United States Attorney Andrew E. Lelling announced last week that the District of Massachusetts has been allocated funding to hire an Assistant U.S. Attorney (AUSA) to focus on prosecuting cases involving fraudulent schemes to unlawfully obtain unemployment insurance (UI) benefits and related offenses through the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020.
The CARES Act allocated $270 billion for supplemental federal UI benefits. Additionally, President Donald J. Trump directed that $44 billion in federal Disaster Relief Funds be used to provide supplemental UI benefits to eligible claimants. The substantial increase in funding for UI benefits spurred a dramatic spike in UI fraud across the country, resulting in the theft of federal funds intended to help those struggling with unemployment during the current pandemic and economic crisis.
As part of its ongoing effort to investigate and prosecute fraud stemming from the Coronavirus pandemic, the District of Massachusetts will hire an AUSA for a one-year term, with the possibility of a one-year extension.
“Unfortunately, there are those who take advantage of national crises to enrich themselves at the expense of American taxpayers,” said U.S. Attorney Lelling. “From the onset of the pandemic, my office has aggressively investigated and prosecuted scams and fraud related to this national crisis, including efforts to steal funds intended for the millions of Americans who suddenly find themselves out of work and without an income. I look forward to doubling down on our prosecutions of unemployment insurance fraud with the welcomed addition of a prosecutor focused solely on these cases.”