Indictment — United States v. Derrick Gadson, District of Rhode Island

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Indictment in United States v. Derrick Gadson, 1:21CR107WES-LDA, in the U.S. District Court for the District of Rhode Island, dated October __, 2021, above the signature block of Acting United States Attorney Richard B. Myrus. It charges that Gadson, while receiving approximately $10,550 in expanded pandemic unemployment benefits from the Rhode Island Department of Labor and Training, filed applications in Arizona on or about June 22, 2020 and Massachusetts on or about July 3, 2020 falsely claiming work in those states, and received approximately $117 and $17,208. Counts 1 and 2 charge wire fraud under 18 U.S.C. § 1343, Count Three theft of government money under 18 U.S.C. § 641, and Count Four aggravated identity theft under 18 U.S.C. §§ 1028A(a)(1) and 2. A forfeiture allegation follows.

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UNITED STATES DISTRICT COURT
DISTRICT OF RHODE ISLAND

UNITED STATES OF AMERICA Ne 1:21CR107WES-LDA

v. In violation of 18 U.S.C. § 1343
(Wire Fraud), 18 U.S.C. § 641 (Theft
DERRICK GADSON, of Government Money) and 18
US.C. § 1028A (Aggravated
Deterislant, Identity Theft)

Forfeiture

INDICTMENT

The United States Attorney charges that:
Introduction

At all times relevant to this Indictment:

1. Defendant DERRICK GADSON resided in Rhode Island.

Px The Unemployment Insurance Program (“UI Program) was a joint federal-
state partnership administered on behalf of the U.S. Department of Labor by agencies in
each state. In Rhode Island, the UI Program is administered by the Rhode Island
Department of Labor and Training (RIDLT). In Arizona and Massachusetts, the UI
Programs were administered by the Arizona Department of Economic Security (ADES)
and the Massachusetts Department of Unemployment Assistance (MADUA),
respectively.

3. In March 2020, the Families First Coronavirus Response Act (FFCRA) and
Coronavirus Aid, Relief, and Economic Security (CARES) Act provided additional

funding for state UI agencies to respond to the COVID-19 pandemic. The CARES Act
allowed states to expand the scope of workers who were eligible to receive state UI
benefits, to extend the period of time for which workers could be eligible for UI
benefits, and to allow workers who may have exhausted UI benefits under traditional
programs to receive benefits. The CARES Act further expanded the ability of states to
provide benefits to unemployed workers by creating three new unemployment
programs, namely, the Pandemic Unemployment Assistance (PUA) program, which
permitted states to provide benefits to individuals who were self-employed, seeking
part-time employment, or otherwise would not qualify for regular unemployment
benefits, the Federal Pandemic Unemployment Compensation (FPUC) program, which
provided an additional benefit, initially in the amount of $600 and later, in the amount
of $300, in federal benefits to individuals collecting traditional UI program benefits, and
the Pandemic Emergency Unemployment Compensation (PEUC) program, which
provided additional weeks of benefits for individuals who had otherwise exhausted
their entitlement to regular UI benefits (collectively referred to herein as “expanded
pandemic UI benefits”) PUA and FPUC benefits were 100% federally funded benefits
paid through state UI agencies.

4. To receive UI, PUA, PEUC and FPUC benefits from a state UI agency, an
applicant could file a claim, via the internet, with the state UI agency from which he
was eligible to seek benefits or could file an application by downloading or requesting
an application and mailing it into the state UI] agency. An applicant is not permitted to

seek UI, PUA, FPUC and PEUC benefits in more than one state at the same time.
Scheme to Defraud and to Obtain Monies

5: From at least in or about June 2020, and continuing until on or about July
3, 2020, in the District of Rhode Island and elsewhere, the Defendant,

DERRICK GADSON

attempted to commit and did commit wire fraud, that is, did knowingly and with intent
to defraud, devise and intend to devise a scheme to defraud and to obtain money from
multiple state UI agencies, by means of materially false and fraudulent pretenses,
representations, and promises, knowing that they were false and fraudulent when
made, through the transmission in interstate commerce of wire communications.

The Object of the Scheme to Defraud and to Obtain Monies

6. The object of the scheme was for GADSON to unlawfully enrich himself
by filing claims for UI benefits and PUA benefits with RIDLT, and while receiving
benefit payments from RIDLT, filing claims with other state UI agencies, and falsely
claiming that he had resided and worked in states other than Rhode Island and that he
was eligible for regular UI or expanded pandemic UI benefits in those states.

