Government’s Sentencing Memorandum — United States v. Semaje Reffigee, No. 22-cr-20355 (Dkt. 25, E.D. Mich.)
Summary
Federal prosecutors in the Eastern District of Michigan recommend 27 months in prison for Semaje Reffigee, a contractor for the Michigan Unemployment Insurance Agency who pleaded guilty to conspiracy to commit wire fraud. The memorandum says that Reffigee, hired in October 2020 to handle the influx of claims, removed fraud stops on Pandemic Unemployment Assistance claims and extended and increased payments on others in exchange for kickback payments, while also collecting benefits in Reffigee's own name. The memorandum puts the loss to Michigan at approximately $313,497.00 and lists $125,000 on claims with payment stops removed, $150,000 on claims extended or increased and $9,000 on Reffigee's own claims. The government notes that Reffigee accepted responsibility early and that this is a first conviction. The memorandum was filed July 10, 2023, before Hon. Matthew F. Leitman.
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Case 2:22-cr-20355-MFL-EAS ECF No. 25, PageID.123 Filed 07/10/23 Page 1 of 8
United States District Court
Eastern District of Michigan
Southern Division
United States of America
Plaintiff,
No. 22-cr-20355
v. Hon. Matthew F. Leitman
Semaje Reffigee,
Defendant,
Government’s Sentencing Memorandum
I. Introduction
At the height of the Covid-19 pandemic, Defendant Semaje Reffigee
abused her position of authority as an employee of the Michigan
Unemployment Insurance Agency (MUIA) to (a) resume payments on
claims that the state system had marked as fraudulent, (b) extend the
payment period on claims, and (c) increase the amount to be paid on
claims in exchange for kickback payments. In the midst of her
employment for the very agency responsible for unemployment insurance
benefits, Reffigee herself collected unemployment benefits. Reffigee’s
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actions resulted in a loss of $313,497.00 to the State of Michigan. Reffigee
pled guilty to conspiracy to commit wire fraud, in violation of 18 U.S.C.
§§ 1343; 1349. For the reasons stated in this memorandum, the
government recommends that a sentence at the bottom of the guidelines
is “sufficient, but not greater that necessary, to comply with the purpose
of sentencing set forth in 18 U.S.C. § 3553(a).” United States v. Vowell,
516 F.3d 503, 512 (6th Cir. 2008).
II. Facts and Procedural History
In October 2020, Reffigee began working for the state of Michigan’s
Unemployment Insurance Agency (MUIA) as a contractor in a telework
capacity to address the influx of Pandemic Unemployment Assistance
(PUA) claims filed during the pandemic. (PSR at ¶ 14.) Reffigee took
advantage of her position within MUIA to access claims outside her work
stream that had been flagged as fraudulent, and remove fraud stops that
had been placed on the claims and/or extend the benefit period and
increase the amount paid out on the claims. (PSR at ¶¶ 13, 15.) Reffigee
received kickback payments in exchange for modifying these claims.
(PSR at ¶¶ 17, 72.) Reffigee had no legitimate reason to access or approve
these claims. (PSR at ¶ 15.)
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Reffigee also applied for and collected unemployment insurance
benefits in her own name during the period that she was gainfully
employed with MUIA – the very agency responsible for properly
outlaying PUA funds. (PSR at ¶ 16.)
Reffigee’s actions resulted in a loss to the State of Michigan of
approximately $313,497.00.
$125,000 on claims Reffigee altered by removing payment stops on
claims that that MUIA system had detected as fraudulent;
$150,000 on claims that Reffigee manipulated to extend the benefit
period and increase the amount due to be paid; and
$9,000 on claims that Reffigee filed in her own name while gainfully
employed at MUIA.
(PSR at ¶¶ 15-18.)
III. Section 3553(a) factors warrant a guideline sentence.
The Supreme Court has noted that, in formulating the Sentencing
Guidelines, the U.S. Sentencing Commission’s goal is to carry out the
objectives set out in 18 U.S.C § 3553(a). United States v. Rita, 511 U.S.
