In a recent case that highlights the consequences of fraudulent activity during the COVID-19 pandemic, a man from Dudley, Massachusetts has been sentenced to prison for theft and misuse of pandemic assistance. Norman Higgs, 35, was sentenced to one year in prison and one year of supervised release by U.S. District Court Judge Patti B. Saris. Higgs pleaded guilty to one count of wire fraud conspiracy, admitting his involvement in a scheme to fraudulently obtain and misuse COVID-19-related unemployment assistance. The payments, totaling over $353,551, were directed into bank accounts controlled by Higgs and his associate, who is also facing charges. While a majority of the funds were frozen or recovered, a portion was used for personal benefit, including paying off credit card debt and investing in digital currency and online retail brokerage accounts. This case serves as a reminder of the severity and repercussions of exploiting pandemic assistance programs.
Introduction
This article provides an overview of a recent case involving theft and misuse of COVID-19 pandemic assistance funds. Norman Higgs, a resident of Dudley, Massachusetts, was sentenced to prison for his involvement in a fraudulent scheme to obtain and misuse pandemic unemployment assistance. This article will delve into the background information on the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Pandemic Unemployment Assistance (PUA) program. It will also explore the case details, sentencing, the fraudulent scheme, the misuse of funds, and the involvement of Dquintz Alexander. Additionally, it will discuss the establishment of the COVID-19 Fraud Enforcement Task Force and provide information on how individuals can report fraud related to the pandemic.
Background Information
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the economic impact of the COVID-19 pandemic. Among its provisions was the creation of the temporary federal unemployment insurance program called the Pandemic Unemployment Assistance (PUA) program. Administered by the Massachusetts Department of Unemployment Assistance, the PUA program provides unemployment insurance benefits to individuals who are not eligible for other types of unemployment benefits, such as the self-employed, independent contractors, or gig economy workers.
Case Details
Norman Higgs, a resident of Dudley, Massachusetts, was involved in a fraudulent scheme to obtain and misuse COVID-19 pandemic assistance. Higgs conspired with another individual named Dquintz Alexander to submit fraudulent PUA claims using stolen identifying information of other individuals. These fraudulent claims resulted in the PUA payments being directed into bank accounts controlled by Higgs and Alexander. Higgs’ controlled accounts received over $353,551 in fraudulent PUA payments. While a majority of the funds were frozen or recovered through the efforts of law enforcement, Higgs and Alexander managed to use a portion of the funds for personal benefit, including paying off credit card debt and funding digital currency and online retail brokerage accounts.
Sentencing
As a result of his involvement in the fraudulent scheme, Norman Higgs was sentenced to one year in prison and one year of supervised release. In addition to the prison term, Higgs was ordered to pay $353,551 in forfeiture.
Fraudulent Scheme
The fraudulent scheme in which Norman Higgs was involved aimed to obtain and misuse COVID-19 related unemployment assistance. Higgs conspired with Dquintz Alexander to submit fraudulent PUA claims using stolen identifying information. By exploiting vulnerabilities in the PUA program, they were able to direct the fraudulent payments into their controlled bank accounts.
Pandemic Unemployment Assistance
The Pandemic Unemployment Assistance (PUA) program, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits to individuals who are not eligible for other types of unemployment benefits. This includes self-employed individuals, independent contractors, and gig economy workers. The PUA program was a part of the CARES Act’s efforts to provide economic relief during the COVID-19 pandemic.
Involvement of Dquintz Alexander
Dquintz Alexander was a key figure in the fraudulent scheme alongside Norman Higgs. Alexander pleaded guilty to multiple charges related to wire fraud, conspiracy to commit wire fraud, and aggravated identity theft. He is scheduled to be sentenced on August 10, 2023.
Misuse of Funds
Norman Higgs and Dquintz Alexander misused the fraudulent PUA payments for personal benefit. They used a portion of the funds to pay off credit card debt and to fund digital currency and online retail brokerage accounts. While efforts were made to freeze and recover the funds, Higgs and Alexander were able to exploit the system and utilize the misappropriated funds.
Guilty Plea of Alexander
Dquintz Alexander pleaded guilty to his involvement in the fraudulent scheme. He admitted to multiple counts of wire fraud, conspiracy to commit wire fraud, and aggravated identity theft. Alexander’s guilty plea further solidified the charges against him and paved the way for his scheduled sentencing on August 10, 2023.
Announcement and Prosecution
The involvement of Norman Higgs and Dquintz Alexander in the fraudulent scheme was announced by Acting United States Attorney Joshua S. Levy. The case was prosecuted by Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit. The prosecution of individuals involved in fraudulent activities related to the COVID-19 pandemic is an important aspect of ensuring justice and deterring others from engaging in similar actions.
COVID-19 Fraud Enforcement Task Force
In response to the increase in fraud related to the COVID-19 pandemic, the Attorney General established the COVID-19 Fraud Enforcement Task Force. This task force aims to marshal the resources of the Department of Justice in partnership with various government agencies to combat and prevent pandemic-related fraud. The task force seeks to investigate and prosecute criminal actors involved in fraudulent activities related to the pandemic and provides support to agencies responsible for administering relief programs to prevent fraud.
Reporting Fraud
To combat and prevent fraud related to COVID-19, it is essential to have an effective reporting mechanism in place. Individuals can report allegations of attempted fraud involving COVID-19 by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by submitting a complaint via the NCDF Web Complaint Form.
Conclusion
The case of Norman Higgs’ involvement in the fraudulent scheme to obtain and misuse COVID-19 pandemic assistance sheds light on the importance of combating fraud during times of crisis. The Pandemic Unemployment Assistance program was intended to provide economic relief to those affected by the pandemic, but this case highlights the vulnerabilities that can be exploited by individuals seeking to fraudulently obtain and misuse these funds. The sentencing of Norman Higgs, along with the guilty plea of Dquintz Alexander, serves as a reminder that those who engage in fraudulent activities will be held accountable. The establishment of the COVID-19 Fraud Enforcement Task Force further emphasizes the commitment to combatting pandemic-related fraud and provides a platform to report fraud and prevent future instances of misuse. Ensuring the proper use and distribution of pandemic-related assistance is crucial in safeguarding the integrity of the programs and providing support to those in need during these challenging times.