U.S. Department of Labor OIG, 3 Inland Empire Women Arrested on Charges of Illegally Obtaining COVID-Related Unemployment Benefits in Names of Prison Inmates (USAO CD-CA 04/09/2021) (2021-04-09)

Summary

A press release of the U.S. Attorney's Office for the Central District of California dated Friday, April 9, 2021, announcing the arrests of three Inland Empire women charged in separate criminal complaints with fraud in connection with emergency benefits and wire fraud. The complaints allege they used information belonging to California state prison inmates to file for pandemic unemployment benefits. Sequoia Edwards, 35, is charged with filing at least 27 claims on which the EDD issued at least $455,000; Mireya Ramos, 42, with at least 37 claims and at least $353,532 in benefits; and Paris Thomas, 33, with approximately 49 applications. The release says prosecutors in the district have now charged a dozen defendants over enhanced unemployment benefits, and lists maximum sentences of 30 and 20 years.

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Cite this document

“U.S. Department of Labor OIG, 3 Inland Empire Women Arrested on Charges of Illegally Obtaining COVID-Related Unemployment Benefits in Names of Prison Inmates (USAO CD-CA 04/09/2021) (2021-04-09).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-3-inland-empire-women-arrested-on-charges-1c91773f83/, SHA-256 2d4cfd6dfb46591c9af253614941334a96e4b282d9a820ee28e7133e9e1b57b0.

Full text

                                       Department of Justice
                                         U.S. Attorney’s Office
                                     Central District of California


FOR IMMEDIATE RELEASE                                                              Friday, April 9, 2021

 3 Inland Empire Women Arrested on Charges of Illegally
Obtaining COVID-Related Unemployment Benefits in Names
                   of Prison Inmates
        RIVERSIDE, California – Federal authorities this week arrested three Inland Empire
residents on fraud charges alleging they used information belonging to California state prison
inmates to file for pandemic-related unemployment benefits, with each causing at least $345,000 in
losses.

      The three defendants are charged in separate criminal complaints, and each woman faces two
counts – fraud in connection with emergency benefits and wire fraud.

       With the three cases announced today, prosecutors in the Central District of California have
now charged a dozen defendants with fraudulently obtaining enhanced unemployment benefits
implemented during the pandemic. The defendants arrested this week are the latest of approximately
150 defendants who have been charged across the United States in what the Justice Department calls
an unprecedented explosion of unemployment insurance (UI) fraud over the past year. The
Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress and signed into law
in March 2020 provided additional UI benefits to qualified individuals and helped provide
unemployment insurance benefits during the COVID-19 pandemic to people who did not otherwise
qualify, including business owners, self-employed workers, independent contractors, and those with
a limited work history.

       This week’s arrests are the result of investigations conducted by the Department of Labor –
Office of Inspector General, the FBI, and the United States Postal Inspection Service. Investigators
with the California Employment Development Department (EDD), which administers the UI
program in California, provided substantial assistance.

        Sequoia Edwards, 35, of Moreno Valley, was arrested this morning after being charged with
filing at least 27 fraudulent UI claims over two months last summer, at least six of which used
personally identifiable information (PII) belonging to California prison inmates that she allegedly
received from her incarcerated cousin. As a result, the EDD issued at least $455,000 in benefits
intended to help individuals who were out of work due to the COVID-19 pandemic, which did not
apply to prison inmates. During the execution of a search warrant at Edwards’ residence in February,
the FBI recovered several debit cards issued by the EDD and $45,000 in cash, according to the
affidavit in support of her criminal complaint. Edwards is expected to make her initial appearance
this afternoon in United States District Court in Riverside.

       Mireya Ramos, 42, of Colton, was arrested Thursday for allegedly filing at least 37 fraudulent
UI claims, most of which were submitted in the names of inmates in the California prison system and
many of which falsely stated the applicants were barbers who could not work due to the pandemic.
The affidavit in support of her criminal complaint states that Ramos obtained the inmates’ PII from
her long-time boyfriend, who is currently serving a life sentence in Calipatria State Prison. As a result
of the fraudulent claims, the EDD, from June 2020 through January 2021, issued at least $353,532
in unemployment benefits. During a court appearance Thursday afternoon, Ramos was released on a
$10,000 bond, and an arraignment was scheduled for May 4.

      Paris Thomas, 33, of San Bernardino, was arrested Wednesday for allegedly filing
approximately 49 fraudulent UI applications, at least 15 of which were filed in the names of people
incarcerated in state prisons, a federal prison and county jails. “The 49 fraudulent UI claims
mentioned above caused EDD to disburse over $440,000 in UI benefits from June 2020 to
December 2020,” according to the affidavit in support of Thomas’ criminal complaint. During a
search of Thomas’ residence in February, the FBI seized EDD cards and a notebook filled with PII for
more than 40 people, the affidavit notes. When she appeared in court on Wednesday, a United States
magistrate judge released Thomas on a $10,000 bond and ordered her to appear for an arraignment
on May 11.

       Discussing the fraudulent UI claims filed on behalf of state prisoners, the affidavits for all
three defendants state “Due to their custody status, the inmates listed as named claimants were
not…eligible to apply [for] UI benefits because they were not: (1) unemployed through no fault of
their own; (2) able and available for work; and/or (3) actively seeking work.”

      A criminal complaint contains allegations that a defendant has committed a crime. Every
defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

       The charge of fraud in connection with emergency benefits carries a statutory maximum
sentence of 30 years in federal prison, and wire fraud carries a maximum possible penalty of 20
years in prison.

       Assistant United States Attorneys Byron R. Tuyay and Julius J. Nam of the Riverside Branch
Office are prosecuting these cases.
Topic(s):                                               Contact:
Coronavirus                                             Thom Mrozek Director of Media Relations
Financial Fraud                                         thom.mrozek@usdoj.gov (213) 894-6947
Component(s):                                           Press Release Number:
USAO - California, Central                              21-065

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Our copy: 2021-04-09-3-Inland-Empire-Women-Arrested-on-Charges-of-Illegally-Obtaining-COVID-Related-Unemployment-Benefit.pdf
Original: www.oig.dol.gov