Indictment — United States v. Abdul-Malik McClain, Central District of California (Document 1)

Summary

An indictment filed December 16, 2021 as Document 1 in United States v. Abdul-Malik McClain, aka "Malik McClain," Case 2:21-cr-00580-MWF, in the U.S. District Court for the Central District of California, charging mail fraud under 18 U.S.C. § 1341 and aggravated identity theft under 18 U.S.C. § 1028A(a)(1). The grand jury charges that from no later than July 2020 through at least September 2020 the defendant, a member of a university football team, and others filed Pandemic Unemployment Assistance claims with California's Employment Development Department in the names of teammates, associates and people who had not authorized them. It states at least approximately 36 fraudulent applications caused attempted losses of at least approximately $903,688 and actual losses of at least approximately $227,736. The mail fraud counts cover debit cards mailed by Bank of America.

Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 1 of 10 Page ID #:1



                                                                  12/16/2021

 1                                                                   VM




 2

 3

 4

 5

 6

 7

 8                          UNITED STATES DISTRICT COURT
 9                     FOR THE CENTRAL DISTRICT OF CALIFORNIA
10                               June 2021 Grand Jury
11   UNITED STATES OF AMERICA,               CR 2:21-CR-00580-PA
12             Plaintiff,                    I N D I C T M E N T
13                    v.                     [18 U.S.C. § 1341: Mail Fraud;
                                             18 U.S.C. § 1028A(a)(1):
14   ABDUL-MALIK MCCLAIN,                    Aggravated Identity Theft]
         aka “Malik McClain,”
15
               Defendant.
16

17

18        The Grand Jury charges:

19                              COUNTS 21(7+528*+7(1

20                         [18 U.S.C. §§ 1341, 2(a), 2(b)]

21   A.   INTRODUCTORY ALLEGATIONS
22        At times relevant to this Indictment:
23        1.    Defendant ABDUL-MALIK MCCLAIN, also known as “Malik

24   McClain,” was a resident of Los Angeles, California.          Defendant

25   MCCLAIN was a student at University 1 and a member of University 1’s

26   football team.

27

28
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 2 of 10 Page ID #:2




 1         2.   The Employment Development Department (“EDD”) for the State

 2   of California was the administrator of the unemployment insurance

 3   (“UI”) benefit program in California.

 4         3.   On March 13, 2020, the President of the United States

 5   declared COVID-19 an emergency under the Robert T. Stafford Disaster

 6   Relief and Emergency Assistance Act.       As a result, Congress passed

 7   the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”),

 8   which the President signed into law on March 27, 2020.          The CARES Act

 9   provided over $2 trillion in economic relief protections to the

10   American people from the public health and economic impacts of COVID-

11   19.

12         4.   Prior to the enactment of the CARES Act, to be eligible for

13   UI administered by EDD, a person had to have been employed and worked

14   in California and received at least a certain amount of wages from an

15   employer in the 18 months preceding his/her UI benefits claim.

16   Because of this requirement, self-employed workers, independent

17   contractors, and employees with insufficient earnings were not

18   eligible to receive regular UI benefits.

19         5.   The CARES Act established a new program –- Pandemic

20   Unemployment Assistance (“PUA”) -- to provide unemployment benefits

21   during the COVID-19 pandemic to people who did not qualify for

22   regular unemployment insurance benefits, including business owners,

23   self-employed workers, independent contractors, and those with a

24   limited work history who were out of business or had significantly

25   reduced their services as a direct result of the pandemic.           UI

26   benefits provided under the PUA program are sometimes referred to as

27   PUA benefits.

28
                                         2
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 3 of 10 Page ID #:3




 1           6.    Under the PUA provisions of the CARES Act, a person who was

 2   a business owner, self-employed worker, independent contractor, or

 3   gig worker could qualify for PUA benefits administered by EDD if

 4   he/she previously performed such work in California and was

 5   unemployed, partially unemployed, unable to work, or unavailable to

 6   work due to a COVID-19-related reason.

