LANSING – Federal officials allege that a contract employee of the Michigan Unemployment Insurance Agency exploited the coronavirus pandemic to authorize more than $ 2 million in fraudulent payments.
Authorities allege that Brandi Hawkins, 39, of Detroit, used “internal access” to approve hundreds of illegitimate claims beginning in April, during a landmark wave of layoffs fueled by the virus and economic closure orders.
Authorities confiscated $ 200,000 in cash while executing a search warrant at Hawkins, according to US Attorney Matthew Schneider’s office. Prosecutors say she used the proceeds to buy “high-end bags” and other luxury items. She is charged with theft or bribery of a program that receives federal funds, wire fraud, and money laundering.
“These are serious allegations, and my office is committed to prosecuting anyone who tries to use the COVID-19 crisis to defraud the people of Michigan,” said Schneider.
the The criminal complaint filed Friday is the first public development in a month-long investigation into suspected Michigan unemployment fraud by state and federal officials. Authorities say international imposter rings have unemployment agencies across the country in an attempt to take advantage of the enhanced benefits offered during the coronavirus pandemic.
The Michigan Unemployment Agency announced in early June that it had It froze 340,000 active accounts that had already been approved for payment, delaying benefits for some legitimate claimants and requiring them to submit additional documentation to confirm their identity while officials investigated possible fraud.
Hawkins’ investigation is ongoing, according to prosecutors, who will decide whether to pursue a criminal prosecution once the investigation is complete. In her role as a contract employee, Hawkins’ duties included reviewing, processing, and verifying the legitimacy of unemployment claims.
Bridge was unable to reach Hawkins for this story.
The complaint alleges “probable cause exists” to demonstrate that Hawkins knowingly and fraudulently transferred, owned, used, and prosecuted federal funds earmarked for pandemic unemployment assistance.
She “used the access and authority granted by the State of Michigan to fraudulently direct these funds to multiple bank accounts through interstate bank transmissions,” according to the complaint.
Federal authorities allege that she worked “with outside actors,” currently unknown to law enforcement, who “entered numerous false claims” into Michigan’s unemployment insurance system. The unemployment agency fired her on June 17.
Jeffrey Frost, a state-appointed special fraud adviser two weeks ago, applauded Schneider’s “fast action” in the case.
“The Unemployment Insurance Agency will continue to work closely with state and federal partners to identify unemployment fraud that can be quickly turned over to police for prosecution,” Frost said in a statement.
As of July 6, the Michigan UIA said it had resolved 285,000 of the 340,000 active unemployment insurance accounts it had initially frozen during the fraud investigation, along with 160,000 of the 200,000 new claims it had withheld pending verification. of identification.
