COURT DOC: COVID-19 Unemployment Benefit Fraud Scheme Charged

On Thursday, Feb. 25, a federal grand jury returned an indictment charging two defendants in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown.

The three-count indictment charges Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Womens Facility (CCWF) in Chowchilla, with one count of conspiracy to commit mail fraud and two counts of aggravated identity theft. The indictment was unsealed and Vertz was arraigned on Tuesday following his arrest.

According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers and other CCWF inmates names to EDD. Recorded jail calls and emails show that Powers and other inmates, provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided. (Source: U.S. Department of Justice)