Maplewood Woman Sentenced In Multi-State Unemployment Scheme

MINNEAPOLIS — A Maplewood woman was sentenced to 1½ years in prison after authorities said she defrauded various government agencies out of $1.25 million in COVID-19 relief money.

Takara Hughes, 36, pleaded guilty in October to one count of wire fraud.

In addition to prison time, Hughes was also ordered to pay back everything she stole, the Star Tribune reported.

From June 2020 through July 2021, Hughes filed fraudulent claims for emergency pandemic-era unemployment benefits in Louisiana, Minnesota, Washington, and California, authorities said.

While living in Minnesota, Hughes falsely claimed that she lived in San Diego and worked as a hairstylist in California, according to investigators. As a result, the state of California paid Hughes at least $46,000 in unemployment benefits, according to prosecutors.

Hughes also "double-dipped" by fraudulently applying for unemployment benefits in Louisiana, Minnesota, and Washington simultaneously, authorities said.

Additionally, Hughes submitted fraudulent applications for federal government programs, including the Economic Injury Disaster Loan and Paycheck Protection Program, according to investigators.

Hughes also charged others a fee to fraudulently obtain pandemic-related funds on their behalf, including at least 40 false fraudulent claims for unemployment benefits and at least 30 fraudulent applications for small business loans, authorities said.

In total, Hughes falsely applied for about $2.4 million in pandemic-related funds and was awarded $1,253,339 as a result, according to prosecutors.