338 (2007). While advisory in nature, the Guidelines remain an
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important factor in fashioning a just and right sentence. This is because
“it is fair to assume that the Guidelines, insofar as practicable, reflect a
rough approximation of sentences that might achieve sections 3553(a)’s
objectives.” Id. at 350. Moreover, the guidelines “should be the starting
point and the initial benchmark” for choosing a defendant’s sentence.
Gall v. United States, 553 U.S. 38, 49 (2007).
a. The nature and Circumstances of the offense.
Reffigee’s actions frustrated the federal government and State of
Michigan’s attempts to support unemployed Americans who lost their
jobs during the Covid-19 pandemic. Reffigee took advantage a unique
historical moment that required the government to take rapid action
during an unprecedented crisis. There was a finite pool of money
available to struggling individuals and small businesses. Fraudulent
claims like those filed and modified by Reffigee (a) decreased the amount
of money available to those who were legitimately entitled to benefits, (b)
bogged down state unemployment systems generally – causing delays in
payment processing for those legitimately entitled to benefits, and (c)
undermined public trust in the necessity and efficacy of crucial
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government programs intended to help unemployed Americans at their
most vulnerable.
Reffigee’s conduct is particularly notable given that she abused her
position of authority with the State of Michigan to further these
fraudulent claims in exchange for kickback payments. Reffigee’s conduct
and self-enrichment did not stop there. While employed with MUIA, she
collected $9,000 in unemployment insurance funds that she was not
entitled to receive.
b. The history and characteristics of the defendant.
To her credit, Reffigee accepted responsibility for this offense early
on in this case. She also demonstrated understanding of her misconduct
and remorse in her statements to Probation. (PSR at ¶ 40.) This is also
her first conviction.
c. Seriousness of the offense, promotion of respect for
the law, and just punishment for the offense.
This is a very serious offense. Fraudulent claims for Covid-19
benefits took money away from vulnerable citizens legitimately entitled
to those funds after losing employment as a result of the pandemic. Filing
fraudulent claims undermined faith in the government’s ability to help
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those who genuinely needed assistance. Reffigee’s conduct is even more
serious given that she took the additional steps of filing her own claims
while employed with the MUIA and abused her employment to cause
additional claims on over 35 fraudulent claims. A sentence at the bottom
of the guidelines would reflect the seriousness of this offense.
A sentence at the bottom of the guidelines would also promote
respect for the law and provide just punishment for Reffigee. According
to JSIN, over the last five years, 90% of the 707 defendants with a
primary guideline under section 2B1.1, final offense level of 18, and
criminal history category of I received a sentence of imprisonment. (PSR
¶ 80.) Per JSIN, the average length of imprisonment for these 633
defendants was 19 months, while the median length of imprisonment was
20 months. (Id.) This data from JSIN does not delineate defendants
sentenced for pandemic related fraud, which may be viewed as a
particularly exploitative offense.
d. Adequate deterrence and protection of the public.
A bottom of the guidelines sentence is appropriate to deter Reffigee
from committing additional crimes. The public also deserves to be free
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from fraud in public assistance programs, and bad actors in state
government.
IV. Conclusion
Pursuant to the reason stated above, the government recommends a
sentence of 27 months imprisonment.
Respectfully submitted,
Dawn N. Ison
United States Attorney
s/ Sarah Youngblood
Assistant United States Attorney
211 W. Fort Street, Suite 2001
Detroit, MI 48226
Sarah.Youngblood@usdoj.gov
(313) 226-9581
Bar No. IL 6324888
Dated: July 10, 2023
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CERTIFICATE OF SERVICE
I hereby certify that on July 10, 2023, I electronically filed the
foregoing document with the Clerk of the Court using the ECF
system which will send notification of such filing all counsel of record
via electronic mail.
s/ Sarah Youngblood
Sarah Youngblood
Assistant United
States Attorney
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