Inmates in a California prison operated an unemployment scam that sought $25 million from the state and U.S. governments. They received $5 million and used it for cars, furniture, handbags, and jewelry, officials say.
Since March 2020, authorities say that $20 billion in unemployment benefits were stolen as the state granted fraudulent payments in the names of death row inmates and U.S. Sen. Dianne Feinstein.
Two inmates, Daryol Richmond, 31, and Telvin Breaux, 30, untruthfully claimed that they and others had been selling clothing or performing handymen duties. They falsely stated that they did this until they were unemployed due to the pandemic.
Richmond is in prison at Kern Valley State Prison, serving a 25-year sentence for robbery. Breaux is in the California Correctional Institution, serving five years for a robbery that involved a gun.
Documents note that the men used cellphones, emails, and phone calls from prison to reach out to others on the outside. They used fake email accounts and various addresses in California to submit over 400 fake claims.
The men and six others have been charged with conspiracy to commit mail fraud and aggravated identity theft. This carries a maximum sentence of 20 years in federal prison and a $250,000 fine.
When the debit cards were issued for the relief claims, detectives say the money was taken out at different places, days, and times, so that authorities wouldn’t be alerted.
Richmond received a plea agreement that forced him to plead guilty and pay a fine of no more than $382,000. It also means he will receive a prison sentence of no less than four years.
