Former Michigan unemployment agency worker pleads guilty in $2.8 million bribery case

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Former Michigan unemployment agency worker pleads guilty in $2.8 million bribery case

Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice

A former employee of the Michigan Unemployment Insurance Agency, Janine Rayford, pleaded guilty to charges related to a bribery conspiracy and aggravated identity theft. The plea was announced by United States Attorney Jerome F. Gorgon Jr., with officials from the Department of Homeland Security—Office of Inspector General, U.S. Department of Labor-Office of Inspector General, Federal Bureau of Investigation, and the State of Michigan Unemployment Insurance Agency also participating.

Rayford, 39, from Redford, entered her guilty plea before Judge Judith E. Levy. Court records indicate that Rayford accepted more than $50,000 in bribes while working for the agency. She admitted to accessing unemployment insurance claims without authorization, dismissing fraud prevention triggers and information requests on fraudulent claims, and causing improper benefit payments to be issued. As a result of her actions, over $2.86 million in unemployment insurance assistance funding was disbursed to third-party claimants.

Sentencing is scheduled for January 8, 2026, before Judge Levy. Rayford faces a mandatory two-year prison sentence for aggravated identity theft and up to five years for conspiring to commit federal program bribery.

U.S. Attorney Gorgon stated, “If you’re a public official whose side hustle is taking bribes, your next job will be answering to a judge. Corruption destroys public trust in government and will be aggressively prosecuted by my office.”

Megan Howell, Special Agent-in-Charge for the Great Lakes Region at the U.S. Department of Labor Office of Inspector General commented: “Former Michigan Unemployment Insurance Agency employee, Janine Rayford, abused her position by misusing her access to sensitive employment information and state data systems to defraud the unemployment insurance program for personal financial gain,” said Megan Howell, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to investigate those who seek to exploit these critical U.S. Department of Labor programs.”

Reuben Coleman from the FBI Detroit Field Office added: “Today’s guilty plea sends a clear and powerful message that fraud against the United States Government and public officials profiting at the expense of the public will never be tolerated,” said Reuben Coleman, Acting Special Agent in Charge of the FBI Detroit Field Office. “I would like to thank our FBI Detroit Area Corruption Task Force for their diligent work alongside our federal and state partners to ensure justice is preserved and the public’s trust is protected.”

Jason Palmer, Director of Michigan's Unemployment Insurance Agency said: “This plea sends a powerful message that no one is above the law, not even those who work for the UIA,” said UIA Director Jason Palmer. “Our staff is required to adhere to strict ethics guidelines. Janine Rayford willingly violated that professional code of conduct, betraying her colleagues and the taxpayers of Michigan for her own short-sighted financial gain. We will not tolerate conspirators who selfishly steal from the very people they are supposed to be serving.”

The prosecution is being handled by Assistant United States Attorney Andrew J. Yahkind following an investigation conducted jointly by federal agencies including DHS-OIG, DOL-OIG, FBI Detroit Area Corruption Task Force as well as state authorities.