Baltimore City Wire

A Maryland man has been indicted on federal charges for allegedly orchestrating a scheme to fraudulently obtain over $1 million in unemployment benefits. The indictment against Mervyn Fombe Abiko, also known as "Magic," was unsealed following his arrest. Abiko, aged 35, faces charges of conspiracy, wire fraud, and aggravated identity theft.

Abiko made his initial court appearance on October 2, 2024, before U.S. Magistrate Judge Erin Aslan in Baltimore's U.S. District Court.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Damon E. Wood from the U.S. Postal Inspection Service-Washington Division; Michael S. McCarthy of Homeland Security Investigations-Baltimore; Acting Special Agent Karl Mastantuno from the Office of Inspector General at the U.S. Department of the Treasury; Troy W. Springer from the U.S. Department of Labor - Office of Inspector General; and John T. Perez from the Federal Reserve Board Office of Inspector General.

According to the indictment details, unemployment insurance (UI) is a joint state and federal program offering financial assistance to eligible unemployed workers. In response to COVID-19, several federal programs expanded UI eligibility and benefits.

In Maryland, applicants for UI benefits had to submit online applications with personal information like name and Social Security Number (SSN). They also needed to self-certify their unemployment status due to COVID-19-related reasons.

From March 2020 through January 2021, Abiko and others allegedly conspired to impersonate victims and submit fraudulent UI claims using stolen personal information (PII). This led to debit cards being issued in victims' names with loaded benefits used in transactions by Abiko and his associates.

If convicted, Abiko could face up to 20 years in prison for conspiracy and wire fraud charges and a mandatory two-year sentence for each count of aggravated identity theft.

It is important to note that an indictment is not a conviction; those charged are presumed innocent until proven guilty in court proceedings.

The case is part of efforts by one of five strike forces established across the United States by the Department of Justice targeting COVID-19-related frauds under initiatives like the CARES Act aimed at providing economic relief during the pandemic.

U.S. Attorney Barron praised agencies involved in this investigation including USPIS, DOL-OIG, HSI among others while acknowledging Assistant U.S Attorney Sean R Delaney who will prosecute this case federally.

For further information regarding pandemic response or reporting potential fraud related cases can be done via DOJ’s National Center For Disaster Fraud Hotline or through their web complaint form online resources provided include https://www.justice.gov/coronavirus