U.S. Department of Labor OIG, Four Individuals Indicted for Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison Inmates (USAO ED-VA 04/09/2021) (2021-04-09)
Summary
A press release from the U.S. Attorney's Office for the Eastern District of Virginia, dated Friday, April 9, 2021, announcing an indictment charging Mary Benton, 38, of Portsmouth, Angelica Cartwright-Powers, 35, of Norfolk, Michael Lee Lewis, Jr., 41, and Michael Anthony White, 38, both of Chesapeake, in Case No. 2:21-cr-33. According to the indictment, the defendants used the personal identifying information of 35 Virginia prison inmates to apply for Virginia unemployment benefits during the COVID-19 pandemic. The release states that the conspirators initially obtained $436,834 and that the shared proceeds amounted to approximately $334,667 after the Virginia Employment Commission reclaimed some funds. The defendants face a maximum of five years on the conspiracy count and thirty years on each fraud count.
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“U.S. Department of Labor OIG, Four Individuals Indicted for Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison Inmates (USAO ED-VA 04/09/2021) (2021-04-09).”
Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-four-individuals-indicted-for-fraudulently-fd3420ad61/
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Department of Justice
U.S. Attorney’s Office
Eastern District of Virginia
FOR IMMEDIATE RELEASE Friday, April 9, 2021
Four Individuals Indicted for Fraudulently Obtaining
Pandemic Unemployment Benefits for Virginia Prison
Inmates
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging four individuals with
allegedly participating in a conspiracy to use the personal identifying information of 35 Virginia prison
inmates in order to fraudulently obtain over $300,000 in pandemic-related unemployment benefits.
“As alleged in the indictment, the defendants deliberately stole funds intended for members of our
community who have faced financial hardship and unemployment during the COVID-19 pandemic,”
said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work
with our law enforcement partners to safeguard these critical taxpayer-funded resources and hold
accountable those who unlawfully line their pockets at the expense of the American people.”
According to the indictment, Mary Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35,
of Norfolk, allegedly worked with two inmates at Virginia correctional institutions to collect the
personally identifiable information of other inmates to fraudulently apply for Virginia unemployment
benefits during the COVID-19 pandemic. Benton allegedly submitted successful applications for
Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities.
Cartwright-Powers allegedly submitted successful applications for four inmates at one correctional
facility.
“Fraudulently exploiting COVID-19 relief funds for personal gain is unconscionable,” said Joseph V.
Cuffari, Inspector General for the Department of Homeland Security. “Today’s indictment sends a
clear message that DHS OIG will fully investigate fraud affecting FEMA funds and continue to work
with our law enforcement partners to bring an end to these schemes.”
“Investigating fraud involving the Unemployment Insurance Program is an important part of the
mission of the U.S. Department of Labor - Office of Inspector General, particularly during a time when
our nation is providing billions of dollars in unemployment benefits to American workers in need of
assistance due to the continuing economic effects of the ongoing COVID-19 pandemic,” said Derek
Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of
Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to
vigorously investigate unemployment insurance fraud.”
According to the indictment, co-conspirator Michael Lee Lewis, Jr., 41, of Chesapeake, allegedly
provided information for inmates at the Augusta Correctional Center, where he was incarcerated.
Michael Anthony White, 38, of Chesapeake, allegedly provided information for inmates at the
Lawrenceville Correctional Center, where he was incarcerated. The four individuals charged in this
indictment, along with the prisoners whose information was used for the unemployment applications,
allegedly shared the proceeds of their crimes, which amounted to approximately $334,667. Although
the conspirators initially and allegedly obtained $436,834, the Virginia Employment Commission was
able to reclaim some of the disbursed funds after discovering the fraud.
During the pandemic, both the federal government and the Virginia Employment Commission
expanded unemployment benefits both by increasing the monetary amount, and by making benefits
accessible for the self-employed, contractors, and gig workers, who have not historically qualified for
unemployment. However, inmates remained ineligible for such benefits, and each application that
Benton and Cartwright-Powers submitted allegedly contained numerous false statements that made
the application successful, such as the inmates’ contact information and last employer, and that they
were ready and willing to work.
Benton is charged with one count of conspiracy, three counts of fraud in connection with major
disaster benefits, and three counts of mail fraud. Lewis and White are each charged with one count of
conspiracy and two counts of mail fraud. Cartwright-Powers is charged with one count of conspiracy,
one count of fraud in connection with major disaster benefits, and one count of mail fraud. If convicted,
the conspirators face a maximum of five years in prison on the conspiracy count and thirty years in
prison on each fraud count. Actual sentences for federal crimes are typically less than the maximum
penalties. A federal district court judge will determine any sentence after taking into account the U.S.
Sentencing Guidelines and other statutory factors.
Raj Parekh, U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for
the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC
Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of
Investigations, Virginia Department of Corrections, Special Investigations Unit, made the
announcement.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia
Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led
by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia
Department of Corrections. This investigation included assistance from the U.S. Secret Service’s
Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment
Commission.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern
District of Virginia. Related court documents and information are located on the website of the District
Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Topic(s): Component(s):
Coronavirus USAO - Virginia, Eastern
Disaster Fraud
Contact:
Press Office USAVAE.Press@usdoj.gov
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