Detroit Man Sentenced to Over Four Years for $1M Unemployment Fraud Scheme

Tracey Dotson, 49, of Detroit, has been sentenced to 51 months in federal prison for his involvement in a large-scale unemployment fraud scheme that targeted pandemic relief funds. Dotson and his co-defendant illegally obtained personal identification details to file fraudulent unemployment claims in Michigan, Pennsylvania, and Maryland. The scheme resulted in nearly $1 million in fraudulent payments intended for individuals impacted by job losses during the COVID-19 pandemic.

Court documents indicate that Dotson and his accomplice used stolen identities to secure hundreds of Bank of America prepaid debit cards loaded with Pandemic Unemployment Assistance (PUA) funds. They withdrew and spent more than $930,000 on luxury items, including high-end jewelry, designer accessories, and even a vehicle and firearm. Their crimes, which involved wire fraud and identity theft, led to significant financial losses for state and federal unemployment programs.

United States District Judge Matthew F. Leitman sentenced Dotson in April 2024 after he pleaded guilty to wire fraud and conspiracy to commit wire fraud. In addition to his prison term, Dotson was ordered to pay over $900,000 in restitution. The case highlights the ongoing efforts by federal and state agencies to prosecute individuals who exploited emergency pandemic relief programs.