Ross Clayton, Wire Fraud, New Jersey 2022

Newark, N.J. – A shocking case of unemployment insurance benefits fraud has come to light in New Jersey. Ross Clayton, a 31-year-old former USPS employee, has pleaded guilty to conspiring to commit wire fraud, a charge 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 Stokes or twice the gross loss suffered by the victims.

According to documents filed in the case and statements made in court, Clayton took unemployment insurance benefits-related mail, including debit cards, from a USPS location in New Jersey and used that mail to obtain unemployment insurance benefits to which he was not entitled. This brazen scheme occurred after the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020, creating a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA) and providing an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.

Clayton’s actions were part of a broader scheme to defraud the system, exploiting a loophole in the CARES Act to obtain benefits he was not entitled to. The U.S. Attorney’s Office, under the leadership of Philip R. Sellinger, has credited special agents of the U.S. Department of Labor, Office of Inspector General, and postal inspectors of the U.S. Postal Inspection Service with leading the investigation that led to Clayton’s guilty plea.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark. Clayton’s sentencing is scheduled for September 7, 2022, a date that will mark the culmination of this investigation and bring closure to the victims of his scheme.

The case serves as a stark reminder of the importance of vigilance in preventing and detecting unemployment insurance benefits fraud. It also highlights the critical role that law enforcement agencies play in protecting the integrity of our social safety net programs.

The Newark community is breathing a sigh of relief as news of Clayton’s guilty plea spreads. Residents are grateful for the hard work of law enforcement agencies and the unwavering commitment of prosecutors to bringing those who commit crimes to justice.

Defendant information: Ross Clayton, Real full name or legal entity name; Exact criminal charges: Conspiring to commit wire fraud; City and state: Newark, New Jersey; Exact date: Sentencing scheduled for September 7, 2022; Sentence or outcome: 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Stokes or twice the gross loss suffered by the victims.

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