Criminal Complaint — United States of America v. Samuel George Baker, Case 2:20-cr-20433 (Dkt. 1, E.D. Mich.)

Summary

A criminal complaint and supporting affidavit against Samuel George Baker in the U.S. District Court for the Eastern District of Michigan, magistrate case 2:20-mj-30299, carried under the header of case 2:20-cr-20433 as ECF No. 1, filed 08/17/20. It charges mail fraud, aggravated identity theft and access device fraud from June 2020 in Oakland County. The affidavit of FBI Special Agent Julia MacBeth says Independent Bank reported large daily ATM cash withdrawals using prepaid debit cards, and that Baker was identified as the person making them. It states that twelve of the twenty-eight cards were issued by US Bank to receive Pennsylvania unemployment benefits totaling approximately $158,911.00, and that three Michigan unemployment claims filed by Baker paid $37,760. It was sworn before Elizabeth A. Stafford, U.S. Magistrate Judge.

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Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.1 Filed 08/17/20 Page 1 of 16

AUSA: | Ryan A. Particka Telephone: (313) 348-8178
AO 91 (Rev. 11/11) Criminal Complaint Special Agent: Julia MacBeth Telephone: (313) 919-1373
UNITED STATES DISTRICT COURT
for the

Eastern District of Michigan

United States of America

Case: 2:20—mj—30299

Vv.
Assigned To : Unassigned
Assign. Date : 8/17/2020
SAMUEL GEORGE BAKER e
IN RE: SEALED MATTER (MAW)
CRIMINAL COMPLAINT
I, the complainant in this case, state that the following is true to the best of my knowledge and belief.
On or about the date(s) of June 2020 - Present in the county of Oakland in the
Eastern District of Michigan , the defendant(s) violated:
Code Section Offense Description
18 U.S.C. § 134] Mail Fraud
18 U.S.C. §1028A Aggravated Identity Theft
18 U.S.C. §1029 Fraud and Related Activity in Connection with Access Devices

This criminal complaint is based on these facts:

Continued on the attached sheet. YY B

we 7 = Complainant ’s signature
ulia MacBeth, Special Agent, FBI

7 Printed name and title

Swom to before me and signed in my presence
and/or by reliable electronic means. “ p - ! a Stopford.

Date: _8/17/2020 Judge's signature

City and state: Detroit, MI Elizabeth A. Stafford, U.S. Magistrate Judge

Printed name and title
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.2 Filed 08/17/20 Page 2 of 16

AFFIDAVIT INSUPPORT OF A COMPLAINT

I, Julia MacBeth, Special Agent for the Federal Bureau of Investigations,
being duly sworn, state as follows:

INTRODUCTION AND AFFIANT BACKGROUND

1. [ama Special Agent of the FBI and, as such, an investigative or law
enforcement officer of the United States within the meaning of Section
2510(7) of Title 18 of the United States Code. Iam empowered to conduct
investigations of and to make arrests for offenses enumerated in Title 18 of
the United States Code.

2. Ihave been employed by the FBI since May 2016. Prior to joining the FBI, I
was a Federal Air Marshal from December 2010 until April 2016. Iearned
a Bachelor’s degree in criminal justice from Western Michigan University
and a Master’s degree in criminal justice from Tiffin University. Ihave
received law enforcement training at the Federal Law Enforcement Training
Center (FLETC) and the FBI Academy. During my employment with the
FBI, I have investigated federal crimes involving mail fraud, wire fraud,
money laundering, investment fraud, identity theft, and various other criminal
matters. At all times during the investigation described in this affidavit, I

have been acting in an official capacity as a Special Agent of the FBI.
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.3 Filed 08/17/20 Page 3 of 16

PURPOSE OF AFFIDAVIT

3. This affidavit is made in support of a criminal complaint and arrest warrant
for SAMUEL GEORGE BAKER of violations of Title 18, U.S.C. §1341
(Mail Fraud); Title 18, U.S.C. §1029 (Fraud and Related Activity in
Connection with Access Devices); and Title 18, U.S.C. §1028A (Aggravated
Identity Theft).

