A woman from Northwest Illinois was sentenced on May 5 to more than three years in federal prison after pleading guilty to wire fraud involving approximately $100,000 in stolen pandemic-era unemployment benefits. Jackie L. Smith, age 39, of Galena, Illinois, admitted to obtaining the funds and converting them to cash at a Dubuque casino.
Smith orchestrated a scheme during the COVID-19 pandemic to defraud several states out of federally subsidized unemployment insurance benefits. She filed a false application in her own name, recruited others into the scheme for a share of proceeds, and used stolen personal information to pocket additional funds. According to evidence presented at her plea and sentencing hearings, Smith made cash withdrawals from the ill-gotten gains at a local casino.
Smith has prior felony convictions in Illinois, Texas, and Wisconsin for offenses including bail jumping, methamphetamine possession, burglary, theft, resisting law enforcement officers, receiving stolen property and operating under the influence. She was sentenced by United States District Court Chief Judge C.J. Williams in Cedar Rapids to 42 months’ imprisonment and ordered to pay $95,708 in restitution across three states. Smith will also serve three years of supervised release following her prison term; there is no parole in the federal system.
Smith is the fourth person from Galena sentenced by Chief Judge Williams for making similar fraudulent withdrawals at a Dubuque casino during the pandemic period. In April 2026 Jeffrey Alan Edmonds received four months’ imprisonment and was ordered to pay $10,923.30 restitution; Michael Angelo Martinelli was sentenced in January 2026 to six months’ imprisonment with $170,144.70 restitution; Dezaray Elizabeth Seitz received jail time plus additional prison after violating supervised release terms.
On April 7 this year the Department of Justice announced creation of its National Fraud Enforcement Division as part of President Trump’s Task Force chaired by Vice President J.D. Vance aimed at eliminating fraud within federal benefit programs.
The cases were prosecuted by Assistant United States Attorney Timothy L. Vavricek with investigations conducted by the U.S Department of Labor Office of Inspector General and Iowa Division of Criminal Investigation.
The U.S Attorney for the Northern District of Iowa advocates for over one million residents across its jurisdiction while prosecuting federal crimes such as these cases involving pandemic-related fraud according to its official website.
