U.S. Department of Labor OIG, Former Claims Examiner for Michigan Unemployment Agency Pleads Guilty In COVID-19 Fraud Scheme (USAO ED-MI 03/08/2023) (2023-03-13)

Summary

A March 8, 2023 press release from the U.S. Attorney's Office for the Eastern District of Michigan announcing that Semaje Reffigee of Detroit, a former contract unemployment insurance examiner for the Michigan Unemployment Insurance Agency, pleaded guilty to conspiring to steal federal unemployment insurance benefits. According to court documents, Reffigee began work at the agency in October 2020 and used her access to its claims database to approve fraudulent claims, including claims outside her assigned workflow, that co-conspirators filed in the names of identity theft victims and fictitious people. Benefits were mostly loaded onto Bank of America debit cards mailed to addresses the co-conspirators controlled. She was typically paid a few hundred dollars per claim and also unlawfully received about $9,000 in benefits herself.

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Full text

                                     Department of Justice
                                       U.S. Attorney’s Office
                                    Eastern District of Michigan

FOR IMMEDIATE RELEASE                                                 Wednesday, March 8, 2023

    Former Claims Examiner for Michigan Unemployment
      Agency Pleads Guilty In COVID-19 Fraud Scheme
DETROIT – A former unemployment examiner for the Michigan Unemployment Insurance Agency
(MUIA) pleaded guilty today to conspiring to steal federal unemployment insurance benefits during
the Covid-19 pandemic, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Irene Lindow, Special Agent in Charge, Chicago Region,
U.S. Department of Labor, Office of Inspector General, and Acting Special Agent in Charge Charles
Miller, Internal Revenue Service, Criminal Investigation Division in Detroit.

According to court documents, Semaje Reffigee, 26, of Detroit, began working as a contract
unemployment insurance examiner with the MUIA in October 2020. In this position, she had
electronic access to the MUIA claims database. Reffigee was able to use her credentials to access and
approve specific fraudulent unemployment insurance claims submitted to the agency, including
claims outside her assigned workflow.

Court documents indicate that shortly after she began her contract employment with MUIA, Reffigee
entered into an agreement with various individuals to defraud the MUIA by obtaining
unemployment benefits through the submission of false claims. Reffigee’s co-conspirators would
electronically submit fraudulent claims to MUIA in the names of various individuals, some of whom
would be victims of identity theft and some of whom were entirely fictitious people. These co-
conspirators made false statements in the applications attesting to the eligibility of these purported
claimants and would upload fictitious documentation to support those fraudulent claims. The co-
conspirators would then communicate with Reffigee, either directly or through intermediaries, and
identify the claims that they had submitted. Reffigee would then use her insider access to the MUIA
system to approve the claims and release benefits. Most of the time, benefits would be electronically
loaded onto Bank of America debit cards and mailed to addresses controlled by Reffigee’s co-
conspirators. Reffigee was often paid a “kickback” for her services, typically receiving a few hundred
dollars per claim. Reffigee herself also unlawfully received approximately $9,000 in unemployment
insurance benefits during the course of her employment with MUIA.

U.S. Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took
advantage of the Covid-19 pandemic by stealing funds intended for those in need. We treat this kind
of fraud especially seriously because corruption within these programs undermines trust and
confidence in government programs generally.”

“Semaje Reffigee was a state contract employee who was trusted to handle sensitive employment
information. She abused her position for personal gain by using her access to state data systems to
approve fraudulent UI claims submitted by her co-conspirators. Many of the fraudulent claims used
the personally identifiable information of identity theft victims. Protecting the integrity of the
unemployment insurance program remains one of our highest priorities. We will continue to work
with our law enforcement partners to safeguard unemployment benefits for those who need them
and to bring to justice those who commit unemployment insurance fraud,” said Irene Lindow,
Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“Semaje Reffigee was entrusted to work for the State of Michigan. She, along with her co-
conspirators, devised a scheme to steal money that was intended to provide financial assistance to
those in need during the COVID-19 pandemic,” said Charles Miller Acting Special Agent in Charge,
IRS-Criminal Investigation Detroit Field Office. “IRS-CI is proud to work with our law enforcement
partners as we continue the pursuit of criminals who steal from the American taxpayer.”

Reffigee pleaded guilty before U.S. District Judge Matthew F. Leitman. She is scheduled to be
sentenced on July 13, 2023. She faces a maximum of twenty years in prison, and a fine of up to
$250,000. Per the terms of her plea agreement, Reffigee will also be required to repay $313,497 in
restitution to the State of Michigan.

The case is being prosecuted by Assistant U.S. Attorneys Ryan A. Particka and Sarah Youngblood.

This investigation is being conducted jointly by the U.S. Department of Labor Office of the Inspector
General and the Internal Revenue Service Criminal Investigation, with assistance from the Michigan
Unemployment Insurance Agency.
Topic(s):
Coronavirus
Financial Fraud
Component(s):
USAO - Michigan, Eastern
                                                                                  Updated March 8, 2023


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