Indictment — United States v. Jason Vertz and Alana Powers, Eastern District of California (Document 1)
Summary
Indictment in United States v. Jason Vertz and Alana Powers, Case No. 1:21-cr-00054-DAD-BAM, in the U.S. District Court for the Eastern District of California, filed February 25, 2021 as Document 1. Count One charges conspiracy to commit mail fraud under 18 U.S.C. § 1349, alleging that from not later than about May 2020 until about December 2020 the defendants caused fraudulent California EDD unemployment insurance claims to be filed in the names of Powers and other inmates at the Central California Women's Facility, who were ineligible for benefits. Counts Two and Three charge aggravated identity theft under 18 U.S.C. § 1028A(a)(1). The grand jury charges that the claims exceeded $260,000 and caused losses of over $103,000, and a criminal forfeiture allegation follows.
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“Indictment — United States v. Jason Vertz and Alana Powers, Eastern District of California (Document 1).”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-1-21-cr-00054-e-d-cal-5053a97eeb/
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FILED
Case 1:21 /21 Page 1 of 7Feb 25, 2021
CLERK, U.S. DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA
1 McGREGOR W.
United States Attorney
2 ALEXANDRE M. DEMPSEY
JOSEPH D. BARTON
J Assistant United States Attorneys
2500 Tulare Street, Suite 4401
4 Fresno, CA9372l
Telephone: (559) 497 -4000
5 Facsimile: (559) 497-4099
6 Attorneys for Plaintiff
United States of America
7
8 IN THE T]NITED STATES DISTRICT COURT
9 EASTERN DISTRICT OF CALIFORNIA
10
LINITED STATES OF AMEzuCA, Case No. 1:21-cr-00054-DAD-BAM
11
Plaintiff, VIOLATIONS: 18 U.S.C. $ 1349 - Conspiracy to
12 Commit Mail Fraud; 18 U.S.C. $ 1028A(rX1) -
V. Aggravated Identity Theft (Two Counts); 18 U.S.C.
13
$ 981(aX1)(C), and 28 U.S.C. g 2461(C) - Criminal
JASON VERTZ, Forfeiture
t4 and ALANA POWERS,
Under Seal
15 Defendants.
16
t7
INDICTMENT
18
COLINT ONE: [18 U.S.C. $ 1349 - Conspiracy to Commit Mail Fraud]
t9
The Grand Jury charges:
20
JASON VERTZ and
21 ALANA POWERS,
22 defendants herein, as follows:
23 INTRODUCTION
24 l. At all times relevant to this Indictment, defendant ALANA POWERS was an inmate
25 incarcerated at the California Department of Corrections and Rehabilitation's Central California
26 Women's Facility ("CCWF"), which is located in Chowchilla, California, in the State and Eastern
27 District of California. Defendant JASON VERTZ was living in Fresno California, in the State and
28 Eastern District of California.
INDICTMENT
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 2 of 7
1 2. Defendants VERTZ and POWERS regularly communicated through email and telephonic
2 means with each other while POWERS was incarcerated.
a
J BACKGROUND ON CALIFORNIA'S UNEMPLOYMENT INSURANCE SYSTEM
4 3. The Social Security Act of 1935 established the Federal and State Unemployment
5 Insurance System ("UI"), which provides benefits to persons out of work through no fault of their own.
6 The California Employment Development Department ("Califomia EDD") administers UI for the State
7 of Califomia and the United States. UI benefits payments are funded by a combination of federal and
8 Califomia state funds.
9 4. Before March 2020, only individuals who were wage eruners were eligible to receive UI
10 benefits. Individuals who were self-employed, independent contractors, business owners, and part-time
1l workers were ineligible. The amount of weekly UI benefits paid to an individual was based on his or
l2 her having worked and earned at least a certain amount of wages over a prescribed period and ranged
13 from $40 to $450 per week for up to twenty-six weeks.
14 5. In or around March 2020, the Federal Coronavirus Aid, Relief, and Economic Security
15 ("CARES") Act was signed into law, Pub. L. 116-136. The CARES Act made significant changes to UI
t6 benefits that included:
t7 a. Making individuals who were self-employed, independent contractors, business
18 owners, and part-time workers eligible to receive UI benefits;
t9 b. Extending UI benefits for thirteen weeks beyond the standard twenty-six week
20 period, for a total benefit period of thirty-nine weeks. Subsequent legislative changes extended the
2l benefit period for another seven weeks for a new total benefit period of forty-six weeks; and
22 c. Inueasing benefits by $600 per week from March29,2020, through July 25,
23 2020.
