Florida Man Admits to Fraudulently Obtaining More Than $1.5 Million in Unemployment Benefits and EIDL Loans

Summary

A press release of the U.S. Attorney's Office for the District of New Jersey, dated Thursday, September 14, 2023, announcing that Michael Blanc, 34, of Miami, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging wire fraud. According to documents filed in the case and statements in court, Blanc and others applied for unemployment insurance benefits and Economic Injury Disaster Loans in other people's names without their knowledge or consent, providing false information to state workforce agencies and the SBA. The release states that Blanc and others obtained more than $1.5 million through the scheme. The wire fraud charge carries a maximum potential penalty of 20 years in prison.

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PRESS RELEASE



Florida Man Admits to
Fraudulently Obtaining More Than
$1.5 Million in Unemployment
Benefits and EIDL Loans
Thursday, September 14, 2023

For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK, N.J. – A Florida man admitted that he illegally obtained more than $1.5 million
in government benefits, U.S. Attorney Philip R. Sellinger announced today.

Michael Blanc, 34, of Miami, Florida, pleaded guilty on Sept. 13, 2024, before U.S. District
Judge Michael A. Shipp in Trenton federal court on to an information charging him with
wire fraud.

“This defendant admitted taking advantage of government programs that were
specifically designed to provide needed financial assistance to Americans during the
COVID-19 pandemic,” U.S. Attorney Sellinger said. “Combatting pandemic fraud in all of
its forms is a top priority for this office and our law enforcement partners. Together, we
will continue to root out those who have exploited the suffering of others to line their
own pockets, and bring them to justice.”

According to documents filed in the case and statements made in court:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed
to provide emergency financial assistance to Americans suffering the economic effects
of the COVID-19 pandemic. It expanded states’ ability to provide assistance to many
workers impacted by COVID-19, including for workers who are not ordinarily eligible for
unemployment insurance benefits. The CARES Act also enabled the Small Business
Association (SBA) to offer funding through the COVID-19 Economic Injury Disaster
Loans (EIDL) program to business owners negatively affected by the COVID-19
pandemic.
Blanc and others applied for unemployment insurance benefits in others’ names without
their knowledge or consent and provided false information to induce state workforce
agencies to approve those applications. He and others applied for EIDLs in others’
names without their knowledge or consent and provided false information in the
applications to induce the SBA to approve the loan applications. Blanc and others
obtained more than $1.5 million through their fraudulent scheme.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in
prison and a fine of the greater of $250,000, twice the gross profits to Blanc or twice the
gross loss suffered by the victims. Sentencing is scheduled for Jan. 24, 2024.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of
Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in
New York, and the U.S. Treasury Inspector General for Tax Administration, under the
direction of Special Agent in Charge is Scott Moffit, Cybercrime Investigations Division,
with the investigation leading to today’s guilty plea. He also thanked the FBI, Miami
Division, and the New Jersey Department of Labor & Workforce Development for their
assistance.

The government is represented by Senior Trial Counsel Andrew Kogan of the U.S.
Attorney’s Office Cybercrime Unit in Newark.

blanc.information.pdf (117 KB)

Updated September 14, 2023

Topic
FINANCIAL FRAUD


Component
USAO - New Jersey
Press Release Number: 23-265


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