Federal authorities charged 13 people and arrested five in connection with a California unemployment insurance benefits scheme they believe netted at least $2 million under the direction of a state prison inmate.
Natalie Le DeMola, a 37-year-old serving a life sentence for first-degree murder, was named as the ringleader, the U.S. attorney’s office for the Central District of California said Tuesday. Carleisha Neosha Plummer, a 32-year-old Los Angeles resident and close associate of DeMola, was also named by authorities.
A 39-count indictment charges DeMola, Plummer and 11 others with conspiracy to commit wire fraud and bank fraud, prosecutors said. The conspiracy count alleges 150 overt acts, including illegally obtaining personal identifying information, some of which prosecutors allege was provided by an unnamed state prison employee.
The indictment also names various defendants in 31 bank fraud counts and seven aggravated identity theft counts.
According to authorities, the fraud ring used stolen identities, including some belonging to state prison inmates, to collect unemployment benefits, most of which were pandemic-related relief, during the second half of 2020.
Members of the fraud ring “would acquire [information], such as the names, dates of birth, and Social Security numbers, of individuals, including identity theft victims, who were not eligible for [unemployment insurance] benefits, including pandemic benefits, because they were employed, retired, or incarcerated,” the indictment alleges.
The conspirators used the information to apply online for benefits from the California Employment Development Department, prosecutors alleged.
After applications were approved, the defendants were able to withdraw money from ATMs across…
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