Johnny Richardson, Unemployment Benefits Fraud, Michigan 2021

DETROIT – Johnny Richardson, 26, of Detroit, admitted today to participating in a brazen scheme to siphon off over $683,555 in unemployment benefits intended for those struggling through the COVID-19 pandemic. Richardson isn’t accused of needing the money; he’s accused of stealing it.

According to court records, Richardson conspired with at least one insider – Brandi Hawkins, a former contract employee with the State of Michigan Unemployment Insurance Agency who previously copped a plea – to file fraudulent claims across at least five states. The operation wasn’t small-time. Federal investigators say Richardson and his crew managed to fraudulently obtain and disperse at least $683,555 in funds.

The scam relied on Hawkins’ access within the Michigan Unemployment Insurance Agency. Richardson allegedly provided Hawkins with information on fraudulent Michigan claims, which she then used her position to approve and release payments. It’s a classic case of insider exploitation, turning a system designed to help those in need into a personal piggy bank.

Federal authorities are also keeping an eye on Micahia Taylor, a co-defendant scheduled for a plea hearing on August 10, 2021. The full scope of the operation and the number of fraudulent claims remains under investigation. The U.S. Attorney’s Office has not released details regarding Taylor’s role, but sources indicate they were a key player in expanding the scam beyond Michigan.

Richardson is facing sentencing on November 9, 2021, at 11 am before United States District Judge Bernard A. Friedman. The investigation was a joint effort by the Department of Labor Office of Inspector General, the U.S. Secret Service, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity. Assistant United States Attorney Timothy Wyse is prosecuting the case.

This case is part of a larger national crackdown on COVID-19 related fraud, spearheaded by the Attorney General’s COVID-19 Fraud Enforcement Task Force. The Task Force aims to pool resources across multiple agencies to investigate and prosecute those who exploited the pandemic for personal gain. Citizens with information about COVID-19 fraud can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or through their web complaint form.

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