Lebanon Man Pleads Guilty to Pandemic Fraud

HARRISBURG – A Lebanon County man has admitted to defrauding the pandemic unemployment system, authorities revealed.

Luis Mercado, 44, of Lebanon, Pennsylvania, pleaded guilty on November 30th before U.S. District Court Judge Sylvia H. Rambo to wire fraud for falsely claiming Pandemic Unemployment Assistance (PUA) funds while employed as a poultry inspector with the United States Department of Agriculture.

According to U.S. Attorney John C. Gurganus, Mercado began collecting PUA benefits in August 2020, despite being gainfully employed. His deceitful claim of unemployment led to him receiving $37,555 in fraudulent unemployment assistance, which he fraudulently reaffirmed weekly.

Bethanne M. Dinkins, Special Agent in Charge at the USDA-Office of Inspector General, emphasized the importance of zero-tolerance for such fraud: “This investigation and prosecution should send a strong message to those who seek to exploit pandemic relief programs.”

“Mercado’s case underscores our commitment to safeguarding unemployment compensation benefits programs,” said Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region at the U.S. Department of Labor Office of Inspector General.

The COVID-19 Fraud Enforcement Task Force was established by the Attorney General on May 17, 2021, specifically to combat pandemic-related fraud. The Task Force works with agencies across government to investigate and prosecute those responsible for fraudulent activities.

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