A Bristol, Tennessee man has been sentenced to 18 months in prison for his role in a massive unemployment benefit fraud scheme that netted over $499,000.
Larry D. Whited, 57, appeared before a federal judge in Abingdon, Virginia, on April 2021 and pleaded guilty to one count of conspiring to defraud the United States and one count of conspiracy to commit mail fraud with respect to benefits authorized and paid in connection with a presidentially declared major disaster or emergency.
According to court documents, Whited participated in a conspiracy to commit fraud against the United States in connection with a scheme involving the filing of fraudulent claims for pandemic unemployment benefits.
Whited and his co-conspirators collected personal identification information of over 35 individuals, including 15 inmates in the custody of the Virginia Department of Corrections, and filed fraudulent claims of pandemic-related unemployment benefits.
Over the course of nine months, the conspiracy filed fraudulent claims for at least 37 individuals, resulting in a total actual loss to the United States of at least $499,000.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorney Daniel J. Murphy prosecuted the case, which was announced by Acting United States Attorney Daniel P. Bubar of the Western District of Virginia, Darrell J. Waldon, IRS-CI Acting Special Agent in Charge of the Washington DC Field Office, and Syreeta Scott, Acting Special Agent-in-Charge, Philadelphia Region, U. S. Department of Labor Office of Inspector General.
The case highlights the ongoing efforts to combat and prevent pandemic-related fraud, and individuals with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s 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.
Larry D. Whited, Defendant, was sentenced to 18 months in prison for conspiring to defraud the United States and committing mail fraud, with a total actual loss to the United States of at least $499,000.
Defendant’s crime: conspiring to defraud the United States and conspiracy to commit mail fraud.
City and State: Bristol, Tennessee.
Date: April 2021.
Actual Loss to the United States: at least $499,000.
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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