Tracey Dotson, 49, of Detroit, has been sentenced to over four years in federal prison for his involvement in an unemployment insurance fraud scheme. He was also ordered to pay more than $900,000 in restitution.
Dotson, along with a co-defendant, defrauded the federal government of nearly $1 million in unemployment benefits meant for people who lost their jobs due to the COVID-19 pandemic.
They used stolen Social Security numbers and other forms of identification to file hundreds of false claims across multiple states, including Michigan, Pennsylvania, and Maryland.
The stolen funds were deposited onto prepaid debit cards, which Dotson and his accomplices used to make cash withdrawals and purchases, including luxury goods, drugs, a vehicle, and firearms.
The scheme not only siphoned much-needed relief funds but also diverted resources from individuals who were truly in need during the pandemic.
Acting U.S. Attorney Julie A. Beck emphasized the commitment to holding those responsible for exploiting the crisis to enrich themselves at taxpayers’ expense.