A 36-year-old Detroit man has pleaded guilty to stealing $1.6 million in unemployment insurance benefits, including wire fraud and aggravated identity theft, out of a scheme to defraud multiple states.
Darren Smith entered his guilty plea Tuesday (April 4).
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Beginning as early as May 2020 and continuing through at least July 2020, Smith, intending to defraud, filed approximately 250 fraudulent unemployment insurance claims seeking pandemic unemployment assistance benefits to which he was not entitled.
“This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need,” said United States Attorney Dawn N. Ison. “We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally. My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.”
The 36-year-old Detroit native submitted the fraudulent claims in the names of multiple individuals using their social security numbers and other personal identifying information without authorization.
The benefits were paid out in debit cards, which Smith repeatedly withdrew funds from ATM locations in the Eastern District of Michigan.
“Darren Smith engaged in an unemployment insurance fraud scheme that targeted multiple state workforce agencies,” said Irene Lindow, Special Agent-inCharge, Great Lakes Region, U.S. Department of Labor Office of Inspector General. “Smith submitted false unemployment insurance claims in the names of identity theft victims to obtain debit cards loaded with stolen unemployment benefits. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs.”
“The U.S. Secret Service continues to work with our law enforcement partners on UIA Fraud schemes. We are thankful to the U.S. Attorney’s Office and Department of Labor for partnering with us in the investigation and prosecution of this case,” said Special Agent in Charge Marengo.
Smith faces a statutory maximum penalty of 20 years on the charge of wire fraud and a mandatory minimum sentence of two years imprisonment on the charge of aggravated identity theft.
He is required to pay restitution to the victim states in the total amount of $1,611,648.
Smith will be sentenced on Aug. 17 at 2 p.m.