BOSTON – A brazen scheme to fleece the Pandemic Unemployment Assistance (PUA) program has landed a New Jersey man in federal court. Omar Thompson, 39, of Paterson, N.J., pleaded guilty today to one count of wire fraud conspiracy, admitting his role in a multi-state operation that siphoned over $1.2 million in benefits meant for those genuinely impacted by the COVID-19 pandemic.
Thompson’s hustle, uncovered by the U.S. Secret Service and the Department of Labor’s Office of Inspector General, involved filing more than 100 fraudulent claims with the Massachusetts Department of Unemployment Assistance. The operation wasn’t limited to Bay State residents; investigators allege roughly half the claims were filed on behalf of individuals living in *other* states. Thompson wasn’t just filing claims, either. He actively recruited people from out-of-state, submitting applications for them and pocketing kickbacks for his efforts.
The fraud exploited the CARES Act, specifically the PUA program designed to provide a safety net for those ineligible for traditional unemployment. While millions struggled during the pandemic, Thompson saw an opportunity for profit, allegedly turning desperation into a personal windfall. The scope of the operation is staggering: over $1.2 million in illicit payments funneled through a system already strained by unprecedented demand.
Federal investigators, including the U.S. Secret Service’s Boston and Newark Field Offices, and the New Jersey State Police, pieced together the scheme, leading to Thompson’s initial charge on August 19, 2021. The case is being prosecuted by Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit. The investigation highlights the ongoing federal effort to combat pandemic-related fraud, spearheaded by the Department of Justice’s COVID-19 Fraud Enforcement Task Force.
Thompson now faces up to 20 years behind bars, along with up to three years of supervised release and a hefty $250,000 fine. Sentencing is scheduled for March 22, 2022, before U.S. District Court Judge Allison D. Burroughs. The sentence will be determined based on U.S. Sentencing Guidelines and other relevant factors. Authorities are urging anyone with information about COVID-19 fraud to contact the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or through their online complaint form.
Acting United States Attorney Nathaniel R. Mendell, Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations, all contributed to the announcement. The Massachusetts Department of Unemployment Assistance also assisted in the investigation, demonstrating a coordinated effort to hold fraudsters accountable.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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