Jackson, Miss. – A Ridgeland woman pleaded guilty to theft of government funds involving unemployment insurance benefits fraud, announced Acting U.S. Attorney Darren J. LaMarca and U.S. Secret Service Resident Agent in Charge Shawn Wolfe.
According to court documents, in May 2020, it was discovered that unemployment insurance benefits from the State of Washington had been deposited into the bank account of Judith Ann Middleton, 71, of Ridgeland. Investigation into these benefits revealed that they were deposited under other individuals’ names. The unemployment insurance benefits were federally subsidized through the CARES Act in response to the COVID-19 pandemic.
Middleton is scheduled to be sentenced on November 18, 2021 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Meghan M. McCalla and William Dieters prosecuted the case.
This case is being prosecuted as part of the Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF). In response to the unprecedented scope of Unemployment Insurance (UI) fraud, the Department of Justice established the NUIFTF. The NUIFTF is a prosecutor-led multi-agency task force with representatives from FBI, DOL-OIG, IRS-CI, HSI, DHS-OIG, USPIS, USSS, SSA-OIG, FDIC-OIG, and other agencies. Members of the NUIFTF are working with state workforce agencies, financial institutions, and other law enforcement partners across the country to fight UI fraud, and consumers should be vigilant in light of these threats and take the appropriate steps to safeguard themselves.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Operation Scams-R-Us involves a transnational organized crime enterprise (TOC) operating numerous complex financial fraud schemes via the internet.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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