A Baltimore man has been sentenced to 54 months in prison for his role in a scheme that used the personal information of vulnerable individuals to file fraudulent unemployment insurance claims, resulting in losses exceeding $167,000. Duane Watts, 46, received the sentence from U.S. District Judge Julie R. Rubin and will also serve three years of supervised release.
According to the U.S. Attorney’s Office for the District of Maryland, Watts participated in a conspiracy between May 2020 and May 2021 that involved submitting false unemployment insurance claims using stolen identities. The victims included people with mental or cognitive impairments.
“Watts engaged in multiple ATM transactions, using debit cards loaded with UI funds intended for others, including the vulnerable victims,” the press release stated. One victim was unable to obtain needed benefits after her identity was used in the fraud.
Co-defendants Tiia Woods and Devante Smith were previously sentenced to 74 and 57 months in prison, respectively, for their involvement.
The fraudulent claims targeted benefits made available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted in March 2020, this federal law expanded unemployment assistance during the COVID-19 pandemic to include workers not traditionally eligible for such benefits.
The investigation was led by an interagency strike force established by the U.S. Department of Justice to address large-scale pandemic relief fraud across multiple states. The strike force combines prosecutors and data analysts to identify those responsible for stealing relief funds.
“Kelly O. Hayes, U.S. Attorney for the District of Maryland,” announced the sentencing along with officials from the Department of Labor’s Office of Inspector General and the FBI Baltimore Field Office.
Anyone with information about attempted COVID-19 fraud can report it through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via its web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further details on reporting fraud or learning about priorities of the Maryland U.S. Attorney’s Office, visit www.justice.gov/usao-md or https://www.justice.gov/usao-md/community-outreach.
U.S. Attorney Hayes thanked both agencies involved as well as Assistant U.S. Attorneys John M. D’Amico and Harry M. Gruber who prosecuted the case.