Plea Agreement — United States v. Allison (Dkt. 33, E.D. Tenn.)

Summary

In this plea agreement in Case No. 1:23-cr-44 in the Eastern District of Tennessee at Chattanooga, Randa Allison agreed to plead guilty to Count Two of the Superseding Indictment, conspiracy to commit wire and mail fraud under 18 U.S.C. §§ 1349, 1343, and 1341, and the United States agreed to dismiss Count One at sentencing. The stipulated facts say Randa Allison, a resident of Stevenson and Bridgeport, Alabama, worked with others to make mass false UI claims to Pennsylvania, Alabama, and Tennessee and caused approximately $100,225.00 in debit cards to be distributed to people not entitled to them. One fraudulent claim to Pennsylvania was for $23,454.00 in another person's name. The count carries up to 30 years in prison and a fine of not more than $1,000,000, and the agreement provides a money judgment of $100,225.00.

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE

AT CHATTANOOGA
UNITED STATES OF AMERICA )
)
) 1:23-cr-44
V )
) Judge Collier/Lee
)
RANDA ALLISON )
PLEA AGREEMENT

The United States of America, by the United States Attorney for the Eastern District of
Tennessee, and the defendant, Randa Allison (“the defendant” or Allison”), and the defendant’s
attorney, Brandon Raulston, have agreed upon the following:

1. Defendant will plead guilty to the following count in the Superseding Indictment:

(a) Count Two: Conspiracy to Commit Wire and Mail Fraud, 18 U.S.C. §§
1349, 1343, and 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. In consideration of the defendant’s guilty plea, the United States agrees to dismiss the
remaining count against this defendant in the Superseding Indictment (Count One) at the time of
sentencing,

3. The defendant has read the Superseding Indictment, 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.

Page I of 14

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:
Count Two: Conspiracy to Commit Wire and Mail Fraud, 18 U.S.C. §§ 1349,
1343, and 1341:
(1) The defendant combined, conspired, confederated and agreed with another;

(2) To knowingly devise or participate in a scheme to defraud in order to obtain
money or property;

(3) The scheme included a material misrepresentation or concealment of a
material fact;

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

(5) The defendant used mail, wire, radio, or television communications in
interstate commerce in furtherance of the scheme.

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 in the 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, RANDA ALLISON, was a resident of Stevenson and Bridgeport, Alabama.

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

“eorona 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
Page 2 of 14


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

Unemployment Insurance System: The Social Security Act of 1935 initiated the
unemployment insurance (“UY”) 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.

In the State of Tennessee, the agency responsible for overseeing the disbursement of
unemployment insurance is the Tennessee Department of Labor and Workforce Development
(“TNLWD”) which administers the unemployment benefits system on behalf of the federal
government, specifically the United States Department of Labor (“DOL”). The DOL funds all
substantive and administrative costs for the TNLWD.

In order to qualify for unemployment insurance, an applicant must complete an online
application on TNLWD’s website with the applicant’s name, date of birth, social security number,
and other personal information. The applicant can then file for weekly benefits by certifying online
that he/she is unemployed and eligible for benefits.

Other states, such as Pennsylvania, California, and Alabama, likewise provide
unemployment insurance to their citizens ina similar fashion. In the State of Pennsylvania, the
agency responsible for program oversight is the Pennsylvania Department of Labor and Industry,

(PADOL), In the State of California, the agency responsible for program oversight is the

Page 3 of 14


California Employment Development Department (CAEDD). In the State of Alabama, the agency

responsible for program oversight is the Alabama Department of Labor, (ADOL).

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:

1)

2)

3)

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 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.

Page 4 of 14


In the State of Pennsylvania, the PADOL, based in Harrisburg, Pennsylvania, administered
the UI program. Those seeking UI 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 UI
benefits eligibility. Once an application was approved, the PADOL typically distributed state and
federal Ul 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.

In the state of California, the CAEDD, based in Sacramento, California, administered the UI
program. Those seeking UI 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 CAEDD relied upon the information in the application to determine UI
benefits eligibility. Once an application was approved, the CAEDD 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 to the address the
claimant provided. Claimants could activate their debit card via telephone or online.

