Derrick Gadson, COVID-Relief Program Fraud, Rhode Island 2023

PROVIDENCE, R.I. - A North Providence man who was receiving COVID-relief unemployment benefits in Rhode Island, and fraudulently applied for and collected more than $20,000 in unemployment benefits from two other states, has been sentenced to eighteen months in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.

Derrick Gadson, 35, pleaded guilty in federal court in April to two counts of wire fraud and one count of theft of government money, admitting to a federal judge that, while collecting unemployment benefits in Rhode Island in June 2020, he began filing for benefits in Massachusetts and Arizona, fraudulently claiming that he lived and worked in both states.

Gadson collected a total of $20,727 in federally funded unemployment insurance benefits that he was not entitled to receive.

At sentencing on Monday, U.S. District Court Judge William E. Smith sentenced Gadson to eighteen months of incarceration in federal prison to be followed by three years of federal supervised release. Gadson was ordered to pay restitution totaling $20,727.

This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General.

Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at financialcrimes@risp.gov or the FBI Providence office at (401) 272-8310.

Source: https://www.justice.gov/usao-ri/pr/north-providence-man-sentenced-defrauding-covid-relief-program