RI DLT Employee Sheku Sentenced for $500k Fraud Scheme

PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), was today sentenced to 21 months in federal prison for orchestrating a massive unemployment insurance fraud scheme.

Sheku’s sentence was announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor – Office of Labor Racketeering and Fraud Investigations.

Sheku pleaded guilty to conspiring to commit mail fraud, theft of government funds, and accessing a protected computer to commit fraud. He admitted using his authorized access to DLT computers between June 2009 and February 2015 to obtain unemployment benefits for himself and others who were not entitled to them.

As part of the scheme, Sheku changed mailing addresses of legitimate beneficiaries, caused banks to mail benefits to individuals not entitled, extended benefit expiration dates without authorization, approved claims by employed individuals, increased benefit balances, and removed payment blocks on fraudulently obtained benefits.

The fraudulent activities resulted in a loss of approximately $508,691 to the Rhode Island Department of Labor and Training, with around $350,606 being federal funds. U.S. District Court Chief Judge William E. Smith also ordered Sheku to serve 3 years supervised release upon completion of his prison term and pay restitution of $486,366.

The investigation was conducted by the United States Attorney’s Office, Rhode Island State Police, the U.S. Department of Labor, with assistance from the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service. Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.

RELATED: Sheku to Plead Guilty

RELATED: Sheku to Plead Guilty