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Home Source documents U.S. Department of Labor OIG, Georgia Man Indicted on Charges of Wire Fraud Involving Unemployment Compensation and the CARES Act Using Residences in Homewood and DeKalb, Illinois (USAO ND-IL 05/12/2021) (2021-05-13)

U.S. Department of Labor OIG, Georgia Man Indicted on Charges of Wire Fraud Involving Unemployment Compensation and the CARES Act Using Residences in Homewood and DeKalb, Illinois (USAO ND-IL 05/12/2021) (2021-05-13)

Summary

A press release from the United States Attorney for the Northern District of Illinois, dated May 12, 2021, announcing that Robert Carter, 27, of Hampton, was indicted by a federal grand jury in Rockford on three counts of wire fraud involving unemployment compensation claims and the CARES Act. As alleged in the indictment, from June through August 2020 Carter and others submitted fraudulent claims to the Maryland Division of Unemployment Insurance, resulting in more than $506,000 in benefits for claimants who did not work or live in Maryland. The indictment alleges that claims were sent from Homewood and DeKalb, Illinois, and that benefits were paid on debit cards withdrawn at Illinois ATMs. Carter is scheduled for arraignment on May 14, 2021, before U.S. Magistrate Lisa A. Jensen.

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Cite this document

“U.S. Department of Labor OIG, Georgia Man Indicted on Charges of Wire Fraud Involving Unemployment Compensation and the CARES Act Using Residences in Homewood and DeKalb, Illinois (USAO ND-IL 05/12/2021) (2021-05-13).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-georgia-man-indicted-on-charges-of-wire-fr-7b1363e452/, SHA-256 0dd997b8bf36ad3c399901bf9a699ec114ff0b161d2965a06e93f3de60a56dea.

Full text

                                             U.S. Department of Justice


                                             United States Attorney
                                             Northern District of Illinois
John R. Lausch, Jr.                          Stanley J. Roszkowski United States Courthouse
United States Attorney                       327 South Church Street, Suite 3300
                                             Rockford, Illinois 61101
                                             (815)987-4444

FOR IMMEDIATE RELEASE                                                        May 12, 2021

    GEORGIA MAN INDICTED ON CHARGES OF WIRE FRAUD INVOLVING
 UNEMPLOYMENT COMPENSATION AND THE CARES ACT USING RESIDENCES
               IN HOMEWOOD AND DEKALB, ILLINOIS

          ROCKFORD — A Georgia man was indicted yesterday day by a federal grand jury in

Rockford on charges of wire fraud. ROBERT CARTER, 27, of Hampton, Ga., was charged with

three counts of wire fraud involving unemployment compensation claims and the Coronavirus Aid,

Relief, and Economic Security Act (“CARES Act”) using residences in Homewood and DeKalb,

Ill.

           The CARES Act expanded states’ ability to provide unemployment insurance for many

workers impacted by the COVID-19 pandemic, including workers who were not ordinarily eligible

for unemployment benefits.       One such program, the Federal Pandemic Unemployment

Compensation Program (“FPUC Program”), allowed eligible individuals who were collecting

certain unemployment benefits to receive an additional $600 in federal benefits per week for weeks

of unemployment ending on or before July 31, 2020. The Pandemic Emergency Unemployment

Compensation (“PEUC”) Program allowed those who had exhausted benefits under regular

unemployment compensation or other programs to receive up to 13 weeks of additional federally

funded benefits. The Pandemic Unemployment Assistance (“PUA”) Program allowed individuals

who do not qualify for regular unemployment compensation and were unable to continue working

as a result of COVID-19, such as self-employed workers and independent contractors, to file for
unemployment benefits. PUA provided up to 39 weeks of benefits to qualifying individuals who

were otherwise able to work and available for work within the meaning of applicable state law,

except that they were unemployed, partially unemployed, or unable or unavailable to work due to

COVID-19 related reasons, as defined in the CARES Act. Unemployment benefit payments under

PUA were retroactive for weeks of unemployment, partial employment, or inability to work due

to COVID-19 reasons starting on or after Jan. 27, 2020.

       Residents of Maryland, or individuals who resided in another state but worked primarily

in Maryland, and who became unemployed through no fault of their own, had the option of

initiating their unemployment claim electronically via the website for the Maryland Division of

Unemployment Insurance.

       As alleged in the indictment, from June through August 2020, Carter and others schemed

to submit fraudulent unemployment insurance claims to the Maryland Division of Unemployment

Insurance resulting in more than $506,000 in unemployment benefits for claimants who he knew

were not entitled to benefits and who did not work or live in Maryland. Further, it is alleged that

Carter caused unemployment insurance claims in his name and others to be sent from Homewood

and DeKalb, Ill. to the Maryland Division of Unemployment Insurance. Carter opted to have the

unemployment benefits paid via debit cards mailed to residences connected to Carter and others

involved in the scheme, then withdrew funds from the debit cards at financial institutions and

ATMs located in Illinois.

       Each count of wire fraud carries a maximum potential penalty of up to 20 years in prison,

a fine of up to $250,000, or twice the gross gain or gross loss resulting from the offense, whichever

is greater. If convicted, the court must impose a reasonable sentence under federal sentencing


                                                 2
statutes and the advisory United States Sentencing Guidelines. Carter will appear for arraignment

on May 14, 2021, at 9:00 a.m. in federal court in Rockford, before U.S. Magistrate Lisa A. Jensen.

       The public is reminded that an indictment contains only charges and is not evidence of

guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government

has the burden of proving guilt beyond a reasonable doubt.

       The indictment was announced by John R. Lausch, Jr., United States Attorney for the

Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Region of the

Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of

the Chicago Division of the U.S. Postal Inspection Service.

       The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

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