3 Charged In 2 Unemployment Fraud Cases Totaling Over $500K

DETROIT — Three people have been indicted for their roles in two separate unemployment fraud schemes, U.S. attorneys announced this week.

Mitchacole Johnson, 44, of Shelby Township, and Larry Witherspoon, 45, of Harper Woods, were arrested Thursday and charged in one case with mail fraud, wire fraud and conspiracy to commit mail and wire fraud, U.S. Attorney Matthew Schneider said.

In a separate case, 28-year-old Jordan Armstrong, of Detroit, was charged with wire fraud, fraud in connection with access devices and aggravated identity theft, prosecutors said. Armstrong was arrested on Jan. 20, according to prosecutors.

“These funds should have gone to Michiganders who need help getting through this difficult time," Schneider said. "As I have said before, those who steal unemployment benefits steal from all of us. These arrests reflect our ongoing commitment to investigating these schemes and bringing the people who commit these crimes to justice."

In Johnson and Witherspoon's case, federal authorities said the duo filed at least 66 claims for fraudulent Michigan unemployment insurance benefits, causing a loss to the state of over $150,000. The duo are also accused of filing dozens of complaints in other states — including California, Arizona, and Nevada — causing additional losses in excess of $300,000, authorities said.

Prosecutors said Johnson filed some claims in her own name, while Witherspoon filed several claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon.”

Johnson and Witherspoon also are accused of filing claims using other people’s Social Security numbers; prosecutors said that the pair had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.

“Unemployment benefits are intended to support individuals and families who are in crisis due to the economic impact of the COVID-19 pandemic,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “Fraud against the unemployment benefit insurance program has become increasingly prevalent during the pandemic. The FBI will continue to work with our state, local, and federal law enforcement partners to identify and aggressively investigate anyone who steals identities in an effort to divert these vital funds.”

Prosecutors said Armstrong filed fraudulent applications for unemployment insurance benefits on behalf of people in Michigan, California and Pennsylvania. Authorities said Armstrong did so using people’s Social Security numbers, and that he did so without their permission.

Armstrong requested the benefits to be paid out via debit card, officials said, and then caused the cards to be mailed to various addresses in Michigan that he had access to. Armstrong then used the cards to repeatedly withdrawal the funds via ATM, and by October 2020 he was making daily, high-dollar cash withdrawals using at least 12 separate debit cards, officials said.

Prosecutors believe Armstrong is behind as many as 29 fraudulent Michigan Unemployment Insurance claims, and at least 19 claims in other states. The total value of the benefits stolen by Armstrong is alleged to be more than $180,000, officials said.