ROCHESTER, N.Y. – Danielle Tooley, 37, of Batavia, New York, is facing a hefty prison sentence after pleading guilty to wire fraud related to a COVID-19 unemployment benefits scheme. The case, announced today by U.S. Attorney Trini E. Ross, reveals a tangled web of deceit that began to unravel with a simple traffic stop.
Tooley admitted to fraudulently applying for and collecting unemployment benefits between July 9 and December 4, 2020 – funds intended for those genuinely impacted by the pandemic’s economic fallout. The scheme netted her an undisclosed amount, but now carries a maximum penalty of 30 years behind bars and a $1,000,000 fine. Assistant U.S. Attorney Kyle P. Rossi is prosecuting the case.
The scheme wasn’t discovered through routine fraud detection, however. On November 24, 2020, a New York State Trooper pulled Tooley over on Clinton Street in Bergen, NY. The stop quickly escalated when the trooper spotted a crack pipe with white residue inside her vehicle. Tooley confessed to possessing crack cocaine in the center console. But the search didn’t end there.
As troopers prepared to tow Tooley’s vehicle, they recovered six New York State unemployment benefit cards, none of which were issued to her. These cards were turned over to the U.S. Department of Labor, Office of Inspector General, who launched an investigation. Investigators quickly determined that Tooley had been consistently withdrawing money from bank accounts linked to the stolen benefit cards.
The investigation was a multi-agency effort, involving the Department of Homeland Security, Office of Inspector General; the U.S. Secret Service, led by Special Agent-in-Charge Jeffrey Burr; the Social Security Administration, Office of Inspector General; and the New York State Police, under Major Barry Chase. The collaborative effort painted a clear picture of Tooley’s fraudulent activity.
Tooley is scheduled to be sentenced on August 17, 2022, at 3:30 p.m. before Chief U.S. District Judge Elizabeth A. Wolford. Whether she’ll receive the maximum sentence remains to be seen, but this case serves as a stark reminder that exploiting federal relief programs won’t go unnoticed – and comes with serious consequences.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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