Houston Woman Pleads Guilty in $550K Covid Fraud Scheme

KANSAS CITY, Mo. – In a stunning admission of guilt, Prayshana Washington, 37, from Houston, Texas, has pleaded guilty in federal court to masterminding a $550K Covid-19 unemployment fraud scheme. The embezzlement, which spanned over a year from May 2020 to June 2021, saw Washington deceitfully claim enhanced unemployment benefits under the guise of numerous individuals.

Washington stood before U.S. Chief District Judge Beth Phillips on Thursday, May 23, confessing to one count of theft of government property. Her audacious scheme involved filing fraudulent claims not only in her own name but also using the personal identifying information of unsuspecting Missourians and others across the country.

The court heard that these claims falsely capitalized on the emergency increase in unemployment compensation benefits, which included an additional $600 weekly payment due to the pandemic. The total financial loss attributed to Washington’s deceit is at least $550,000 but may exceed $1.5 million, a staggering sum for what began as a single fraudulent claim.

Under federal statutes, Washington faces up to 10 years in federal prison without parole for her crimes. Although the final sentence will be determined by the court based on sentencing guidelines and other factors, the gravity of her actions is clear. A presentence investigation by the United States Probation Office will precede any sentencing hearing.

This case has been a joint effort between the Department of Homeland Security, Office of Inspector General, and the Department of Labor, Office of Inspector General – Office of Investigations & Labor Racketeering Fraud. Assistant U.S. Attorney Paul S. Becker is leading the prosecution against Washington.

Washington’s fraudulent activities have not only depleted public funds but also tarnished the integrity of the unemployment system during one of the most challenging economic periods in recent history.