Four Arrested, More Than $1.2 Million Seized Tied to CARES Act Unemployment Fraud in RI
Wednesday, October 14, 2020
Four individuals in Florida have been arrested and more than $1.2 million seized in a joint federal and state investigation into a "significant" number of fraudulent unemployment insurance claims submitted to the Rhode Island Department of Labor and Training (RIDLT), and elsewhere, for benefits funded in part by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act was passed by Congress to assist, among others, individuals whose employment has been impacted by the pandemic.
On Tuesday, four individuals were arrested in the Southern District of Florida by Rhode Island-based FBI and IRS agents.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAt the time of the arrests, court-authorized searches resulted in the seizure of more than $1.2 million dollars in cash, several hundred debit cards in the names of individuals whose identities were allegedly stolen, a large collection of high-end jewelry, and six firearms.
About Scheme
According to court documents, it is alleged that Allen Bien-Aime, 29, of Lehigh Acres, James Legerme, 29, of Sunrise, Junior Mertile, 30, of Pembroke Pines, Tony Mertile, 28, of Miramar, and Irvin Vilneus, 28, of North Lauderdale, were involved in complex schemes to use stolen personal identifying information belonging to Rhode Islanders, and others, to apply online for unemployment benefits, and to have those benefits direct deposited into one of many bank accounts opened expressly for receiving fraudulently obtained unemployment insurance benefit payments, as well as fraudulently obtained federal and state tax refunds.
A fifth defendant, Allen Bien-Aime, 29, of Lehigh Acres, has yet to be apprehended.
It is alleged that, using stolen personal identifying information, at least three of the individuals filed fraudulent applications with RIDLT or other state unemployment systems to obtain unemployment benefits. All five are alleged to have withdrawn fraudulently obtained funds shortly after the funds were deposited and posted to bank accounts in the names of other individuals.
Officials on Record
“As today's announcement makes clear, there are serious, criminal, consequences to making use of stolen personal identification information, filing fraudulent applications for unemployment insurance, and withdrawing such fraudulently obtained funds for one's own, unlawful, benefit,” said United States Attorney Aaron Weisman.
“The federal government, with its many dedicated components and with the invaluable assistance of our state and local law enforcement partners, is committed to and will spare no effort in ensuring that unemployment insurance funds not be fraudulently misdirected by scammers and away from the hardworking Rhode Islanders entitled to and deserving of unemployment benefits," he added.
“When people collect benefits they aren’t entitled to, as is alleged here, they reduce the amount of benefits that are available to those who are eligible and who really need them,” said Attorney General Peter Neronha. “These defendants’ alleged conduct sought to defraud the government during a crucial time as it provided assistance to struggling Rhode Islanders. That’s why this work is important, and that's why we do it.”
The five defendants are each charged by way of federal criminal complaints with bank fraud, wire fraud, conspiracy to commit bank and wire fraud, access device fraud, money laundering, conspiracy to commit money laundering, aggravated identity theft, theft of public money, conspiracy to commit theft of public money, conspiracy to commit access, conspiracy to commit access device fraud, and conspiracy to commit aggravated identity theft.
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