U.S. Department of Labor OIG, Florida Man Charged with Fraudulently Obtaining $1 Million in Unemployment Benefits and COVID-19 Loan (USAO D-NJ 08/25/2022) (2022-08-30)

Summary

An August 25, 2022 press release (No. 22-318) from the U.S. Attorney's Office for the District of New Jersey announcing that Michael Blanc of Miami was arrested and charged by complaint with wire fraud over more than $1 million in government benefits; he appeared on August 24, 2022 before U.S. Magistrate Judge Chris M. McAliley, who set bond at $250,000. According to the complaint, from March 2020 to about December 2020 five states paid about $960,000 in unemployment benefits on claims filed from an internet address linked to Blanc, and four people in whose names claims were made said they had not filed them. In July 2020 the SBA paid an EIDL of about $65,000 in a victim's name into Blanc's bank account; the same address was tied to 67 more EIDL applications that drew about $250,000.

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                                       Department of Justice

                                         U.S. Attorney’s Office

                                         District of New Jersey

FOR IMMEDIATE RELEASE                                                    Thursday, August 25, 2022



Florida Man Charged with Fraudulently Obtaining $1 Million
       in Unemployment Benefits and COVID-19 Loan
NEWARK, N.J. – A Florida man was arrested for allegedly obtaining more than $1 million in
government benefits, U.S. Attorney Philip R. Sellinger announced today.

Michael Blanc, 33, of Miami, Florida, appeared by videoconference in Florida on Aug. 24, 2022,
before U.S. Magistrate Judge Chris M. McAliley, who set bond at $250,000.

According to the complaint:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide
emergency financial assistance to Americans suffering the economic effects of the COVID-19
pandemic, including workers who are not ordinarily eligible for unemployment insurance benefits.
The CARES Act also enabled the Small Business Association (SBA) to offer funding to business
owners through the COVID-19 Economic Injury Disaster Loans (EIDL).

From March 2020 to in or about December 2020, five states paid out approximately $960,000 in
unemployment insurance benefits in response to applications that used an internet provider (IP)
address associated with Blanc in furtherance of the claim. Law enforcement officers interviewed four
people in whose names the claims were made; each said they did not file a claim, authorize anyone to
make a claim, or know Blanc.

In July 2020, the SBA provided an EIDL of approximately $65,000 in response to an application in
the name of a victim. The loan was transferred to a bank account in Blanc’s name. The IP address
used to file the EIDL application is also connected to 67 additional EIDL applications. The SBA
provided approximately $250,000 in response to these applications.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a
fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims
of his offense.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector
General, under the direction of Special Agent in Charge Jonathan Mellone, in New York, and the
United States Treasury Inspector General for Tax Administration, under the direction of Special
Agent in Charge Dale Forrester, Cybercrime Investigations Division, with the investigation leading to
the charges. U.S. Attorney Sellinger also thanked the FBI, Miami Division, and the New Jersey
Department of Labor & Workforce Development for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s
Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is
considered innocent unless and until proven guilty.
Attachment(s):
Download Blanc.Complaint.pdf
Topic(s):
Coronavirus
Component(s):
USAO - New Jersey
Press Release Number:
22-318
                                                                               Updated August 25, 2022


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