Baltimore City Wire

Jonathan Henry, a federal inmate aged 32, was sentenced to 97 months in prison followed by three years of supervised release. He was also ordered to pay $1,894,971 in restitution for conspiracy to commit wire fraud and mail fraud and aggravated identity theft. These charges relate to the submission of fraudulent CARES Act unemployment insurance benefits claims.

Henry's co-defendant, Kenneth Dodd, received a sentence of 42 months imprisonment for his role in the offense. This sentence will run consecutively to previous sentences Dodd is serving from prior federal felony convictions. A third defendant, Jason Haddox, is scheduled for sentencing on January 24, 2025.

The sentences were announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Troy W. Springer of the National Capital Region U.S. Department of Labor - Office of Inspector General (DOL-OIG); and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (USPIS) - Washington Division.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 to provide emergency financial assistance due to the economic impact of the COVID-19 pandemic. The Act included expanded eligibility for Unemployment Insurance benefits through programs like Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and Lost Wages Assistance Program (LWAP).

According to plea agreements, from March 22, 2020 through at least June 2021, Henry, Dodd, and Haddox were inmates at the Federal Correctional Institution Fort Dix (FCI Fort Dix). They submitted fraudulent online applications for UI benefits using personal identifying information (PII) from identity theft victims. The Maryland Department of Labor issued prepaid debit cards based on these applications and mailed them to addresses accessible by the conspirators. These cards were then used for ATM withdrawals and retail purchases.

Henry admitted using PII from identity theft victims to submit approximately 191 fraudulent claims across Maryland as well as Washington D.C., Virginia, and North Carolina. Out of these claims, 152 were paid out with an actual loss amounting to approximately $1,894,971.

The District of Maryland Strike Force is one among five established by the U.S. Department of Justice aimed at investigating and prosecuting COVID-19 related frauds involving large-scale pandemic relief fraud schemes perpetrated by criminal organizations.

For further details on the Department’s response to the pandemic or if you have information about attempted COVID-19 frauds you can report it via https://www.justice.gov/coronavirus or call NCDF Hotline at 866-720-5721.

United States Attorney Barron commended both DOL-OIG and USPIS for their efforts in this investigation and thanked Assistant U.S. Attorney Kelly O. Hayes who prosecuted this case.

More information about Maryland U.S Attorney’s Office can be found at www.justice.gov/usao/md.

# # #