Lawrence Nathanial Harris, 33, of Temple Hills, Maryland, has pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft related to fraudulent CARES Act unemployment insurance claims. In a separate case, Harris also admitted guilt to possession of a machine gun, possession with intent to distribute a controlled substance, and possession of a firearm in furtherance of a drug-trafficking offense.
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with officials from the U.S. Department of Labor – Office of Inspector General (DOL-OIG), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI) – Baltimore Field Office, and the Prince George’s County Police Department.
According to court documents, from at least January 2021 through September 2023, Harris and others engaged in a scheme that defrauded federal and state agencies as well as financial institutions and individuals. The group submitted false unemployment insurance claims to the Maryland Department of Labor (MD-DOL), resulting in losses between $550,000 and $1.5 million. They used debit cards issued in the names of identity theft victims to access these funds.
Two co-conspirators who worked for Company 1—a contractor providing support services to MD-DOL—used their access to internal databases to facilitate the fraud. These individuals allowed Harris and others access to non-public data and changed claim information such as contact emails and payment methods. The conspirators also uploaded fake documents, removed fraud holds on claims, certified benefit weeks falsely, and otherwise manipulated the system so that payments were directed into accounts they controlled.
During a search warrant execution at Harris’s residence on November 16, 2022, law enforcement observed him discarding a firearm and marijuana from his room. Further search revealed three more firearms—including one functioning as a machine gun—in an attic accessible by Harris. Authorities also recovered approximately 37 pounds of marijuana intended for distribution.
Harris faces up to 20 years in prison for wire fraud conspiracy; two mandatory consecutive years for aggravated identity theft; up to 10 years for possession of a machine gun; up to 20 years for drug-related charges; and potentially life imprisonment for possessing a firearm during drug trafficking offenses. Sentencing is scheduled for November 6 at 2 p.m., but actual sentences are often less than maximum penalties due to judicial discretion under federal guidelines.
The case is part of efforts by the District of Maryland COVID-19 Strike Force—one of five such groups nationwide—to investigate large-scale pandemic relief fraud under the CARES Act. The strike forces use interagency teams led by prosecutors and data analysts targeting criminal organizations involved in pandemic-related financial crimes. The CARES Act was established as emergency economic assistance during the COVID-19 pandemic (https://www.justice.gov/coronavirus).
Project Safe Neighborhoods (PSN) is another program cited in connection with this case; it coordinates law enforcement efforts aimed at reducing violent crime and gun violence through community engagement strategies launched in May 2021 (https://www.justice.gov/usao-md/community-outreach).
U.S. Attorney Hayes commended investigative agencies including DOL-OIG, ATF, FBI, PGPD, MD-DOL staff members involved in uncovering this scheme as well as Assistant U.S. Attorneys Harry M. Gruber, Paul A. Riley, Joseph L. Wenner, Christopher Sarma; Special Assistant U.S. Attorney Lanay Mitchell; Paralegal Specialist Joanna B.N. Huber; and the Maryland COVID-19 Strike Force.
For additional information about reporting suspected COVID-19 fraud or resources available through the Maryland U.S. Attorney’s Office visit https://www.justice.gov/usao-md or https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
