From the U.S. Attorney:

TWO MEN CHARGED WITH WIRE AND MAIL FRAUD INVOLVING OVER ONE MILLION DOLLARS IN UNEMPLOYMENT COMPENSATION, AGGRAVATED IDENTITY THEFT AND MONEY LAUNDERING

ROCKFORD — A superseding indictment returned today by a federal grand jury in Rockford charged two individuals with wire fraud, mail fraud and aggravated identity theft, and one of them with money laundering. ROBERT CARTER, 27, of Hampton, Ga., was charged with wire and mail fraud involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), aggravated identity theft, and money laundering. SIRREGINALD MCGUIRE, 26, of DeKalb, Ill., was charged with wire and mail fraud involving unemployment compensation claims and the CARES Act and aggravated identity theft.

The CARES Act expanded states’ ability to provide unemployment insurance for many workers impacted by the COVID-19 pandemic, including workers who were not ordinarily eligible for unemployment benefits.

One such program, the Federal Pandemic Unemployment Compensation Program (“FPUC Program”), allowed eligible individuals who were collecting certain unemployment benefits to receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020.

The Pandemic Emergency Unemployment Compensation (“PEUC”) Program allowed those who had exhausted benefits under regular unemployment compensation or other programs to receive up to 13 weeks of additional federally funded benefits.

The Pandemic Unemployment Assistance (“PUA”) Program allowed individuals who do not qualify for regular unemployment compensation and were unable to continue working as a result of COVID-19, such as self-employed workers and independent contractors, to file for unemployment benefits. PUA provided up to 39 weeks of benefits to qualifying individuals who were otherwise able to work and available for work within the meaning of applicable state law, except that they were unemployed, partially unemployed, or unable or unavailable to work due to COVID-19 related reasons, as defined in the CARES Act.

Unemployment benefit payments under PUA were retroactive for weeks of unemployment, partial employment, or inability to work due to COVID-19 reasons starting on or after Jan. 27, 2020.

As alleged in the indictment, from June 2020 through March 2021, Carter, McGuire and others schemed to submit fraudulent PUA unemployment insurance claims to

• the California Employment Development Department,
• the Maryland Division of Unemployment Insurance, and
• the Virginia Employment Commission,

resulting in more than $1,000,000 in unemployment benefits for claimants who Carter and McGuire knew were not entitled to benefits from the California Employment Development Department, the Maryland Division of Unemployment Insurance, and the Virginia Employment Commission.

Further, it is alleged that Carter, McGuire, and others involved in the scheme electronically filed unemployment insurance claims from Homewood and DeKalb, Ill with

• the California Employment Development Department,
• Maryland Division of Unemployment Insurance, and
• the Virginia Employment Commission in their own names, and unlawfully used the identities of others.

Carter and McGuire opted to have the unemployment benefits paid via debit cards mailed to residences connected to Carter, McGuire and others involved in the scheme, then withdrew funds from the debit cards at financial institutions located in Illinois.

Each count of wire and mail fraud carries a maximum potential penalty of up to 20 years in prison, a fine of up to $250,000, or twice the gross gain or gross loss resulting from the offense, whichever is greater; aggravated identity theft carries a mandatory sentence of 2 years’ imprisonment, as well as a maximum fine of $250,000; and money laundering carries a maximum sentence of 10 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from the offense, whichever is greater.

If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Carter and McGuire will be arraigned on a date yet to be determined in U.S. District Court in Rockford, before U.S. Magistrate Lisa A. Jensen.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The indictment was announced by John R. Lausch, Jr., United States Attorne for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.

The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.