Terry Chen, a 25-year-old resident of Prince George’s County, Maryland, has pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in connection with fraudulent claims for unemployment insurance benefits under the CARES Act. The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside officials from the U.S. Department of Labor – Office of Inspector General and the Federal Bureau of Investigation’s Baltimore Field Office.
According to court documents, Chen and his co-conspirators carried out their scheme from 2021 through September 2022. They submitted false unemployment insurance claims to the Maryland Department of Labor (MD-DOL), resulting in losses estimated between $1 million and $1.5 million. The group used debit cards issued in the names of identity theft victims to obtain fraudulent funds.
Two co-conspirators—Bryan Nushawn Ruffin and Kiara Smith—were employed by a company contracted to provide support services for MD-DOL. Using computers provided by their employer, Ruffin and Smith allowed Chen and others access to non-public UI data maintained by MD-DOL. This access enabled them to alter information on existing claims, including email addresses, passwords, and payment methods.
The plea agreement details that the conspirators exploited personal identifying information belonging to victims of identity theft. They also manipulated databases to upload documents supporting fraudulent claims, remove fraud holds, certify benefit weeks, and perform other actions that facilitated improper payments from MD-DOL accounts they controlled.
During this period, MD-DOL disbursed benefits believing they were going to legitimate applicants; however, the funds were directed into accounts managed by Chen’s group.
Chen faces up to 20 years in federal prison for wire fraud conspiracy; a mandatory consecutive two-year sentence for aggravated identity theft; up to 10 years for possession of a machine gun; 20 years for possession with intent to distribute marijuana; and life imprisonment for possession of a firearm during drug trafficking crimes. Sentencing is scheduled for February 2, 2026.
A federal judge will determine sentencing after reviewing applicable guidelines and statutory factors.
The case is part of an ongoing effort by the District of Maryland COVID-19 Strike Force—a team created as one of five national strike forces by the U.S. Department of Justice—to investigate large-scale pandemic relief fraud involving criminal organizations across state lines.
“The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic,” according to information released about these enforcement efforts. “The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.”
U.S. Attorney Hayes recognized investigators from DOL-OIG and FBI as well as prosecutors Harry M. Gruber, Paul A. Riley, Joseph L. Wenner; Paralegal Specialist Joanna B.N. Huber; and members of the Maryland COVID-19 Strike Force for their contributions.
More details about reporting suspected COVID-19-related fraud are available at justice.gov/coronavirus or through the National Center for Disaster Fraud hotline at 866-720-5721.
