U.S. Department of Labor OIG, Michigan Man Arrested for Unemployment Fraud and Identity Theft Related to COVID-19 Pandemic (USAO D-MA 01/13/2022) (2022-01-18)

Summary

A press release from the U.S. Attorney's Office, District of Massachusetts, dated January 13, 2022, announcing that Devin Smith, 30, a Michigan man, was arrested in Michigan and charged with one count of wire fraud and one count of aggravated identity theft. According to the charging document, Smith participated in a scheme to obtain proceeds from fraudulent unemployment and Pandemic Unemployment Assistance claims submitted in nine different states, including Massachusetts, between March and May 2020. It alleges that Smith used stolen identities, including those of Massachusetts residents, and filed multiple fraudulent claims in Smith's own name in six different states. Smith was released on conditions after an initial appearance in federal court in Michigan; the charges are allegations.

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


FOR IMMEDIATE RELEASE                                                     Thursday, January 13, 2022

     Michigan Man Arrested for Unemployment Fraud and
         Identity Theft Related to COVID-19 Pandemic
BOSTON – A Michigan man was arrested yesterday in Michigan in connection with his alleged
involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance.

Devin Smith, 30, was charged with one count of wire fraud and one count of aggravated identity
theft. Smith was released on conditions following an initial appearance in federal court in Michigan
yesterday afternoon. He will appear in federal court in Boston at a later date.

In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus
Aid, Relief, and Economic Security Act (CARES Act). The CARES Act provided funding to existing
state unemployment insurance programs and created a new temporary federal program called
Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was
administered by the Department of Unemployment Assistance, provided unemployment insurance
benefits for individuals who are not eligible for other types of unemployment benefits.

According to the charging document, Smith participated in a scheme to obtain proceeds from
fraudulent unemployment and PUA claims submitted in nine different states, including
Massachusetts, between March and May 2020. Smith allegedly used stolen identities, including the
identities of Massachusetts residents, to submit fraudulent unemployment and PUA claims and to
purchase various commercial goods. Additionally, it is alleged that Smith filed multiple fraudulent
unemployment and PUA claims in his own name in six different states, including in Massachusetts.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised
release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The
charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be
served consecutively to any other sentence imposed. Sentences are imposed by a federal district
court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Rachael S. Rollins and Jonathan Mellone, Special Agent in Charge of
Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations
made the announcement today. Valuable assistance in the investigation was provided by the U.S.
Postal Service and the Massachusetts Department of Unemployment Assistance. Assistant U.S.
Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting
the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to
marshal the resources of the Department of Justice in partnership with agencies across government
to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to
investigate and prosecute the most culpable domestic and international criminal actors and assists
agencies tasked with administering relief programs to prevent fraud by, among other methods,
augmenting and incorporating existing coordination mechanisms, identifying resources and
techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information
and insights gained from prior enforcement efforts. For more information on the Department’s
response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by
calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-
5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-
disaster-complaint-form.

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

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