A Detroit man has been sentenced to 51 months in prison for orchestrating a multi-state unemployment fraud scheme that stole nearly $1 million from government programs meant to assist struggling workers during the COVID-19 pandemic, officials announced.
How the Fraud Unfolded
According to court records, Tracey Dotson, 49, along with his co-conspirator, used stolen personal information to submit hundreds of fraudulent unemployment claims. Consequently, they funneled money from Michigan, Pennsylvania, and Maryland’s unemployment insurance programs into their own pockets.
To access the stolen funds, they arranged for prepaid Bank of America debit cards—loaded with Pandemic Unemployment Assistance (PUA) funds—to be mailed to addresses in Michigan and Pennsylvania. Then, they swiftly withdrew and spent the money before authorities could detect the fraud. Unemployment Fraud Scheme
Luxury Spending and Illegal Purchases
Instead of using the funds legitimately, Dotson and his group spent more than $930,000 on designer clothing from Gucci and Louis Vuitton, high-end jewelry, drugs, a vehicle, and even a firearm. Meanwhile, thousands of deserving individuals struggled to receive assistance.
Legal Consequences
In April 2024, Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud. Consequently, U.S. District Judge Matthew F. Leitman sentenced him to 51 months in prison and ordered him to pay over $900,000 in restitution.
Ongoing Investigation and Broader Crackdown
Authorities, including the FBI, IRS-Criminal Investigation, and the Department of Labor’s Office of Inspector General, continue to investigate similar fraudulent activities. The government remains committed to prosecuting those who exploit public assistance programs.
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Read the full DOJ statement here.