Michael Blanc, Wire Fraud, Newark NJ, 2024

Newark, NJ – Michael Blanc, 34, of Miami, Florida, pleaded guilty to wire fraud, admitting to obtaining over $1.5 million in government benefits from unemployment insurance programs and the COVID-19 Economic Injury Disaster Loan (EIDL) program.

Blanc pleaded guilty on September 13, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court. He admitted to applying for unemployment insurance benefits and EIDL loans in others’ names without their knowledge or consent, and providing false information to induce state workforce agencies and the Small Business Administration (SBA) to approve the applications.

According to U.S. Attorney Philip R. Sellinger, Blanc took advantage of government programs designed to provide financial assistance to Americans during the COVID-19 pandemic. ‘Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners,’ Sellinger said.

Blanc’s scheme involved applying for unemployment insurance benefits and EIDL loans in others’ names, often using stolen or fake identification documents. He and his co-conspirators obtained over $1.5 million through their fraudulent scheme, with the funds being used for personal expenses and to pay off debts.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Blanc, or twice the gross loss suffered by the victims. Sentencing is scheduled for January 24, 2024.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration with the investigation leading to Blanc’s guilty plea. He also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance.

The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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