A Detroit man will spend over four years in prison for orchestrating a multi-state unemployment fraud scheme that stole nearly $1 million in pandemic relief funds. The scheme, which exploited unemployment programs in Michigan, Pennsylvania, and Maryland, diverted funds meant for struggling workers during COVID-19, authorities announced.
Multi-State Fraud Operation Uncovered
Unemployment Fraud : According to Acting U.S. Attorney Julie A. Beck, Tracey Dotson, 49, conspired with a co-defendant to manipulate unemployment systems using stolen identities. They submitted hundreds of fraudulent claims, relying on interstate wires and illegally obtained Social Security numbers.
Dotson and his accomplice successfully obtained prepaid debit cards from Bank of America, each loaded with Pandemic Unemployment Assistance (PUA) funds. These cards, issued under stolen identities, were sent to addresses in Michigan and Pennsylvania.
Lavish Spending & Criminal Gains
Instead of helping those in need, Dotson and his associates spent over $930,000 on luxury fashion, jewelry, illegal drugs, a firearm, and a vehicle. They also withdrew large sums of cash, using the stolen funds for personal enrichment.
Authorities tracked their transactions, leading to Dotson’s arrest and prosecution.
Legal Consequences & Sentencing
After pleading guilty in April 2024 to wire fraud and conspiracy, Dotson received a 51-month prison sentence from U.S. District Judge Matthew F. Leitman. He must also repay more than $900,000 in restitution.
His case, jointly investigated by the FBI, IRS Criminal Investigation, and the Department of Labor’s Office of Inspector General, underscores the serious consequences of exploiting federal relief programs.
Stay Updated on Financial Fraud Cases
For more insights into fraud prevention, financial crimes, and legal developments, visit JacobiJournal.com.
Read the full DOJ statement here.