Johnny Richardson, Unemployment Fraud, Michigan 2021

Detroit Man Pleads Guilty in Unemployment Fraud Scheme

A Detroit man, Johnny Richardson, has pleaded guilty to his role in a scheme aimed at defrauding the State of Michigan, other states, and the U.S. Government of funds earmarked for unemployment assistance during the COVID-19 pandemic.

According to court records, Richardson conspired with others, including Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency who pleaded guilty last month—to fraudulently obtain hundreds of thousands of government money intended to support individuals who lost their jobs during the pandemic.

Richardson, 26, filed fraudulent unemployment claims over the Internet in at least five states, resulting in the fraudulent disbursement of at least $683,555 of funds intended for unemployment assistance during the pandemic.

Richardson provided Hawkins information on Michigan claims, and Hawkins subsequently used her insider access to fraudulently release payments on these claims.

Richardson is scheduled to be sentenced on November 9, 2021, at 11 am before United States District Judge Bernard A. Friedman.

The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.

The Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021, to marshal the resources of the Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.

Richardson’s guilty plea is a significant step in holding accountable those who exploit the system and seek to defraud the government.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related Federal Cases