U.S. Attorney's Office, Ohio, Northern, "Ohio Man Sentenced to Prison for Unemployment Insurance and Bank Fraud" (Dec. 26, 2024)

Summary

Press release of December 26, 2024 from the United States Attorney's Office for the Northern District of Ohio, issued from Cleveland, reporting that a 21-year-old Aurora man was sentenced by U.S. District Judge Donald Nugent to 60 months in prison, three years of supervised release and $681,114.14 in restitution. He had pleaded guilty to conspiracy to commit wire fraud and mail fraud, conspiracy to commit bank fraud, and mail theft. From 2020 through 2021 he and co-conspirators submitted false unemployment applications to multiple states under the CARES Act and used the resulting debit cards to withdraw cash. In 2023 he used a social media platform to recruit postal workers to steal checks from the mail for a fee and paid others for access to bank accounts into which the stolen checks were deposited.

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CLEVELAND – Darmani Hawkins, 21, of Aurora, was sentenced to 60 months in prison by U.S. District Judge Donald Nugent after pleading guilty to conspiracy to commit wire fraud and mail fraud; conspiracy to commit bank fraud; and mail theft, as part of schemes to fraudulently obtain coronavirus disease (COVID)-era state unemployment benefits and, separately, to steal checks from the mail, alter them, and deposit them. He was also ordered to pay $681,114.14 in restitution and serve three years of supervised release after imprisonment.

According to court documents, from 2020 through 2021, Hawkins conspired to fraudulently obtain COVID pandemic unemployment insurance benefits by submitting fake claims, and in 2023, he conspired to steal checks out of the United States mail, deposit them, and keep the proceeds.

In the COVID fraud scheme, Hawkins and his co-conspirators exploited the CARES Act (Coronavirus Aid, Relief, and Economic Security), which had been established to assist people who were out of work because of the COVID-related shutdown. They submitted false unemployment applications to multiple states, making it appear as if they were eligible to receive benefits when, in fact, they were not. Once a state’s unemployment agency approved the applications, the state mailed the unemployment benefits to Hawkins and his co-conspirators in the form of debit cards, which they used to withdraw cash for their personal benefit.

In the bank fraud and mail theft scheme, Hawkins used a social media platform to recruit postal workers to steal checks from the U.S. Postal Service in exchange for a fee. Hawkins also offered to pay people to use their established bank accounts to deposit the checks stolen from the mail. Those who agreed to participate in mail theft deposited the stolen checks into bank accounts that Hawkins had paid others to allow him to access. Hawkins then withdrew or received the stolen deposited funds.

“Mr. Hawkins shamelessly exploited federal resources intended to help those who became unemployed as a result of an uncontrollable, life-changing world event. His deceitful actions were selfish and heartless, diverting much-needed funds away from those who lost their jobs through no fault of their own,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “He also manipulated others to steal checks and misuse our banking system in a greedy effort to make easy money. Those, like Mr. Hawkins, who seek to capitalize on the misfortune of others by abusing federal safety nets established to protect the needy, and who steal from the U.S. taxpayer and private citizens, will be held to account and brought to justice.”

“The sentencing of Mr. Hawkins should send a strong message to anyone who believes they can deceive government programs designed to help the American public in times of need. As part of our mission, postal inspectors will aggressively work to protect the public and prevent criminal misuse of the mail,” said Postal Inspector in Charge Lesley Allison of the U.S. Postal Inspection Service’s Pittsburgh Division. “We value our relationships with the U.S. Attorney’s Office and the law enforcement partners involved in bringing Mr. Hawkins to justice.”

During the investigation, officials determined that Hawkins had caused a loss of approximately $425,000 in the COVID fraud scheme and more than $700,000 in the stolen check scheme.

This case was investigated by the U.S. Department of Labor, the U.S. Postal Inspection Service, the Social Security Administration Office of the Inspector General, and the FBI Cleveland Division. The case was prosecuted by Assistant United States Attorney Erica Barnhill for the Northern District of Ohio.

To report fraud, visit https://www.dol.gov/agencies/eta/unemployment-insurance-payment-accuracy/UIFraudReporting or https://www.uspis.gov/report .

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