Tracey Dotson, 49, of Detroit, was sentenced to over four years in federal prison on Wednesday and ordered to pay more than $900,000 in restitution for his role in an unemployment insurance fraud scheme, according to the United States Attorney’s Office for the Eastern District of Michigan.
Dotson and a co-defendant conspired to defraud the federal government of approximately $1 million intended for individuals who lost their jobs during the COVID-19 pandemic, according to the department.
According to the department, Dotson carried out the scheme with interstate wires, stolen Social Security numbers, and other stolen identification.
Dotson and his co-defendant filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland, the department stated.
According to the US Attorney’s Office, the defendants received hundreds of prepaid debit cards in the names of unsuspecting victims, each loaded with approximately $1 million in Pandemic Unemployment Assistance funds, at addresses in Michigan and Pennsylvania.
The department confirmed that Dotson, his co-defendant, and their accomplices withdrew more than $930,000 from the cards through cash withdrawals and purchases of high-end jewellery, designer fashion accessories from 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 Julie A. Beck, an acting U.S. attorney.
“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.”
