U.S. Department of Labor OIG, Former Department of Unemployment Assistance Employee and Husband Indicted on Fraud Charges Arising From Pandemic Unemployment Claims (USAO D-MA 01/21/2021) (2021-02-03)

Summary

A January 21, 2021 press release from the U.S. Attorney's Office for the District of Massachusetts announcing that a federal grand jury in Boston indicted Tiffany Pacheco, also known as Tiffany Tavery, and her husband Arthur Pacheco, formerly of New Bedford, on one count each of conspiracy to commit wire fraud, plus five and two counts of wire fraud respectively. They had been arrested in San Antonio in December 2020. According to the charging documents, Tiffany Pacheco was hired by the Massachusetts Department of Unemployment Assistance in April 2020 and used her access to raise the 2019 income on their Pandemic Unemployment Assistance claims to more than $240,000 and their dependents to seven, though Arthur Pacheco was incarcerated in Texas until September 4, 2020. A search of their apartment found ID-making tools and about $17,000 in cash.

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Full text

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

FOR IMMEDIATE RELEASE                                                     Thursday, January 21, 2021

Former Department of Unemployment Assistance Employee
  and Husband Indicted on Fraud Charges Arising From
           Pandemic Unemployment Claims
BOSTON – A married couple was indicted today by a federal grand jury in Boston on fraud charges
arising from their claims for Pandemic Unemployment Assistance (PUA) funds.

Tiffany Pacheco, a/k/a Tiffany Tavery, 35, and Arthur Pacheco, 47, who, until recently, resided in
New Bedford, Mass., were each indicted on one count of conspiracy to commit wire fraud. Tiffany
Pacheco was also indicted on five counts of wire fraud and Arthur Pacheco on two counts. The
defendants were arrested in San Antonio, Texas in December 2020 and have been detained since.

According to charging documents, Tiffany was hired by the Massachusetts Department of
Unemployment Assistance (DUA) in April 2020, shortly after her release from federal prison
following a conviction for aggravated identity theft. While employed by DUA, Tiffany allegedly
misused her position to submit fraudulent PUA claim information on behalf of herself and her
husband, Arthur, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA
funds.

Specifically, it is alleged that in June 2020, PUA claims submitted for Tiffany and her husband
reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA,
Tiffany obtained access to the PUA computer system, and later changed claim information for herself
and Arthur so as to increase the amount of PUA funds they would receive. For example, Tiffany
allegedly increased the amount of 2019 income for her and Arthur to more than $240,000, and
increased the number of their dependents to seven. Tiffany further used her access to the PUA
system to verify the increased reported 2019 income on both claims without the required income
verification documents.

It is further alleged that the PUA claim for Arthur was fraudulent because he was incarcerated in
Texas until Sept. 4, 2020, and thus ineligible for PUA funds. In November 2020, Arthur called DUA
and falsely denied that he had been incarcerated during the timeframe leading up to September
2020, and that he was only incarcerated for approximately a month. Tiffany also spoke with DUA
and misrepresented the period of time for which Arthur had been incarcerated.

A search of the New Bedford apartment where Tiffany and Arthur resided uncovered various tools of
identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card
lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately
$17,000 cash and a notebook that appeared to contain the personal identifying information of
various individuals. On Sept. 23, 2020, DUA terminated Tiffany’s employment.

The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20
years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are
imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other
statutory factors.

The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit
Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from
various local, state, and federal agencies with expertise in detecting, deterring, and disrupting
organizations and individuals involved in various types of document, identity, and benefit fraud
schemes.

United States Attorney Andrew E. Lelling; William S. Waolker, Acting Special Agent in Charge of
Homeland Security Investigations in Boston; and Michael Mikulka, Special Agent in Charge of the
U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation
made the announcement. The New Bedford Police Department, Massachusetts Parole Board and
Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable
assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Lelling’s
Criminal Division are prosecuting the case.

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

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