Terry Chen, a 25-year-old resident of Prince George’s County, Maryland, has pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft related to fraudulent unemployment insurance claims under the CARES Act.
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with Special Agent in Charge Troy W. Springer from the U.S. Department of Labor – Office of Inspector General (DOL-OIG), and Special Agent in Charge William J. DelBagno from the FBI’s Baltimore Field Office.
According to court documents, between 2021 and September 2022, Chen and others carried out a scheme targeting the United States, Maryland state agencies, financial institutions, and individuals through fraudulent unemployment insurance (UI) benefit claims submitted to the Maryland Department of Labor (MD-DOL). The total losses attributed to Chen’s involvement are estimated at over $1 million but less than $1.5 million. He used debit cards issued in victims’ names as part of this activity.
Two co-conspirators—Bryan Nushawn Ruffin of Woodbridge, Virginia, and Kiara Smith of Fort Washington, Maryland—were employed by a company providing support services to MD-DOL for UI claim review and administration. They gave Chen access to computers that allowed entry into non-public MD-DOL databases containing sensitive information about UI claims.
The plea agreement states that Ruffin and Smith permitted unauthorized access so Chen could change details on existing UI claims such as email addresses, passwords, and payment methods. The group used stolen personal information from identity theft victims and manipulated database entries by uploading fake supporting documents or removing fraud holds on accounts. These actions enabled them to divert funds intended for legitimate applicants into accounts they controlled.
Chen faces up to 20 years in federal prison for wire fraud conspiracy; a mandatory two-year sentence consecutive to other penalties for aggravated identity theft; up to 10 years for possession of a machine gun; 20 years for possession with intent to distribute marijuana; and life imprisonment for possessing a firearm during drug trafficking activities. Sentencing is set for February 2, 2026.
Federal sentencing guidelines usually result in punishments lower than maximum statutory limits since judges consider various factors when determining sentences.
The case is part of efforts by the District of Maryland COVID-19 Strike Force—a team established as one of five national strike forces under the U.S. Department of Justice—to investigate large-scale pandemic relief fraud involving CARES Act funds meant as emergency aid during the COVID-19 pandemic (more information: https://www.justice.gov/coronavirus).
Anyone with information regarding attempted COVID-19-related fraud can report it through the National Center for Disaster Fraud Hotline at 866-720-5721 or via an online complaint form (https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form).
U.S. Attorney Hayes praised investigators from DOL-OIG and FBI as well as assistance from MD-DOL staff members involved in this case's prosecution.
Further resources on reporting fraud or learning about priorities are available at https://www.justice.gov/usao-md or https://www.justice.gov/usao-md/community-outreach.
