United States Attorney for the Eastern District of
Tennessee, and the defendant, Dana Adkins (“the defendant” or “Adkins”), and the defendant’s
attorney, Mitchell Carter, have agreed upon the following:

1. Defendant will waive indictment by the Grand Jury and plead guilty to a bill of
information charging her with the following offense:

(a) Count One: Mail Fraud, 18 U.S.C. § 1341.

The punishment for this offense is a term of imprisonment of not more than 30 years;
a term of supervised release of not more than five years; a fine of not more than $1,000,000; a
special assessment of $100; forfeiture, if applicable; and restitution to the victims of the offense as
set forth below.

2. There are no remaining counts to be dismissed.

3. The defendant has read the Information, discussed the charges and possible defenses
with defense counsel, and understands the crime charged. The defendant is pleading guilty
because the defendant is in fact guilty.

In order to be guilty, the defendant agrees that each of the following elements of the crime(s)

must be proved beyond a reasonable doubt:
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Count One: Mail Fraud, 18 U.S.C. § 1341:

(1) The defendant knowingly devised a scheme to defraud in order to obtain
money or property or willfully participated in the scheme with knowledge of
its fraudulent nature;

(2) The defendant had the intent to defraud; and

(3) That in advancing, furthering or carrying out the scheme, the defendant used
the mails or a private commercial interstate carrier or caused the mails or
private commercial interstate carrier to be used.

4. In support of the defendant’s guilty plea, the defendant agrees and stipulates to the
following facts, which the defendant admits satisfy the offense elements. These are the facts
submitted for purposes of the defendant’s guilty plea. They do not necessarily constitute all of the
facts inthe case. Other facts may be relevant to sentencing. Both the defendant and the United
States retain the right to present additional facts to the Court to ensure a fair and appropriate
sentence in this case.

The defendant, DANA ADKINS, was a resident of Stevenson, Alabama.

Facts relating to COVID-19: In December 2019, a novel coronavirus, SARS-CoV-2 (the

“corona virus”), was first detected in Wuhan, Hubei Province of the People’s Republic of China
(“PRC”), causing outbreaks of the coronavirus disease COVID-19 that have since spread globally.
On January 31, 2020, the Secretary of Health and Human Services (“HHS”) declared a national
public health emergency under 42 U.S.C. § 247d as a result of the spread of COVID-19 to and
within the United States. On March 11, 2020, the Director-General of the World Health
Organization (“WHO”) characterized COVID-19 as a pandemic. On March 13, 2020, the
President of the United States issued Proclamation 9994 declaring a national emergency beginning

on March 1, 2020, as a result of the rapid spread of COVID-19 within the United States.

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Unemployment Insurance System: The Social Security Act of 1935 initiated the

unemployment insurance (“UI”) system. UI payments were intended to provide temporary
financial assistance to lawful workers who were unemployed through no fault of their own.
Beginning in or around March 2020, in response to the COVID-19 pandemic, several federal
programs expanded UI eligibility and increased UI benefits. The UI system is administered for the
federal government by the state employment offices, and each state administrates a separate
unemployment benefits program under guidelines established by federal law.

States such as Pennsylvania provide unemployment insurance to their citizens in a similar
fashion. In the State of Pennsylvania, the agency responsible for program oversight is the
Pennsylvania Department of Labor and Industry, (PADOL).

Federal Cares Act: On March 27, 2020, the Coronavirus Aid, Relief, and Economic

Security (CARES) Act was passed by Congress and signed into law by President Donald J. Trump.
The CARES Act included an economic relief package in excess of $2 trillion designed to help the
American people during the public health and economic crises related to the pending coronavirus
(“COVID-19”) pandemic. The CARES Act provides for three new types of unemployment
benefits:

The Pandemic Unemployment Assistance (“PUA”) program is a separate benefit program
designed to cover many people who do not qualify for regular unemployment during the COVID-19
pandemic. This includes self-employed individuals, independent contractors, and part-time
workers affected by COVID-19.

The Pandemic Emergency Unemployment Compensation (“PEUC”) program is an
extension of regular unemployment benefits that offers unemployment benefits up to thirteen (13)

weeks beyond the number of weeks available from regular unemployment. The CARES Act made

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these PEUC benefits available to the unemployed between March 29, 2020, and December 26,
2020.

