WASHINGTON (WSV) — Malcolm Jeffrey, a 34-year-old from Cordele, Ga., was found guilty by a federal jury in Albany, Ga., on Friday for his role in defrauding the Georgia Department of Labor (GaDOL) of millions intended for unemployed individuals during the COVID-19 crisis.
Acting Assistant Attorney General Matthew R. Galeotti from the Justice Department’s Criminal Division highlighted that such fraudulent activities are frequent, and their division is committed to bringing those responsible to justice. “The defendant and his accomplices devised a scheme to use stolen identities for fraudulent unemployment claims, thereby embezzling millions meant for Americans without jobs,” he noted.
Jonathan Ulrich, Special Agent in Charge at the U.S. Postal Service Office of Inspector General (USPIS-OIG), emphasized their commitment to prosecuting those exploiting federal relief for personal benefit. “This case exemplifies how our criminal investigators, with law enforcement partners, will thoroughly pursue anyone misusing programs designed to aid legitimate people and businesses during the global pandemic,” Ulrich asserted.
According to the court documents and trial evidence, Jeffrey, along with his accomplices, filed more than 7,000 fake unemployment insurance (UI) claims with GaDOL, stealing over $16 million in benefits.
To pull off the scheme, Jeffrey and his associates created lists of fake employees using stolen identities and submitted bogus UI claims on GaDOL’s website under his non-operational business. Jeffrey set up an account to file these UI claims, leading to thousands of claims being processed through his employer account, resulting in over $16 million in false UI benefits being paid out. These funds were funneled to Jeffrey and his co-conspirators through prepaid debit cards sent to various places around Cordele.
The jury found Jeffrey guilty of conspiracy to commit mail fraud, which carries a maximum sentence of 20 years in prison. The sentencing will be arranged later, with a federal district court judge determining the sentence after evaluating the U.S. Sentencing Guidelines and other legal factors.