Manner and Means of the Scheme

bi Beginning on or about June 16, 2020 and continuing through at least
December 5, 2020, GADSON filed claims for expanded pandemic UI benefits with
RILDT. In his application and continued certifications, GADSON claimed that he
resided in Rhode Island and that he had been employed in Rhode Island in 2018 and
2019. RIDLT records indicate that GADSON was paid approximately $10,550 in

expanded pandemic benefits from RIDLT.
8. It was further part of the scheme and artifice to defraud that on or about
June 22, 2020,GADSON began filing fraudulent applications to obtain expanded
pandemic UI benefits in other states, including the following applications:

a. On or about June 22, 2020, GADSON filed an application with AZDES,
and in that application, he falsely claimed that that he had worked in
Arizona and that he had not worked in any other state for the past two
years. AZDES records indicate that GADSON was paid approximately
$117 in expanded pandemic UI benefits from AZDES,

b. On or about July 3, 2020, GADSON filed an application with MADUA. In
the application, he falsely claimed that he was entitled to benefits from
Massachusetts because he had worked in that state. MADUA records
indicate that GADSON was paid approximately $17,208 in expanded
pandemic UI benefits.

Execution of the Scheme

9, On or about the dates listed below, in the District of Rhode Island and

elsewhere, the Defendant,

DERRICK GADSON
for the purpose of executing aforesaid scheme and artifice to defraud and to obtain
money, and attempting to do so, knowingly transmitted and caused to be transmitted
by means of wire communication in interstate commerce to wit, using a device
accessing the internet, the filing of an online application for regular UI and expanded
UI pandemic benefits from the listed state UI agencies.

4
Count Date of Application State UI Agency
1 June 22, 2020 AZDES
2 July 3, 2020 MADUA

All in violation of 18 U.S.C, § 1343.

COUNT THREE

(Theft of Government Money - 18 U.S.C. § 641)

10... The allegations contained in paragraphs 1 through 9 of this Indictment are
re-alleged and incorporated by reference as though fully set forth herein.

11. From at least in or about June 2020, and continuing until in or about
December 2020, in the District of Rhode Island and elsewhere, the Defendant,

DERRICK GADSON

did willfully and knowingly attempt to and did steal and purloin money belonging to
the United States, in an amount exceeding $1,000, to wit, funds paid as expanded
pandemic UI benefits, specifically, PUA and FPUC benefits.

All in violation of 18 U.S.C. § 641.
COUNT FOUR

(Aggravated Identity Theft - 18 U.S.C. §§ 1028A, 2)

12. The allegations contained in paragraphs 1 through 9 of this Indictment are
re-alleged and incorporated by reference as though fully set forth herein.

13. On or about August 16, 2020, in the District of Rhode Island and
elsewhere, Defendant,

DERRICK GADSON

did knowingly transfer, possess, and use, without lawful authority, a means of
identification of another person, to wit the name and social security number of C.R.,
during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), to wit,
wire fraud, in violation of 18 U.S.C. § 1343, knowing that the means of identification
belonged to another actual person.

All in violation of 18 U.S.C. §§ 1028A(a)(1) and 2.

FORFEITURE ALLEGATION

Upon conviction of the wire fraud offense alleged in this Indictment, defendant
GADSON shall forfeit to the United States of America, pursuant to 18 U.S.C. §
981(a)(1)(C) and 28 U.S.C. § 2461(c), all right, title, and interest in any and all property,
real or personal, which constitutes or is derived from proceeds traceable to a violation
of 18 U.S.C. § 1343, including but not limited to the following:

A sum of money equal to the total amount of any property, real or personal,
which constitutes or is derived from proceeds and/or traceable to a violation of 18

US.C. § 1343.
If any of the above-described forfeitable property, as a result of any act or
omission of the defendant, cannot be located upon the exercise of due diligence, has
been transferred, sold to, or deposited with a third party, has been placed beyond the
jurisdiction of the court, has been substantially diminished in value, or has been
commingled with other property which cannot be divided without difficulty, it is the
intent of the United States, pursuant to 21 U.S.C. § 853(p), as incorporated by 28 U.S.C,
§ 2461(c), to seek forfeiture of any other property of said defendant up to the value of

the forfeitable property described above.
All in accordance with 18 U.S.C. § 981(a)(1) as incorporated by 28 U.S.C.

§ 2461(c), and Rule 32.2(a), Federal Rules of Criminal Procedure.

RICHARD B. MYRUS
ACTING UNITED STATES ATTORNEY

“

GEORGE MICHAEL SEAMAN
DENISE MARIE BARTON
STACEY P. VERONI

Assistant U.S. Attorneys

JOHN MOREIRA

Special Assistant U.S, Attorney

LEE H. VILKER

Assistant U.S, Attorney
Deputy Criminal Chief

Date: October __, 2021


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