Stevenson Woman Sentenced for COVID-19 Unemployment Insurance Fraud Scheme

Scam Targets Several States for Unemployment Relief Funds

A woman from Stevenson, Alabama has been hit with an 18-month federal prison sentence and five years of probation after participating in an unemployment relief funds scam. Meghan Pittman, who is 29 years old, was given the sentence by United States District Judge Curtis Collier in a federal court based in Chattanooga, Tennessee on Wednesday.

Details of the Fraudulent Scheme

Reports from the U.S. Department of Justice state that from June 2020 to June 2021, Pittman played an active role in a scam that aimed to defraud four states of their COVID-19 unemployment relief funds. She and her accomplices targeted money allotted to Tennessee, Alabama, Pennsylvania, and California.

Their modus operandi involved applying for these funds en mass after fraudulently obtaining personal information from numerous individuals. The applications were falsely made out to show that the people whose data was being used were employed within the states that were targeted by the fraudsters.

After the applications were approved, the states would then mail out the unemployment relief funds in the form of debit cards to addresses situated within the Eastern District of Tennessee. Pittman would subsequently acquire a percentage of the fraudulent claim payouts.

The Economic Impact of the Fraud

Pittman managed to siphon off more than $85,000 in unemployment insurance funds through her fraudulent activity. However, the entire operation saw a total of about $550,000 being wrongfully claimed. She was convicted on a charge of wire fraud as part of her plea agreement with the court.

This is a serious case of fraud that, besides breaking the law, also disrespects thousands of people who genuinely need these funds due to the economic difficulties imposed by the pandemic.

It serves as a grave reminder that the authorities will uncover and deal severely with those who attempt to benefit illegally from funds intended to offer temporary aid to the countless individuals who have been financially impacted by the COVID-19 outbreak.

The Fight Against Unemployment Fraud Goes On

This case is one of many that highlight the growing problem of fraudulent claims for unemployment insurance across the nation. Many states have been struggling to identify and counter such frauds and are bolstering their efforts in an attempt to protect their funds and the unemployed who genuinely need the assistance.