U.S. Department of Labor OIG, Former Department of Unemployment Assistance Employee and Husband Arrested on Fraud Charges Arising from Pandemic Unemployment Claims (USAO D-MA 12/18/2020) (2020-12-23)

Summary

A December 18, 2020 press release from the U.S. Attorney's Office for the District of Massachusetts reporting that Tiffany Pacheco, also known as Tiffany Tavery, and Arthur Pacheco, a married couple who until recently lived in New Bedford, were arrested in San Antonio, Texas, on a criminal complaint charging conspiracy to commit wire fraud, with an added wire fraud count against her. The complaint alleges that after joining the state Department of Unemployment Assistance in April 2020, she altered their Pandemic Unemployment Assistance claims, raising reported 2019 income to more than $240,000 and dependents to seven, and verified the income without documents, while her husband was in custody in Texas until September 4, 2020. A September 22, 2020 search found 100 blank ID cards, 649 sheets of blank checks and about $17,000 in cash.

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“U.S. Department of Labor OIG, Former Department of Unemployment Assistance Employee and Husband Arrested on Fraud Charges Arising from Pandemic Unemployment Claims (USAO D-MA 12/18/2020) (2020-12-23).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-former-department-of-unemployment-assistan-b0fdedceac/, SHA-256 666baa53f3dc4bdc38274ffd3685dd4bfbfe8776df2eab38d028bd55c00421dd.

Full text

Department of Justice

U.S. Attorney’s Office

District of Massachusetts

FOR IMMEDIATE RELEASE Friday, December 18, 2020

Former Department of Unemployment Assistance Employee
and Husband Arrested on Fraud Charges Arising from
Pandemic Unemployment Claims
Defendant allegedly used her position to file fraudulent claims for herself and
her husband
BOSTON – A married couple was arrested last night in Texas on federal fraud charges arising from
their claims for Pandemic Unemployment Assistance (PUA) funds. The defendants previously served
jail time.

Tiffany Pacheco, a/k/a Tiffany Tavery, 35, and Arthur Pacheco, 47, who, until recently, resided in
New Bedford, Mass., were charged by criminal complaint with one count of conspiracy to commit
wire fraud. Tiffany Pacheco was also charged with one count of wire fraud. The defendants were
arrested in San Antonio, Texas last night and will make an appearance in the Western District of
Texas today.

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 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 warrant executed on Sept. 22, 2020 at a 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; David Magdycz, 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.

File and source

File: 2020-12-23-Former-Department-of-Unemployment-Assistance-Employee-and-Husband-Arrested-on-Fraud-Charges-Arising.pdf
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SHA-256: 666baa53f3dc4bdc38274ffd3685dd4bfbfe8776df2eab38d028bd55c00421dd
Our copy: 2020-12-23-Former-Department-of-Unemployment-Assistance-Employee-and-Husband-Arrested-on-Fraud-Charges-Arising.pdf
Original: www.oig.dol.gov