U.S. Department of Labor OIG, Donaldsonville Woman Sentenced to 78 Months in Federal Prison for Pandemic Benefits Fraud Scheme (USAO MD-LA 04/11/2023) (2023-04-13)

Summary

Press release from the U.S. Attorney's Office for the Middle District of Louisiana, dated April 11, 2023, announcing that Chief Judge Shelly D. Dick sentenced Tynea Lynnshay Gray of Donaldsonville, Louisiana to 78 months in federal prison following conviction for mail fraud. The Court also imposed three years of supervised release and ordered $906,534 in restitution. According to the release, between June 2020 and October 2021 Gray submitted fraudulent California unemployment insurance claims in her name and in the names of others, and fraudulent PPP applications for fictitious businesses with forged bank statements and false tax documents. It states that Gray also caused $20,833 to be deposited into her bank account to which she was not entitled.

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PRESS RELEASE



Donaldsonville Woman Sentenced to
78 Months in Federal Prison for
Pandemic Benefits Fraud Scheme
Tuesday, April 11, 2023


For Immediate Release
U.S. Attorney's Office, Middle District of Louisiana

United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick
sentenced Tynea Lynnshay Gray, age 24, of Donaldsonville, Louisiana to 78 months in
federal prison following her conviction for mail fraud. The Court further sentenced Gray
to serve three years of supervised release following her term of imprisonment and
ordered her to pay $906,534 in restitution.

Between June 2020 and October 2021, Gray submitted fraudulent claims for
unemployment insurance benefits in California in her name and in the names of other
individuals. Gray also submitted fraudulent claims for Paycheck Protection Program
(“PPP”) benefits in the names of fictitious businesses and based on fictitious business
profits and losses.

Through her unemployment insurance scheme, Gray falsely claimed that she and others
were working in California prior to the coronavirus pandemic and that they lost their
employment due to the pandemic. Gray obtained names, birth dates, and Social
Security numbers of others and submitted fraudulent claims for unemployment
insurance benefits in their names, with and without their knowledge. Gray captured
people’s identifying information through social media. Upon submitting the claims and
receiving the funds, she either gave a portion of the funds to others or kept all the funds
for herself. Through her scheme, Gray obtained hundreds of thousands of dollars in
prepaid debit cards in the mail.

 Gray also devised a scheme to defraud lenders and the United States, through the
Small Business Administration, by filing false and fraudulent applications for PPP
funds. In furtherance of the scheme, Gray submitted forged bank statements, false tax
documents, and made misrepresentations in her PPP applications.
Gray also falsely reported bank cards stolen or lost so that she would receive new cards
with additional pandemic benefit funds. Throughout the course of the fraudulent
schemes, Gray caused over $550,000 in prepaid debit cards to be mailed to her
addresses, to which she and others were not entitled. Additionally, Gray caused $20,833
to be deposited into her bank account to which she was not entitled.

U.S. Attorney Gathe stated, “At a time when over 1 million U.S. Citizens died from
COVID-related issues, Ms. Gray took advantage of the system designed to help
American taxpayers in this time of need. The sentencing today shows that these cases
will not be tolerated. With the help of federal partners such as the FBI and U. S.
Department of Labor-OIG, my office will continue to prosecute these cases and redeem
taxpayer money.”

“Ms. Gray chose to con the system during one of the most vulnerable times in U.S.
history,” said New Orleans FBI Special Agent in Charge Douglas A. Williams, Jr. “The FBI
is committed to aggressively pursuing those who seek to defraud the American
taxpayers for their own personal gain. We thank our partners at the United States
Attorney’s Office Middle District of Louisiana and the Office of Inspector General at the
U.S. Department of Labor for their dedication in pursuing justice in this case.”

“Tynea LynnShay Gray used social media as a catalyst to defraud the California
Employment Development Department (CA-EDD) of more than $500K in Pandemic
Unemployment Assistance (PUA), both in her name and in the names of others, with and
without their consent. The scheme orchestrated by Gray resulted in a tremendous loss
of pandemic relief needed by those legitimately unemployed as result of the
pandemic. We will continue to work diligently to protect the integrity of the
unemployment insurance system and bring those who exploit these benefit programs to
justice.” said Special Agent-in-Charge Steven Grell, Central Region, U.S. Department of
Labor, Office of Inspector General.

This matter was investigated by the Federal Bureau of Investigation and the U.S.
Department of Labor-OIG and was prosecuted by Assistant United States Attorney
Edward H. Warner.
Updated April 11, 2023

Topics
CORONAVIRUS

DISASTER FRAUD

FINANCIAL FRAUD
Component
USAO - Louisiana, Middle


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