Melissa Hayes, CARES Act Fraud, Virginia 2021

A Bristol, Tennessee woman has pleaded guilty to conspiring to defraud the United States as part of a massive scheme to obtain pandemic unemployment benefits. According to court documents, Melissa Hayes, 51, conspired with others to file false claims for pandemic unemployment benefits through the Virginia Employment Commission website.

The scheme involved submitting claims for individuals who were not eligible to receive pandemic unemployment benefits, including inmates incarcerated in southwest Virginia regional jails. Conspiracy members lied on the filings to make filers appear eligible for benefits, re-verifying and re-certifying the false statements on numerous occasions.

In total, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be paid. Hayes was directly involved in claims that resulted in an aggregate actual loss of more than $70,000.

Hayes pleaded guilty to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud. She is scheduled to be sentenced on July 26, 2021, at which time a federal district court judge will determine her sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The investigation into the scheme was conducted by the Department of Labor-Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.

The case against Hayes is part of a larger ongoing prosecution into dozens of individuals who fraudulently filed for pandemic unemployment benefits. The scheme highlights the importance of vigilance in preventing and detecting fraud, particularly during times of crisis.

Hayes' guilty plea serves as a reminder that those who engage in such schemes will be held accountable for their actions.

Source: https://www.justice.gov/usao-wdva/pr/bristol-tennessee-woman-pleads-guilty-part-ongoing-prosecution-cares-act-fraudsters