A Pontiac man has admitted to charges in connection with a significant unemployment fraud scheme, Acting United States Attorney Julie A. Beck announced. Terrance Calhoun, Jr., aged 36, pleaded guilty to aggravated identity theft, wire fraud, and other related offenses. The scheme, involving Calhoun and co-conspirators, led to the unlawful acquisition of more than $4 million in unemployment benefits across multiple states.
Authorities revealed that Calhoun and his associates harnessed stolen identities to submit fraudulent unemployment claims in Michigan, Arizona, and Maryland over six months. The falsified claims resulted in the issuance of debit cards worth over $4 million, mailed to addresses overseen by the group. The cards were subsequently used for purchases and cash withdrawals totaling approximately $1.6 million.
During searches at associated addresses, including Calhoun’s residence, agents found significant evidence including personal identification details of others, multiple fraudulent debit cards, and firearms.
Calhoun's sentencing is set for August 27, 2025, before Judge Judith E. Levy. Charges could see him facing a maximum of 20 years per wire fraud count, up to 10 years for unauthorized access device possession, and a mandatory additional two-year term for aggravated identity theft.
Acting US Attorney Beck emphasized the impact on Michiganders needing genuine assistance, stating: “Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance.”
Megan Howell of the U.S. Department of Labor OIG underlined the commitment to securing unemployment integrity, stating: “We will continue to work with our law enforcement partners to protect the integrity of the UI program from those who seek to exploit it.”
IRS Criminal Investigation’s Charles Miller noted the seriousness of such fraud, calling for strong penalties. Similarly, the FBI’s Cheyvoryea Gibson confirmed their dedication to upholding legal integrity.
This joint investigation involved multiple federal and state agencies, showcasing a collaborative effort to curb unemployment fraud. The prosecution is being handled by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan.
