DETROIT (WWJ) — All 10 defendants in a multi-million dollar unemployment insurance fraud scheme that was launched around the start of the COVID-19 pandemic have now been sentenced.
US Attorney Dawn Ison’s office announced Wednesday 22-year-old Daniel Holt of Wixom was sentenced Tuesday in the case that saw the group of 10 men — all in their early 20s — steal nearly $5 million. Holt, sentenced to two years in prison after pleading guilty to conspiring to engage in wire fraud, was the last of the group to learn his sentence.
Federal authorities say Holt and the other defendants targeted funds that were set aside for unemployment assistance during the pandemic.
All 10 defendants pleaded guilty to conspiring together to obtain illegitimate unemployment insurance benefits issued in the names of third parties. Charges against an 11th defendant were dismissed.
The feds say between April 2020 and August 2021 the defendants filed nearly 700 unemployment insurance claims across nine states, primarily Michigan, California and Arizona.
Once the claims were processed, funds were loaded onto pre-paid debit cards and mailed to addresses controlled by the defendants, according to Ison’s office.
Once they got the debit cards, the defendants would visit ATMs to withdraw cash. In total, the attorney’s office says the men were recorded on camera making more than 1,500 ATM visits in connection with the scheme.
Altogether, the defendants obtained more than $4.8 million from the scheme and were jointly ordered to pay $4,856,471 in restitution.
Ison’s office released the following list of the other nine defendants and their sentences:
• 23-year-old Marcellus Dunham of Redford was sentenced to 8 years and 6 months in prison after pleading guilty to engaging in aggravated identity theft and conspiring to engage in wire fraud.
• 23-year-old Jaylin Davis of Oak Park was sentenced to 4 years and 6 months in prison after pleading guilty to engaging in aggravated identity theft and conspiring to engage in wire fraud.
• 23-year-old Day’on Holt of Detroit was sentenced to 2 years and 8 months in prison after pleading guilty to conspiring to engage in wire fraud.
• 25-year-old Daveontae White of Detroit was sentenced to 2 years in prison after pleading guilty to conspiring to engage in wire fraud.
• 23-year-old Armani Haller of Sterling Heights was sentenced to 2 years and 1 day in prison after pleading guilty to conspiring to engage in wire fraud.
• 24-year-old Laron Stroud of Detroit was sentenced to 1 year and 6 months in prison after pleading guilty to conspiring to engage in wire fraud.
• 24-year-old Jaylin Qualls of Harper Woods was sentenced to 1 year and 1 day in prison after pleading guilty to conspiring to engage in wire fraud.
• 24-year-old Cheikh Sene of Southfield was sentenced to 3 years in prison after pleading guilty to conspiring to engage in wire fraud.
• 24-year-old Deleonte Rogers of Detroit was sentenced to 3 years in prison after pleading guilty to conspiring to engage in wire fraud.
“We remain committed to prosecuting those who choose to enrich themselves by stealing government funds earmarked for those members of our community who are truly in need,” Ison said, per a press release.