The Federal Pandemic Unemployment Compensation (“FPUC”) program provides an extra
$600 per week in addition to regular or PUA unemployment payments between March 29, 2020 and
July 25,2020. The FPUC is available for everyone on regular unemployment or PUA, except
those on training benefits.

In the State of Pennsylvania, the PADOL, based in Harrisburg, Pennsylvania, administered
the UI program. Those seeking UJ benefits submitted online applications. Applicants had to
answer specific questions to establish eligibility to receive UI benefits, including their name, Social
Security Number (SSN), and mailing address, among other things. Applicants also had to self-
certify that they met a COVID-19-related reason for being unemployed, partially employed, or
unable to work. The PADOL relied upon the information in the application to determine UJ]
benefits eligibility. Once an application was approved, the PADOL typically distributed state and
federal UI benefits electronically to a debit card, which claimants could use to withdraw funds
and/or make purchases. These debit cards were sent via the U.S. Postal Service or by a private and
commercial interstate carrier to the address the claimant provided. Claimants could activate their
debit card via telephone or online.

Beginning in or about June 2020, and continuing until in or about January 2021, in the
Eastern District of Tennessee and elsewhere, the defendant, DANA ADKINS, aided and abetted by
others, devised and intended to devise a scheme and artifice to defraud, and willfully participated
with knowledge of its fraudulent nature in the scheme to defraud the government of the United
States, governments of various states, and others, and to obtain money and property by means of

false and fraudulent pretenses, representations and promises. The scheme and artifice to defraud

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and to obtain money so devised and intended to be devised by the defendant was in substance as
follows:

Beginning in or about June 2020, the defendant, DANA ADKINS, coordinated with others
who had knowledge about making false submissions to various states’ UI programs and worked
with them to create a system to make mass false UI claims to those states.

Between in or about July 2020, and January 2021, the defendant, DANA ADKINS, obtained
the personal information of other individuals with which to make false UI claims in various states.
The defendant obtained the permission of these individuals to file claims using their information.

Beginning in or about June 2020, the defendant, DANA ADKINS, aided and abetted by
others, utilized a personal computer located in Alabama to submit false UI claims in various names
to the state of Pennsylvania.

In or about July 2020, the defendant, DANA ADKINS, worked with others to assist with the
submission of false claims and referred false claimants to one another, The defendant and R.A.
worked together to submit false UI claims to the state of Pennsylvania.

Between in or about June 2020, and January 2021, the defendant, DANA ADKINS, utilized
a personal cellphone and computer to submit false UI claims in various names to the state of
Pennsylvania and caused the PADOL to mail debit cards to the Eastern District of Tennessee.

Between in or about June 2020 and January 2021 the defendant, DANA ADKINS,
submitted false UI claims to various states and caused to be distributed approximately $150,804 in
debit cards to parties who were not entitled to receive the claims.

Many of the above-referenced acts and events occurred in the Eastern District of Tennessee.

The defendant admits that she used and caused the use of the mail and private commercial

interstate carriers in furtherance of the scheme to defraud described herein. Such mailings include,

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but are not limited to, the mailing identified as Count One in the Information: i.e., a mailing of a debit
card made by PADOL or about July 6, 2020 based on a fraudulent UI claim to the state of
Pennsylvania in the amount of $4,149.00, using the name and personal information of KG, who the
defendant knew was not eligible to receive UI benefits from Pennsylvania, delivered to KG at an
address in the Eastern District of Tennessee. The defendant’s violation occurred in relation to and
involving a benefit authorized, transported, transmitted, transferred, disbursed, and paid in connection
with a presidentially declared major disaster and emergency.
5. The defendant understands that by pleading guilty the defendant is giving up several

rights, including:

(a) the right to plead not guilty;

(b) the right to a speedy and public trial by jury;

(c) the right to assistance of counsel at trial;

(d) the right to be presumed innocent and to have the burden of proof placed on the
United States to prove the defendant guilty beyond a reasonable doubt;

(e) the right to confront and cross-examine witnesses against the defendant;

(f) _ the right to testify on one’s own behalf, to present evidence in opposition to the
charges and to compel the attendance of witnesses;

(g) the right not to testify and to have that choice not used against the defendant; and

(h) the right to be indicted by a grand jury.

