A South Bay resident, Reginald Foster Jr., has admitted to fraudulently obtaining millions in COVID-19 jobless benefits. Foster, 38, from Los Angeles' Westchester neighborhood, pleaded guilty to conspiracy to commit mail and bank fraud, as well as using unauthorized access devices.
Foster's fraudulent activities spanned from June to October 2020. He collaborated with others to exploit the Pandemic Unemployment Assistance (PUA) provision of the CARES Act. This act was intended to help self-employed workers and independent contractors affected by the pandemic. The California Employment Development Department (EDD) managed these unemployment benefits.
Foster confessed to filing false applications using stolen identities without consent. He manipulated application details to secure approval from EDD, which then sent debit cards loaded with benefits to an address he controlled. In total, 118 fraudulent applications were submitted by Foster and his associates.
The debit cards were used for transfers to Champs Up! LLC, a non-profit founded by Foster claiming to provide guidance programs for middle school students in Los Angeles and Long Beach. The cards facilitated nearly $1.5 million in withdrawals before EDD and Bank of America froze remaining funds, preventing further losses exceeding $4 million.
Sentencing is set for March 24, 2025, where Foster could face up to 30 years in federal prison for conspiracy and an additional 10 years for unauthorized access device use. He remains free on a $50,000 bond.
Co-defendants Shelece Counts and Isaiah Herbert Lawrence have pleaded not guilty and are due for trial on January 21, 2025.
Investigations were conducted by several agencies including the United States Department of Labor Office of Inspector General and Homeland Security Investigations. The case is prosecuted by Assistant United States Attorney Ranee A. Katzenstein.
The COVID-19 Fraud Enforcement Task Force was established on May 17, 2021, aiming to tackle pandemic-related fraud through coordinated efforts across government agencies.
Reports of COVID-19 related fraud can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or online complaint form.