Christopher L. Vandermark Cops to Money Laundering Scheme

Christopher L. Vandermark, 57, of Endicott, New York — formerly of Gansevoort — has been sentenced to five years of probation after admitting to a sprawling money laundering conspiracy tied to a multi-state unemployment insurance fraud scheme. The conviction, handed down in Albany, marks the end of a digital fraud spree that saw Vandermark funnel over $88,000 in stolen benefits through a web of bank accounts and gift card purchases.

According to court documents, Vandermark communicated for more than a year with a co-conspirator he believed to be a woman in North Carolina. She directed him to open multiple financial accounts and hand over routing details. Between June 2020 and April 2021, those accounts received fraudulent unemployment payouts from six states. Vandermark didn’t hesitate — he converted the cash into hundreds of gift cards from local retailers, snapped photos of the PINs, and sent them off to his shadowy partner, who then sold them online to launder the money.

Even as banks flagged his activity and sent repeated warnings, Vandermark ignored them. When federal agents confronted him about $37,000 in illicit transfers, he flatly denied owning the account. That lie didn’t stop him from opening a new account immediately after the interview — into which he received another $13,734 in fraudulently obtained benefits from three more states. He repeated the gift card scam, proving the scheme was far from over.

Sentencing came before Senior U.S. District Judge Gary L. Sharpe, who slapped Vandermark with a five-year probation term and ordered him to pay full restitution: $13,734. The same amount must also be forfeited as criminal proceeds. The judge made it clear — exploiting pandemic relief programs while lying to investigators carries consequences, even if prison time isn’t one of them.

The DHS Office of Inspector General led the investigation, with support from the Social Security Administration OIG and the New York State Comptroller’s Office. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case, underscoring the federal crackdown on those who weaponized emergency aid during a national crisis.

The case falls under the umbrella of the DOJ’s COVID-19 Fraud Enforcement Task Force, launched in May 2021 to target pandemic-related scams. With billions in relief funds abused nationwide, authorities urge the public to report suspicious activity to the National Center for Disaster Fraud hotline at 866-720-5721 or via the online complaint form at justice.gov.