U.S. Attorney E. Martin Estrada | U.S. Department of Justice
A South Bay man, Reginald Foster Jr., has pleaded guilty to charges related to fraudulently obtaining COVID-19 unemployment benefits. Foster, 38, from Los Angeles, admitted in court to conspiracy to commit mail and bank fraud and using unauthorized access devices. The fraudulent activities occurred between June and October 2020.
Foster founded a non-profit organization providing mentoring services to public school students. He exploited the Pandemic Unemployment Assistance provision of the CARES Act by filing fraudulent applications using stolen identities. These applications were submitted to the California Employment Development Department (EDD) with false information, leading to the approval of benefits.
The scheme involved 118 fraudulent applications, resulting in nearly $1.5 million being withdrawn using debit cards issued for these benefits. Foster transferred funds to his non-profit, Champs Up! LLC, and shared cards with co-conspirators for further withdrawals. The EDD and Bank of America intervened by freezing remaining funds, preventing additional losses exceeding $4 million.
Foster's sentencing is scheduled for March 24, 2025. He faces up to 30 years in federal prison for conspiracy and up to 10 years for unauthorized access device use. Currently free on a $50,000 bond, Foster awaits sentencing while co-defendants Shelece Counts and Isaiah Herbert Lawrence have pleaded not guilty and are set for trial on January 21, 2025.
This case was investigated by several agencies including the United States Department of Labor Office of Inspector General and Homeland Security Investigations. Assistant United States Attorney Ranee A. Katzenstein is prosecuting the case.
The Attorney General's COVID-19 Fraud Enforcement Task Force continues efforts against pandemic-related frauds by coordinating resources across government agencies.
Anyone with information on COVID-19 related fraud can contact the National Center for Disaster Fraud Hotline or submit details via their online complaint form.
