A former employee of the Michigan Unemployment Insurance Agency (MUIA) and her former partner were sentenced in Detroit for their involvement in a scheme to steal unemployment insurance benefits. The sentencing was announced by United States Attorney Jerome F. Gorgon Jr.
Timeka Johnson, 44, received a 42-month prison sentence after pleading guilty to aggravated identity theft and conspiracy to commit wire fraud. Her co-conspirator, Ray Anthony Eddington, 45, was sentenced to 36 months following his guilty plea for conspiracy to commit wire fraud.
The sentences were handed down by United States District Court Chief Judge Stephen J. Murphy, III.
Johnson’s role at MUIA involved reviewing and processing unemployment claims. According to court records, she used her position to access third-party claim information without authorization, dismiss fraud prevention alerts, upload false documents supporting illegitimate claims, and certify fraudulent claims as eligible for payment. She also directed another agency employee to alter claim information in exchange for financial compensation and facilitated the issuance of unauthorized debit cards and improper payments linked to these claims. Johnson then conducted unauthorized cash withdrawals using funds issued under third-party names.
Eddington withdrew many of the fraudulent benefits from local ATMs. The conspiracy resulted in more than $250,000 in fraudulent payments from the State of Michigan’s unemployment assistance program. Both defendants were ordered to pay $250,001 in restitution.
U.S. Attorney Gorgon stated: “It is one thing to steal if you are hungry and can’t find a job. But it is despicable to abuse your position of trust so that you can steal from a program needed to help the unemployed.”
Joseph V. Cuffari, Inspector General for the Department of Homeland Security—Office of Inspector General said: “Government employees are entrusted to protect the integrity of these crucial aid programs. Those who betray that trust will be held accountable. The Office of Inspector General remains committed to aggressively investigating anyone who abuse their position, betray the public trust, and conspire with others to defraud government programs intended for a vulnerable population. We appreciate the continued partnership between DHS OIG and our law enforcement partners in bringing these individuals to justice”.
Megan Howell, Special Agent-in-Charge with the U.S. Department of Labor-Office of Inspector General added: “Today’s sentencings of Ray Eddington and Timeka Johnson demonstrate the Office of Inspector General’s commitment to investigate bad actors who defraud the unemployment insurance program for financial gain, particularly those like Timeka Johnson who abused her position of trust as a Unemployment Insurance Examiner. We will continue to work with our law enforcement partners to bring to justice those who seek to exploit these critical U.S. Department of Labor programs, especially when it involves serious insider threats.”
Jennifer Runyan from FBI Detroit Field Office commented: “As a State of Michigan Unemployment Insurance Agency Investigator, Timeka Johnson had insider access and the authority to help people—instead, she abused that trust by teaming up with Ray Eddington and others to commit identity theft and fraud. Their actions harmed the very communities that rely on these unemployment resources the most,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This sentencing should serve as a reminder to anyone who defrauds Michigan’s assistance programs: FBI Detroit will never stop working to hold those accountable who abuse them. I want to recognize my team from the FBI Detroit Area Corruption Task Force, alongside our partners at the Department of Homeland Security Office of Inspector General, the Department of Labor Office of Inspector General, the State of Michigan Unemployment Insurance Agency, and the U.S. Attorney’s Office for the Eastern District of Michigan for their thorough work and successful prosecution in securing this sentence.”
Jason Palmer, Director at UIA stated: “Timeka Johnson’s actions prove once again that crime doesn’t pay. UIA aggressively goes after anyone who thinks they can get away with stealing taxpayer money,” said Jason Palmer, UIA Director. “I’m proud of the success our dedicated professional agents have had in helping bring bad actors to justice especially those who worked for the agency.”
Assistant United States Attorney Andrew J. Yahkind is prosecuting this case which was investigated jointly by federal agencies including DHS-OIG; DOL-OIG; FBI; and MUIA.