Former state worker, 3 others indicted in $1M COVID aid fraud scheme

Mark Hicks
The Detroit News

A former Michigan unemployment insurance examiner and three others were indicted by a federal grand jury in connection with an alleged scheme to steal more than $1 million in benefits related to the COVID-19 pandemic, authorities announced Thursday.

The four are: Adelita Castillo Juarez, 55, and Francisca Adelita Juarez, 35, both of Kent City; Evelyn De-Maya Vanderbilt, 32, of Grand Rapids and Inkster; and Mya Michelle Giordano, 42, of Norfolk, Virginia.

Between May 2020 and January 2022, the group committed wire fraud by filing fraudulent unemployment claims in Michigan and elsewhere, according to the 33-count indictment .

The claims involved people allegedly ineligible to receive benefits for reasons including not having Michigan income or living outside the state, authorities said.

Juarez, who was a state unemployment insurance examiner at the time, is accused of processing the claims to ensure payment, including by clearing fraud notices.

Her daughter, Francisca Juarez, allegedly received kickbacks in connection with the payment of the fraudulent claims, according to the indictment.

Vanderbilt and Giordano allegedly obtained the personal information of the claimants, helped submit the claims and received some or all of the proceeds, which involved the Pandemic Unemployment Assistance, Pandemic Unemployment Compensation, and Lost Wages Assistance programs, investigators said.

The indictment alleges the group stole at least $1,053,401.

"Corruption is a rot we must eliminate," U.S. Attorney Mark Totten said Thursday. "One of my highest priorities is the investigation and prosecution of criminal conduct by public officials. We will identify and prosecute government employees that steal taxpayer dollars. And pandemic fraud, whether committed by public employees or private citizens, will remain a priority for my office."

In addition to conspiracy and wire fraud, the defendants are charged with theft of public money. The Juarezes and Vanderbilt are charged with disaster fraud.

Adelita Juarez, who was fired this year, is charged with federal program theft, records show.

Vanderbilt and Giordano are charged with several counts of aggravated identity theft. Vanderbilt is separately charged with wire fraud for allegedly defrauding the Paycheck Protection Program and a lender of $41,666, federal officials said Thursday.

A conviction for conspiracy to commit wire fraud, or wire fraud, in connection with a declared major disaster or national emergency could mean a prison term as long as 30 years and a fine of up to $1 million, according to the release. A conviction for aggravated identity theft carries a mandatory prison term of two years.

All the defendants except Giordano made their first court appearances on Thursday, records show.

The attorney listed as representing Francisca Juarez did not immediately respond to a request for comment.

A contact for the lawyer listed for Vanderbilt could not be found.

In an email, James Fisher, Adelita Juarez's attorney, said his client "has been charged with a crime, not convicted."

"She is presumed not guilty and the government has to prove that she is guilty beyond a reasonable doubt," he said. "An indictment is nothing more than an allegation. I hope that she will be treated fairly by the government, the press, and ultimately the jury, should this case proceed to trial."

The U.S. Department of Labor, Office of Inspector General, the Unemployment Insurance Agency-Fraud Investigations Unit, the Treasury Inspector General for Tax Administration and the Department of Homeland Security, Office of Inspector General are investigating the case.

“I’m proud of the continued success our agency’s investigators have demonstrated in protecting the integrity of Michigan’s unemployment benefits system,” said Julia Dale, director of the Michigan Unemployment Insurance Agency. “We have zero tolerance for anyone within our agency or any outside bad actors who try to scam the system designed to help workers who have lost their jobs. Our team won’t rest until those who steal from taxpayers are brought to justice.”

The charges follows others in Michigan tied to pandemic aid theft or fraud.

In July, a former Michigan Unemployment Insurance Agency lead claims examiner received a two-year federal prison sentence for a scheme that investigators said diverted about $1 million from the state.

Last spring, two Metro Detroit residents whom prosecutors dubbed a "pandemic-era Bonnie and Clyde" were sentenced in connection with unemployment insurance benefit fraud.

A Farmington Hills man who touted his luxurious lifestyle online also was sentenced to 75 months in federal prison in connection with another plot, and prosecutors announced a state unemployment insurance examiner inappropriately released payments on 101 claims totaling more than $1.6 million.

A state audit last year found the Unemployment Insurance Agency lost more than $8.5 billion to suspected fraudulent payments amid record claims and persistent attempts at fraud.

In December, the Secret Service reported at a minimum, nearly $100 billion had been stolen from COVID-19 relief programs.

Since 2020, the Secret Service initiated more than 3,850 pandemic-related fraud investigations, seized more than $1.4 billion in fraudulently obtained funds and helped to return $2.3 billion to state unemployment insurance programs.