U.S. Attorney E. Martin Estrada | U.S. Department of Justice
A former employee of the California Employment Development Department (EDD) and her former boyfriend have pleaded guilty to fraudulently obtaining more than $750,000 in COVID jobless benefits. Phyllis Hope Stitt, 61, from Carson, and Kenneth Earl Riley, 64, from South Los Angeles, both admitted guilt to one count of conspiracy to commit mail fraud and bank fraud.
Stitt worked as an employment program representative at EDD during the COVID-19 pandemic. Her role involved determining claimant eligibility for unemployment insurance benefits. Between March 2020 and September 2021, Stitt used her position to access personal information of victims and filed at least 29 fraudulent claims without their consent.
According to court documents, Stitt submitted false applications for unemployment benefits using this information. She manipulated the system by backdating claims to maximize payouts. Many individuals whose identities were used were either employed or deceased during this period.
Riley assisted by providing mailing addresses for the fraudulent applications. He accessed debit cards and accounts created through these false claims to withdraw cash and make purchases.
United States District Judge André Birotte Jr. has set sentencing hearings for May 9. Both defendants could face a maximum sentence of 30 years in federal prison.
The Attorney General's Office established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. This initiative aims to combat pandemic-related fraud by leveraging resources across government agencies. The U.S. Attorney’s Offices for the Central and Eastern Districts of California lead one of three national COVID-19 Fraud Strike Force Teams established on September 15, 2022.
This case was investigated by several agencies including the United States Department of Labor – Office of Inspector General, FBI, and California Employment Development Department – Investigation Division. Assistant United States Attorney Steven M. Arkow is prosecuting the case.
Individuals with information about attempted COVID-19 fraud are encouraged to report it via the Department of Justice’s National Center for Disaster Fraud Hotline or web complaint form.
