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Vista man pleads guilty to fraudulently receiving $312,000 in unemployment benefits

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A Vista, Calif., man pleaded guilty March 4 in federal court to fraud involving false applications for unemployment benefits to California’s Employment Development Department , where he admitted to receiving more than $300,000 in fraudulent benefits during the COVID-19 pandemic.

Darris Cotton reportedly admitted to fraudulently receiving $312,000 in benefits, according to a March 9 news release. Agents from various departments, including U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Secret Service, Department of Labor Office of Inspector General and San Diego Police Department, investigated dozens of these applications submitted in July and August 2020, and subsequently, $97,400 in U.S. Postal and Monogram orders and $15,139 was seized. Cotton agreed to forfeit the money orders and currency that was seized as part of his plea deal.

“HSI special agents and our law enforcement partners have worked tirelessly to bring to justice criminal networks that are exploiting the global pandemic for personal financial gain,” Special Agent in Charge Chad Plantz, of HSI San Diego, said. “This guilty plea assures this individual can no longer illegally profit from resources dedicated toward those needing financial assistance due to the COVID-19 pandemic.”

According to the release, Cotton started submitting the applications for benefits a few months after the CARES Act was passed that expanded benefits to those in need of assistance during the pandemic. He admitted he submitted the applications for benefits to EDD, along with 16 others specified in the plea agreement. He also submitted fraudulent applications in Pennsylvania, Maryland and Arizona. Cotton then used money from the benefits to buy luxury items like Gucci backpacks.

Cotton would use third-party names, dates of birth and social security numbers to commit the crime. He is listed as a resident of Vista on at least 16 applications. The California EDD mailed Cotton debit cards with the benefits to his listed address, and he reportedly purchased money orders at multiple locations.

Attorney Randy Grossman said Cotton’s actions undermined a system intended for helping those in need during the COVID-19 pandemic.

“While so many deserving people were suffering from pandemic-related economic challenges, this defendant used a global pandemic to cash in,” said Grossman. “These benefits are intended for those who truly need it, not for greedy people who exploit the system.”

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