24 6. In or around August 2020, a Presidential Executive Order increased UI benefits by $300
25 per week from July 26,2020, through September 5,2020. Overall, more than $300 billion in additional
26 federal funds have been appropriated for UI benefits in2020.
21 7. An individual can apply to California EDD for UI benefits by submitting a claim in-
28 person at any field office, by mail, or online, and the claim can be paid retroactively to the date that the
INnrcrvENt
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 3 of 7
1 individual became unemployed. The individual is asked to provide his or her name, date of birth, social
2 security number, mailing address, and other information. The individual is also asked to provide his or
3 her usual occupation and answer questions to establish his or her eligibility for UI benefits. The
4 questions include the last day that the individual worked and whether he or she is currently available to
5 work. California EDD will deny a UI claim if the individual has not worked within the prescribed
6 period or is unavailable to work. Incarcerated individuals are deemed unavailable to work and are
7 ineligible for UI benefits.
8 8. After California EDD approves a UI claim, it pays benefits bi-weekly. Generally,
9 individuals choose to receive UI benefits through VISA debit cards issued by Bank of America N.A. and
10 their benefits are loaded thereon. Individuals may also choose to receive benefits through paper checks.
11 Both UI debit cards and checks are mailed to the individuals through the United States mail. UI debit
t2 cards are mailed from a Bank of America processing center in Addison, Texas, and checks are mailed
13 from California EDD in West Sacramento, California.
l4 9. At all relevant times to this indictment, incarcerated inmates were ineligible to receive
15 EDD benefits for reasons including because they were unavailable to work due to their incarceration.
t6 CONSPIRACY
t7 10. Beginning on a date unknown to the Grand Jury, but not later than in or about May 2020,
18 and continuing until in or about December 2020, within the State and Eastem District of California and
t9 elsewhere, defendants VERTZ and POWERS did knowingly conspire, combine, and confederate with
20 each other, and with others known and unknown to the Grand Jury, to execute a scheme and artifice to
21 defraud California EDD and the United States of money and property, and to obtain money and property
22 from Califomia EDD and the United States, by means of materially false and fraudulent pretenses,
Z3 representations, and promises, and to cause mail matter to be placed in a post office or an authorized
24 depository for mail matter, and to be sent and delivered by the United States Postal Service, in execution
25 of the scheme to defraud, in violation of Title 18, United States Code, Section 1341.
26 MANNER AND MEANS OF THE CONSPIRACY
27 11. During the above-described time period, defendants VERTZ and POWERS, and others
28 known and unknown to the Grand Jury, conspired to defraud Califomia EDD and the United States of
INDICTMENT
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 4 of 7
I money and property, and caused money and property to be obtained from California EDD and the
2 United States, by the following manner, means, and acts, among others:
J a. In furtherance of the conspiracy, defendants VERTZ and POWERS
4 communicated with each other through, among other methods, telephone calls and emails.
5 b' Defendant POWERS provided her name, date of birth, and social security number
6 to defendant VERTZ for the purpose of submitting a fraudulent Califomia EDD UI claim in pOWERS,
7 name. VERTZ was aware from his communications with POWERS that POWERS was not employed
8 or newly unemployed, but was incarcerated at CCWF at all times relevant to this Indictment.
9 c. Defendant POWERS also obtained the names, dates of birth, and social security
t0 numbers for other inmates who were incarcerated at CCWF, and who were not otherwise employed or
11 newly unemployed for purposes of UI benefits at any time relevant to this Indictment. POWERS
t2 provided these inmates' information to defendant VERTZ for the purpose of submitting fraudulent
13 California EDD UI claims in those inmates' names. The inmate identities included, but were not limited
1,4 to, inmates C.G., M.P., C.R, and B.W. VERTZ and POWERS were both aware that these inmates were
15 incarcerated at CCWF at all times relevant to this Indictment.
t6 d. Defendants VERTZ and POWERS subsequently caused fraudulent California
t7 EDD UI claims to be submitted in POWERS'S and the other inmates' names, knowing that none of the
18 inmates were eligible for UI benefits. The underlying applications contained false and fraudulent
t9 representations, including, but not limited to, that the inmates had worked between February and
20 September 2020 as wage earners or were self-employed as maids, cleaners, or fabrication welders, or
2l other occupations, and that they were currently available to work. As VERTZ and POWERS were
22 aware, these claims were false in that POWERS and the other inmates were not so previously employed
23 or newly unemployed, but were incarcerated and not employed within the relevant time period. VERTZ
24 and POWERS knew that these representations regarding POWERS' and the other inmates' employment,
25 wages, and availability to work were false at the time they were made and submiued to California EDD.
