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U.S. Department of Labor OIG, Dudley Man Arrested for Theft and Misuse of COVID-19 Pandemic Assistance (USAO D-MA 05/04/2021) (2021-05-06)

Summary

A May 4, 2021 press release from the U.S. Attorney's Office for the District of Massachusetts announcing that Norman Higgs, of Dudley, was arrested and charged in a criminal complaint with bank fraud, conspiracy to commit wire fraud, theft of government property and money laundering. The complaint alleges that from April to June 2020 Higgs obtained over $300,000 in proceeds from fraudulent Pandemic Unemployment Assistance (PUA) claims administered by the Massachusetts Department of Unemployment Assistance. It further alleges that when the bank recalled part of the funds, Higgs paid the recalls with proceeds of COVID-19-related government loans. Higgs appeared before U.S. District Court Magistrate Judge Judith G. Dein and was released on conditions.

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Cite this document

“U.S. Department of Labor OIG, Dudley Man Arrested for Theft and Misuse of COVID-19 Pandemic Assistance (USAO D-MA 05/04/2021) (2021-05-06).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-dudley-man-arrested-for-theft-and-misuse-o-736d314266/, SHA-256 1871896b4c8cb62cf791829a476d859597c8fee750471f85dc660075bef42269.

Full text

                                      Department of Justice
                                        U.S. Attorney’s Office
                                      District of Massachusetts


FOR IMMEDIATE RELEASE                                                           Tuesday, May 4, 2021

    Dudley Man Arrested for Theft and Misuse of COVID-19
                   Pandemic Assistance
BOSTON – A Dudley man was arrested today in connection with his alleged involvement in a scheme
to fraudulently obtain and misuse COVID-19-related unemployment assistance.

Norman Higgs, 34, was charged in a criminal complaint with bank fraud, conspiracy to commit wire
fraud, theft of government property and money laundering. Higgs made his initial appearance in
Boston this afternoon before U.S. District Court Magistrate Judge Judith G. Dein and was released
on conditions.

According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) created a temporary federal unemployment insurance program called Pandemic
Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of
Unemployment Assistance, provides unemployment insurance benefits for individuals who are not
eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors,
or gig economy workers). As alleged in the complaint, from April to June 2020, Higgs obtained over
$300,000 in proceeds from fraudulent PUA claims. When Higgs’s bank recalled a portion of those
fraudulently-obtained funds, Higgs allegedly paid those recalls using the proceeds from COVID-19-
related government loans.

The charge of bank fraud provides for a sentence of up to 30 years in prison, up to five years of
supervised release and a fine of $1 million. The charge of conspiracy to commit wire fraud provides
for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of
$250,000. The charges of theft of government property and money laundering each provide for a
sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines
and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in
Charge of the Federal Bureau of Investigation, Boston Division; and Michael Mikulka, Special Agent
in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the
announcement. The Massachusetts Department of Unemployment Assistance provided assistance in
the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial
& Cyber Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed
innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Topic(s):                                              Component(s):
Coronavirus                                            USAO - Massachusetts

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2021-05-06-Dudley-Man-Arrested-for-Theft-and-Misuse-of-COVID-19-Pandemic-Assistance-USAO-D-MA-05-04-2021.pdf
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SHA-256
1871896b4c8cb62cf791829a476d859597c8fee750471f85dc660075bef42269
Our copy
2021-05-06-Dudley-Man-Arrested-for-Theft-and-Misuse-of-COVID-19-Pandemic-Assistance-USAO-D-MA-05-04-2021.pdf
Original
www.oig.dol.gov
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