RIDGELAND, MS – Judith Ann Middleton, 71, of Ridgeland, Mississippi, has pleaded guilty to one count of theft of government funds, admitting to a scheme to defraud the unemployment insurance system. The case, investigated by the U.S. Secret Service, reveals a brazen attempt to exploit federal aid intended for those devastated by the COVID-19 pandemic.
According to court documents, in May 2020, investigators discovered unemployment insurance benefits – originating from the State of Washington – were being deposited into Middleton’s bank account. The funds weren’t hers. The deposits were made under the names of *other* individuals, a clear indication of fraudulent activity. These benefits were directly tied to the CARES Act, a massive federal relief package designed to cushion the economic blow of the pandemic.
The U.S. Secret Service’s investigation quickly uncovered the scheme. While the precise amount of stolen funds hasn’t been publicly disclosed, authorities confirmed the benefits were federally subsidized through the CARES Act, meaning taxpayers footed the bill for Middleton’s alleged crime. The investigation highlights the vulnerability of unemployment systems to widespread fraud during times of national crisis.
Acting U.S. Attorney Darren J. LaMarca and U.S. Secret Service Resident Agent in Charge Shawn Wolfe announced the guilty plea. Assistant U.S. Attorneys Meghan M. McCalla and William Dieters are prosecuting the case, signaling a commitment to aggressively pursue those who prey on federal assistance programs. Middleton is scheduled to be sentenced on November 18, 2021, and faces a potential maximum penalty of 10 years in federal prison.
This case is part of a larger, national effort led by the Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF). The task force, comprised of representatives from multiple federal agencies including the FBI, IRS, and Homeland Security, is working to combat the surge in unemployment fraud across the country. The NUIFTF aims to coordinate investigations and bring perpetrators to justice.
The CARES Act, enacted on March 29, 2020, provided a lifeline to millions of Americans. But its expanded unemployment benefits also created opportunities for criminals. The Department of Justice urges anyone with information about COVID-19 related fraud to report it immediately. Tipsters can call the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related Federal Cases
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Pennsylvania
- Community Options Inc, Medicaid Fraud, New York NY, 2023 · Ohio
- Shirley Weimer, Arson and Insurance Fraud Conspiracy, Fort Dodge IA… · Washington
- Teresa Dorenkamp, Wire Fraud, Mason City IA, 2013 · Washington
- William Frazier Sentenced to 51 Months for Wire Fraud, Midland GA, … · Georgia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
Get the grimiest stories delivered weekly. Subscribe free
Browse More
