A Detroit man has been sentenced to over four years in federal prison for his involvement in a scheme that defrauded the U.S. government and several states of unemployment insurance funds during the COVID-19 pandemic. The announcement was made by Acting United States Attorney Julie A. Beck, with support from Special Agent in Charge Cheyvoryea Gibson of the FBI, Special Agent in Charge Charles Miller of IRS-Criminal Investigation, and Megan Howell, Acting Special Agent in Charge of the Chicago Region, U.S. Department of Labor Office of Inspector General.

Tracey Dotson, 49, received a sentence of 51 months in prison and was ordered to pay more than $900,000 in restitution. United States District Judge Matthew F. Leitman delivered the sentence.

Court records reveal that Dotson and an accomplice conspired to defraud federal and state governments out of approximately $1 million intended for individuals who lost jobs due to the pandemic. They used stolen personal identification information to file false unemployment claims across Michigan, Pennsylvania, and Maryland.

Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024. He and his co-defendant obtained hundreds of Bank of America prepaid debit cards loaded with Pandemic Unemployment Assistance funds using false identities. The funds were then used for cash withdrawals and purchases including luxury items like high-end jewelry and designer fashion accessories.

“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck.

"This sentence underscores the FBI's commitment to investigating complex financial crimes," said Cheyvoryea Gibson from the FBI in Michigan.

“Individuals who commit such blatant unemployment insurance fraud deserve to be punished,” stated Charles Miller from IRS Criminal Investigation.

Megan Howell emphasized that today's sentencing affirms their commitment to bring perpetrators exploiting benefit programs to justice.

The case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan following an investigation by multiple federal agencies including the FBI, IRS-Criminal Investigation, and Department of Labor's Office of Inspector General.