Kari Marie Russo, Unemployment Insurance Fraud, California 2025

Oakland Woman Sentenced to 33 Months for Unemployment Insurance Scam

Kari Marie Russo, 46, a resident of Oakland, California, was sentenced to 33 months and one day in federal prison for submitting numerous fraudulent unemployment insurance claims using stolen identities.

Russo and her co-defendant Steven Dunsmore, 35, also of Oakland, were indicted by a federal grand jury on October 3, 2023, and Russo was later indicted on September 17, 2024, on a single count of failure to appear.

According to court documents, Russo and Dunsmore engaged in an elaborate scheme to submit fraudulent unemployment insurance claims to California's Employment Development Department (EDD) using other people's personally identifying information, such as their names, dates of birth, and Social Security numbers, without their authorization.

As a result of the fraudulent applications, Dunsmore and Russo received approximately $336,545 in EDD funds.

Russo was captured by the U.S. Marshals Service on June 11, 2024, after she left a residential drug treatment program without permission and failed to appear in court on January 8, 2024, as ordered.

Dunsmore previously pleaded guilty to two counts of fraudulent use of unauthorized access device and two counts of aggravated identity theft, and was sentenced to 24 months and one day in federal prison on June 17, 2024, and ordered to pay $336,545 in restitution.

Russo was ordered to pay $336,545 in restitution, jointly and severally with Dunsmore, in addition to her prison sentence.

The case was investigated by the U.S. Department of Labor, Office of Inspector General (DOL-OIG), FBI, Department of Homeland Security (DHS) Inspector General, and California's Employment Development Department.

The case is being prosecuted by Assistant U.S. Attorney Wendy Garbers, with the assistance of Laurie Worthen.

Source: https://www.justice.gov/usao-ndca/pr/oakland-woman-who-made-multiple-fraudulent-unemployment-insurance-claims-using-stolen