 7           7.    Persons applying for PUA benefits between April 2020 and

 8   November 2020 did not need to submit any supporting documents to EDD

 9   with their applications.        Claimants entered their total income for

10   the 2019 calendar year on the application.         The stated income was

11   used to pay the minimum benefits of $167 per week.          EDD could request

12   documentation to provide proof of the stated income.

13           8.    A PUA claimant was required to answer various questions to

14   establish his/her eligibility for PUA benefits.         The claimant was

15   required to provide his/her name, Social Security Number, and mailing

16   address.      The claimant was also required to identify a qualifying

17   occupational status and COVID-19 related reason for being out of

18   work.

19           9.    After it accepted a UI claim, including a claim submitted

20   pursuant to the PUA program, EDD typically deposited UI funds every

21   two weeks to an Electronic Bill Payment (“EBP”) debit card

22   administered by Bank of America (“BofA”), which the claimant could

23   use to pay for his/her expenses.          The EBP card was mailed via the

24   United States Postal Service to the claimant at the address the

25   claimant provided in his/her UI application.

26   B.      THE SCHEME TO DEFRAUD

27           10.   Beginning no later than July 2020 and continuing through at

28   least September 2020, in Los Angeles County, within the Central
                                           3
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 4 of 10 Page ID #:4




 1   District of California, and elsewhere, defendant MCCLAIN, together

 2   with others known and unknown to the Grand Jury, knowingly and with

 3   the intent to defraud, devised, participated in, and executed a

 4   scheme to defraud EDD and the United States Treasury as to material

 5   matters, and to obtain money and property from EDD and the United

 6   States Treasury, namely, UI benefits, including PUA benefits, by

 7   means of material false and fraudulent pretenses, representations,

 8   and promises, and the concealment of material facts.

 9        11.   The fraudulent scheme operated, in substance, as follows:

10              a.    Defendant MCCLAIN and his co-schemers filed and caused

11   to be filed with EDD fraudulent applications for UI benefits

12   including PUA benefits (the “fraudulent UI benefit applications”) in

13   their own names; the names of other persons, including players on the

14   University 1 football team and other friends and associates; and the

15   names of persons who had not authorized defendant MCCLAIN and/or his

16   co-schemers to file such applications on their behalf (the “named

17   claimants”).

18              b.    In one part of the scheme, defendant MCCLAIN and his

19   co-schemers obtained and caused to be obtained, and listed and caused

20   to be listed on the fraudulent UI benefit applications, personal

21   identification information of the named claimants.

22              c.    Defendant MCCLAIN and his co-schemers listed and

23   caused to be listed email addresses for the named claimants that, in

24   at least some instances, did not belong to the named claimants but

25   had been created and caused to be created by defendant MCCLAIN and

26   his co-schemers and that defendant MCCLAIN and his co-schemers

27   controlled.

28
                                         4
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 5 of 10 Page ID #:5




 1               d.   Defendant MCCLAIN and his co-schemers falsely

 2   represented, and caused to be falsely represented, on the fraudulent

 3   UI benefits applications that the named claimants were self-employed

 4   workers, including athletic trainers and tutors, whose employment had

 5   been negatively affected by the COVID-19 pandemic.          In fact, as

 6   defendant MCCLAIN then knew, the named claimants were not self-

 7   employed workers whose employment had been negatively affected by the

 8   COVID-19 pandemic.

 9               e.   Defendant MCCLAIN and his co-schemers also falsely

10   represented, and caused to be falsely represented, on the fraudulent

11   UI benefits applications that the named claimants resided and worked

12   in California, and that they had lost work in California as a result

13   of the COVID-19 pandemic.      In fact, as defendant MCCLAIN then knew,

14   the named claimants had not worked or planned to work in California,

15   nor had they lost work in California as a result of the COVID-19

16   pandemic.

17               f.   Defendant MCCLAIN and his co-schemers also falsely

18   represented, and caused to be falsely represented, on the fraudulent

19   UI benefits applications that the named claimants were seeking work

20   but unable to find work in California.        In fact, as defendant MCCLAIN

21   then knew, the named claimants were not seeking work in California

22   and were not unable to find work in California.

