A Maryland woman was sentenced on Aug. 3 to 40 months in federal prison for her role in an unemployment insurance fraud conspiracy related to the COVID-19 pandemic. Elizabeth Maria Ceballos, 50, of Silver Spring, received the sentence from District Judge Matthew J. Maddox, who also ordered two years of supervised release and $638,889 in restitution.
The sentencing was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland; Inspector General Anthony P. D’Esposito of the Department of Labor’s Office of Inspector General; and Special Agent in Charge Akil Baldwin of Homeland Security Investigations – Maryland.
According to public documents, Ceballos and co-conspirator Vanessa Valdez engaged in a scheme from at least May 2020 through September 2021 to defraud the Maryland Department of Labor by submitting fraudulent unemployment insurance claims using fabricated tax documents. The fraudulent activity was connected with benefits authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March 2020.
Ceballos admitted as part of her guilty plea that she assisted Valdez with additional fraud involving Paycheck Protection Program loans and Economic Injury Disaster Loan funds provided through the CARES Act. In December 2025, Valdez also pled guilty to conspiracy charges; her sentencing date is pending.
U.S. Attorney Hayes said, “Ms. Hayes also thanked Assistant U.S. Attorney Philip Motsay who prosecuted the case.” The Department of Justice has established a National Fraud Enforcement Division focused on investigating pandemic-related fraud as part of President Trump’s Task Force to Eliminate Fraud chaired by Vice President J.D. Vance.
The U.S. Attorney for the District of Maryland prosecutes federal crimes, handles civil cases for the United States government, collects debts owed to federal agencies, employs over 200 personnel across its divisions, serves nearly six million residents across Maryland and counts alumni in prominent leadership roles within government and judiciary sectors, according to the official website.