Texas Man Sentenced for $2 Million Unemployment Insurance Fraud (WFAA)

Texas Man Sentenced for $2 Million Unemployment Insurance Fraud

Thursday, June 13th, 2024 Fraud Insurance Industry Legislation & Regulation Litigation

Frank Sherman, a 60-year-old resident of Garland, Texas, has been sentenced to two years in prison for his role in a $2 million unemployment insurance fraud scheme. The United States Department of Justice (DOJ) announced the sentencing on Thursday. Sherman, who pleaded guilty to theft of government funds in October 2023, was also ordered to pay nearly $2.3 million in restitution.

Sherman’s fraudulent activities occurred between July 2020 and September 2021, during which he collaborated with unknown co-conspirators he met on social media. According to the DOJ, Sherman facilitated the distribution of unemployment insurance funds to individuals in Canada by shipping at least 200 preloaded debit cards issued by the Nevada Department of Employment, Training, & Rehabilitation.

Over 14 months, Sherman loaded these cards with more than $2 million in unemployment funds and sent most of them to Canada. He also admitted to using one of the debit cards for personal gain. Additionally, Sherman fraudulently obtained $3,000 from the California Employment Development Department despite having never worked in the state.

Sherman’s indictment occurred in November 2022, and his sentence underscores the ongoing efforts by federal authorities to crack down on unemployment insurance fraud, especially schemes exploiting pandemic relief programs.


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External References & Further Reading
https://www.wfaa.com/article/news/local/garland-man-sentenced-prison-unemployment-insurance-fraud/287-5243a321-c29c-4867-ba79-028cc5e9d147

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