Georgia Man Convicted for $16M COVID-19 Unemployment Fraud

Summary

Justice Department press release from the Office of Public Affairs, dated August 15, 2025. A federal jury in Albany, Georgia convicted a Georgia man of conspiracy to commit mail fraud for a scheme to defraud the Georgia Department of Labor (GaDOL) of unemployment benefits. According to court documents and trial evidence, he and co-conspirators caused approximately 7,000 fraudulent unemployment insurance claims to be filed, resulting in more than $16 million in stolen benefits. The release says they used personally identifiable information from hundreds of identity theft victims and a fictitious employer account under his defunct business, with funds sent on prepaid debit cards. He faces a maximum of 20 years; sentencing will be scheduled later.

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PRESS RELEASE


Georgia Man Convicted for $16M COVID-
19 Unemployment Fraud
Friday, August 15, 2025

For Immediate Release
Office of Public Affairs

A federal jury in Albany, Georgia, convicted a Georgia man today for his participation in
a scheme to defraud the Georgia Department of Labor (GaDOL) out of millions of
dollars in benefits meant to assist unemployed individuals during the COVID-19
pandemic.

“The defendant and his co-conspirators orchestrated a scheme where they used stolen
identities to submit fraudulent unemployment claims in order to steal millions of dollars
of funds intended for the benefit of unemployed Americans,” said Acting Assistant
Attorney General Matthew R. Galeotti of the Justice Department’s Criminal
Division. “Such schemes are all too common, but the Criminal Division is resolved to
bring to justice fraudsters who seek to enrich themselves from the public fisc.”

“This trial conviction underlines our dedication and steadfast commitment to holding
individuals accountable who exploit federal relief programs for personal gain,” said
Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector
General (USPS-OIG). “As proven in this case, our criminal investigators along with our
law enforcement partners will work together and diligently pursue anyone who attempts
to exploit programs created to help legitimate people and businesses affected by the
global pandemic.”

“Malcolm Jeffery and his co-conspirators helped themselves to money earmarked for
unemployed Georgia residents already struggling during the pandemic,” said Inspector
in Charge Rodney M. Hopkins of the U.S. Postal Inspection Service (USPIS) Atlanta
Division. “Not only is he responsible for the depletion of that program’s funds, but he
used stolen personal information to commit the fraud. Postal Inspectors want criminals
to know, we are committed to investigating these cases and working with our partners
to make sure they feel the full weight of the law. These crimes will not go unanswered.”
“Malcolm Jeffrey engaged in a scheme with his co-defendants to defraud the Georgia
Department of Labor by filing numerous fraudulent unemployment insurance claims in
the names of identity theft victims and other individuals who were not entitled to such
benefits," said Special Agent in Charge Mathew Broadhurst of the U.S. Department of
Labor Office of Inspector General (DOL-OIG) Southeast Region. "The claims were filed
through a fictitious employer account that Jeffrey created in the name of his business,
resulting in substantial losses to the program. We will continue to work with our law
enforcement partners to protect the integrity of the U.S. Department of Labor’s
Unemployment Insurance program.”

According to court documents and evidence presented at trial, Malcolm Jeffrey, 34, of
Cordele, Georgia, and his co-conspirators, caused more than approximately 7,000
fraudulent unemployment insurance (UI) claims to be filed with the GaDOL, resulting in
more than $16 million in stolen benefits.

To execute the scheme, Jeffrey and his co-conspirators fabricated lists of purported
employees using personally identifiable information from hundreds of identity theft
victims and filed fraudulent UI claims on the GaDOL website under his defunct business,
Down N Dirty Transportation LLC (Down N Dirty). After Jeffrey opened an account to file
UI claims through GaDOL’s website for Down N Dirty’s purported employees, thousands
of claims were submitted through his employer account, which caused more than $16
million in fraudulent UI benefits to be disbursed. The stolen UI funds were then
distributed to Jeffrey and his co-conspirators via prepaid debit cards mailed to various
locations in the vicinity of Cordele.

The jury convicted Jeffrey of conspiracy to commit mail fraud. He faces a maximum
penalty of 20 years in prison. Sentencing will be scheduled at a later date. A federal
district court judge will determine any sentence after considering the U.S. Sentencing
Guidelines and other statutory factors.

DOL-OIG, IRS-CI, USPS-OIG, USPIS, USSS, HSI, and DHS-OIG investigated the case.

Trial Attorneys Lyndie Freeman, Siji Moore, and Kyle Crawford of the Criminal Division’s
Fraud Section prosecuted the case.

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
www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Updated August 15, 2025
Topics
CORONAVIRUS

DISASTER FRAUD

Components
Criminal Division
Criminal - Criminal Fraud Section


Press Release Number: 25-856


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