(WWJ) A contract employee for the State of Michigan Unemployment Insurance agency has pleaded guilty to a federal charge for her role in a multi-million dollar fraud scheme.
According to the U.S. Attorney's Office, Brandi Hawkins worked with others to file more than 700 false claims from the State of Michigan and the U.S. Government between April and June of last year. Daily, the feds say Hawkins agreed to approve claims she knew to be bogus — some of them filed using stolen identities — in exchange for bribes.
"Had she continued undetected we would be looking at a loss of about $12 million in fraud," said acting U.S. Attorney Saima Mohsin said. "As it is about $3.8 million in federal and state funds that were intended for people who legitimately needed those funds were disbursed fraudulently."
Mohsin said Hawkins used proceeds from her crimes to purchase high-end handbags and other luxury goods. More than $200,000 in cash was seized during a search of her home.
Mohsin said this is not an isolated incident, but rather a widespread problem, as investigators continue to see millions of dollars dispersed in unemployment insurance fraud cases in Michigan alone.
"I just think that people need to know that this fraud is occurring," she told WWJ Newsradio 950. "This type of fraud, pandemic-related fraud...You know that individuals are trying to exploit the pandemic for their own person gain, and we are here, we are out there and we are actively trying to thwart these individuals."
Hawkins faces up to 20 years in a federal prison at her sentencing, set for October 28.
"Brandi Hawkins used her position to approve fraudulent unemployment claims and divert money desperately needed by those who lost jobs as a result of the pandemic," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division. "The FBI will continue to work with our federal law enforcement partners to protect the integrity of these vital federal assistance programs."
