Former Claims Manager for Michigan Unemployment Insurance Agency Pleads Guilty In COVID-19 Fraud Scheme

Summary

A press release of the U.S. Attorney's Office for the Eastern District of Michigan, dated April 22, 2022, announcing that Jermaine Rose, 43, a former lead claims examiner for the Michigan Unemployment Insurance Agency (MUIA), pleaded guilty to one count of conspiracy to commit wire fraud in a pandemic-related unemployment insurance fraud scheme. According to the plea agreement, beginning in approximately April 2020 Rose used insider access to the MUIA claims database to approve claims submitted by co-conspirators, some in the names of identity theft victims and some of fictitious people. The release states that Rose was typically paid between $50 and $150 per claim and acknowledged knowing that many of the claims were fraudulent. Sentencing is set for July 21, 2022 before United States District Judge Linda V. Parker.

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                                     Department of Justice

                                        U.S. Attorney’s Office

                                    Eastern District of Michigan

FOR IMMEDIATE RELEASE                                                         Friday, April 22, 2022



   Former Claims Manager for Michigan Unemployment
Insurance Agency Pleads Guilty In COVID-19 Fraud Scheme
DETROIT - Jermaine Rose, a former lead claims examiner for the Michigan Unemployment
Insurance Agency (MUIA), pleaded guilty yesterday to conspiracy to commit wire fraud arising out of
his participation in a pandemic-related unemployment insurance fraud scheme, announced United
States Attorney Dawn N. Ison.

Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S.
Department of Labor Office of Inspector General and Special Agent in Charge John Marengo of the
United States Secret Service’s Detroit Field Office.

Jermaine Rose, 43, pleaded guilty to one count of conspiracy to commit wire fraud arising out of his
participation in a wide-ranging fraud scheme designed to provide Rose’s co-conspirators with
pandemic unemployment insurance benefits to which they were not entitled.

United States Attorney Ison stated “The theft of pandemic unemployment insurance benefits is
always a serious crime. The fact that an employee of the Michigan Unemployment Insurance Agency
facilitated this theft makes it all the more outlandish. The conduct here was a major breach of the
public trust, and my office is committed to bringing all those who abuse the public trust by
participating in Covid-19 fraud schemes to justice.”

“Jermaine Rose, while serving as a State of Michigan Unemployment Insurance Agency employee,
violated his duty as an employee to allow the unauthorized payment of Pandemic Unemployment
Assistance claims. During a time when so many deserving people suffered from pandemic-related
economic challenges, Rose exploited his position to release payment on fraudulent unemployment
insurance claims in exchange for illicit payments from his co-conspirators. We will continue to work
with our law enforcement and state partners to investigate those who exploit the UI system, “ stated
Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor Office of
Inspector General.

Special Agent in Charge Marengo stated, “We are thankful to the Department of Labor, Michigan
Unemployment Insurance Agency and the US Attorney’s Office for partnering with us in the
investigation and prosecution of this case. We will continue to work with our partners to protect our
nation’s financial infrastructure against individuals who take advantage of their position.”

According to the plea agreement, Rose was working as a lead claims examiner for the MUIA in April
2020, and as such, had electronic access to the MUIA claims database. Rose could use his credentials
to access and approve specific UI claims submitted to the agency.

The plea documents indicate that beginning in approximately April 2020, Rose entered into an
agreement with various individuals to defraud the MUIA by obtaining UI benefits through the
submission of false UI claims. Rose’s co-conspirators would electronically submit fraudulent claims
to MUIA in the names of various individuals, some of whom would be victims of identity theft and
some of whom were entirely fictitious people. These co-conspirators would make various false
statements in the applications attesting to the eligibility of these purported claimants and would
often upload fictitious documentation to support those fraudulent claims. The co-conspirators would
then communicate with Rose, either directly or through intermediaries, and identify the claims that
they had submitted. Rose would then use his insider access to the MUIA system to approve the
claims and release benefits. Most of the time, benefits would be electronically loaded onto Bank of
America debit cards and mailed to addresses controlled by Rose’s co-conspirators. Rose was often
paid for his services, typically in amounts between $50 and $150 per claim he touched.

While some of the individuals who approached Rose had legitimate UI claims and worked with him
solely to receive benefits on an accelerated schedule, many of the individuals with whom Rose
conspired submitted fraudulent UI claims in bulk. In his plea agreement, Rose acknowledged that he
was well aware that many of the claims that he authorized were fraudulent.

Sentencing is set for July 21, 2022, before United States District Judge Linda V. Parker.

The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The
investigation is being conducted jointly by the Department of Labor-Office of Inspector General and
the Secret Service, with assistance from the Michigan Unemployment Insurance Agency.
Topic(s):
Coronavirus
Component(s):
USAO - Michigan, Eastern
                                                                                   Updated April 22, 2022


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