4. Based on my training and experience and the facts set forth in this affidavit,
there is probable cause to believe that BAKER, a resident of the Eastern
District of Michigan, is responsible for knowingly possessing and using
fraudulently-obtained access devices containing victims’ unemployment
benefits to execute a scheme to defraud within the Eastern District of
Michigan. There is also probable cause to believe that this scheme involved
the use of mail to execute the fraud.

5. This affidavit is submitted for securing a criminal complaint and arrest
warrant; therefore, this affidavit does not contain every fact that I have
learned during the course of the investigation. I have only set forth the facts
necessary to establish probable cause to believe that BAKER violated the
statutes identified above. The information contained in this affidavit is based

upon my personal knowledge, traming and experience, as well as the
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.4 Filed 08/17/20 Page 4 of 16

combined knowledge, traming and experience of other law enforcement
officers and agents with whom I have had discussions.

6. Title 18, U.S.C. § 1341 criminalizes the use of mail for the purpose of
executing or attempting to execute any scheme or artifice to defraud, or for
obtaining money or property by means of false or fraudulent pretenses,
representations, or promises.

7. Title 18, U.S.C. §1029(a)(2) criminalizes using one or more unauthorized
access devices during any one-year period to obtain anything of value
aggregating $1,000 or more. An access device is defined as any card, account
number, personal identification number, or other means of account access
that can be used, alone or in conjunction with another access device, to obtain
money, goods, services, or other things of value, or can be used to initiate a
transfer of funds. An unauthorized access device means any access device
that is lost, stolen, expired, revoked, canceled, or obtained with intent to
defraud.

8. Title 18, U.S.C. §1028A criminalizes knowingly transferring, possessing, or
using, without lawful authority, a means of identification of another person
during the course of certain other felony violations, to include the above

described mail fraud.
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.5 Filed 08/17/20 Page 5 of 16

BACKGROUND

9. This joint investigation conducted by the FBI, the Department of Labor-
Office of Inspector General, and the Bloomfield Township Police
Department has revealed, as explained in more detail below, that SAMUEL
GEORGE BAKER, is executing a scheme to defraud by fraudulently
obtaining unemployment benefits issued by the State of Pennsylvania in
various victims’ names on prepaid debit cards and then using the cards to
make cash withdrawals. BAKER caused the prepaid benefit cards to be sent,
via mail, to his residence and various other residences in the Eastern District
of Michigan. In addition, BAKER furthered the fraud by applying for and
receiving unemployment benefits from the State of Michigan by means of
falsifying social security numbers and other information provided in the
application(s).

10. The federal government is currently providing substantial assistance to the
States through the Families First Coronavirus Response Act (FFCRA), which
became law on March 18, 2020, and provides additional flexibility for State
unemployment insurance agencies and additional administrative funding to
respond to the COVID-19 pandemic. Additionally, the Coronavirus Aid,
Relief, and Economic Security (CARES) Act was signed into law on March

27,2020, and further expands the ability of the States to provide
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.6 Filed 08/17/20 Page 6 of 16

unemployment insurance (UI) for many workers impacted by the COVID-19
pandemic, including workers who are not ordinarily eligible for
unemployment benefits. The Federal Pandemic Unemployment
Compensation (FPUC) program was created under the aforementioned
statutes and allowed eligible individuals who are collecting certam UI
benefits, including regular unemployment compensation, to receive an
additional $600 in federal benefits per week for weeks of unemployment
ending on or before July 31, 2020. Additionally, the Pandemic Emergency
Unemployment Compensation (PEUC) program has been created and allows
those who have exhausted benefits under regular unemployment
compensation or other programs to receive up to 13 weeks of additional
federally funded benefits.
11.Normally (Gin the absence of fraud), an unemployed worker initiates an
unemployment claim. Currently, the overwhelming majority of
unemployment claims are filed online through state-organized websites. In
most cases, in order to be eligible for unemployment benefits, the worker
must demonstrate a certain level of earnings in several quarters immediately
preceding the application. The amount of unemployment benefits that an

unemployment claimant might be eligible for depends on a variety of
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.7 Filed 08/17/20 Page 7 of 16

factors, including, but not limited to, the length of his or her previous
employment and the amount of wages he or she earned.

