Katrina Maddox, Unemployment Insurance Benefits Fraud, Michigan 2023

Katrina Maddox, Unemployment Fraud, Southfield MI, 2023

DETROIT – Katrina Maddox, 47, of Southfield, Michigan, is facing up to 20 years in federal prison after pleading guilty today to a brazen scheme that bilked the State of Michigan out of over $300,000 in pandemic-related unemployment insurance benefits. The case, a stark reminder of the widespread fraud that plagued COVID-19 relief programs, was announced by United States Attorney Dawn N. Ison.

According to court records, Maddox began her fraudulent activity as early as April 2020 and continued through at least September 2021. She allegedly filed approximately 65 bogus unemployment insurance (UI) claims, seeking pandemic unemployment assistance (PUA) benefits under the names of individuals who never authorized the submissions. Maddox exploited stolen Social Security Numbers and other personal identifying information to create these false claims, leaving the victims to deal with the fallout of identity theft.

The fraudulently obtained benefits were loaded onto debit cards, which Maddox then systematically drained through repeated ATM withdrawals. The total amount stolen reached a staggering $311,440, funds desperately needed by legitimate claimants during a time of widespread economic hardship. The U.S. Secret Service’s Detroit Field Office, alongside the U.S. Department of Labor Office of Inspector General, led the investigation, unraveling the complex web of fraudulent claims.

“This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need,” stated United States Attorney Ison. “My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.” Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General, echoed this sentiment, emphasizing the agency’s dedication to safeguarding the UI system.

John Marengo, Special Agent in Charge of the U.S. Secret Service’s Detroit Field Office, highlighted the importance of interagency cooperation. “We are thankful to the Department of Labor and the US Attorney’s Office for partnering with us in the investigation and prosecution of this case,” Marengo said. “We will continue to work with our partners to protect our nation’s financial infrastructure.”

As part of her plea agreement, Maddox will be required to pay full restitution to the affected states in the amount of $311,440. Sentencing is scheduled for April 25, 2024, at 2:00 PM before United States District Judge Terrence G. Berg. Assistant United States Attorneys Sarah Youngblood and Ryan A. Particka are prosecuting the case. The investigation serves as a warning: those who attempt to defraud the system will be pursued and held accountable.

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