Jason Whitehead, Flexible Spending Account Scheme, Connecticut 2019

State: Connecticut
Category: White Collar Crime
Source: <a href="https://www.justice.gov/usao-ct/pr/springfield-man-admits-defrauding-companies-more-176k-flexible-spending-account-scheme" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

Springfield Man Admits Defrauding Companies of Over $176K in Flexible Spending Account Scheme

Jason Whitehead, a 41-year-old man from Springfield, Massachusetts, has pleaded guilty to defrauding multiple companies through a flexible spending account scheme. According to court documents, Whitehead worked at PayFlex, a company that administered health care and dependent care spending accounts for corporate employees. He was employed at PayFlex until August 2017, when he transferred to another division at Aetna, but retained access to PayFlex’s computer systems.

Between September 2016 and July 2019, Whitehead created multiple fictitious employees at three different victim companies and submitted fraudulent reimbursement claims for dependent care expenses. Through this scheme, PayFlex made $176,200 in payments to Whitehead and third parties he designated.

Whitehead is scheduled to be sentenced on January 19, 2021, and faces a maximum term of imprisonment of 20 years. As part of his plea agreement, he agreed to pay $176,200 in restitution.

This investigation was led by a Hartford Police Department detective as a member of the Federal Bureau of Investigation’s Connecticut Cyber Task Force (CCTF). The CCTF is staffed with detectives from various police departments across the state.

Whitehead is currently released pending sentencing. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.

In a statement, the U.S. Attorney’s Office for the District of Connecticut announced the guilty plea, highlighting the importance of holding individuals accountable for their actions and protecting the public from financial crimes.

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