6. The parties agree that the appropriate disposition of this case would be the following

as to each count:

(a) The Court may impose any lawful term(s) of imprisonment, any lawful

fine(s), and any lawful term(s) of supervised release up to the statutory maximum(s);

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(b) The Court will impose special assessment fees as required by law; and
(c) The Court may order forfeiture as applicable and restitution as appropriate.

No promises have been made by any representative of the United States to the defendant as
to what the sentence will be in this case. Any estimates or predictions made to the defendant by
defense counsel or any other person regarding any potential sentence in this case are not binding on
the Court and may not be used as a basis to rescind this plea agreement or withdraw the defendant’s
guilty plea(s). The defendant understands that the sentence in this case will be determined by the
Court after it receives the presentence investigation report from the United States Probation Office
and any information presented by the parties. The defendant acknowledges that the sentencing
determination will be based upon the entire scope of the defendant’s criminal conduct, the
defendant’s criminal history, and pursuant to other factors and guidelines as set forth in the
Sentencing Guidelines and the factors set forth in 18 U.S.C. § 3553.

7. The defendant agrees to pay the special assessment in this case prior to sentencing.

8. Given the defendant’s agreement to plead guilty, the United States will not oppose a
two-level reduction for acceptance of responsibility under the provisions of Section 3E1.1(a) of the
Sentencing Guidelines. Further, if the defendant’s offense level is 16 or greater, and the defendant
is awarded the two-level reduction pursuant to Section 3E1.1(a), the United States agrees to move,
at or before the time of sentencing, the Court to decrease the offense level by one additional level
pursuant to Section 3E1.1(b) of the Sentencing Guidelines. Should the defendant engage in any
conduct or make any statements that are inconsistent with accepting responsibility for the
defendant’s offense(s), including violations of conditions of release or the commission of any
additional offense(s) prior to sentencing, the United States will be free to decline to make such

motion, to withdraw that motion if already made, and to recommend to the Court that the defendant

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not receive any reduction for acceptance of responsibility under Section 3E1.1 of the Sentencing
Guidelines.
9. Unless otherwise limited by an agreed preliminary order of forfeiture, the defendant
agrees to forfeit to the United States immediately and voluntarily any and all assets and property, or
portions thereof, which are in the possession or control of the defendant or the defendant’s
nominees that constitutes or is derived from, any proceeds obtained, directly or indirectly, as a
result of the offense in violation of 18 U.S.C. § 1341. The properties to be forfeited include, but are
not limited to, the following:
MONEY JUDGMENT | yy)
A money judgment in the amount of $150,804.00, in favor of the United States and against Z. =
the defendant, DANA ADKINS, which represents the proceeds the defendant personally attained | a
as a result of an offense in violation of Title 18, United States Code, Section 1341. ) on
The defendant further agrees to assist the United States fully in the identification, recovery,
and return to the United States of any other assets or portions thereof subject to forfeiture. The
defendant further agrees to make a full and complete disclosure of all assets over which the
defendant exercises control and those which are held or controlled by anominee. The defendant
agrees to forfeit all interests in the properties as described above and to take whatever steps are
necessary to pass clear title to the United States. These steps include, but are not limited to, the
surrender of title, the signing of a consent decree of forfeiture, and the signing of any other
documents necessary to effectuate such transfers. The defendant agrees not to object to any civil

or criminal forfeiture brought against these properties. The defendant agrees to take all such steps

to locate such property and to pass title to the United States before the defendant’s sentencing.

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In the event a money judgment forfeiture is ordered, the Defendant agrees to send all money
judgment payments to the United States Treasury. Defendant also agrees that the full money
judgment amount shall be considered due and payable immediately. _ If the defendant cannot pay
the full amount immediately and is placed in custody, the defendant agrees that the Bureau of
Prisons will have the authority to establish payment schedules to ensure payment of the money
judgment. The defendant further agrees to cooperate fully in efforts to collect on the money
judgment by set-off of federal payments, execution on non-exempt property, and any other means
the United States deems appropriate. The defendant and counsel also agree that the defendant may
be contacted post-judgment regarding the collection of the money judgment without notifying
defendant’s counsel and outside the presence of the defendant’s counsel.

