Man admits to identify theft to steal COVID unemployment funds
- Unemployment insurance benefits were boosted during COVID
- A former Arizona man pleaded guilty to filing fraudulent claims
- He faces up to 20 years in prison on wire fraud charges
The Department of Justice seal is seen on a lectern ahead of a press conference announcing efforts against computer hacking and extortion at the Department of Justice in Washington, DC on November 28, 2018. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
maylen
(NewsNation) — A former Arizona man pleaded guilty to stealing people’s identities in Maine as part of a scheme to take advantage of increased unemployment benefits during the COVID-19 pandemic.
James McAuliffe, 55, pleaded guilty Tuesday in federal court to six counts each of wire fraud and aggravated identity theft, the U.S. Attorney’s Office for the District of Maine said in a news release.
Prosecutors alleged that from January to November 2020, McAuliffe filed false claims for unemployment insurance benefits in Maine using other people’s personal information. He did so by applying for replacement driver’s licenses, changing the drivers’ mailing addresses and then using the fake licenses as proof of identification to support the unemployment claims.
The news release states that McAuliffe had the unemployment funds loaded onto debit cards and wired into an account under a different person’s name. He then withdrew the funds at an ATM in Arizona.
“The prosecution of Mr. McAuliffe is one of numerous cases brought by the Department of Justice nationwide to bring to justice those who sought to exploit COVID-19 relief fund programs,” U.S. Attorney Darcie N. McElwee said in the news release. “The important work of identifying and prosecuting anyone who stole taxpayer funds set aside for pandemic aid remains a priority for my office and Maine’s federal law enforcement agencies.”
McAuliffe was living in Kansas at the time of his arrest. He faces up to 20 years in prison, a fine of up to $250,000 on the wire fraud counts and a minimum sentence of two years on the identity theft counts.
The guilty plea comes a week after the Justice Department announced it is bringing criminal charges against 371 defendants for COVID-19 fraud worth more than $836 million.
The cases involved charges related to pandemic unemployment insurance fraud and fraud related to two of the largest business programs, the Paycheck Protection Program and the Economic Injury Disaster Loan program. There were also actions involving pandemic health care billing fraud, Emergency Rental Assistance program fraud and tax fraud related to a refundable credit for businesses and tax-exempt organizations affected by the COVID-19 pandemic.
NewsNation producer Stephanie Whiteside contributed to this report.
