ROCHESTER/BUFFALO, N.Y. – Two New York women are headed to federal prison after being convicted in separate schemes to defraud COVID-19 unemployment benefit programs. The cases, announced by U.S. Attorney Trini E. Ross, highlight the continued fallout from widespread fraud connected to pandemic relief efforts.
Danielle Tooley, 37, of Batavia, NY, received a six-month prison sentence and was ordered to pay approximately $18,000 in restitution. Chief U.S. District Judge Elizabeth A. Wolford handed down the sentence after Tooley was convicted of wire fraud. The scheme unraveled after a routine traffic stop in Bergen, NY, on November 24, 2020. A New York State Trooper discovered a crack pipe with residue in Tooley’s vehicle. During the vehicle impound process, troopers discovered six New York State unemployment benefit cards belonging to individuals other than Tooley. Investigation revealed she’d been consistently withdrawing funds from accounts linked to those cards.
The discovery of the stolen benefit cards was a byproduct of a separate drug charge, a common thread in many pandemic fraud cases where desperation and opportunity collided. Assistant U.S. Attorney Kyle P. Rossi, who prosecuted both Tooley and another defendant, noted the connection to federal COVID-19 relief programs. The fraud schemes exploited the expanded unemployment benefits authorized by the CARES Act, designed to provide a lifeline to those economically impacted by the pandemic.
In a more extensive and costly fraud, Shaneesha White, 32, of Buffalo, NY, was sentenced to 41 months in prison and ordered to pay $48,833.15 in restitution. U.S. District Judge Lawrence J. Vilardo imposed the sentence after White was convicted of wire fraud. Between June 2020 and February 2021, White applied for and received unemployment benefits under false pretenses, using her own name and the stolen identities of two other individuals to create fraudulent benefit accounts. She then used ATM cards issued by Key Bank to withdraw the illicit funds.
The CARES Act, enacted in March 2020, dramatically expanded unemployment insurance eligibility, creating programs like Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), and Pandemic Emergency Unemployment Compensation (PEUC). While intended to help millions, these programs proved vulnerable to abuse. The investigation involved multiple federal agencies, including the U.S. Department of Labor Office of Inspector General, the Department of Homeland Security Office of Inspector General, the U.S. Secret Service, and the Social Security Administration Office of Inspector General.
Federal authorities are urging anyone with information about COVID-19 related fraud to report it to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through the online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. These convictions serve as a stark warning that exploiting a national emergency for personal gain will be met with federal prosecution.
Related Federal Cases
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · Pennsylvania
- Sark Wire Corporation, PPP Loan Fraud, Albany NY, 2020 · Ohio
- Mark Thompson, Wire Fraud and Conspiracy, New York NY, 2023 · Ohio
- James Pavlounis, Social Security Administration Fraud and Tax Evasi… · Texas
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · Ohio
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
Get the grimiest stories delivered weekly. Subscribe free
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News