West Warwick Man Sentenced in Unemployment Fraud Scheme (February 24, 2023)
Summary
A press release from the U.S. Attorney's Office for the District of Rhode Island dated February 24, 2023, issued with Rhode Island Attorney General Peter F. Neronha. It announces that U.S. District Court Judge William E. Smith sentenced Richard Allen of West Warwick to 36 months of incarceration, 3 years of supervised release and $152,054 in restitution. According to the release, Allen pleaded guilty on June 29, 2022, to conspiracy to commit mail fraud, five counts of aggravated identity theft and two counts of theft of government money. It states that the conspiracy used stolen identities to file for unemployment benefits in states including Ohio, Massachusetts, Arizona and Texas, and that Allen failed to report income to the Social Security Administration while collecting Supplemental Security Income.
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“West Warwick Man Sentenced in Unemployment Fraud Scheme (February 24, 2023).”
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Department of Justice
U.S. Attorney’s Office
District of Rhode Island
FOR IMMEDIATE RELEASE Friday, February 24, 2023
West Warwick Man Sentenced in Unemployment Fraud
Scheme
PROVIDENCE, R.I. – A West Warwick man who admitted to a federal judge that he participated in a
conspiracy to use the stolen identities of others to gain COVID related unemployment insurance
benefits was sentenced today to three years in federal prison, announced United States Attorney
Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Richard Allen, 57, previously admitted to the court that he and other members of the conspiracy used
stolen personal identifying information of other individuals, to file for COVID-related unemployment
benefits in multiple states, including Ohio, Massachusetts, Arizona, and Texas. In the fraudulent
applications, co-conspirators listed addresses associated with Allen to which benefit payments by
check or debit card were mailed.
According to information presented to the court, Allen communicated with co-conspirators to
activate fraudulently obtained benefit debit cards; withdrew funds from the debit cards; and sent a
portion of the funds to co-conspirators, including via Bitcoin transactions.
Additionally, Allen admitted that he failed to report a change of income to the Social Security
Administration (SSA), and specifically stated on SSA documents that “I do not receive any other type
of income,” thus fraudulently continuing to collect Supplemental Security Income payments from the
SSA he began receiving in June 2018.
Allen, detained in federal custody, pleaded guilty on June 29, 2022, to conspiracy to commit mail
fraud, five counts of aggravated identity theft, and two counts of theft of government money. He was
sentenced today by U.S. District Court Judge William E. Smith to 36 months of incarceration to be
followed by 3 years of federal supervised release, and pay restitution in the amount of $152,054.
This case, as well as other instances of criminal activity related to fraudulent applications for
pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the
Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are
jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S.
Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant
Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity
Unit.
United States Attorney Cunha and Attorney General Neronha thank the Social Security
Administration, Office of Inspector General for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently
obtain unemployment benefits are urged to contact the Rhode Island State Police
at financialcrimes@risp.gov or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement
Task Force to marshal the resources of the Department of Justice in partnership with agencies across
government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force
bolsters efforts to investigate and prosecute the most culpable domestic and international criminal
actors and assists agencies tasked with administering relief programs to prevent fraud by, among
other methods, augmenting and incorporating existing coordination mechanisms, identifying
resources and techniques to uncover fraudulent actors and their schemes, and sharing and
harnessing information and insights gained from prior enforcement efforts. For more information on
the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by
calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-
5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-
disaster-complaint-form.
###
Topic(s): Contact:
Coronavirus Jim Martin (401) 709-5357
Financial Fraud
Press Release Number:
Component(s): 23-22
USAO - Rhode Island
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