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Unemployment Fraud: $400K Scheme Nets 30-Month Prison Term
Conspiracy to obtain over $400,000 in benefits leads to 30 months in prison.
NEWARK, NJ – Christopher Valerio, a 33-year-old resident of Perth Amboy, New Jersey, was sentenced to 30 months in prison today for his role in a scheme to illegally obtain COVID-19 unemployment benefits, as announced by U.S. Attorney Philip R. Sellinger.
Valerio previously entered a guilty plea to conspiracy to commit wire fraud before U.S. District Judge Robert Kirsch, who also ordered two years of supervised release and restitution of $444,728. The sentencing took place in Newark federal court.
The fraudulent activity, conducted from July 2020 through February 2021, involved Valerio and his accomplices, including Yanira Abreu of Keasby, New Jersey, and Jose Tavares of New York. They used stolen personal information to create fictitious online profiles and submit fraudulent unemployment insurance applications to the New York Department of Labor (NYDOL). The trio successfully secured $444,738 through this scheme, which they then accessed using debit cards for personal use.
Abreu has also pleaded guilty and is scheduled for sentencing on May 9, 2024. Meanwhile, the case against Tavares remains pending, with charges currently filed by indictment.
The investigation that led to Valerio's sentencing was a collaborative effort involving Homeland Security Investigations Newark, the U.S. Department of Labor Office of Inspector General, and the U.S. Postal Inspection Service. These agencies are part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, a part of a national network set up by the U.S. Department of Justice to combat pandemic-related fraud.
This strike force integrates resources from various law enforcement agencies to identify and prosecute individuals involved in large-scale, multi-state fraud, especially those linked to criminal organizations or transnational operations.
For those wishing to report COVID-19-related fraud, the Department of Justice encourages contacting the National Center for Disaster Fraud Hotline at 866-720-5721 or filling out the NCDF Web Complaint Form.
Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark is representing the government in this case. It is important to note that the charges against Jose Tavares are accusations, and he is presumed innocent unless and until proven guilty.