26 e. Defendants VERTZ and POWERS communicated with each other regarding the
27 status of the fraudulent California EDD UI claims and the transfer of funds from VERTZ to POWERS
28 related to the claims.
INDICTMENT
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 5 of 7
1 f. The false and fraudulent representations contained in the underlying UI
2 applications, including, but not limited to, the claims for defendant POWERS, C.G., M.P., C.R, and
J 8.W., were material to the claims being approved by Califomia EDD. California EDD will deny a
4 claim if an individual has not worked within the prescribed period or is unavailable to work, including
5 unavailability due to incarceration.
6 g. The defendants' scheme to defraud caused Califomia EDD to load benefit funds
7 on debit cards for the false and fraudulent claims made by defendants VERTZ and POWERS. Bank of
8 America, N.A. then mailed the debit cards via United States mail with benefit funds paid on the false
9 claims to the addresses provided in the false and fraudulent claims, including addresses in the Eastem
10 District of California and elsewhere.
11 h. Defendants VERTZ and POWERS used the proceeds from their scheme to
t2 defraud for their own benefit and for the benefit of others who were also not entitled to the UI funds. In
13 one instance, VERTZ told POWERS that he would transfer portions of the funds to other inmates for
t4 their personal use. Specifically, VERTZ and POWERS discussed how each other inmate would receive
15 $600 and that VERTZ and POWERS would keep the remaining funds.
16 i. In carrying out the conspiracy, defendants VERTZ and POWERS at all times
t7 acted with the intent to defraud.
18 j. As a result of the conduct of defendants VERTZ and POWERS in furtherance of
19 the conspiracy, the defendants submitted and caused to be submitted false and fraudulent claims for
20 benefits to California EDD exceeding $260,000, and caused Califomia EDD and the United States to
2l incur losses of over $103,000.
22 All in violation of Title 18, United States Code, Section 1349.
23
24
25
26
27 ilt
28 ilt
INDICTMENT
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 6 of 7
1 coLrNTS Two AND THREE: [18 u.S.c. g i028A(a)(1) - Aggravated Identity Theft]
2 The Grand Jury further charges:
3 JASON VERTZ and
ALANA POWERS,
4
5 defendants herein, as follows:
6 12. Paragraphs 1 through 11, inclusive, are incorporated by reference as though fully set forth
7 herein.
8 13. The term "means of identification" means any name or number that may be used, alone
9 or in conjunction with any other information, to identify a specific individual, including any name, date
10 of birth, driver's license number, or social security number.
11 14. On or about the dates set forth below, in the State and Eastern District of Califomia and
t2 elsewhere, defendants VERTZ and POWERS did knowingly transfer, use, and possess the means of
13 identification of another person without lawful authority, to wit: they knowingly transfbrred, used, and
t4 possessed the means of identification of C.G. and B.W., including, but not limited to, their names, dates
15 of birth, driver's license numbers, and social security numbers, during and in relation to an unlawful
16 activity that constitutes a violation of federal law, to wit: conspiracy to commit mail fraud in violation of
t7 Title 18, United States Code, Section 7349, as follows:
18 cogNr DATE PERSON MEANS: OF IDEN.TIFICATION CORRESPONDING COIINT
C.G.'s name, date of birth,
t9 TWO 08lIU20 C.G. ONE
driver's license number, and
20 social security number
transmitted via email between
2l VERTZ and POWERS
22 B.W.'s name, date of birth,
THREE 081t3120 B.W. ONE
driver's license number, and
Z3
social security number
24 transmitted via email between
VERTZ and POWERS
25
26 All in violation of Title 18, United States Code, Section 1028A(a)(1).
27
28
INDICTMENT
Case 1:21-cr-00054-DAD-BAM Document 1 Filed 02/25/21 Page 7 of 7
I FORFEITURE ALLEGATION: [18 U.S.C. $ 981(a)(lXC),28 U.S.C. g 2a61(c) - Criminal Forfeiture]
2 Upon conviction of one or more of the offenses alleged in Counts One through Three of
., this Indictment, defendants JASON VERTZ and ALANA POWERS shall forfeit to the United States,
4 pursuant to 18 U.S.C. $ 98i(a)(l)(C) and 28 U.S.C. $ 2461(c), all property, real and personal, which
5 constitutes or is derived from proceeds traceable to such violations, including but not limited to:
6 a. A sum of money equal to the amount of proceeds traceable to such offenses for
7 which defendants are convicted.
