A Florida man has pleaded guilty to federal charges of conspiracy to commit wire fraud and mail fraud, and aggravated identity theft in a scheme to fraudulently obtain unemployment benefits in the names of identity theft victims.
Christopher Kenneth Guy, 30, of Tampa, Florida, pleaded guilty today to the charges in the District of Maryland. The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General (DOL-OIG); Acting Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service – Washington Division; and Chief Gregory Der of the Howard County Police Department.
The Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) was enacted on March 27, 2020, to assist individuals experiencing financial distress as a result of the Covid-19 pandemic. Among other things, the CARES Act established the Federal Pandemic Unemployment Compensation program (FPUC), which provided federal funds to state agencies responsible for the administration of unemployment benefits. The FPUC funds were provided to supplement regular unemployment compensation payments to qualified applicants.
According to his plea agreement, from May 26, 2020, to August 5, 2020, Guy and his co-conspirators submitted fraudulent applications, using the personal information of identity theft victims, claiming unemployment benefits to which they were not entitled. The applications were submitted through the internet to the Oklahoma Employment Security Commission (OESC) and other state workforce agencies. Based on the fraudulent applications, OESC and other workforce agencies disbursed benefits, including FPUC funds, through debit cards issued in the names of the identity theft victims. The debit cards were mailed to addresses in Maryland and elsewhere, that were accessible to Guy and other conspirators.
Guy and his co-conspirators used the debit cards to withdraw money and to conduct retail transactions. For example, between July 27 and August 5, 2020, Guy conducted fraudulent transactions using debit cards in the names of at least seven identity theft victims and funded with unemployment compensation, including FPUC funds. On August 5, 2020, Guy used a debit card issued in the name of an identity theft victim to purchase a laptop computer for $2,225.99, from a retail electronics store in Elkridge, Maryland.
Howard County Police officers, who had been called for a possible fraudulent purchase, approached Guy in the parking lot. Upon questioning by the officers, Guy falsely stated that he had lost the receipt and that he made the purchase using a card he produced bearing no name. When officers advised that the number on the card did not match that listed on the receipt reprinted by the store, Guy falsely claimed that he must have lost the card he used to purchase the laptop. Guy was then arrested by officers, who located the card used to purchase the laptop in Guy’s pocket.
A search of Guy’s vehicle by Howard County Police Department officers recovered $1,500 in cash, four debit cards issued in names other than Guy’s, multiple electronic devices, and a room key from a hotel in Chevy Chase, Maryland. A search warrant was obtained for Guy’s hotel room and officers recovered 13 additional debit cards issued in various names, additional electronic devices, receipts from retail purchases, and $11,619 in cash.
Guy faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and mail fraud, and aggravated identity theft. He also faces a maximum fine of $250,000.
The case was investigated by the U.S. Department of Labor Office of Inspector General and the U.S. Postal Inspection Service.
Defendant: Christopher Kenneth Guy
Criminal Charges: Conspiracy to commit wire fraud and mail fraud, and aggravated identity theft
City and State: Baltimore, Maryland
Date: May 26, 2020, to August 5, 2020
Sentence: Pending
Dollar Amounts: $2,225.99, $1,500, $11,619
Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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