CALIFORNIA – The U.S. Department of Justice (DOJ) announced September 9 that three defendants were arrested in a COVID fraud scheme targeting California’s Employment Development Department (EDD).
Yolanda Butler, 49, and her son Legerrius Holt, 28, both formerly of Stockton, were arrested in Oklahoma and Colorado, respectively. The third defendant, Quamaine Massey, 33, formerly of North Carolina, was arrested in Ohio.
Court documents show that from April 2020 to June 2021, the defendants carried out a mail fraud and identity theft scheme targeting California’s EDD unemployment program.
Under the 2020 CARES Act, EDD administered unemployment benefits to residents unable to work due to COVID-19.
The defendants used dozens of individuals’ personal information to file at least 69 fraudulent unemployment claims.
EDD approved many claims, sending benefits via prepaid cards to addresses controlled by the defendants, including Butler and Holt’s Stockton home and Massey’s North Carolina residence.
The defendants activated the cards and spent the benefits personally.
The scheme led to EDD and the U.S. paying out over $1.1 million, with intended losses exceeding $1.4 million.
Defendants face up to 20 years
If convicted, all face a maximum of 20 years in prison for mail fraud, with Butler and Holt also facing a mandatory two-year sentence for aggravated identity theft. The defendants also face up to $250,000 in fines per count.
The charges are allegations; the defendants are presumed innocent until proven guilty.
This case is part of California’s COVID-19 Fraud Enforcement Strike Force, one of five DOJ teams targeting large-scale, multistate pandemic relief fraud.
The strike forces use prosecutor-led, data-driven teams to identify and prosecute pandemic relief fraud.
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