CALIFORNIA, USA — Hundreds of thousands of dollars were taken in COVID-19 unemployment benefits from California's Employment Development Department (EDD) by two separate schemes, U.S. Attorney McGregor W. Scott announced on Thursday.
Charges were brought against prison inmates at Central California Women's Facility (CCWF) in Chowchilla, Calif. for one scheme, while a Roseville woman was arrested and released on bond for another alleged fraud scheme.
“The U.S. Attorney’s Office is committed to the mission of combating fraud that abuses the provisions of the CARES Act,” U.S. Attorney Scott said. “We will work with every major law enforcement agency to investigate and prosecute the fraud arising out of the pandemic. This theft of taxpayer dollars intended to assist our citizens in a very difficult economic time simply will not be tolerated.”
Inmate Sholanda Thomas, 36, and parolee Christina Smith, 37, at CCWF prison were indicted by a Fresno grand jury for conspiracy to commit mail fraud and aggravated identity theft after the two allegedly submitted multiple false EDD claims in Thomas’ and other CCWF inmates’ names. The U.S. Attorney's Office said in a statement that EDD and the U.S. have lost over $200,000 related to this scheme.
In a separate case, former EDD employee Andrea M. Gervais, 43, of Roseville, allegedly took out at least 100 Pandemic Unemployment Assistance (PUA) claims using various identities, including that of a sitting United States Senator. 12 of the 100 claims were paid out over $200,000, according to the criminal complaint, though the total value of all 100 claims was at least $2 million.
Gervais faces 20 years in prison for mail fraud and a fine of $250,000 if convicted. The investigation into the Roseville woman's suspected fraud began after it was noticed that a PUA claim was made using the identity of a sitting U.S. Senator for roughly $21,000, a spokesperson with the U.S. Attorney's Office said.
Gervais allegedly received the PUA debit card at her home in Roseville, and Bank of America ATM cameras reportedly captured her getting cash multiple times from at least seven PUA debit cards, including the one issued to the U.S. Senator.
Smith and Thomas are also facing 20 years in prison if convicted and fines of $250,000 for each count, which include mail fraud and identity theft. Thomas allegedly used the names, dates of birth and social security numbers of other inmates at CCWF and would relay that information to Smith who was on parole. Smith is suspected of then submitting the applications for unemployment benefits.
"The underlying applications for the claims falsely stated that the inmates had worked within the prescribed period as hairstylists, barbers, and other occupations, and that they were available to work, which was not true because they were incarcerated," the U.S. Attorney's Office said in the press release.
Smith allegedly used unemployment benefits to get plastic surgery, while keeping Thomas' share in a shoebox for when she got released from prison.
“There are so many Californians that have been impacted by COVID-19, and we have no tolerance for anyone who tries to defraud the hard-working people of this state. Our investigators have been dedicated to this and other cases of fraud, and these indictments are the result of collaboration and hard work,” said Kathleen Allison, Secretary of the California Department of Corrections and Rehabilitation in a statement.
