A former employee of the Michigan Unemployment Insurance Agency (MUIA) and her former partner were sentenced in Detroit for their involvement in an unemployment insurance fraud scheme. The announcement was made by United States Attorney Jerome F. Gorgon Jr.
Timeka Johnson, 44, received a sentence of 42 months in prison after pleading guilty to aggravated identity theft and conspiracy to commit wire fraud. Her co-conspirator, Ray Anthony Eddington, 45, was sentenced to 36 months for conspiracy to commit wire fraud.
The sentencing was handed down by United States District Court Chief Judge Stephen J. Murphy, III. Also participating in the announcement were Joseph V. Cuffari, Inspector General of the Department of Homeland Security—Office of Inspector General; Megan Howell, Special Agent-in-Charge at the U.S. Department of Labor-Office of Inspector General; Jennifer Runyan, Special Agent in Charge at the FBI Detroit Field Office; and Jason Palmer, Director of the State of Michigan Unemployment Insurance Agency.
Johnson’s role at MUIA involved reviewing and processing unemployment claims. According to court records, she misused her access by processing fraudulent claims using third-party identities without authorization. She also dismissed fraud prevention alerts and uploaded false documentation to support these illegitimate claims. Johnson certified that these fraudulent claims were eligible for benefits and directed another agency employee to alter claim information for her benefit in exchange for payment.
As part of the scheme, unauthorized debit cards were issued and improper payments made under false claims. Johnson also withdrew cash from accounts set up under third-party names.
Court documents state that many fraudulent benefits processed by Johnson were withdrawn from local ATMs by Eddington.
The total amount lost due to this conspiracy exceeded $250,000 in fraudulent unemployment assistance payments issued by the State of Michigan. Both defendants have been ordered to pay $250,001 in restitution.
“It is one thing to steal if you are hungry and can’t find a job. But it is despicable to abuse your position of trust so that you can steal from a program needed to help the unemployed,” stated U.S. Attorney Gorgon.
DHS Inspector General Joseph V. Cuffari said: “Government employees are entrusted to protect the integrity of these crucial aid programs. Those who betray that trust will be held accountable. The Office of Inspector General remains committed to aggressively investigating anyone who abuse their position, betray the public trust, and conspire with others to defraud government programs intended for a vulnerable population. We appreciate the continued partnership between DHS OIG and our law enforcement partners in bringing these individuals to justice”.
Megan Howell added: “Today’s sentencings of Ray Eddington and Timeka Johnson demonstrate the Office of Inspector General’s commitment to investigate bad actors who defraud the unemployment insurance program for financial gain, particularly those like Timeka Johnson who abused her position of trust as a Unemployment Insurance Examiner. We will continue to work with our law enforcement partners to bring to justice those who seek to exploit these critical U.S. Department of Labor programs, especially when it involves serious insider threats.”
Jennifer Runyan commented: “As a State of Michigan Unemployment Insurance Agency Investigator, Timeka Johnson had insider access and the authority to help people—instead, she abused that trust by teaming up with Ray Eddington and others to commit identity theft and fraud. Their actions harmed the very communities that rely on these unemployment resources the most,” adding that “This sentencing should serve as a reminder to anyone who defrauds Michigan’s assistance programs: FBI Detroit will never stop working to hold those accountable who abuse them. I want to recognize my team from the FBI Detroit Area Corruption Task Force, alongside our partners at the Department of Homeland Security Office of Inspector General, the Department of Labor Office of Inspector General, the State of Michigan Unemployment Insurance Agency, and the U.S. Attorney’s Office for the Eastern District of Michigan for their thorough work and successful prosecution in securing this sentence.”
Jason Palmer stated: “Timeka Johnson’s actions prove once again that crime doesn’t pay. UIA aggressively goes after anyone who thinks they can get away with stealing taxpayer money,” adding pride in his agency’s efforts against internal wrongdoing.
Assistant United States Attorney Andrew J. Yahkind is prosecuting this case with investigative support from multiple agencies including DHS—Office of Inspector General; Department of Labor—Office of Inspector General; FBI; and MUIA.
