U.S. Department of Labor OIG, Five Cleveland-Area Men Sentenced to Imprisonment and Ordered to Pay Over $800,000 as part of a Pandemic Unemployment Assistance Fraud Scheme (USAO ND-OH 09/25/2023) (2023-10-05)

Summary

Press release from the U.S. Attorney's Office for the Northern District of Ohio, dated September 25, 2023, announcing the conclusion of a case against five Cleveland-area men charged in a 47-count indictment over more than $800,000 in pandemic unemployment insurance benefits obtained with other people's personal identifying information. According to court documents, from May to October 2020 Errol Bennett, Jr., Kojo Lockhart, Mauri Nichols, Khyri Grace and Malik Grace submitted fraudulent applications to the California Employment Development Department and other State Workforce Agencies, then withdrew cash with the debit cards. The sentences listed are Errol Bennett, 54 months; Kojo Lockhart, 48 months; Mauri Nichols, 78 months; Khyri Grace, 60 months; and Malik Grace, 44 months. The defendants were also ordered to pay $872,143 in restitution.

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Full text

PRESS RELEASE



Five Cleveland-Area Men
Sentenced to Imprisonment and
Ordered to Pay Over $800,000 as
part of a Pandemic
Unemployment Assistance Fraud
Scheme
Monday, September 25, 2023


For Immediate Release
U.S. Attorney's Office, Northern District of Ohio

CLEVELAND – United States Attorney Rebecca C. Lutzko announced today the
conclusion of a case involving five Cleveland-area men that were charged in a 47-count
indictment for illegally obtaining more than $800,000 in pandemic unemployment
insurance benefits using other people’s personal identifying information. The
defendants were sentenced to a combined total of 284 months of imprisonment.

According to court documents, from May to October 2020, the defendants, Errol
Bennett, Jr., 26, of University Heights; Kojo Lockhart, 29, of Cleveland Heights; Mauri
Nichols, 25, of South Euclid; Khyri Grace, 30, of Cleveland Heights; and Malik Grace, 26,
of Cleveland Heights; submitted and caused the submission of fraudulent applications
for pandemic unemployment insurance benefits to the California Employment
Development Department (EDD), and other State Workforce Agencies around the
country.

As part of the scheme, the members of the conspiracy knowingly made false statements
and omissions on pandemic unemployment insurance benefits applications regarding
employment history, residency, and more to appear eligible to receive benefits. As a
result, California EDD and other State Workforce Agencies approved more than
$800,000 in unemployment insurance benefits in the names of unwitting individuals. The
benefits were pre-loaded on bank-issued debit cards and sent through the U.S. mail.
After receiving the debit cards, the defendants used the cards issued in the names of
other people to make cash withdrawals at various ATMs in the Northern District of Ohio.

The Court determined each defendant’s sentence after a review of factors unique to this
case, including the defendant’s prior criminal record, if any, the defendant’s role in the
offenses and the characteristics of the violation. The defendants received the following
terms of imprisonment: Errol Bennett, 54 months; Kojo Lockhart, 48 months; Mauri
Nichols, 78 months; Khyri Grace, 60 months; and Malik Grace, 44 months. The
defendants were also ordered to pay $872,143 in restitution for fraudulently obtained
benefits.

The Department of Labor, Office of Inspector General, the Federal Bureau of
Investigation, and the United States Postal Inspection Service investigated this case with
assistance from the Cleveland Heights Police Department. This case was prosecuted by
Assistant U.S. Attorney Kathryn Andrachik and Alejandro Abreu.

Contact
Thomas P. Weldon
Thomas.Weldon@usdoj.gov
(216) 622-3651

Updated September 25, 2023

Topic
FINANCIAL FRAUD


Component
USAO - Ohio, Northern


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