Two men, Robert Carter and Sirreginald McGuire, have been charged with running a massive unemployment scam in the Chicago area, netting over $1 million in benefits.
According to a superseding indictment, the pair, along with others, submitted fraudulent Pandemic Unemployment Assistance claims to various state employment departments from June 2020 to March 2021. The scheme involved submitting claims in the names of individuals who were not entitled to benefits, resulting in over $1 million in unemployment benefits being paid out.
The indictment alleges that Carter and McGuire used the benefits to purchase debit cards, which were then used to withdraw cash from financial institutions in Illinois. The debit cards were mailed to residences connected to the pair and their associates.
Carter, 27, of Hampton, Ga., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, aggravated identity theft, and money laundering. McGuire, 26, of DeKalb, Ill., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, and aggravated identity theft.
Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in federal prison, while money laundering carries a maximum sentence of 10 years. Aggravated identity theft carries a mandatory sentence of 2 years’ imprisonment.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini. Arraignments in U.S. District Court in Rockford have not yet been set.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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Key Facts
- State: Illinois
- Category: White Collar Crime|Fraud & Financial Crimes|Crime
- Source: DOJ Press Release â†â€â€
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