Detroit Mail Carrier Charged in Unemployment Fraud Scheme

News Summary

Christopher Powell, a mail carrier from Detroit, has been charged with federal mail and wire fraud related to a scheme that exploited state unemployment insurance programs. Investigations revealed he and a friend made fraudulent claims across multiple states, resulting in over $109,000 in unlawfully acquired benefits. Powell’s case highlights ongoing concerns about fraud in unemployment systems during the pandemic.

Detroit – Christopher Powell, a mail carrier from Detroit, has been charged with federal mail fraud and wire fraud in connection with a substantial scheme to defraud various state unemployment insurance programs. Powell’s actions, which reportedly spanned multiple states, have drawn the scrutiny of federal authorities after an investigation initiated in April 2024 revealed alarming patterns surrounding his unemployment claims.

The investigation began when a supervisor at the Jefferson Station Post Office observed that Powell was receiving mail at addresses on his delivery route that he did not actually reside at. This led to a deeper inquiry into Powell’s financial activities and unemployment claims during the COVID-19 pandemic. Initially, Powell claimed that he had filed for and received unemployment benefits from the state of Michigan while he was on approved COVID leave from his position at the United States Postal Service (USPS) in 2020. Powell also stated that he had not received unemployment benefits from any other state.

However, further investigations unveiled that a friend of Powell had applied for unemployment benefits in California using Powell’s personal identifying information without his consent. Law enforcement uncovered several pieces of mail addressed to Powell at vacant homes along his delivery route, indicating that he may have been engaged in fraudulent activities.

Significantly, investigators found a Bank of America California EDD Debit Card in Powell’s name. This card’s transaction history revealed over $25,000 in debits, and Powell allegedly admitted to using the card associated with the fraudulent California unemployment claim. He reportedly made around ten ATM withdrawals, transferring money into his personal Cash App account. Powell expected to collect around $10,000 from the California claim, while his friend was set to receive an additional $8,500 to $9,000.

Over the course of their investigation, authorities registered around eight separate unemployment insurance claims made with Powell’s social security number across eight states, including Arizona, California, Maryland, Michigan, Montana, Nevada, Oklahoma, and Pennsylvania, between July 8 and September 21 of 2020. The total amount of unemployment benefits Powell allegedly received from these fraudulent claims exceeds $109,000.

In examining Powell’s financial transactions, investigators observed that withdrawals from the Bank of America account occurred shortly after the unemployment benefits were deposited between August 27, 2020, and September 6, 2021. Bank records indicated that Powell disputed nearly all the withdrawals and purchases made from the account in question, resulting in “dispute adjustment credits” being issued back to him.

Additionally, investigators uncovered that Powell’s home address was associated with 26 different unemployment claims across various states, seven of which were confirmed successful in states like Michigan and Arizona. Furthermore, a similar email address traced back to Powell linked to 42 separate unemployment claims in 16 states, yielding about $210,000 in converted benefits, with nine of these claims successful.

From July 11 to August 17, 2023, Bank of America applied dispute adjustment credits for nearly all the contested withdrawals from the account related to Powell’s claims. Security footage authenticated Powell’s involvement in the ATM transactions, with no evidence of anyone else utilizing the Bank of America account for withdrawals. His admissions and the extensive evidence solidified his identification as the person captured in the ATM footage.

Authorities indicated that Powell’s fraudulent scheme potentially enabled him to double the funds he acquired unjustly. In a parallel case, another Detroit individual, Kenny Lee Howard, received a 94-month prison sentence for his participation in a multi-million-dollar unemployment insurance fraud scheme that utilized similar tactics. The case against Powell highlights ongoing concerns surrounding fraud in unemployment insurance systems, particularly during the unprecedented challenges posed by the pandemic.

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Additional Resources

• CBS News: Man Accused of Fraud in Unemployment Insurance Benefits
• Detroit Free Press: Michigan’s Unemployment Insurance Agency Names New Director
• Detroit News: Southfield Man Sentenced in Pandemic Fraud Scheme
• Wikipedia: Fraud
• Click On Detroit: Detroit Man Sentenced to 51 Months for Unemployment Fraud
• Google Search: Unemployment Fraud