SACRAMENTO - Kenneth Ray Hawkins, 47, formerly an inmate at the Deuel Vocational Institution (DVI), a California state prison in Tracy, pleaded guilty today to conspiring to commit mail fraud and aggravated identity theft in a scheme to defraud California and the United States, including the California Employment Development Department (EDD), by the submission of fraudulent unemployment insurance claims, U.S. Attorney Phillip A. Talbert announced.
On May 13, 2021, a federal grand jury returned an indictment, charging Hawkins; Jacqueline Marie Marquez, 35, of Barstow and Las Vegas; Alyssa Marie Jones, 34, of Barstow and Las Vegas; and Ebony Chanel Jones, 21, of Barstow, with conspiracy to commit mail fraud and mail fraud. On July 25, 2022, Hawkins was additionally charged with conspiracy to commit mail fraud and aggravated identity theft.
According to court documents, between June 2020 and January 2021, the four defendants conspired to execute and executed a scheme to defraud by filing fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, Hawkins, an inmate at DVI, collected personally identifiable information, including names and Social Security numbers, of California prison inmates and other individuals and used the identities and an unauthorized cellphone to submit dozens of the fraudulent claims from his jail cell. The claims represented, among other things, that the claimants had recently lost employment from businesses or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because the inmates were incarcerated, not recently employed, and ineligible for unemployment insurance benefits.
In the applications, Hawkins requested that the benefits be mailed to various California and Nevada addresses that were under the control of one or more co-conspirators. EDD approved at least 60 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. Marquez, Alyssa Jones, and Ebony Jones then obtained the EDD debit cards and used them to withdraw the benefits at ATMs throughout California and Nevada for the benefit of the conspirators. The scheme sought over $1 million and resulted in EDD paying out over $890,000.
Alyssa Jones, Ebony Jones and Marquez await sentencing after having also pleaded guilty to their participation in the scheme.
Hawkins is scheduled to be sentenced on Oct. 24, 2022, by U.S. District Judge William B. Shubb. Hawkins faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy and a mandatory, consecutive two-year prison term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
