LA Man Admits To Stealing $5.5M In COVID Relief; Drug Trafficking

LOS ANGELES, CA — A 36-year-old man of the Southland pleaded guilty Monday to charges that included federal drug trafficking and admitting that he stole $5.5 million in COVID-related jobless benefits by using the identities of California prison inmates and others.

Edward Kimwas arrested in March of last year after authorities scoured his luxury downtown Los Angeles apartment and found copious amounts of methamphetamines and a notebook marked “stimulus scheme,” which contained approximately 405 different identities, according to a statement from the U.S. Department of Justice.

On Monday, Kim pleaded guilty to to one count of conspiracy to distribute methamphetamine and fentanyl, one count of distribution of methamphetamine, one count of conspiracy to defraud the government with respect to claims, two counts of mail fraud and two counts of possession of 15 or more unauthorized access devices, the DOJ reported.

Kim and his co-conspirators reportedly submitted 459 fraudulent unemployment insurance claims to the California Employment Development Department, using the personal information of California's inmates, which he purchased on "the dark web," the department said.

In all, Kim garnered $5,458,050 in fraudulently EDD payments.

In addition, Kim also stole identities to file false tax returns, officials said. Kim created at least 297 fraudulent tax returns to be filed with the IRS, which attempted to obtain $356,400 in fraudulent EIP from the federal government.

Authorities said Kim has committed several federal drug trafficking crimes, including when he sent nearly one pound of methamphetamine and 300 fake oxycodone pills containing fentanyl from a FedEx store in West Covina to a UPS Store in Hawaii.

In July 2020, Kim reportedly rented a warehouse in La habra, where he stored equipment to make narcotics, including pill presses, dies, pill bottles, scales and various binding agents. Within the warehouse, a cannabis grow was also operated.

A search of that same warehouse in April 2021 turned up more EDD paperwork, ATM withdrawal receipts and nearly 296 grams of methamphetamine. A “ghost gun” was also found at the La Habra warehouse.

Kim will face a mandatory minimum sentence of 10 years in federal prion and a statutory maximum sentence of life imprisonment, federal officials said.