A federal jury in Albany, Georgia, has convicted Malcolm Jeffrey, 34, for his role in a massive scheme to defraud the Georgia Department of Labor (GaDOL) out of millions of dollars in COVID-19 unemployment benefits.
The stolen funds were intended to support unemployed individuals during the height of the pandemic.
The Scheme Uncovered
According to court documents, Jeffrey and his co-conspirators filed more than 7,000 fraudulent unemployment insurance claims using stolen identities.
The scheme resulted in over $16 million in benefits being wrongfully disbursed.
To carry out the fraud, the group created lists of supposed employees under Jeffrey’s defunct business, Down N Dirty Transportation LLC, and submitted fake claims through the GaDOL website.
The ill-gotten funds were distributed via prepaid debit cards sent to multiple locations near Cordele, Georgia, allowing the group to pocket the money while the victims remained unaware their identities had been exploited.
Statements From Authorities
Acting Assistant Attorney General Matthew R. Galeotti highlighted the seriousness of the crime, saying, “The defendant and his co-conspirators orchestrated a scheme where they used stolen identities to submit fraudulent unemployment claims in order to steal millions of dollars of funds intended for the benefit of unemployed Americans.
Such schemes are all too common, but the Criminal Division is resolved to bring to justice fraudsters who seek to enrich themselves from the public fisc.”
Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General added, “This trial conviction underlines our dedication and steadfast commitment to holding individuals accountable who exploit federal relief programs for personal gain.”
Inspector in Charge Rodney M. Hopkins emphasized the impact on struggling Georgians, stating, “Malcolm Jeffery and his co-conspirators helped themselves to money earmarked for unemployed Georgia residents already struggling during the pandemic…These crimes will not go unanswered.”
Conviction and Potential Penalties
The jury convicted Jeffrey of conspiracy to commit mail fraud. He now faces a maximum penalty of 20 years in federal prison.
Sentencing will be scheduled later, with a federal district court judge considering the U.S. Sentencing Guidelines and other statutory factors before determining his sentence.
Investigative Team and Prosecution
This investigation involved multiple agencies, including DOL-OIG, IRS-CI, USPS-OIG, USPIS, USSS, HSI, and DHS-OIG. Trial attorneys Lyndie Freeman, Siji Moore, and Kyle Crawford of the Criminal Division’s Fraud Section handled the prosecution.
Reporting Fraud
Authorities continue to urge the public to report any suspicions of COVID-19-related fraud.
Tips can be submitted through the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the online NCDF Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
