A former employee of the State of Michigan Unemployment Insurance Agency has pleaded guilty to charges related to an unemployment fraud and identity theft scheme. Timeka Johnson, a 43-year-old resident of Southfield, admitted in court to stealing over $250,000 through fraudulent activities while employed by the agency.
United States Attorney Jerome F. Gorgon Jr. announced the plea alongside officials from several investigative bodies, including Joseph Cuffari from the Department of Homeland Security's Office of Inspector General and Megan Howell from the U.S. Department of Labor-Office of Inspector General.
Johnson appeared before United States District Judge Stephen J. Murphy III to enter her guilty plea. Her role at the Michigan Unemployment Insurance Agency involved processing and verifying unemployment claims, which she exploited for personal gain by accessing claim information without authorization and manipulating records.
Court documents revealed that Johnson engaged in multiple illegal activities, such as uploading false documentation and certifying illegitimate claims as eligible for benefits. She also enlisted another agency employee to alter claim information in exchange for financial compensation.
The fraudulent actions resulted in over $250,000 being improperly paid out by the state. Johnson's sentencing is scheduled for August 19, 2025, where she faces a mandatory two-year sentence for aggravated identity theft and up to 20 years for wire fraud conspiracy.
U.S. Attorney Gorgon emphasized that "Timeka Johnson abused her position of trust" and highlighted his office's commitment to prosecuting government employees who misuse their positions.
Megan Howell noted that Johnson "misused her access to sensitive employment information" for personal financial gain and affirmed ongoing efforts with law enforcement partners to investigate similar threats.
Cheyvoryea Gibson from the FBI described Johnson's actions as a "serious betrayal of public trust," warning others against defrauding public assistance programs due to coordinated law enforcement responses.
Jason Palmer from the Michigan Unemployment Insurance Agency expressed outrage over insider involvement in fraud schemes and committed to pursuing legal action against all perpetrators.
Assistant United States Attorney Andrew J. Yahkind is prosecuting the case with investigations conducted by multiple agencies including the FBI and Michigan Department of Labor and Economic Opportunity.