Sacramento Fraudster Pleads Guilty in $575K Covid-19 UI Scheme

CRIME NEWS: In a grim twist of pandemic greed, Roosevelt Gulley III, 41, from Sacramento, has pleaded guilty to wire fraud and aggravated identity theft. The U.S. Attorney Eric Grant announced the charges against Gulley, who is accused of swindling over $575,000 in unemployment insurance benefits intended for those impacted by COVID-19.

From July through September 2020, Gulley allegedly collected sensitive personal information including names, Social Security numbers, and dates of birth. He then used this data to file at least 79 fraudulent UI benefit applications with the California Employment Development Department (EDD), all under stolen identities. Gulley pocketed the debit cards sent to his listed addresses and withdrew cash from various ATMs.

According to the government, the actual loss attributed to Gulley’s scheme exceeded $575,000, with an intended loss of over $1.5 million. Special-Agent-in-Charge Quentin Heiden of the U.S. Department of Labor’s Office of Inspector General called out Gulley’s actions, stating, “Roosevelt Gulley collected personally identifiable information to fraudulently collect unemployment insurance benefits intended for American workers who lost their jobs due to the COVID-19 pandemic.”

This investigation is the result of a joint effort between the U.S. Department of Labor – Office of Inspector General and the California EDD’s Investigation Division, supported by the U.S. Secret Service. Assistant U.S. Attorney Denise N. Yasinow will be prosecuting this case.

Gulley’s sentencing is scheduled for January 26, 2026, before U.S. District Judge Dale A. Drozd. He faces a maximum sentence of 20 years for wire fraud and an additional two years for aggravated identity theft. The final sentence will be determined by the court after considering applicable guidelines.

This crime is part of the California COVID-19 Fraud Enforcement Strike Force, one of five interagency teams established by the U.S. Department of Justice to combat pandemic-related fraud. The strike force leverages law enforcement and prosecutorial resources across the Eastern and Central Districts of California to target large-scale relief fraud.

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