Arthur Pacheco, 47, a former New Bedford man, is headed to federal prison for one year after admitting to a brazen scam that ripped off pandemic relief funds meant for struggling Americans. Pacheco was sentenced by U.S. District Court Judge Indira Talwani in Boston on two counts of wire fraud, with three years of supervised release tacked on. The scheme centered on falsified Pandemic Unemployment Assistance (PUA) claims submitted during the height of the national crisis.
Pacheco’s fraud was turbocharged by inside access. His wife, Tiffany Pacheco, was hired by the Massachusetts Department of Unemployment Assistance (DUA) in April 2020—just after her release from federal prison for aggravated identity theft. While on the payroll to help process legitimate claims, she exploited her position to manipulate PUA data. Arthur Pacheco was locked up in Texas until September 4, 2020, making him ineligible for any benefits. That didn’t stop the couple from filing claims under false pretenses.
In June 2020, their initial PUA applications listed zero income and no dependents. But by July, Tiffany Pacheco used her DUA credentials to alter both claims, inflating their 2019 income to over $240,000 and adding seven dependents. She bypassed verification protocols, submitting no documentation while ensuring the system approved the inflated payouts. The couple raked in thousands meant for those truly impacted by the pandemic economy.
When investigators began asking questions, the lies deepened. In November 2020, Arthur Pacheco called DUA and denied being incarcerated for more than a month—despite serving time for over a year. Tiffany echoed the falsehoods, downplaying the duration of his imprisonment. Their story unraveled fast. On September 23, 2020, DUA terminated Tiffany Pacheco’s employment after internal red flags triggered scrutiny.
A raid on their New Bedford apartment exposed a fraud factory. Law enforcement seized $17,000 in cash, an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 lamination sheets, 649 blank check pages, and a notebook filled with stolen personal data. A driver’s license recovered at the scene matched a name used in another fraudulent PUA claim—evidence of a broader identity theft ring.
The case was led by Homeland Security Investigations’ Document and Benefit Fraud Task Force (DBFTF), with support from the New Bedford Police Department, Massachusetts Parole Board, and DUA’s Program Integrity Unit. Acting U.S. Attorney Nathaniel R. Mendell, HSI Special Agent Matthew B. Millhollin, and Labor Inspector General Jonathan Mellone announced the outcome. Prosecuted by Assistant U.S. Attorneys William Abely and Dustin Chao, the conviction is part of the DOJ’s nationwide push under the May 2021 COVID-19 Fraud Enforcement Task Force to crack down on pandemic-related scams.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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