A Baltimore man, Devante Smith, has been sentenced to 57 months in federal prison followed by three years of supervised release for his involvement in an unemployment insurance fraud scheme. U.S. District Judge Julie R. Rubin delivered the sentence after victims lost at least $298,685 due to the conspiracy.
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside Special Agent in Charge Troy W. Springer from the U.S. Department of Labor’s Office of Inspector General and Special Agent in Charge William J. DelBagno of the FBI's Baltimore Field Office.
According to Smith's guilty plea, he participated in a conspiracy from June 2020 through May 2021 to defraud and obtain money under false pretenses related to unemployment insurance claims with the Maryland Department of Labor (MD-DOL). Smith used personal identifiable information from identity theft victims to file fraudulent claims and misappropriated funds intended for those affected by COVID-19.
Smith also communicated with co-defendant Tiia Woods from Jacksonville, Florida, sharing private information like identification cards and social security numbers to support these fraudulent claims.
The scheme exploited provisions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March 2020, which expanded unemployment benefits amid the pandemic. The CARES Act allowed states to provide benefits for workers impacted by COVID-19 who typically would not qualify for such assistance.
The case is part of efforts by one of five strike forces established across the United States by the Department of Justice to tackle COVID-19-related frauds. These strike forces focus on large-scale fraud schemes involving pandemic relief funds.
U.S. Attorney Hayes acknowledged contributions from DOL-OIG and FBI investigators as well as Bank of America's Detection and Complex Investigations Fraud Rings and Analytics team in this investigation. Assistant U.S. Attorneys Evelyn Lombardo Cusson and Harry M. Gruber prosecuted the case.
For further details on pandemic response or reporting fraud allegations related to COVID-19 relief funds, individuals can visit official websites or contact designated hotlines provided by authorities.
