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Thursday, October 17, 2024

Six plead guilty in pandemic unemployment benefit fraud scheme

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U.S. Attorney Christopher R. Kavanaugh | U.S. Department of Justice

U.S. Attorney Christopher R. Kavanaugh | U.S. Department of Justice

Six individuals have pleaded guilty in a federal court for their involvement in a scheme to defraud the United States by filing fraudulent claims for pandemic unemployment benefits. The defendants, indicted in May 2024, were charged with conspiracy to commit program fraud and mail fraud.

The accused include Josef Ludwig Brown, Crystal Samantha Shaw, Jonathan Scott Webb, Christopher Kirk Webb, and Stephanie Amber Barton. Each admitted to conspiring to defraud the United States concerning emergency benefits. Haleigh McKenzie Wolfe also pleaded guilty to defrauding the government in connection with these benefits.

Court documents reveal that between March 2020 and September 2021, these defendants conspired while incarcerated to file false claims through the Virginia Employment Commission's website. Their incarceration made them ineligible for such benefits. Brown was identified as a lead defendant who solicited personal information from co-conspirators to facilitate fraudulent claims through Shaw.

This conspiracy involved 17 defendants overall and resulted in over $340,000 being improperly paid out by the Virginia Employment Commission.

Earlier this year, several other individuals pled guilty to related charges. The announcement was made by United States Attorney Christopher R. Kavanaugh alongside Brian D. Miller and Virginia Attorney General Jason Miyares.

The investigation was part of efforts by the Pandemic Response Accountability Committee (PRAC) Task Force, led by the Special Inspector General for Pandemic Recovery. The task force aims to identify risks across programs involving COVID-19 spending exceeding $5 trillion.

Assisting agencies included local law enforcement bodies and federal entities such as the FBI and Department of Labor. Prosecutors on this case are Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen and Assistant U.S. Attorney Danielle Stone.

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