Devante Smith, a 30-year-old resident of Baltimore, Maryland, has been sentenced to 57 months in federal prison followed by three years of supervised release for his involvement in an unemployment insurance fraud scheme. The sentence was handed down by U.S. District Judge Julie R. Rubin. Smith's actions resulted in a loss of at least $298,685 to victims.
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with Special Agent in Charge Troy W. Springer from the U.S. Department of Labor’s Office of Inspector General and Special Agent in Charge William J. DelBagno from the FBI's Baltimore Field Office.
According to court documents, Smith engaged in a conspiracy starting June 2020 through May 2021 to defraud the Maryland Department of Labor by using personal identifiable information from identity theft victims to file fraudulent unemployment insurance claims.
Smith and his co-conspirators misused benefits intended for individuals unemployed or underemployed due to the COVID-19 pandemic for personal gain. He communicated with co-defendant Tiia Woods from Jacksonville, Florida, sending her private information such as identification and social security cards to support fraudulent claims.
The scheme exploited provisions from the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March 2020 which expanded unemployment insurance benefits during the pandemic.
The case is part of efforts by the District of Maryland Strike Force, one of five established nationwide by the U.S. Department of Justice to tackle COVID-19 related frauds including those linked to CARES Act funds.
U.S. Attorney Hayes praised the work done by DOL-OIG and FBI investigators alongside Bank of America’s fraud detection teams and thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Harry M. Gruber who prosecuted this case.
Further details on reporting COVID-19 related fraud can be found on official justice department websites or via their hotline services.