CHARLOTTE, N.C. – A Charlotte woman has confessed to a brazen scheme that siphoned nearly $1 million in COVID-19 unemployment benefits from the state of Arizona. Kaila Leaann Shanteau-Jackson, 30, pleaded guilty to wire fraud on Tuesday, admitting to a calculated effort to redirect funds intended for struggling Americans into her own pockets.
According to court documents, Jackson wasn’t some outside hustler. She was an *inside* woman – a vendor-contractor working for a financial institution tasked with distributing prepaid debit cards containing unemployment benefits. From June 2020 to September 2021, Jackson allegedly exploited her position as a “Pre-Paid Claims Initiation Agent,” using her access to the institution’s system to change mailing addresses on benefit cards.
The scope of the fraud is staggering. Jackson rerouted benefits meant for 138 victims, changing their addresses to locations in Charlotte where she and her associates could intercept the prepaid cards. Once in hand, the stolen funds were either withdrawn as cash from ATMs or used for purchases, leaving the original intended recipients high and dry. The total haul: approximately $995,000.
The U.S. Attorney’s Office for the Western District of North Carolina, alongside the U.S. Secret Service Charlotte Field Office and the Charlotte-Mecklenburg Police Department, built the case against Jackson. Acting Special Agent in Charge Jason Byrnes of the Secret Service and CMPD Chief Johnny Jennings joined U.S. Attorney Dena J. King in announcing the guilty plea, a rare joint statement highlighting the multi-agency effort.
Jackson appeared before U.S. Magistrate Judge David C. Keesler to enter her guilty plea. She now faces a potential sentence of up to 30 years in federal prison and a $1,000,000 fine. A sentencing date has not yet been scheduled. Assistant U.S. Attorney Matthew Warren is prosecuting the case.
Federal authorities are urging anyone with information about COVID-19 related fraud to come forward. The Department of Justice’s National Center for Disaster Fraud Hotline can be reached at 866-720-5721, or complaints can be filed online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. In the Western District of North Carolina, residents can also call 704-344-6222 to reach the local Coronavirus Fraud Coordinator.
Related Federal Cases
- Nextcare Inc. Executives, Healthcare Fraud, California 2022 · Arizona
- Sex Trafficker Convicted in Charlotte · North Carolina
- Kamori Dontae Keys, Bank Fraud, North Carolina 2024 · South Carolina
- Bank Employee, Bank Fraud, New York 2024 · Tennessee
- Thy Muhammad, Tax Return Preparation Fraud, North Carolina 2024 · Arizona
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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