Woman Serving Murder Sentence Accused of Masterminding $2M COVID Fraud Scheme From Prison

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Woman Serving Murder Sentence Accused of Masterminding $2M COVID Fraud Scheme From Prison
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A woman who is serving a life sentence for murder in California is charged with masterminding a $2 million fraud scheme involving COVID-19 unemployment money from behind bars, federal prosecutors said Tuesday.

Some of the identities were those of people who weren't eligible for state unemployment insurance benefits because they were working, retired or in prison, prosecutors said.

The U.S. Department of Labor has said that about $87 billion in pandemic unemployment benefits could have been paid improperly nationwide, with a significant portion attributable to fraud. An Associated Press review in March 2021 found that estimates ranged from $11 billion in fraudulent payments in California to several hundred thousand dollars in states such as Alaska and Wyoming.

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