ROCHESTER, N.Y. – Danielle Tooley, 36, of Batavia, New York, is facing serious federal charges after authorities uncovered a brazen scheme to defraud COVID-19 relief programs. Tooley was arrested and charged with wire fraud and theft of government funds, crimes that carry a potential 30-year prison sentence and a $1,000,000 fine. The case exposes yet another instance of individuals exploiting the pandemic for personal gain, preying on a system designed to help those in genuine need.
The unraveling of the scam began not with a financial investigation, but a traffic stop. On November 24, 2020, New York State Police pulled Tooley over in Bergen, NY. Troopers discovered a crack pipe containing residue in her vehicle, leading to her arrest on drug charges. A subsequent search of the vehicle yielded six New York State unemployment benefit cards – none of them belonging to Tooley. These cards were immediately flagged and turned over to federal investigators.
What started as a routine traffic stop quickly blossomed into a full-blown fraud investigation. The Buffalo Field Office of the U.S. Department of Labor, Office of Inspector General, began scrutinizing bank records associated with the recovered benefit cards. The records revealed a pattern of suspicious activity, with multiple indicators pointing to fraudulent claims. Investigators further corroborated the evidence with ATM surveillance footage, confirming that Tooley was repeatedly withdrawing money from the cards using the identities of others.
Assistant U.S. Attorney Kyle Rossi alleges that between July and December 4, 2020, Tooley and her associates unlawfully obtained personal identifying information to file fraudulent unemployment claims. The scheme involved systematically applying for and collecting benefits in the names of individuals who were either unaware or unable to contest the claims. This isn’t just a numbers game; it’s theft from a system meant to support families struggling during a crisis.
The investigation, a collaborative effort between multiple federal agencies – including the U.S. Secret Service, the Department of Homeland Security, the Social Security Administration, and the New York State Police – determined that Tooley’s fraudulent activity resulted in a loss of at least $99,141.39 to the United States. The sheer scale of the theft highlights the vulnerability of these programs and the lengths to which some will go to exploit them.
Tooley made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions pending further court proceedings. It’s crucial to remember that these are merely allegations, and Tooley is presumed innocent until proven guilty. However, this case serves as a stark reminder that those who attempt to defraud federal programs will be pursued and held accountable. Special Agent-in-Charge Jeffrey Burr of the U.S. Secret Service oversaw the agency’s involvement in the investigation.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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