23               g.   By falsely stating that the named claimants had worked

24   and planned to work in California, that they had lost work in

25   California as a result of the COVID-19 pandemic, and that they were

26   seeking work but unable to find work in California, defendant MCCLAIN

27   and his co-schemers falsely represented, and caused to be falsely

28   represented, that the named claimants were eligible for UI benefits
                                         5
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 6 of 10 Page ID #:6




 1   administered by EDD when, as defendant MCCLAIN then knew, they were

 2   not eligible for such benefits.

 3              h.    As a result of the fraudulent UI benefits applications

 4   that defendant MCCLAIN and his co-schemers filed and caused to be

 5   filed, EDD authorized BofA to issue EBP debit cards in the names of

 6   the named claimants.

 7              i.    Defendant MCCLAIN and his co-schemers listed and

 8   caused to be listed on the UI benefit applications addresses to which

 9   they had access as the mailing addresses for the named claimants.

10   Defendant MCCLAIN knew that, by doing so, defendant MCCLAIN and his

11   co-schemers would cause BofA to mail the EBP debit cards issued to

12   the named claimants to these addresses, thereby enabling defendant

13   MCCLAIN and his co-schemers to take possession of the EBP debit

14   cards.

15              j.    Defendant MCCLAIN and his co-schemers received the EPB

16   debit cards issued as a result of the fraudulent UI benefit

17   applications and used the EPB debit cards and caused the EPB debit

18   cards to be used to withdraw UI benefits loaded onto the debit cards

19   by making cash withdrawals at Automated Teller Machines and at

20   banking centers, and to pay for purchases of goods and services.

21   Defendant MCCLAIN and his co-schemers also transferred and caused the

22   transfer of funds from accounts associated with the EBT debit cards

23   to accounts the co-schemers controlled.

24              k.    In another part of the scheme, defendant MCCLAIN and

25   his co-schemers assisted others to file fraudulent UI benefits

26   applications in their own names and using their own personal

27   identification information and their own addresses.          In at least some

28   instances, defendant MCCLAIN and his co-schemers requested and
                                         6
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 7 of 10 Page ID #:7




 1   received payment from these claimants in exchange for their

 2   assistance in filing the fraudulent UI benefit applications.

 3          12.   Through this scheme, defendant MCCLAIN and his co-schemers

 4   caused at least approximately 36 fraudulent applications for PUA

 5   benefits to be filed with EDD, resulting in attempted losses to EDD

 6   and the United States Treasury of at least approximately $903,688 and

 7   actual losses of at least approximately $227,736.

 8   B.     USE OF THE MAILS

 9          13.   On or about the dates set forth below, within the Central

10   District of California and elsewhere, defendant MCCLAIN and his co-

11   schemers, aiding and abetting each other, for the purpose of

12   executing the above-described scheme to defraud, willfully caused the

13   following items to be placed in an authorized depository for mail

14   matter to be sent and delivered by the United States Postal Service,

15   according to the directions thereon:

16

17        COUNT       DATE      ITEM MAILED

18    ONE           7/29/2020   EBP debit card for an account in the name of
                                M.S. ending in 1672 sent by U.S. Mail from
19                              BofA to an address on Jefferson Boulevard in
                                Los Angeles, California
20
      TWO           8/11/2020   EBP debit card for an account in the name of
21                              T.T. ending in 2962 sent by U.S. Mail from
                                BofA to an address on Jefferson Boulevard in
22
                                Los Angeles, California
23    THREE         8/21/2020   EBP debit card for an account in the name of
                                J.D. ending in 4301 sent by U.S. Mail from
24                              BofA to an address on Lincoln Boulevard in
25                              Los Angeles, California
      FOUR          8/21/2020   EBP debit card for an account in the name of
26                              T.M. ending in 4056 sent by U.S. Mail from
27                              BofA to an address on Lincoln Boulevard in
                                Los Angeles, California
28
                                         7
     Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 8 of 10 Page ID #:8




