A Houston woman’s guilty plea has blown wide open a massive CARES Act unemployment benefits scam that swindled the state of Missouri out of at least $550,000.
Prayshana Washington, 37, of Houston, Texas, pleaded guilty before U.S. Chief District Judge Beth Phillips on Thursday, May 23, to one count of theft of government property.
By pleading guilty, Washington admitted she facilitated the filing of false claims in her name and the names of other persons, thereby fraudulently receiving unemployment benefits paid through the state of Missouri. These benefits included benefits from the CARES Act.
Washington filed claims for unemployment benefits, using the name and personal identifying information of individuals in the state of Missouri and elsewhere. These persons were not eligible to receive Missouri and enhanced unemployment benefits. The emergency increase in unemployment compensation benefits provided an additional $600 weekly payment.
The CARES Act was enacted in response to the COVID-19 pandemic to provide emergency relief to individuals and small businesses affected by the crisis. However, Washington’s scheme exploited the system for personal gain, resulting in a massive loss to the state of Missouri.
Under federal statutes, Washington is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Department of Homeland Security, Office of Inspector General and the Department of Labor, Office of Inspector General – Office of Investigations & Labor Racketeering Fraud.
Related Federal Cases
- Houston Woman Pleads Guilty in $550K Covid Fraud Scheme · Washington
- Texas Man Facing Wire Fraud Charges for CARES Act Scam · Washington
- Western Union Scam · Washington
- Young and Banks Charged with $3M CARES Act Fraud · Texas
- Alejandro Gurany Sentenced for Immigrant Visa Fraud Scam · New Mexico
Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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