In a stunning case of coronavirus-related economic crime, a Charlotte man has pleaded guilty to participating in a COVID-19 fraud scheme, drug distribution, and illegal gun possession.
Donte O’Neill Clements, 33, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler on August 19, 2022, and pleaded guilty to the crimes, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed plea documents and statements made in court, from June 2020 to September 2021, Clements engaged in a scheme to defraud the U.S. Department of Labor and the State of Arizona by fraudulently receiving and cashing COVID-19 unemployment insurance (UI) payments that Jackson diverted to Clements.
Jackson, a co-conspirator and a vendor-contractor for a financial institution that serviced the UI benefit program in Arizona, used her employment credentials to divert and re-route UI benefits payments intended for 138 victims to Clements, herself, and others. To effectuate the scheme, Jackson changed in the PAS database the rightful recipients’ address information to addresses in Charlotte to which Clements and others had access.
Once Clements and others received the re-routed pre-paid debit cards, they either withdrew the benefits in cash from ATMs or conducted retail purchases with the stolen funds. During the scheme, Jackson diverted approximately $993,000 in UI benefits to her co-conspirators, of which Clements obtained over $800,000 of the stolen funds.
Clements also pleaded guilty to possession with intent to distribute cocaine base and possession of a firearm by a convicted felon. A sentencing date for Clements has not been set. The wire fraud charge carries a maximum term of 30 years in prison, and a $1 million fine. The charge of possession with intent to distribute cocaine base carries a prison term of up to 20 years and a $1 million fine.
The case was investigated by the U.S. Secret Service and the Charlotte-Mecklenburg Police Department. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
In a statement, U.S. Attorney King thanked the U.S. Secret Service and CMPD for their investigation of the case. Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
The Western District of North Carolina is home to numerous cases of COVID-19-related economic crimes, including schemes to defraud the government out of millions of dollars in unemployment benefits.
Defendant: Donte O’Neill Clements, COVID-19 fraud, drug distribution, and firearms offense.
City and State: Charlotte, North Carolina.
Exact Date: August 19, 2022.
Sentence or outcome: Pleaded guilty, awaiting sentencing.
Dollar amounts: $993,000 in UI benefits diverted, $800,000 obtained by Clements.
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes|Drug Trafficking|Gun Crimes
- Source: DOJ Press Release â†â€â€
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