Lamont Brown, a 37-year-old resident of Dunkirk, New York, pleaded guilty on March 20 to theft of government funds in a case involving fraudulent claims for pandemic unemployment assistance. The plea was entered before U.S. District Judge John L. Sinatra, Jr., and carries a maximum penalty of ten years in prison and a $250,000 fine.
The case centers on actions taken during the COVID-19 pandemic when Brown recruited others to apply for unemployment benefits through the Pandemic Unemployment Assistance (PUA) program despite not being eligible. According to Assistant U.S. Attorney Franz M. Wright, Brown and his recruits used stolen personal information to obtain PUA funds from the Puerto Rico Department of Labor and Human Resources. In exchange for facilitating their participation in the scheme, Brown received a portion of the fraudulent proceeds.
In July 2020, Brown personally received a check for $10,122 from the Puerto Rico Department of Labor and Human Resources, which he deposited into an account at Lake Shore Savings Bank in Western New York before withdrawing and spending the money. The funds were distributed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Authorities said that Brown had never lived or worked in Puerto Rico.
The total loss resulting from this scheme amounted to $67,524 for the Puerto Rico Department of Labor and Human Resources. The investigation was conducted by Homeland Security Investigations under Special Agent-in-Charge Erin Keegan and by the U.S. Department of Labor Office of Inspector General under Special Agent-in-Charge Jonathan Mellone for the Northeast Region.
Sentencing is scheduled for August 5 before Judge Sinatra.