8 If any property subject to forfeiture as a result of the offenses alleged in Counts One
9 through Three of this Indictment for which defendants are convicted:
10 a. cannot be located upon the exercise of due diligence;
11 b. has been transferred or sold to, or deposited with, a third party;
t2 c. has been placed beyond thejurisdiction ofthe court;
13 d. has been substantially diminished in value; or
t4 e. has been commingled with other property which cannot be divided without
15 difficulty;
t6 it is the intent of the United States, pursuant to 28 U.S.C. $ 2a61(c), incorporating2l U.S.C. g 853(p), to
t7 seek forfeiture ofany other property ofsaid defendant, up to the value ofthe property subject to
18 forfeiture.
19
20 A TRUE BILL.
2l
/s/ S;$eitre on file Iv/AUSA
22
FOREPERSON
23
24
McGREGOR W. SCOTT
25
United States Attorney
26
KIRK E, SHEHRIFF
27 KIRK E. SHERRIFF
Chief, Fresno Office
28 Assistant United States Attomey
INDICTMENT
SEALED
FILED
Feb 25, 2021
Case 1:21-cr-00054-DAD-BAM Document 1-1 Filed 02/25/21 Page 1 of 4 EASTERN
CLERK, U.S. DISTRICT COURT
DISTRICT OF CALIFORNIA
No.
UNITED STATES DISTRICT COURT
Eastern District of Califurnia
1:21-cr-00054-DAD-BAM
Criminal Division
TI{E I.INITED STATES OF AMERICA
ys.
JASON VERTZ, and
ALANA POWERS
INDICTMENT
VIOLATION(S): 18 U.S.C. $ 1349 - Conspiracy to Commit Mail Fraud;
18 U.S.C. $ 1028A(a)(1) - Aggravated Identity Theft (Two Counts);
18 U.S.C. $ 981(a)(l)(C), and 28 U.S.C. g 2461(C) - Criminal Forfeiture
A true bill,
b/ ,,,^,
Filed in open court this day
of __ A.D.20
Clerk.
Bait, $ ___AS PREVIOUSLY SET
GPO 863 s25
Case 1:21-cr-00054-DAD-BAM Document 1-1 Filed 02/25/21 Page 2 of 4
AO 257
(Rev. e/e2l-IYES: SAB conflict in USAO (before 0l/01/13)
l-lvfs, SKO conflict in USAO (Before 4ttzfiI) pER 18 u s.c. 3170
I
BY trCOMPLAINT trINFORMATION EINDICTMENT Name of District Court, and,/or Judge/Magistrate Judge Location (City)
tr SUPERSEDING: Case No.
OFFENSE CHARGED
Fresno, CA
PLEASE SEE INDICTMENT tr Petty
E Minor
E Misdemeanor
E Felony
Male E Alien
Place of oft'ense U.S.C. Citation
Please see Indictment Female (ifapplicable)
of Madera
PROCEEDING
Name of Complainant Agency, or Person (& Title, if any) DEFENDANT
FBI SA Kathryn Baker IS NOTIN CUSTODY
I ) E Has not been arrested, pending outcome ofthis proceeding
Ifnot detained give date anv prior r\
n person is awaiting trial in another Federal or State Court, give name sulnmons was served.on abovl charges 7 I
of coult 2) n IsaFugitive
3) n Is on Bail or Release from (show District)
tr this person/proceeding is transferred liom another district per
FRCrP tr 20 a 2l tr 40. Show District IS IN CTISTODY
n this is a reprosecution ofcharges 4) tr On this charge
previously dismissed which s) n On another conviction
u,ere dismissed on motion of: 6) tr Awaiting trial on other charges ) tr f"a't Xi State
tr U.S. Att'y E Defense lf answer to (6) is "Yes," show name of institution
tr this prosecution relates to a pending
case involving this same delbndant
prior proceedings or appearance(s)
Has detainer
tr Yes . If "Yes,"
before U.S. Magistrate Judge
MAGISTRATE been filed?
t sive date
regarding this defendant were
recorded under
JUDGE CASE NO.
