A Detroit man has been sentenced to over four years in federal prison for his involvement in a multi-state unemployment insurance fraud scheme during the COVID-19 pandemic. Acting United States Attorney Julie A. Beck announced that Tracey Dotson, 49, received a 51-month prison sentence and was ordered to pay more than $900,000 in restitution by United States District Judge Matthew F. Leitman.
Dotson, along with a co-defendant, conspired to defraud the U.S. government and the states of Michigan, Pennsylvania, and Maryland of approximately $1 million intended for individuals who lost their jobs due to the pandemic. The scheme involved using stolen personal identification to file hundreds of false unemployment claims and receiving prepaid debit cards loaded with Pandemic Unemployment Assistance funds.
Acting U.S. Attorney Julie Beck stated, "Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time."
Cheyvoryea Gibson from the FBI emphasized their commitment to investigating financial crimes: "We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system."
Charles Miller from IRS Criminal Investigation highlighted the impact on victims: “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic.”
Megan Howell from the Department of Labor's Office of Inspector General affirmed their dedication to justice: "Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners."
The case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan with investigations conducted by multiple federal agencies.