An Inglewood woman has been arrested following a federal grand jury indictment, which alleges she fraudulently obtained over $1.3 million in COVID-19 pandemic relief funds. The Justice Department announced that Selena Stewart, 45, was taken into custody and arraigned on Wednesday.
Stewart pleaded not guilty to charges including 10 counts of mail fraud, one count of use of unauthorized access devices, two counts of aggravated identity theft, and one count of possession of at least 15 unauthorized access devices. Her trial is scheduled for August 26.
A federal magistrate judge ordered her release on a $10,000 bond.
The indictment accuses Stewart and co-defendants Toby Brazier and Tony Queen of filing fraudulent applications for unemployment insurance (UI) benefits with the California Employment Development Department (EDD). These applications were allegedly submitted using stolen identities, including those belonging to California state prisoners.
The applications falsely claimed that the applicants had been adversely affected by the COVID-19 pandemic, making them eligible for UI benefits under federal law. They also contained incorrect information about residency and employment status in California. As a result, EDD authorized Bank of America to issue debit cards in the names of victims and straw claimants. The defendants then allegedly withdrew funds using these debit cards.
In total, the defendants are accused of causing at least 101 fraudulent applications to be filed, resulting in losses exceeding $1.3 million to EDD and the United States Treasury.
Brazier and Queen face charges of mail fraud as well. Queen is expected to appear in U.S. District Court in Los Angeles next week for his arraignment. Brazier remains a fugitive.
It is important to note that an indictment contains allegations only; all defendants are presumed innocent until proven guilty in court.
If convicted, Stewart could face significant prison time: up to 20 years for each mail fraud count, up to 10 years for unauthorized access device use, mandatory consecutive sentences for aggravated identity theft counts, and up to 10 years for possession of unauthorized access devices.
The investigation is being conducted by several agencies including the United States Department of Labor Office of Inspector General; the U.S. Department of Homeland Security Office of Inspector General; and the California Employment Development Department Investigation Division.
Assistant United States Attorneys Clifford Mpare and Christina Lopez are prosecuting this case.
Information about attempted COVID-19-related fraud can be reported via the National Center for Disaster Fraud Hotline or its web complaint form.