12.One way in which UI benefits are provided in the State of Pennsylvania to a
claimant is through the use of a prepaid debit card, issued by US Bank and
sent to the claimant through the mail. In the State of Michigan, the prepaid
cards are issued by Bank of America, but are also mailed to the claimant.
The unemployment benefits are loaded onto the debit card electronically,
and additional benefits are loaded onto the card electronically every two
weeks. Alternatively, a worker can provide a bank routing number and bank
account in which to have their unemployment benefits directly deposited
electronically. Additional benefits are then deposited into the account
electronically every two weeks.

13 In an effort to prevent and otherwise inhibit fraud, data is captured
surrounding the interaction between an individual and the unemployment
benefits system. Each time a claim is accessed in the system, it creates a
digital footprint of sorts. Some of the data that is collected includes the dates,
times, Internet Protocol (IP) address, and Media Access Control (MAC)
address associated with the device accessing the claim. This information is
tied to the user-entered information captured to facilitate the claim (i.e. name,

address, social security number, BOA or other bank account numbers, bank
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.8 Filed 08/17/20 Page 8 of 16

routing numbers, etc.). It is through the analysis of this data that the
investigating agents can identify fraudulent trends and tendencies associated
with certain claims.

PROBABLE CAUSE

State of Pennsylvania Unemployment Claims

14. In July 2020, a Fraud Investigator for Independent Bank in Michigan
contacted the FBI to report ongoing suspicious activity. According to the
bank investigator, an unidentified suspect (later identified by law
enforcement as BAKER) had been making large daily cash withdrawals at
Independent Bank Automated Teller Machines (ATMs) throughout Oakland
County, Michigan. At that time, BAKER was using the same thirteen (13)
US Bank and Card.com prepaid debit cards to make the withdrawals, and
was doing so daily using Independent Bank drive-up ATMs, either prior to
the bank branches opening or after the bank branches had closed. The
thirteen cards were typically used to make two $500 withdrawals each
($1,000 per card, each day). By the end of July 2020, Independent Bank had
identified 28 debit cards used by BAKER routinely. One of these cards
commonly used by BAKER was a US Bank card ending in 5223.

15 Independent Bank provided the FBI still photos taken from the closed-circuit

television (CCTV) cameras located on the ATMs. BAKER was almost
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.9 Filed 08/17/20 Page 9 of 16

always observed driving a new 2020 black Dodge Durango. Also, BAKER
commonly wore a camouflage cap and black medical-style facemask.

16.On July 17,2020, the FBI referred these suspicious incidents to a
Bloomfield Township Police Department Detective assigned as an FBI
Detroit Metro Identity Theft and Financial Crimes Task Force Officer
(TFO). This FBI TFO was able to positively identify the previously-
unknown suspect as BAKER through the use of surveillance techniques and
with the assistance of other Bloomfield Township Police Officers. During a
routine traffic stop made after BAKER made withdrawals at the Bloomfield
Hills Independent Bank branch ATM, BAKER provided the officer with a
State of Georgia driver’s license in the name of SAMUEL BAKER. The
Michigan license plate on the black Dodge Durango BAKER was driving
was EDM 9908, which is a registered in the State of Michigan to BAKER at
his residence, 17830 Violet Dr, Southfield, Michigan.

17. Further investigation revealed that several of the cards used to make
withdrawals by BAKER were issued in the names of various individuals on
behalf of the State of Pennsylvania for the purpose of receiving state and
federal unemployment benefits.

