Brandi Hawkins, Unemployment Insurance Fraud, Michigan 2021

DETROIT, MI – A Detroit woman, Brandi Hawkins, 40, has admitted to her central role in a brazen $3.8 million unemployment insurance fraud scheme that preyed on pandemic relief funds. Hawkins, a former contract employee with the State of Michigan Unemployment Insurance Agency, pleaded guilty before U.S. District Judge Paul D. Borman on Wednesday. She now faces a potential 20-year federal prison sentence when she is sentenced October 28, 2021.

The scheme, operating between April and June 2020, involved Hawkins allegedly accepting bribes in exchange for releasing fraudulent unemployment claims entered into the state’s system by co-conspirators. These claims, numbering over 700, were often filed using stolen identities, turning a lifeline for struggling citizens into a personal windfall for Hawkins and her associates. The total potential loss if all claims had been fully disbursed soared to over $12 million, according to court records.

Federal investigators, a coalition of agencies including the U.S. Secret Service, the Department of Labor Office of Inspector General, the FBI, IRS-Criminal Investigation, and the U.S. Postal Inspection Service, uncovered the operation. During a search of Hawkins’ residence, authorities seized over $200,000 in cash – a clear indication of the profits she reaped from the scheme. The money, it turns out, wasn’t stashed away for a rainy day; it was spent on high-end handbags and other luxury goods, flaunting ill-gotten gains while legitimate claimants waited for assistance.

“Hawkins exploited the pandemic to defraud the State of Michigan and United States for her own personal gain,” stated Acting U.S. Attorney Saima Mohsin. “Our office continues to focus on identifying and prosecuting those individuals who seek to divert funds intended for those in need during what has been a very difficult period of unemployment.” The case underscores a growing trend of pandemic-related fraud, with authorities scrambling to recover stolen funds and hold perpetrators accountable.

Douglas J. Zloto, Special Agent in Charge of the U.S. Secret Service Detroit Field Office, emphasized the abuse of trust inherent in the scheme. “Brandi Hawkins while employed as a contractor used her position to take advantage of the public and defraud the State of Michigan. She was able to manipulate the Michigan Unemployment Insurance Agency system for her and others’ personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring criminals like Hawkins to justice,” Zloto said.

The investigation is ongoing, and authorities have not ruled out the possibility of additional charges or arrests related to this scheme. Acting Special Agent in Charge Kelly Lewis of IRS-Criminal Investigation warned, “Facilitating a fraudulent scheme to enrich yourself and others by stealing unemployment compensation earmarked for pandemic assistance is a vicious crime.” This case serves as a stark reminder that those who exploit hardship for personal profit will face the full weight of federal prosecution.

Related Federal Cases