Cleveland Trio Accused of $233K Unemployment Scam

CLEVELAND, OH – Three Cleveland residents are facing serious federal charges after allegedly orchestrating a brazen scheme to steal over $233,000 in unemployment insurance benefits from multiple states. The trio – Arthur Obleton, 62; Oltheus Hill, 53; and James Smith, 32 – were named in a 22-count indictment unsealed today, according to U.S. Attorney for the Northern District of Ohio, Steven M. Dettelbach. They stand accused of a calculated and cold-hearted fraud that exploited a system designed to help those genuinely in need.

The indictment details a “fictitious employer” scheme that spanned from approximately October 2011 to August 2013. The men allegedly created phantom companies, submitting bogus paperwork to unemployment offices in Illinois, Iowa, and California. This paperwork falsely reported earnings for employees who never existed, paving the way for fraudulent unemployment claims. The scale of the operation is staggering, with losses totaling $233,830 spread across three states: $134,383 from Illinois, $80,781 from Iowa, and $18,666 from California.

But the fraud didn’t stop at fabricated companies and employees. The indictment further alleges that Obleton, Hill, and Smith stole the personal identifying information of real people – names, addresses, Social Security numbers – through deceitful means. They then used this stolen data to bolster their false claims, adding a layer of aggravated identity theft to their already serious offenses. This isn’t just about money; it’s about the violation of innocent citizens’ privacy and security.

The charges against the three men are significant. Each faces counts of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and aggravated identity theft. If convicted, their sentences will be determined by the court, taking into account their criminal history (if any), their role in the scheme, and the specifics of the violations. However, prosecutors emphasized that any sentence will adhere to statutory maximums, and likely fall below them.

Assistant U.S. Attorneys Robert W. Kern, M. Kendra Klump, and James Morford are prosecuting the case, which is the result of a joint investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division. These agencies have been working tirelessly to unravel the complex web of deceit woven by these defendants.

It’s crucial to remember that an indictment is merely an accusation. Arthur Obleton, Oltheus Hill, and James Smith are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. They are entitled to a fair trial, where the government bears the responsibility of presenting compelling evidence to secure a conviction. The Grimy Times will continue to follow this case and report on any developments as they unfold.

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