=
No / ir.a
Mo. Day
lfiI3$" )r
Name and Office of Person Or . . . if Arresting Agency & Warrant were not Federal
Furnishing lnfbrmation on
Sara Thomas Mo. Day
THIS FORM DATETRANSFERRED A
ro u.s. cusroDY L) I
U.S Att'y ! Other'U.S. Agency
Name of Asst- lJ.S. =
Alexandre M. Dempsey ! This report arnends AO 257 previously submitted
ADDITIONAL INFORMATION OR COMMENTS
Penalties: See Penalty Slip. Please lssue No BailWarrant.
Case 1:21-cr-00054-DAD-BAM Document 1-1 Filed 02/25/21 Page 3 of 4
1lO257
(Rev' e/e2llYES: SAB conflict in USAO (before 01/01/13)
l_lvoS, SKO conflict in USAO (Before 4nzn0) pER 18 u.s.c,3170
I onrENDANr INFoRMATIoN RELATryE ro A cRTMTNAL ACTToN - - rN u.s. DrsrRrcr a6ET- I
BY trCOMPLAINT trINFORMATION Name of District Court, and,/or Judge/lr4agistrate Judge Location (Cit-v)
n SUPERSEDING: Case No. =INDICTMENT EDCA
OFFENSE CHARGED
Fresno, CA
PLEASE SEE INDICTMENT tr Petty
n Minor
E Misdemeanor
E Felony
E Alien
Place ofoffbnse U.S.C. Citation
of Madera Please see Indictment (ifapplicable)
PROCEEDING
Name of Complainant Agency, or Person (& Title, if any) DEFENDANT
, FB! SA Kathryn Baker lsNOTIN CUSTODY
I I ) E Has not been arrested, pending outcome of this proceeding
! person is awaiting trial in another Federal or State Court, give name
ofcourt
Ifnot detained, give date any prior
summons was served on above charges
2)a Is a Fugitive
)r
I 3)n Is on Bail or Release from (show District)
this person/proceeding is transferred tiorn another diskict per
FRCrP tr 20 A 21 tr 40. Show District IS IN CUSTODY
tr this is a reprosecution ofcharges 4)tr On this charge
previously dismissed which s)tr On another conviction
were dismissed on motion of 6)tr Awaiting trial on other charges ) I f.a't X State
E U.S. Att'y E Defense If answer to (6) is "Yes," show name of institution
n this prosecution relates to a pending
case involving this same defendant
tr prior proceedings or appearance(s) tr Yes . If "Yes,"
Has detainer
before U.S. Magistrate Judge
regarding this defendant were
MAGISTRATE been filed? I give date
recorded under
JUDGE CASE NO. E No J rt.a
Mo. Day
IftIBS' )r
Name and Office of Person Or . . . if Arresting Agency & Warrant were not Federal
Furnishing Infbrrnation on
Sara Thomas Mo. Day
THIS FORM DATETRANSFERRED I
ro u.s. cusroDY L) I
I U.S. Att'y E O&er U.S. Agency
Name of Asst. U.S
Aft'y (if assigned) Alexandre M. Dempsey E This report amends AO 257 previously submitted
ADDITIONAL TNFORMATION OR COMMENTS I
Penalties: See Penalty Slip. Please lssue No BailWarrant.
Case 1:21-cr-00054-DAD-BAM Document 1-1 Filed 02/25/21 Page 4 of 4
United States v. Jason Vertz and Alana Powers
Penalties for Indictment
COUNT ONE:
VIOLATION: 18 U.S.C. $ 1349 - Conspiracy to Commit Mail Fraud
PENALTIES: Up to twenty years imprisonment
$250,000 fine
Three years supervised release
$ 1 00 special assessment
COUNTS TWO and THREE:
VIOLATION: 18 U.S.C. $ 1028A(a)(1) - Aggravated Identity Theft
PENALTIES: Mandatory two years imprisonment consecutive to other counts (each
count)
$100 special assessment (each count)
FORFEITURE, ALLEGATION:
As stated in the charging document
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