U.S. Department of Labor OIG, Detroit Resident Pleads Guilty to Pandemic Unemployment Insurance Fraud Scheme (USAO ED-MI 04/20/2023) (2023-04-24)

Summary

An April 20, 2023 press release from the U.S. Attorney's Office for the Eastern District of Michigan announcing that Terrell Heard, of Detroit, pleaded guilty before United States District Judge Matthew F. Leitman to a wire fraud scheme involving pandemic unemployment assistance (PUA). According to the plea documents, beginning in approximately April 2020 Heard submitted PUA applications to the State of Michigan in the names of various individuals without their authorization, with benefits sent to accounts Heard controlled or loaded onto Bank of America debit cards. The release states Heard obtained approximately $297,000, agreed to a money judgment forfeiting that amount, and agreed the conduct involved more than ten identity theft victims. Sentencing is set for August 21, 2023.

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Full text

PRESS RELEASE



Detroit Resident Pleads Guilty to
Pandemic Unemployment Insurance
Fraud Scheme
Thursday, April 20, 2023


For Immediate Release
U.S. Attorney's Office, Eastern District of Michigan

DETROIT, MI - A Detroit man pleaded guilty today to a wire fraud scheme in which he
stole $297,000 of pandemic-related unemployment insurance benefits from the State of
Michigan, announced United States Attorney Dawn N. Ison.

Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago
Region, U.S. Department of Labor Office of Inspector General and Special Agent in
Charge John Marengo of the United States Secret Service’s Detroit Field Office.

Terrell Heard, 33, pleaded guilty before United States District Judge Matthew F. Leitman.

According to court records, Heard committed fraud by obtaining pandemic
unemployment assistance (PUA) to which he was not entitled. The plea documents
indicate that in approximately April 2020, Heard began to submit electronic applications
for PUA benefits to the State of Michigan in the names of various individuals without
those individuals’ authorization. In some instances, the PUA benefits were sent to bank
accounts Heard controlled. In other instances, the PUA benefits were loaded onto Bank
of America debit cards which were then mailed to addresses to which Heard had access.

According to the plea papers, Heard continued submitting false claims to the Michigan
Unemployment Insurance Agency until approximately July 2020. He managed to obtain
approximately $297,000 from the agency as a result of this fraud, and has agreed to a
money judgment forfeiting that amount as part of his plea agreement. He also agreed
that his criminal conduct involved more than ten identity theft victims.

Sentencing is set for August 21, 2023 before Judge Leitman. Heard faces a maximum of
twenty years in prison.
“Fraud involving COVID-19 relief programs is sadly widespread, both in our community
and nationally,” U.S. Attorney Ison stated. My office alone has charged over 100
defendants with such crimes since the pandemic began. Today’s guilty plea marks
another positive step in our ongoing effort to bring to justice those who defrauded
pandemic assistance programs.”

“Terrell Heard engaged in an unemployment insurance fraud scheme targeted at the
Michigan Unemployment Insurance Agency. Heard conspired to submit fraudulent
unemployment insurance claims in the names of other individuals. Today’s guilty plea
affirms the U.S. Department of Labor, Office of Inspector General’s commitment to
ensuring the integrity of the unemployment insurance program. We will continue
working with our law enforcement partners to aggressively investigate these types of
allegations,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S.
Department of Labor, Office of Inspector General.

“Thank you to the Department of Labor and the US Attorney’s Office for their continued
support in prosecuting COVID relief fraud. The U.S. Secret Service will continue to work
cases that impact our community,” said Special Agent in Charge Marengo.

The case is being prosecuted by Assistant United States Attorney John K. Neal. The
investigation is being conducted jointly by the Department of Labor-Office of Inspector
General and the Secret Service, with assistance from the Michigan Unemployment
Insurance Agency.
Updated April 20, 2023

Topic
CORONAVIRUS


Component
USAO - Michigan, Eastern


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