 1    COUNT         DATE       ITEM MAILED

 2   FIVE        8/21/2020     EBP debit card for an account in the name of
                               D.T. ending in 7447 sent by U.S. Mail from
 3                             BofA to an address on Lincoln Boulevard in
                               Los Angeles, California
 4
     SIX         8/24/2020     EBP debit card for an account in the name of
 5                             V.B. ending in 5750 sent by U.S. Mail from
                               BofA to an address on Lincoln Boulevard in
 6
                               Los Angeles, California
 7   SEVEN       8/24/2020     EBP debit card for an account in the name of
                               W.G. ending in 9382 sent by U.S. Mail from
 8                             BofA to an address on Lincoln Boulevard in
 9                             Los Angeles, California
     EIGHT       8/24/2020     EBP debit card for an account in the name of
10                             D.H. ending in 2903 sent by U.S. Mail from
11                             BofA to an address on Lincoln Boulevard in
                               Los Angeles, California
12   NINE        8/24/2020     EBP debit card for an account in the name of
13                             L.H. ending in 5178 sent by U.S. Mail from
                               BofA to an address on Lincoln Boulevard in
14                             Los Angeles, California

15   TEN         8/24/2020     EBP debit card for an account in the name of
                               J.M. ending in 1180 sent by U.S. Mail from
16                             BofA to an address on Lincoln Boulevard in
                               Los Angeles, California
17

18

19

20

21

22

23

24

25

26

27

28
                                        8
      Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 9 of 10 Page ID #:9




 1                             COUNTS ELEVEN AND TWELVE

 2                    [18 U.S.C. §§ 1028A(a)(1), 2(a), 2(b)]

 3        14.   The Grand Jury realleges paragraphs 1 through 9, 11, and 12

 4   of this Indictment here.

 5        15.   On or about the dates set forth below, in Los Angeles

 6   County, within the Central District of California, and elsewhere,

 7   defendant MCCLAIN, and others known and unknown to the Grand Jury,

 8   each aiding and abetting the others, knowingly transferred,

 9   possessed, and used, and willfully caused to be transferred,

10   possessed, and used, without lawful authority, means of

11   identification that defendant MCCLAIN knew belonged to another

12   person, namely, the names and social security numbers of the

13   following individuals, during and in relation to the offense of Mail

14   Fraud, a felony violation of Title 18, United States Code, Section

15   //

16   //

17   //

18   //

19   //

20   //

21   //

22   //

23   //

24   //

25   //

26   //

27   //

28   //
                                         9
     Case 2:21-cr-00580-MWF Document 1 Filed 12/16/21 Page 10 of 10 Page ID #:10




 1   1341, as charged in the counts of this Indictment identified below:

 2

 3     COUNT      DATES          MEANS OF IDENTIFICATION      FELONY VIOLATION

 4    ELEVEN      8/19/2020      Name and Social              COUNT NINE
                  through        Security Number of L.H.
 5                9/25/2020
 6    TWELVE      8/20/2020      Name and Social              COUNT TEN
                  through        Security Number of J.M.
 7                9/10/2020
 8
                                       A TRUE BILL
 9

10

11
                                                /S/
                                       Foreperson
12

13
     TRACY L. WILKISON
14   United States Attorney

15

16
     SCOTT M. GARRINGER
17   Assistant United States Attorney
     Chief, Criminal Division
18
     RANEE A. KATZENSTEIN
19   Assistant United States Attorney
     Chief, Major Frauds Section
20
     MONICA E. TAIT
21   Assistant United States Attorney
     Deputy Chief, Major Frauds Section
22
     KERRY L. QUINN
23   Assistant United States Attorney
     Major Frauds Section
24

25

26

27

28
                                         10


File and source

File

1-indictment.pdf

Size

178,616 bytes

SHA-256

6ff547afe5940ff17adfbeb7a4749d368ebd52f8710839758d0e25ffb06d8a0e

Our copy

1-indictment.pdf

Original

archive.org