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 (MUIA) and her ex-partner have been sentenced for their roles in a scheme to steal unemployment insurance benefits. Timeka Johnson, 44, received a 42-month prison sentence after pleading guilty to aggravated identity theft and conspiracy to commit wire fraud. Ray Anthony Eddington, 45, was sentenced to 36 months for conspiracy to commit wire fraud.
The sentences were handed down by Chief Judge Stephen J. Murphy, III of the United States District Court. Johnson’s responsibilities at MUIA included reviewing and processing unemployment claims. According to court records, she used her access as an agency employee to process fraudulent claims using third parties’ information without authorization. She also uploaded false documentation, dismissed fraud prevention alerts, certified illegitimate claims as eligible for assistance funds, and caused unauthorized debit cards and improper payments to be issued. Another agency employee was involved in the scheme at Johnson's direction and compensated financially.
Eddington withdrew many of the fraudulent benefits from local ATMs. The conspiracy resulted in over $250,000 in improper payments from the State of Michigan’s unemployment program. Both defendants have been ordered to pay $250,001 in restitution.
U.S. Attorney Jerome F. Gorgon Jr., Department of Homeland Security Inspector General Joseph V. Cuffari, U.S. Department of Labor Office of Inspector General Special Agent-in-Charge Megan Howell, FBI Detroit Field Office Special Agent in Charge Jennifer Runyan, and Jason Palmer, Director of MUIA announced the sentences.
“It is one thing to steal if you are hungry and can’t find a job. But it is despicable to abuse your position of trust so that you can steal from a program needed to help the unemployed,” stated U.S. Attorney Gorgon.
DHS Inspector General Joseph V. Cuffari said: “Government employees are entrusted to protect the integrity of these crucial aid programs. Those who betray that trust will be held accountable. The Office of Inspector General remains committed to aggressively investigating anyone who abuse their position, betray the public trust, and conspire with others to defraud government programs intended for a vulnerable population. We appreciate the continued partnership between DHS OIG and our law enforcement partners in bringing these individuals to justice.”
“Today’s sentencings of Ray Eddington and Timeka Johnson demonstrate the Office of Inspector General’s commitment to investigate bad actors who defraud the unemployment insurance program for financial gain, particularly those like Timeka Johnson who abused her position of trust as a Unemployment Insurance Examiner. We will continue to work with our law enforcement partners to bring to justice those who seek to exploit these critical U.S. Department of Labor programs, especially when it involves serious insider threats,” said Megan Howell.
Jennifer Runyan added: “As a State of Michigan Unemployment Insurance Agency Investigator, Timeka Johnson had insider access and the authority to help people—instead, she abused that trust by teaming up with Ray Eddington and others to commit identity theft and fraud. Their actions harmed the very communities that rely on these unemployment resources the most... This sentencing should serve as a reminder to anyone who defrauds Michigan’s assistance programs: FBI Detroit will never stop working to hold those accountable who abuse them..."
Jason Palmer commented: “Timeka Johnson’s actions prove once again that crime doesn’t pay... I’m proud of the success our dedicated, professional agents have had in helping bring bad actors to justice…”
Assistant United States Attorney Andrew J. Yahkind prosecuted this case with investigative support from several agencies including Homeland Security—Office of Inspector General; Department of Labor—Office of Inspector General; Federal Bureau of Investigation; and Michigan's Unemployment Insurance Agency.
