A Detroit man has been sentenced to 51 months in prison for his role in a multi-state pandemic unemployment insurance fraud scheme that defrauded the U.S. government and the states of Michigan, Pennsylvania, and Maryland of funds earmarked for unemployment assistance during the COVID-19 pandemic.
Tracey Dotson, 49, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution by United States District Judge Matthew F. Leitman. Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024.
Court records show that Dotson and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic.
The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.
Dotson and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent.
The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Dotson, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included high-end jewelry, designer fashion accessories by Gucci and Louis Vuitton, drugs, at least one vehicle, and at least one firearm.
“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck. “Our office is steadfast in its commitment to bringing those to justice who used a global health crisis as a means to illegally line their own pockets at the expense of taxpayers.”
“This sentence underscores the FBI’s commitment to investigating complex financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice.”
“Individuals who commit such blatant unemployment insurance fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of pandemic fraud and identity theft, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Related Federal Cases
- Adrian Fluellen, Unemployment Fraud, Michigan 2024 · Pennsylvania
- Identity Thief Sentenced to 57 Months for Unemployment Insurance Fraud Scheme · Pennsylvania
- Adrian Fluellen, Unemployment Fraud, Pennsylvania 2024 · Pennsylvania
- Todd Martin Kreykes, Pandemic Fund Theft, Michigan 2024 · Pennsylvania
- Bertram Johnson Jr., Conspiracy and Theft, Michigan 2024 · Pennsylvania
Key Facts
- State: Michigan
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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