Two Bronx residents are accused of using stolen identities to fraudulently obtain more than $500,000 in unemployment benefits during the COVID-19 pandemic, according to prosecutors.
A Bronx grand jury has indicted two people on grand larceny and identity theft charges in connection with an alleged scheme that siphoned more than half a million dollars from New York’s pandemic unemployment insurance program.
Bronx District Attorney Darcel D. Clark announced that Moses Santiago, 30, and Diamond Bonaparte, 31, were arraigned on charges stemming from a two-year investigation involving state and federal agencies.
Prosecutors allege the pair used the identities of multiple victims to obtain unemployment benefits intended for workers impacted by the COVID-19 pandemic.
Prosecutors Allege Two-Year Fraud Scheme
According to the investigation, the alleged fraud occurred between April 2020 and April 2022.
Investigators with the New York State Department of Labor, the U.S. Department of Labor, and the Bronx District Attorney’s Financial Frauds Bureau allege the defendants used stolen personal information belonging to 13 victims.
Authorities said the identities were allegedly submitted through the New York State Department of Labor’s unemployment benefits system as if they were legitimate applicants.
As a result, more than $500,000 in unemployment benefits was allegedly issued through state-authorized accounts opened in the victims’ names.
Funds Allegedly Moved Through Cash App Accounts
Prosecutors contend the defendants transferred money from the unemployment accounts into Cash App accounts they controlled.
The funds were then allegedly used for personal expenses, including consumer purchases and travel.
Investigators later located and interviewed the identity theft victims with assistance from state and federal labor investigators and auditors.
Defendants Face Multiple Charges
Santiago and Bonaparte were arraigned before Bronx Supreme Court Justice Pamela A. Goldsmith.
Each defendant is charged with second-degree grand larceny and 13 counts of identity theft.
Santiago is scheduled to return to court on Sept. 10, while Bonaparte is due back on Aug. 17.
Officials Condemn Pandemic Benefit Fraud
District Attorney Clark said the defendants are accused of exploiting a program designed to help people facing economic hardship during the pandemic.
“These defendants allegedly stole identities of innocent people and then fraudulently obtained federal benefits meant for those out of work due to the COVID-19 pandemic crisis,” Clark said. “They allegedly stole $500,000 from the program over two years.”
Anthony P. D’Esposito, Inspector General for the U.S. Department of Labor, said pandemic unemployment benefits were intended to support workers during a national emergency.
“Every dollar lost to fraud is a dollar stolen from honest, hardworking Americans,” D’Esposito said.
The investigation remains ongoing.
As with all criminal defendants, Santiago and Bonaparte are presumed innocent unless and until proven guilty in a court of law.
Key Points
• Two Bronx residents were indicted for allegedly stealing more than $500,000 in pandemic unemployment benefits.
• Prosecutors say the defendants used the stolen identities of 13 victims between 2020 and 2022.
• Authorities allege the funds were transferred into Cash App accounts and spent on personal purchases and travel.