In the State of Alabama, the ADOL, based in Montgomery, Alabama, administered the Ul

program. Those seeking UI benefits submitted online applications. Applicants had to answer

Page 5 of 14


specific questions to establish eligibility to receive Ul 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 ADOL relied upon the information in the application to determine UI benefits
eligibility. Once an application was approved, the ADOL 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.

The Tennessee State UI Trust Fund is maintained by the US Treasury at the Federal Reserve
Bank. Funds collected for Unemployment Insurance benefits payments are deposited into Bank of
America, located in Nashville, TN and then wired to the Bank of America in New York, on behalf
of the US Treasury. They are transferred from Bank of America to the Federal Reserve Bank. The
Tennessee Department of Labor and Workforce Development (TLWFD) requests funds daily, from
the US Treasury, via the Automated Standard Application for Payments (ASAP) system. Upon
request, the funds are wired from the Federal Reserve Bank to the TLWFD paying account at First
Horizon Bank, located in Nashville, TN. First Horizon Bank then distributes the benefits payments
electronically, through direct deposit or to a debit card, as requested by the recipient.

Beginning in or about June 2020, and continuing until in or about June 2021, in the

Eastern District of Tennessee and elsewhere, the defendant, RANDA ALLISON, combined,
conspired, confederated, and agreed with others to devise and participate in a scheme to devise a
scheme and artifice 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,

Page 6 of 14

representations and promises. The conspiracy to defraud was in substance as follows:

The defendant 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.

She obtained the personal information of other individuals with which to make false U]
claims in various states. In some instances, the defendant obtained the permission of these
individuals to file claims using their information; in other instances, she filed the individuals’
information without their permission.

The defendant utilized a personal computer located in Alabama to submit false UT claims in
her own name to the state of Tennessee.

She also worked with others to submit false claims. Specifically, the defendant and others
utilized a personal cellphone or computer to submit false UI claims in various names to the states of
Pennsylvania, Alabama, and Tennessee.

The defendant, aided and abetted by others, submitted false UI claims to various states
on behalf of individuals she knew did not qualify for such benefits, and caused to be
distributed approximately $100,225.00 in debit cards to parties in the Eastern District of
Tennessee and elsewhere who were not entitled to receive the claims.

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

The defendant admits that she conspired with others to use the mail and interstate wire
communications in furtherance of the scheme to defraud described herein. Such communications
include, but are not limited to, the mailing caused by the defendant from PADOL to the Eastern
District of Tennessee on or about June 22, 2020, based on the defendant’s submission of a fraudulent

UI claim to the state of Pennsylvania in the amount of $23,454.00 using the name and persona]

Page 7 of 14

information of PM, who the defendant knew was not eligible to receive UI benefits from
Pennsylvania. The conspiracy in which the defendant participated 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 ri ght 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);
(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.

Page 8 of 14


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 3EI.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.[(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
not receive any reduction for acceptance of responsibility under Section 3E1.1 of the Sentencing

Guidelines.

Page 9 of 14


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. §§ 1349, 1343, and 1341. The properties to be
forfeited include, but are not limited to, the following:

MONEY JUDGMENT

A money judgment in the amount of $100,225.00, in favor of the United States and against
the defendant, RANDA ALLISON, which represents the proceeds the defendant personally
obtained as a result of an offense in violation of Title 18, United States Code, Section 1343.

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 a nominee, 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,

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

Page 10 of 14

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 fo the Clerk
of Court, The defendant also agrees that the full fine and/or restitution amount(s) shall be
considered due and payable immediately, If the 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
agtees 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
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:

Page 11 of 14

(a) If so 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) If so 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.

il. The defendant acknowledges that the principal benefits to the United States ofa 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
apreement 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,

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. If the United States violates the terms of this agreement,

the defendant will have the right to withdraw from this agreement. If the defendant violates the

Page 12 of 14


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
focal, 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,
representations, and statements whether made before, contemporaneous with, or after this

agreement, are null and void,

[SIGNATURES ON FOLLOWING PAGE]

Page 13 of 14


—
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Date

G-|-23

Date

Y- 2 — DOD.

Date

By:

FRANCIS M. HAMILTON II
UNITED STATES ATTORNEY

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Steven S. Net
Assistant United States Ato! ny

Rownrcha AY \\\KSat\

Randa Allison
Defendant

Brandon Raulston
Attorney for the Defendant

Page 14 of 14

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