Pontiac man pleads guilty to federal charges involving pandemic unemployment benefits fraud
A Michigan man has pleaded guilty to a role in a large-scale unemployment benefit insurance fraud scheme that involved more than $4 million in Pandemic Unemployment Assistance funds.
The details were related in a press release from Julie A. Beck, acting U.S. District Attorney for the Eastern District of Michigan, supported by the U.S. Department of Labor, Federal Bureau of Investigation, Internal Revenue Service and other agencies.
This was not the only fraud investigation involving claims filed into the PUA federal program, which expanded and extended unemployment benefits to people whose ability to work was disrupted during 2020. A similar one handled by the Eastern District Attorney's office looked into fraud involving those who were out of work in Michigan, Pennsylvania and Maryland. And another scheme involved fraudulent claims made in 20 states.
"Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance," Beck said in her statement.
In the latest report, Terrance Calhoun Jr., 36, of Pontiac, Michigan, pleaded guilty to committing aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and to possessing 15 or more unauthorized access devices, all in relation to acts of unemployment insurance fraud, the press release said.
According to the plea agreement, Calhoun and others used stolen personal identification to file hundreds of false unemployment claims over a six-month time frame in Michigan, Arizona and Maryland.
The claims were made in the names of other people, without their knowledge or consent, and resulted in debit cards loaded with over $4 million in unemployment insurance funds mailed to addresses where the conspirators could claim them.
About $1.6 million in purchases and cash withdrawals were made from those accounts.
Calhoun faces a possible federal sentence of up to 20 years in prison for each of the wire fraud counts, up to 10 years in prison for possessing 15 or more unauthorized access devices, and a mandatory consecutive 2-year sentence for the aggravated identity theft charge.
Sentencing is set for Aug. 27.
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