18. US Bank records revealed that twelve of the twenty-eight cards that had

been identified as cards used by BAKER to make cash withdrawals, were
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.10 Filed 08/17/20 Page 10 of 16

cards that had been issued by US Bank for the purpose of receiving
Pennsylvania unemployment benefit payouts. Included in the twelve cards
issued by the State of Pennsylvania was the card ending 5223. The total
amount of state and federal unemployment funds issued on these twelve
cards totaled approximately $158,911.00. As of August 10,2020,
approximately $147,061.00 of the total amount issued on the cards had been
withdrawn via ATM. It is believed that the remainder of the 28 cards known
to be used by BAKER to make withdrawals also contain(ed) unemployment
benefits; however, that aspect of the investigation remains ongoing. Based
upon conversations with Independent Bank Investigators, it is estimated that
the total available balance across all of the cards was likely above $300,000.

19.According to records provided by US Bank, the debit card ending in 5223,
as referenced above, was issued in the name of a victim, herein known as
D.B. Further, all deposits into the account were from the Pennsylvania
Department of Treasury and appeared to be the result of state and federal
unemployment benefit payments. This card was delivered, via mail, to
BAKER’s Violet Drive, Southfield residence.

20.The Department of Labor provided records of the unemployment benefits
claim filed in the name of D.B. in the State of Pennsylvania. The claim, filed

on June 25, 2020, listed D.B.’s residential address as 755 Greenhills Road,
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.11 Filed 08/17/20 Page 11 of 16

Irwin, Pennsylvania, witha mailing address of 17830 Violet Drive,

Southfield, Michigan. The claim requested that benefit payments be issued

via debit card. The phone number submitted on the application was a 248-

area code phone number, which is an area code used in Oakland County,

Michigan.

21.Records provided by the Department of Labor for the unemployment

benefits claim in the State of Pennsylvania for D.B., revealed the following

payouts were made on a US Bank card issued for D.B.:

Date Amount | Source of Funds

6/26/2020 | $2,925.00 | State of PA Unemployment Funds
6/26/2020 | $7,200.00 | Cares Act Federal Funds
6/29/2020 $195.00 | State of PA Unemployment Funds
6/29/2020 $600.00 | Cares Act Federal Funds

Total $10,920.00

22.According to US Bank, a total of $10,889.00 was withdrawn from the debit

card ending 5333 between July 14, 2020 and July 22, 2020.

23.CCT V footage provided by Independent Bank, recorded on July 17, 2020, at

approximately 5:58 A.M. from the Farmington Hills Independent Bank

branch shows BAKER conducting transactions in the same black facemask

and camouflage hat, as he was wearing when previously identified.

10
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.12 Filed 08/17/20 Page 12 of 16

Consistent with this are US Bank records indicating that two withdrawals
were made on the debit card ending in 5223 for $500.00 each on July 17,
2020 at approximately 5:58 A.M. from an Independent Bank branch located
in Farmington Hills.

24. The FBI contacted victim D.B., who stated that he/she never filed an
unemployment claim nor had anyone file on his/her behalf in the State of
Pennsylvania. D.B.,a resident of Virginia, had not lived in the State of
Pennsylvania for many years. D.B. had been employed since the start of the
pandemic and had no reason to file for unemployment benefits. D.B. had not
received a debit card containing unemployment benefits and therefore had
never made any cash withdrawals on any such debit card. D.B. verified that
it was his/her correct social security number and date of birth used to file the
claim made in Pennsylvania.

25. Records and information obtained by the FBI indicate that since the start of
this scheme to defraud, BAKER purchased a rare Rolex watch for $44,500
cash, all in denominations smaller than $100 bills from a Southfield pawn
shop in August 2020. This is significant because according to the
Independent Bank Investigator, most bank ATMs, to include Independent

Bank’s ATMs, do not issue $100 bills. In addition, in July 2020, BAKER

11
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.13 Filed 08/17/20 Page 13 of 16

made two cash payments for approximately $53,000 and $17,700 to the
same pawnshop for the purpose of paying off debt obligations.