10. The defendant agrees to pay all fines and restitution imposed by the Court to the Clerk
of Court. The defendant also agrees that the full fine and/or restitution amount(s) shall be
considered due and payable immediately. Ifthe defendant cannot pay the full amount immediately
and is placed in custody or under the supervision of the Probation Office at any time, the defendant
agrees that the Bureau of Prisons and the Probation Office will have the authority to establish
payment schedules to ensure payment of the fine and/or restitution. The defendant further agrees
to cooperate fully in efforts to collect any financial obligation imposed by the Court by set-off of
federal payments, execution on non-exempt property, and any other means the United States deems
appropriate. The defendant and counsel also agree that the defendant may be contacted post-
judgment regarding the collection of any financial obligation imposed by the Court without
notifying the defendant’s counsel and outside the presence of the defendant’s counsel. In order to
facilitate the collection of financial obligations to be imposed with this prosecution, the defendant

agrees to disclose fully all assets in which the defendant has any interest or over which the

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defendant exercises control, directly or indirectly, including those held by a spouse, nominee, or
other third party. In furtherance of this agreement, the defendant additionally agrees to the
following specific terms and conditions:

(a) Ifso requested by the United States, the defendant will promptly submit a
completed financial statement to the U.S. Attorney’s Office, in a form it provides and as it
directs. The defendant promises that such financial statement and disclosures will be complete,
accurate, and truthful.

(b) The defendant expressly authorizes the U.S. Attorney’s Office to obtain a credit
report on the defendant in order to evaluate the defendant’s ability to satisfy any financial obligation
imposed by the Court.

(c) Ifso requested by the United States, the defendant will promptly execute
authorizations on forms provided by the U.S. Attorney’s office to permit the U.S. Attorney’s Office
to obtain financial and tax records of the defendant.

11. The defendant acknowledges that the principal benefits to the United States of a plea
agreement include the conservation of limited government resources and bringing a certain end to
the case. Accordingly, in consideration of the concessions made by the United States in this
agreement and as a further demonstration of the defendant’s acceptance of responsibility for the
offense(s) committed, the defendant voluntarily, knowingly, and intentionally agrees to the
following: The defendant will not, whether directly or by a representative, request or receive
from any department or agency of the United States any records pertaining to the investigation or
prosecution of this case, including, without limitation, any records that may be sought under the
Freedom of Information Act, 5 U.S.C. Section 552, or the Privacy Act of 1974, 5 U.S.C. Section
552a.

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12. This agreement becomes effective once it is signed by the parties and is not contingent
on the defendant’s entry of a guilty plea. Ifthe United States violates the terms of this agreement,
the defendant will have the right to withdraw from this agreement. If the defendant violates the
terms of this agreement in any way (including but not limited to failing to enter guilty plea(s) as
agreed herein, moving to withdraw guilty plea(s) after entry, or by violating any court order or any
local, state or federal law pending the resolution of this case), then the United States will have the
right to void any or all parts of the agreement and may also enforce whatever parts of the agreement
it chooses. In addition, the United States may prosecute the defendant for any and all federal
crimes that the defendant committed related to this case, including any charges that were dismissed
and any other charges which the United States agreed not to pursue. The defendant expressly
waives any statute of limitations defense and any constitutional or statutory speedy trial or double
jeopardy defense to such a prosecution. The defendant also understands that a violation of this
plea agreement by the defendant does not entitle the defendant to withdraw the defendant's guilty
plea(s) in this case.

13. The United States will file a Supplement in this case, as is routinely done in every
case, even though there may or may not be any additional terms. If additional terms are included
in the Supplement, they are hereby fully incorporated herein.

14. This plea agreement constitutes the full and complete agreement and understanding
between the parties concerning the defendant's guilty plea to the above-referenced charge(s), and
there are no other agreements, promises, undertakings, or understandings between the defendant and
the United States. The parties understand and agree that the terms of this plea agreement can be

modified only in writing signed by all of the parties and that any and all other promises,

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STW AP By:

Date

5-5-4.
Date ( ; « - a 3

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Pa —

FRANCIS M. HAMILTON III
UNITED STATES ATTORNEY

Stu UL, S He Wy,

Steven S. Neff
Assistant United States Atiorney

1Oera Culllos

Dana Adkins
Defendant

L, #

_s Bb
Mitchell Carter -

Attorney for the Defendant

Case 1:23-cr-00043-CEA-SKL Document 14 Filed 06/08/23 Page 12 o0f12 PagelD #: 102

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