Jermaine Arnett, Unemployment Fraud, Detroit MI, 2021

DETROIT – Two men from Pontiac, Michigan are facing a mountain of federal charges after allegedly orchestrating a brazen, multi-state scheme to steal over $4 million in unemployment benefits. Jermaine Arnett, 34, and Terrance Calhoun, Jr., 32, are accused of filing hundreds of fraudulent claims, exploiting the pandemic-era surge in unemployment assistance.

The feds say Arnett and Calhoun Jr. weren’t working honest jobs; they were working a scam. According to a criminal complaint unsealed this week, the pair allegedly filed over 500 bogus claims across the country, funneling the ill-gotten gains onto debit cards mailed to addresses they controlled. The operation ran from April to July 2020, preying on a system overwhelmed by legitimate claims and vulnerable to abuse.

While authorities managed to claw back some of the stolen funds electronically, the damage was significant. More than $1.7 million was successfully withdrawn as cash from ATMs, primarily in the affluent Detroit suburbs of Troy, Bloomfield Hills, and Rochester Hills. Agents reportedly used ATM surveillance footage to positively identify Arnett and Calhoun Jr. making large withdrawals using cards issued under the names of *other* people – a clear indication of aggravated identity theft.

The investigation, a joint effort by the U.S. Secret Service, Department of Labor’s Office of Inspector General, IRS-Criminal Investigation, Postal Inspection Service, and Michigan’s Unemployment Insurance Agency, didn’t stop at ATM footage. Searches of the suspects’ residences and mailing addresses revealed a trove of evidence: multiple debit cards in the names of numerous individuals, clothing matching what was seen in surveillance photos, firearms, and reams of stolen personal identification information. The scope of the identity theft appears substantial.

The charges are serious: aggravated identity theft, mail fraud, fraud using a false name and address, wire fraud, bank fraud, money laundering, and conspiracy to commit each of those acts, as well as firearm crimes. A complaint is just the first step; a felony indictment will be sought if the investigation confirms the allegations. Assistant U.S. Attorney Carl D. Gilmer-Hill is prosecuting the case. This case is part of a larger initiative led by the Attorney General to combat COVID-19 related fraud.

The U.S. Attorney’s Office for the Eastern District of Michigan is reminding the public that filing false claims for unemployment benefits is a federal crime with severe consequences. This isn’t a victimless crime; it drains resources from those who legitimately need assistance and puts a strain on the entire system. The investigation is ongoing, and authorities aren’t ruling out the possibility of additional arrests.

Related Federal Cases