A former employee of the State of Michigan Unemployment Insurance Agency has pleaded guilty to charges related to a significant unemployment fraud and identity theft scheme. Timeka Johnson, 43, from Southfield, admitted to stealing over $250,000 while working at the agency. Her plea was entered before United States District Judge Stephen J. Murphy III.
United States Attorney Jerome F. Gorgon Jr. announced the guilty plea alongside officials from various agencies involved in the investigation. These included Joseph Cuffari from the Department of Homeland Security—Office of Inspector General; Megan Howell from the U.S. Department of Labor-Office of Inspector General; Cheyvoryea Gibson from the FBI's Detroit Field Office; and Jason Palmer, Director of the State of Michigan Unemployment Insurance Agency.
Johnson used her position to process fraudulent claims using third-party identities without authorization. She bypassed fraud prevention measures and manipulated claim information for personal gain. The conspiracy led to unauthorized debit cards being issued and improper payments made by the state.
Sentencing is scheduled for August 19, 2025, where Johnson faces a mandatory two-year sentence for aggravated identity theft and up to 20 years for wire fraud conspiracy.
U.S. Attorney Gorgon stated that Johnson "abused her position of trust" and emphasized his office's commitment to prosecuting such cases aggressively.
Megan Howell highlighted Johnson's misuse of sensitive employment information for financial gain, affirming continued efforts with law enforcement partners against exploitation of benefit programs.
Cheyvoryea Gibson remarked on Johnson's betrayal of public trust, noting that this case serves as a warning against defrauding public assistance programs.
Jason Palmer expressed determination in pursuing fraudsters within UIA who exploit taxpayer money meant for unemployed individuals.
Assistant United States Attorney Andrew J. Yahkind is prosecuting the case with an investigation conducted by multiple federal and state agencies.
