Illinois Tax Preparer Sentenced to 3 Years for $11M COVID Fraud
An Illinois woman has been sentenced to 36 months in prison for defrauding the Pandemic Unemployment Assistance Program of over $11 million.
Illinois Tax Preparer Gets 36 Months for $11M Pandemic Unemployment Fraud
An Illinois woman has been sentenced to 36 months in federal prison after orchestrating a multi-million-dollar COVID-19 assistance fraud scheme, thestkittsnevisobserver.com reports.
Hiam Hmaidan, 54, of Orland Park, Illinois, was also ordered to pay $11,130,490 in restitution and a forfeiture money judgment of $1,965,712, in addition to serving two years of supervised release following her prison term.
Court documents show that Hmaidan ran an unemployment insurance fraud scheme between May 2020 and December 2022, working with co-conspirators to submit nearly 700 fraudulent claims through the Pandemic Unemployment Assistance Program — a relief initiative Congress established under the 2020 CARES Act to support workers and families affected by the pandemic.
Hmaidan exploited her role as a tax preparer by filing many of the fraudulent claims using her clients' names and personal information without their authorisation. The false claims misrepresented claimants' employment status and the pandemic's impact on their livelihoods. Unemployment benefits were loaded onto debit cards, which were then mailed directly to Hmaidan or to addresses accessible to her and her co-conspirators.
Once in possession of the cards, the group withdrew approximately $2.8 million in cash from ATMs near their homes.
"Hiam Hmaidan exploited a pandemic relief program designed to help workers and families in need, causing more than $11 million in fraudulent benefits to be paid," said Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division. "This sentence reflects the seriousness of her crimes and sends a clear message that those who abuse federal benefits programs for personal gain will be held accountable."
Hmaidan was convicted of one count of conspiracy to commit mail fraud and five counts of mail fraud.
The case was investigated by the U.S. Department of Labor Office of Inspector General and IRS-Criminal Investigation. Trial Attorneys Meredith B. Healy, Kashan Pathan, and Christopher Berridge are prosecuting the case on behalf of the Justice Department.
Source: Google News KN — Crime