DOJ Secures Sentences in $30 Million COVID-19 Unemployment Fraud Scheme

by Anna D’Agostino and Jiwook Jung

On May 23, 2025, the Department of Justice (“DOJ”) announced that three co-conspirators were sentenced to up to 15 years in prison and ordered to pay restitution after being found guilty of defrauding the Georgia Department of Labor (“GDOL”) of more than $30 million in a COVID-era scheme.

Macovian Doston, Shatara Hubbard, and Torella Wynn fraudulently submitted over 5,000 unemployment insurance (“UI”) claims, taking advantage of UI programs expanded through the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. To execute the scheme, the three individuals and other conspirators created fictitious companies and used personally identifiable information (“PIII”) from thousands of identity theft victims to file claims on the GDOL website.  The group obtained the PII from various sources, including by paying an employee of a healthcare and hospital network and online sources.

The scheme resulted in at least $30 million of fraudulent UI payments that otherwise would have gone to citizens in need during the COVID-19 pandemic.

Background On CARES Act and UI Programs

In Georgia, UI is fully paid for by employers and provides temporary income for workers who are unemployed through no fault of their own. Like many other states, Georgia saw an unprecedented spike in the number of UI claims in March of 2020, soaring from 5,445 to 133,820 claims in just two weeks. GDOL responded by enacting emergency rules, relaxing access restrictions, and expanding duration of UI benefits during the COVID-19 pandemic.

On March 27, 2020, the federal government passed the CARES Act, which established three UI programs: the Pandemic Unemployment Assistance Program, the Pandemic Unemployment Compensation Program, and the Pandemic Emergency Unemployment Compensation Program. These three federal programs combined increased benefits by $2.7 billion in Georgia, reaching 255,000 workers who would not have been covered under the state UI program.

Fraud and Vulnerability in UI and CARES Programs

Unfortunately, any expansion of government benefits means an expansion in potential fraudulent abuse.  Resource constraints coupled with the need for urgent distribution of funds left government pandemic relief programs particularly vulnerable to fraud. The three individuals in the GDOL scheme saw the increased availability of UI as an opportunity to fraudulently acquire millions of dollars in benefits, dispersed in the form of prepaid debit cards.  In addition to diverting funds from those who truly needed UI, the scheme compromised the PII of thousands of unknowing people.

This case in Georgia is not an isolated incident. The CARES Act infused over $2.2 trillion into the U.S. economy. Despite its efforts to accurately allocate funds, the government has suffered $10 billion in attempted fraud, according to IRS Criminal Investigation (“IRS-CI”).  Multiple government agencies, including the DOJ, Department of Labor, the Internal Revenue Service, U.S. Postal Service, and the Department of Homeland Security, continue to cooperate to recover fraudulently dispersed pandemic aid.

Criminal Charges and Prison Sentences

Doston, Hubbard, and Wynn, respectively, were sentenced to 15, six, and one year in prison. All three were ordered to pay restitution in an amount to be determined at a later date.

“These sentences underline our dedication to holding people accountable who exploit federal relief programs for personal gain,” said Special Agent Jonathan Ulrich of the U.S. Postal Service Office of Inspector General. “Our criminal investigators and the legal teams at the Department of Justice will diligently pursue anyone who attempts to commit fraud and exploit programs created to help legitimate people and businesses affected by the global pandemic.”

Combating Pandemic Fraud with False Claims Act Qui Tam Actions

Because of the heightened pleading standard applicable to fraud actions, it is often difficult to bring a case without insider information.  Individual employees who come forward as whistleblowers to expose suspicious employer conduct thus play an essential role in detecting fraud against the government. The False Claims Act (“FCA”) allows whistleblowers to file qui tam complaints under seal, which preserves anonymity while the government investigates the claims.  The FCA also specifically prohibits retaliation by employers, ensuring whistleblowers are not punished for speaking out.

Under the qui tam provision, an employee, industry insider, or other person with knowledge files suit, bringing claims on behalf of the U.S. government. If the case leads to a settlement or trial verdict, the government may award 15% to 30% of the total recovery to the whistleblower in recognition of their contribution.  This amount can be substantial, as FCA offenders are often subject to treble damages.

According to the DOJ, whistleblowers filed a record-breaking 979 qui tam actions in 2024, which helped the government recover $2.9 billion. Since 1986, FCA actions have led to the recovery of $78 billion, ensuring taxpayer dollars serve their intended purposes.

What to Do When You Suspect Fraud

If you have inside information about COVID-19 fraud, don’t be afraid to speak out. By partnering with experienced FCA attorneys, you can protect yourself from retaliatory acts of your employer while helping the government recover stolen taxpayer funds.

The legal team at Miller Shah has extensive experience litigating complex FCA actions and supporting brave whistleblowers in uncovering fraudulent schemes.  We have recovered billions of dollars on behalf of the government and contributed to lasting industry change.  Contact us today to learn how we can support you.