A Norfolk woman has pleaded guilty in a pandemic-era unemployment fraud scheme that used stolen personal information to generate 51 successful claims across four jurisdictions and left the government with more than $424,000 in unrecovered losses.
Cherrelle Williams admitted to conspiracy to commit mail fraud after prosecutors said she spent roughly a year and a half applying for unemployment benefits using other people’s identities. Her co-defendant, Richard Upchurch, is already serving a 48-month federal prison sentence for his role in the scheme.
The personal information came from an unnamed co-conspirator who worked at an assisted living facility in Norfolk. Court records reviewed by WTKR show that the employee stole coworkers’ names, addresses, birthdates and other identifying details and supplied them to Williams and Upchurch.
The information was then used to obtain unemployment benefits from Virginia, California, Puerto Rico and Rhode Island. Federal prosecutors recovered some of the money, but ultimately calculated the remaining government loss at more than $424,000.
Stolen Employee Information Was Used to Obtain Benefits
The unnamed assisted living worker had access to identifying information belonging to coworkers and passed it to Williams and Upchurch, according to the court-record reporting. Williams then used information belonging to other people to apply for unemployment benefits they were not legitimately claiming.
The operation produced 51 successful fraudulent claims. More than $239,000 was paid through California’s unemployment system and more than $175,000 through Virginia, while Puerto Rico paid more than $10,000 and Rhode Island more than $800.
ATM Footage and Text Messages Helped Trace the Scheme
Investigators used ATM security-camera footage while examining how money from the fraudulent claims was accessed. They also reviewed messages sent by Upchurch that prosecutors used as evidence of the scope of the operation.
WTKR reported that one message from Upchurch said he had “over 70 socials,” an apparent reference to Social Security numbers, while another said he was “getting 9500 a week.”
The financial records, surveillance footage and communications allowed investigators to connect multiple claims and withdrawals to the same alleged operation.
Williams Pleaded Guilty, While Upchurch Is Serving Four Years
Williams has pleaded guilty to conspiracy to commit mail fraud and is awaiting sentencing. Upchurch is already serving a 48-month federal prison sentence for his role in the same scheme. WTKR reports that he has sought compassionate release because of medical issues.
The unnamed co-conspirator who allegedly obtained the coworkers’ personal information has not been publicly identified in the latest reporting.
A Fraudulent Unemployment Claim Can Be a Warning of Wider Identity Theft
Someone whose identity is used to obtain unemployment benefits may first discover the theft through an unexpected benefits notice, tax document or communication from an employer or unemployment agency. The Virginia Employment Commission says anyone who believes a claim was filed using their identity should report it so the agency can suspend the claim and investigate.
Discovering a fraudulent unemployment claim should also be treated as evidence that personal identifying information may have been compromised elsewhere. Names, addresses, birthdates and Social Security numbers can potentially be reused for other accounts or government benefits.
Victims should preserve unemployment notices and other records, report the false claim to the issuing state agency and review their credit reports for unfamiliar accounts or activity. Federal identity-theft guidance also recommends placing a fraud alert when appropriate and reporting identity theft so additional misuse can be documented and addressed.