CHARLOTTE, N.C. – Donte O’Neill Clements, 33, of Charlotte, is facing a potential three-decade prison sentence after pleading guilty to a sprawling fraud scheme exploiting COVID-19 unemployment benefits, alongside charges of drug distribution and illegal firearm possession. The guilty plea, entered before U.S. Magistrate Judge David C. Keesler on August 19, 2022, reveals a brazen operation that siphoned nearly $1 million from a system designed to aid those impacted by the pandemic.
The scheme, orchestrated with co-conspirator Kaila Leaann Shanteau-Jackson, 30, also of Charlotte, targeted the U.S. Department of Labor and the State of Arizona’s unemployment insurance (UI) program. Jackson, a vendor-contractor for a financial institution handling UI benefits, abused her position as a Pre-Paid Claims Initiation Agent. Using her access to the financial institution’s Pre-Paid Administration System (PAS), she diverted payments intended for 138 victims, redirecting them to addresses controlled by Clements and others.
Between June 2020 and September 2021, Jackson rerouted approximately $993,000 in UI benefits. Clements allegedly received the lion’s share – over $800,000 – withdrawing the funds as cash from ATMs or using the stolen money for retail purchases. The operation involved changing address information within the PAS database, effectively hijacking benefits meant for legitimate recipients. Jackson previously pleaded guilty to wire fraud in July 2022 for her role in the conspiracy.
But the fraud wasn’t Clements’ only alleged offense. He also admitted to possession with intent to distribute cocaine base and possessing a firearm despite being a convicted felon. This layered criminal activity paints a picture of a defendant deeply entrenched in illegal behavior. The U.S. Attorney’s Office for the Western District of North Carolina, led by Dena J. King, is prosecuting the case, with Assistant U.S. Attorney Matthew Warren taking the lead.
The Secret Service, led by Acting Special Agent in Charge Jason Byrnes, and the Charlotte-Mecklenburg Police Department (CMPD) under Chief Johnny Jennings, spearheaded the investigation. A sentencing date for Clements has not yet been set, but he faces a maximum of 30 years in prison and a $1 million fine for the wire fraud charge. The cocaine distribution charge carries a potential 20-year sentence and a $1 million fine, while the firearm offense could add another 10 years and a $250,000 fine.
Authorities urge anyone with information regarding COVID-19 fraud to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Residents of the Western District of North Carolina can also reach their local Coronavirus Fraud Coordinator at 704-344-6222.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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