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$48,833 in COVID-19 Benefits Scam Unraveled
A 25-year-old Buffalo woman has pleaded guilty to defrauding the New York State Department of Labor out of $48,833 in COVID-19 benefits, a scheme that authorities say was sparked by the COVID-19 pandemic.
Shaneesha White, 25, of Buffalo, NY, pleaded guilty to wire fraud involving benefits connected to a presidentially declared national emergency, a charge that carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
According to Assistant U.S. Attorney Kyle P. Rossi, White defrauded the New York State Department of Labor by fraudulently collecting unemployment insurance benefits between June 2020 and February 2021. White applied for and received benefits in her own name, under false and fraudulent pretenses. The defendant and others also used the personal identifying information of two individuals to create benefit accounts and collect benefits in the names of these individuals.
The benefit money was deposited into bank accounts held and controlled by the defendant at Key Bank. Key Bank also issued ATM cards in both White’s name and in the names of the two individuals, which the defendant used to make cash withdrawals of the benefits.
The CARES Act, a federal law enacted on March 29, 2020, provided emergency financial assistance to Americans affected by the COVID-19 pandemic. The law expanded states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Region, under the direction of Special Agent-in-Charge Jonathan Mellone; the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Todd Allen; the U.S. Secret Service, under the direction of Special Agent-in-Charge Jeffrey Burr; and the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso.
Sentencing is scheduled for January 14, 2022, before U.S. District Judge Lawrence J. Vilardo.
Key Facts
- State: New York
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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