A federal jury in Albany, Georgia, has found Malcolm Jeffrey, a 34-year-old resident of Cordele, guilty of fraudulently obtaining millions of dollars in benefits from the Georgia Department of Labor (GaDOL). These benefits were intended to help those unemployed during the COVID-19 pandemic.
Matthew R. Galeotti, the Acting Assistant Attorney General from the Justice Department’s Criminal Division, stated that schemes like this one are unfortunately frequent. The Criminal Division is committed to ensuring those responsible face justice. “The defendant, along with his accomplices, organized a plan using stolen identities to file fake unemployment claims, thus diverting millions meant for genuinely unemployed Americans.”
Jonathan Ulrich, Special Agent in Charge at the U.S. Postal Service Office of Inspector General (USPIS-OIG), emphasized their commitment to addressing the misuse of federal relief programs. “Our investigators, in collaboration with law enforcement partners, are dedicated to relentlessly pursuing those who exploit programs meant to support legitimate recipients during the pandemic,” he asserted.
Evidence revealed in court indicated that Jeffrey and his accomplices were behind about 7,000 fraudulent claims with GaDOL, leading to the theft of over $16 million in benefits.
To carry out their scheme, Jeffrey and his associates fabricated lists of supposed employees by using personal data from numerous identity theft victims to file fake UI claims on the GaDOL website, linked to Jeffrey’s inactive business. Jeffrey’s establishment of an account on GaDOL’s platform enabled him to file these fictitious claims, resulting in over $16 million in improper payments being made. The fraudulently obtained funds were funneled to Jeffrey and his accomplices via prepaid debit cards sent to addresses near Cordele.
The jury found Jeffrey guilty of conspiracy to commit mail fraud. He now faces a potential sentence of up to 20 years in prison. The date for sentencing will be set later, as a federal district court judge will review the U.S. Sentencing Guidelines and consider other legal factors before deciding on the final sentence.
