Ohio Four Hit With $1.1M Unemployment Scam Indictment

CLEVELAND – Four residents of Northeast Ohio are facing serious federal charges after a 38-count indictment revealed a brazen scheme to defraud state unemployment agencies across multiple states. The alleged conspiracy netted the group over $1.1 million in fraudulently obtained benefits, according to United States Attorney for the Northern District of Ohio, Steven M. Dettelbach.

The indictment names Juan Sanders, 34, of Cleveland Heights; Trina Grant, 36, of Cleveland; Ashley Robinson, 30, of Warrensville Heights, and Robert Barrett, 40, of Cleveland. All four are charged with conspiracy to commit mail and wire fraud, wire fraud, mail fraud, and aggravated identity theft. Sanders faces the additional charge of aggravated identity theft, suggesting a potentially central role in the operation.

“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach stated, signaling the Justice Department’s intent to aggressively pursue those who exploit government assistance programs. “We will prosecute waste, fraud and abuse of government programs.” The scheme allegedly spanned from approximately September 2011 to January 2014, impacting unemployment offices in Ohio, California, North Carolina, Massachusetts, and Illinois.

Investigators allege Sanders spearheaded the fraud by obtaining personal identifying information from unsuspecting victims. He then allegedly created fictitious employers in the five states, filing fraudulent unemployment claims under these companies’ names. Benefit debit cards were then mailed to various addresses throughout Ohio. Once funds were loaded onto these cards, Sanders, Grant, Robinson, and Barrett allegedly withdrew the money from ATMs across the state.

The total fraudulent payout is staggering: approximately $1,174,767 was pilfered from state agencies, with North Carolina bearing the brunt of the loss at $572,170. Ohio suffered losses of $261,509, followed by Illinois ($144,240), California ($129,600), and Massachusetts ($67,248). The indictment further details that Sanders used $16,900 of the stolen funds to pay off his 2007 Jaguar XJ and cover several months of rent on his Cleveland Heights apartment – a clear illustration of the personal enrichment derived from the scheme.

The case is being prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford, following an investigation led by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division. While the indictment represents a significant step, it’s crucial to remember that it is merely an accusation. The defendants are presumed innocent and entitled to a fair trial where the government must prove their guilt beyond a reasonable doubt. If convicted, sentencing will be determined by the court, taking into account individual factors and statutory maximums.”

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