State of Michigan Unemployment Claims

26. A Special Agent with the Department of Labor through the use of records
received from the State of Michigan Unemployment Agency, identified
three unemployment benefit claims, made in the State of Michigan, filed by
BAKER in his true name and date of birth. However, on at least two of
these claims, BAKER falsified the claims by using fraudulent social security
numbers, addresses and driver’s licenses.

27. According to State of Michigan Unemployment Agency records, BAKER
filed the first State of Michigan unemployment benefit claim on or around
May 8, 2020, using his true social security number and address, however
attached to the claim was an altered Michigan driver’s license. The fictious
driver’s license contained an expired Michigan driver’s license number
previously issued to BAKER, which expired in July 2015. BAKER does not
have a current driver’s license in the State of Michigan. This driver’s license
contained a photo of BAKER and his Violet Drive, Southfield address. The
benefits for this claim were requested to be issued via direct deposit to a

PNC Bank account.

12
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.14 Filed 08/17/20 Page 14 of 16

28. According to State of Michigan Unemployment Agency records, a second
claim was filed by BAKER on or around May 15, 2020, which listed a fake
social security number and an address of 560 Alter Drive, Detroit, Michigan.
Digitally attached to the application was another fraudulent driver’s license,
containing the same driver’s license number as BAKER’s expired license;
however, the photo was that of a different unknown person. The benefits for
this claim were requested to be issued via a prepaid Bank of America debit
card. Additionally, submitted with this claim was a digitally-manufactured
social security card containing a fake social security number.

29. According to State of Michigan Unemployment Agency records, a third
claim was filed by BAKER on or around May 15,2020, which listed a fake
social security number and an address of 25029 Champlaign Drive,
Southfield, Michigan. Also, digitally attached to the application was a
fraudulent driver’s license containing the same expired driver’s license
number previously used by BAKER in the first claim; however, the photo
was that of a different unknown person. The benefits for this claim were
requested to be issued via a prepaid Bank of America debit card.
Additionally, submitted with this claim was a digitally-manufactured social

security card containing a fake social security number.

13
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.15 Filed 08/17/20 Page 15 of 16

30. In all three claims, the fraudulent driver’s licenses all contained the same
driver’s license number, name, date of birth, document discriminator
number, and signature, which appears to be a digitally made signature. The
licenses all appear to be digitally manipulated.

31.The information captured while accessing the unemployment system for
these claims in the State of Michigan, indicates all three of these claims were
consistently accessed from the same model iPhone.

32. According to the Michigan Unemployment Agency, if the claimant chooses
to have unemployment benefits deposited onto a debit card, that card is
provided by Bank of America and is also mailed the next business day
following the date the claim is filed. Two of the claims filed by BAKER
were issued benefits via Bank of America debit cards.

33. The benefits received by BAKER for the three fraudulent State of Michigan
unemployment claims totaled $37,760.

CONCLUSION

34. Based on the investigation thus far, including the facts set forth above, your
affiant submits that there is probable cause to believe that SAMUEL
GEORGE BAKER, has executed a scheme to defraud and while doing so
knowingly possessed and used, without lawful authority, a means of

identification of another person. In addition, your affiant submits that there

14
Case 2:20-cr-20433-PDB-APP ECF No.1, PagelD.16 Filed 08/17/20 Page 16 of 16

is probable cause to believe that BAKER, within a one-year period, used one
or more unauthorized access devices to obtain more than $1,000, and did so
knowingly and with intent to defraud. There is also probable cause to believe
that the mail was used to execute the scheme to defraud.

35. Therefore, your affiant believes that probable cause exists that SAMUEL
GEORGE BAKER violated Title 18, U.S.C. §1341 (Mail Fraud); Title 18,
U.S.C. §1028A (Aggravated Identity Theft); and Title 18, U.S.C. §1029(a)(2)

(Fraud and Related Activity in Connection with Access Devices).

Respectfully submitted,

ulia MacBeth

' Special Agent
Federal Bureau of Investigation

Date: August 17,2020

Sworn to before me and signed in my presence
and/or by reliable electronic means.

Elizabeth re Stafford
United States Magistrate Judge

15


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