Chattanooga Judge Sends Alabama Woman to Jail for COVID Unemployment Fraud
In a recent legal development, Randa Allison, a 29-year-old resident of Jackson County, Alabama, has been sentenced to 14 months in prison by a Chattanooga judge. This sentence is a consequence of her involvement in a COVID unemployment insurance fraud scheme, as announced by the U.S. Department of Justice (DOJ) on Wednesday.
Allison was convicted of mail fraud and pleaded guilty to conspiracy charges related to wire fraud and mail fraud, covering a scheme that defrauded COVID-19 unemployment programs across Tennessee, Alabama, Pennsylvania, and California during the period from June 2020 to June 2021.
The fraudulent activities orchestrated by Allison involved collaborating with others to acquire personal information from individuals. Subsequently, she used this information to submit mass online applications for unemployment insurance relief funds.
False claims were made, asserting that the individuals reflected on the applications had worked in the respective states. The DOJ revealed that the states, falling victim to the fraud, mailed debit cards to addresses within the Eastern District of Tennessee.
Allison then received a portion of the fraudulent claim payouts, personally responsible for the distribution of over $120,000 in unemployment protection insurance funds. The broader scheme, involving multiple individuals, led to the wrongful distribution of more than $550,000 in unemployment protection insurance funds.
The legal consequences for Allison include a 14-month prison term and five years of supervised release. Additionally, the judge has ordered her to pay restitution totaling $120,025 to the Pennsylvania and Alabama Departments of Labor. Further financial penalties include forfeiting $100,225 to the United States as part of a money judgment.
These penalties underscore the severity of the charges and the commitment to holding individuals accountable for exploiting systems designed to provide crucial financial support during times of crisis.
The sentencing of Randa Allison in the COVID unemployment insurance fraud scheme serves as a significant legal outcome in the ongoing battle against fraudulent activities targeting pandemic relief efforts.
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The judge’s decision reflects the commitment to holding individuals accountable for exploiting systems designed to provide crucial financial support during times of crisis. As cases like these continue to emerge, it becomes increasingly vital to safeguard relief programs from exploitation, ensuring that assistance reaches those genuinely in need.