State Contractor Sentenced in $3 million Unemployment Fraud Scheme (October 28, 2021)

Summary

Press release of the U.S. Attorney's Office for the Eastern District of Michigan dated October 28, 2021, announcing that Brandi Hawkins, 40, of Detroit was sentenced by United States District Judge Paul D. Borman to 58 months in federal prison and ordered to pay $3,793,186 in restitution to the State of Michigan. According to court records cited in the release, Hawkins was a contract employee of the State of Michigan Unemployment Insurance Agency who, between April and June of 2020, accepted bribes from outside actors to release payment on over seven-hundred claims, some filed with stolen identities. The release states the scheme caused the fraudulent disbursement of approximately $3.8 million and that over $200,000 in cash was seized in a search of the Hawkins residence.

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                                      Department of Justice
                                        U.S. Attorney’s Office
                                     Eastern District of Michigan


FOR IMMEDIATE RELEASE                                                     Thursday, October 28, 2021

   State Contractor Sentenced in $3 million Unemployment
                        Fraud Scheme
A Detroit woman was sentenced today to 58 months in federal prison after having pleaded guilty for
her role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the
State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during
the COVID19 pandemic, announced Acting United States Attorney Saima Mohsin.


Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S.
Department of Labor Office of Inspector General, Special Agent in Charge John R. Marengo, US
Secret Service, Rodney Hopkins, Postal Inspector in Charge of the Detroit Division, Special Agent in
Charge Timothy Waters, Federal Bureau of Investigation, Acting Special Agent in Charge Brian
Thomas, Internal Revenue Service-Criminal Investigation and Liza Estlund Olson, former acting
director of the Unemployment Insurance Agency.

Brandi Hawkins, 40, was sentenced before United States District Judge Paul D. Borman. As part of
her sentence, Judge Borman ordered Hawkins to pay restitution to the State of Michigan in the
amount of $3,793,186.

According to court records, Brandi Hawkins was a contract employee for the State of Michigan
Unemployment Insurance Agency. Her duties included reviewing, processing and verifying the
legitimacy of unemployment insurance claims. Between April and June of 2020, HAWKINS worked
with outside actors, known and unknown to law enforcement. Daily, those actors entered numerous
false claims into the State of Michigan’s Unemployment Insurance Agency system, many of which
were filed using stolen identities. These actors communicated with HAWKINS by cellular telephone
calls and texts. HAWKINS accepted bribes in return for releasing many of these claims. HAWKINS
used her insider access to fraudulently release payment on over seven-hundred claims, more than
ten of which involved claims filed using stolen identities. HAWKINS’s actions resulted in the
fraudulent disbursement of approximately $3.8 million of federal and state funds intended for
unemployment assistance during the pandemic. Had every fraudulent claim released by HAWKINS
been disbursed in full, the resulting loss of federal and state funds would have been over $12 million.

During the execution of a search warrant at Hawkins’ residence, over $200,000 in cash was seized.
Hawkins used proceeds from her crimes to purchase high-end handbags and other luxury goods.

“Hawkins exploited the pandemic to defraud the State of Michigan and United States for her own
personal gain,” said Acting US Attorney Mohsin. “This sentence should send a message to those who
seek to divert funds intended for those in need during what has been a very difficult period of
unemployment – you will be prosecuted”

“Hawkins used her position with the state of Michigan to steal millions from Michigan taxpayers and
today’s sentencing should serve as a warning to anyone thinking of committing a similar crime.”
stated Acting Special Agent in Charge Brian Thomas, IRS-Criminal Investigation, Detroit Field
Office. “IRS-Criminal Investigation is steadfast in protecting Covid-19 Pandemic related programs
geared toward assisting people and businesses in need.”
“Brandi Hawkins while employed as a contractor used her position to take advantage of the public
and defraud the State of Michigan. She was able to manipulated the Michigan Unemployment
Insurance Agency system for her and others’ personal gain. We will continue to work with our law
enforcement partners throughout Michigan to bring criminals like Hawkins to justice,” said John R.
Marengo, Special Agent in Charge, U.S. Secret Service, Detroit Field Office.

"Brandi Hawkins used her insider access as a State of Michigan contract employee to fraudulently
disburse millions of dollars in Pandemic Unemployment Assistance benefits. Today's sentencing
affirms the U.S. Department of Labor Office of Inspector General’s commitment to vigorously pursue
those who steal funds intended for individuals who lost their jobs during the COVID-19 pandemic.
We will continue to work with our federal and state partners to protect the integrity of
unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago
Region, U.S. Department of Labor Office of Inspector General.

"Brandi Hawkins used her position as a contractor with the state of Michigan to manipulate the
unemployment insurance system to benefit herself and her co-conspirators," said Timothy Waters,
Special Agent in Charge of the FBI's Detroit Division. "The FBI is proud to work with our law
enforcement partners to hold wrongdoers accountable and to protect the integrity of vital federal
assistance programs."

“Ms. Hawkins betrayed the trust given to her by her employer when she used her access to privileged
information in a scheme to steal from the government and the people of Michigan. Today’s
sentencing represents the commitment of law enforcement to bring those to justice who disrespect
the rule of law, hurting the American public,” said Inspector in Charge Rodney M. Hopkins.

“People who willfully commit unemployment insurance fraud should know that the State of
Michigan and the Unemployment Insurance Agency are serious about identifying and holding them
accountable for their actions,” said Liza Estlund Olson, former acting director of the Unemployment
Insurance Agency. “Through the great work of our federal and state partners along with UIA
investigators, we’re are working to root out fraudulent schemes like this one and protect
unemployment benefits for those who are legitimately entitled to them.”

The case was prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was
conducted jointly by the Department of Labor, Office of Inspector General, United States Secret
Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S.
Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor
and Economic Opportunity
Topic(s):                                             Component(s):
Coronavirus                                           USAO - Michigan, Eastern


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