United States of America v. Virginia Smith

Richmond, Virginia fraud conspiracy charge criminal defense lawyer represented Defendant, Virginia Smith, age 37.



A Glen Allen woman was charged for mail fraud for her role in a conspiracy to fraudulently obtain pandemic-related unemployment benefits for 22 prison inmates, which she shared with the inmate beneficiaries.



"These critical unemployment funds were intended for deserving members of our communities to help alleviate their economic hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. "This prosecution and the defendant's guilty plea send a clear message that EDVA will bring to justice those who unlawfully exploit taxpayer-funded assistance for personal gain.”



According to court documents, Virginia Smith, 37, conspired with an inmate at Baskerville Correctional Center to collect the personally identifiable information of inmates to fraudulently apply for Virginia unemployment benefits from around June 2020 to January 2021, during the COVID-19 pandemic. Smith, with the assistance of the inmate co-conspirator, submitted successful applications for Virginia unemployment benefits for at least 22 inmates at Baskerville Correctional Center, resulting in the dispersal of at least $223,984.72 in fraudulent benefits.



"Smith and her co-conspirators used the identities of prisoners housed at the Baskerville Correctional Center to file fraudulent unemployment claims and unlawfully collect more than $223,000 in resulting benefit payments,” said Derek Pickle, Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. "As the primary law enforcement agency responsible for investigating unemployment insurance fraud, the Department of Labor Office of Inspector General is committed to supporting the prosecution of individuals who take advantage of unemployment insurance programs. We are grateful to the U.S. Attorney's Office, the Virginia Employment Commission, and our law enforcement partners for their invaluable support of our mission.”



"Intentional abuse of COVID-19 unemployment benefits for personal gain is appalling,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. "Today's sentencing illustrates that DHS OIG and our law enforcement partners will work tirelessly to dismantle these greed-driven schemes.”



As part of their scheme, Smith's co-conspirator would provide her with the names, dates of birth, and Social Security numbers of inmates serving a sentence at Baskerville Correctional Center. Smith would then file unemployment claims with the Virginia Employment Commission using that information. Once the applications were approved, Smith would share the proceeds of the crime with the inmates whose personal information she used to file the fraudulent claims, keeping a portion of the proceeds for herself. The applications contained several false statements such as a false physical address, rather than the address of the correctional facility at which the inmates were actually living; a false last employer; and a false certification that the inmates were ready, willing, and able to work in the event employment became available.



Smith is scheduled to be sentenced on September 9. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.



Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Jerald W. Page, Special Agent in Charge of the U.S. Secret Service's Richmond Field Office; and Eric D. English, Chief Henrico County Police Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.



This investigation was conducted under the auspices of "Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney's Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included significant assistance from the Virginia Employment Commission.



Assistant U.S. Attorney Kashan Pathan is prosecuting the case.



18:1349; in accordance with 18:981(a)(1)(C) as incorporated by 28 U.S.C. § 2461(c), and 21 U.S.C. § 853; CONSPIRACY TO COMMIT MAIL FRAUD: FORFEITURE ALLEGATION

(1)



§1349. Attempt and conspiracy



Any person who attempts or conspires to commit any offense under this chapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.



18:1341; in accordance with 18:981(a)(1)(C) as incorporated by 28 U.S.C. § 2461(c), and 21 U.S.C. § 853; MAIL FRAUD: FORFEITURE ALLEGATION

(2-4)



§1341. Frauds and swindles



Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

06/11/2021 7 Minute Entry for proceedings held before Magistrate Judge Mark R. Colombell: Plea Agreement Hearing as to Virginia Smith held on 6/11/2021; Court reminded counsel of prosecutorial obligations as required under Rule 5(f); Counsel previously appointed (Nia Vidal); Deft. sworn and advised of rights, charges, and maximum penalties; Rule 11 Waiver executed; Waiver of Indictment executed; Deft arraigned and entered plea of Guilty as to Counts 1, 2, 3, and 4 of the Criminal Information; Court accept pleas of Guilty; Govt not seeking detention; Deft placed on bond with conditions; Sentencing set for 9/9/2021 at 10:00 AM in Richmond Courtroom 7400 before District Judge Robert E. Payne. (FTR)(jsau) (Entered: 06/11/2021)

06/11/2021 8 Waiver of Right to Rule 11 before a US District Judge by Virginia Smith. (jsau, ) (Entered: 06/11/2021)

06/11/2021 9 WAIVER OF INDICTMENT by Virginia Smith. (jsau, ) (Entered: 06/11/2021)

06/11/2021 10 ORDER as to Virginia Smith. This matter comes before the Court on its own initiative. Pursuant to Federal Rule of Criminal Procedure 5(f) and the Due Process Protections Act, Pub. L. No 116-182, 134 Stat. 894 (Oct. 21, 2020), the Court ORDERS the United States to adhere to the disclosure obligations set forth in Brady v. Maryland, 373 U.S. 83 (1963) and its progeny. Brady v. Maryland instructs that the suppression by the prosecution of evidence favorable to an accused violates due process where the evidence is material either to guilt or to punishment, irrespective of the good faith or bad faith of the prosecution. 373 U.S. at 87. Failure to adhere to this requirement may result in serious consequences, up to and including vacating a conviction or disciplinary action against the prosecution. Having given counsel the oral admonition required by the Due Process Protections Act, this Order serves as the reminder of prosecutorial obligation and duties in accordance with Rule 5(f) and the Eastern District of Virginia Standing Order concerning the same. Signed by Magistrate Judge Mark R. Colombell on 6/11/21. (jsau, ) (Entered: 06/11/2021)

06/11/2021 11 Statement of Facts as to Virginia Smith. (jsau, ) (Entered: 06/11/2021)

06/11/2021 12 PLEA AGREEMENT as to Virginia Smith. (jsau, ) (Entered: 06/11/2021)

06/11/2021 13 Order for sentencing guidelines as to Virginia Smith. Signed by Magistrate Judge Mark R. Colombell on 6/11/21. (jsau, ) (Entered: 06/11/2021)

06/11/2021 14 ORDER Setting Conditions of Release. Signed by Magistrate Judge Mark R. Colombell on 6/11/21. (jsau, ) (Entered: 06/11/2021)

06/11/2021 15 REPORT AND RECOMMENDATIONS on Plea of Guilty as to Virginia Smith Objections to R&R due by 6/28/2021. Signed by Magistrate Judge Mark R. Colombell on 6/11/21. (jsau, ) (Entered: 06/11/2021)