Detroit man sentenced in multi-state, pandemic-era unemployment fraud scheme
The case involved unemployment funds intended to assist those who were out of work in Michigan, Pennsylvania and Maryland after the outbreak of the COVID-19 pandemic in early 2020.
Tracey Dotson, 49, was sentenced Wednesday to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence issued by United States District Judge Matthew F. Leitman, according to the press release from the U.S. Attorney's Office, Eastern District of Michigan.
"Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims," said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.
Dotson pleaded guilty last April to wire fraud and conspiracy to wire fraud in the case.
According to the district attorney's office, the two had filed hundreds of false unemployment claims in the names of other individuals, using Social Security numbers and other identification for those people without their knowledge or consent.
With those false applications, the two received hundreds of Bank of America prepaid debit cards used or distributing unemployment benefits and sent to addresses in Michigan and Pennsylvania; totaling nearly $1 million in Pandemic Unemployment Assistance funds. The PUA federal program, which launched in summer 2020, expanded and extended unemployment benefits to people whose ability to work was disrupted by the pandemic.
Dotson and others then used cash withdrawals from the prepaid cards toward purchases such as high-end jewelry, designer fashion accessories, drugs, at least one vehicle and at least one firearm.
Agencies that supported or worked on this case also included the Federal Bureau of Investigation and the the Department of Labor, Office of Inspector General.
"Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time," Acting U.S. District Attorney Julie Beck said in her statement.
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