Nevada gets federal prosecutor to investigate unemployment insurance fraud

Nevada will have a specialized federal prosecutor whose sole job will be to pursue CARES Act unemployment insurance fraud, the U.S. attorney for the district of Nevada announced today.

The one year of pay for the position is being covered by the federal government, officials said.

“If fraudsters don’t understand it by now, they should quickly realize that our office is prioritizing the investigation and prosecution of those trying to exploit the unemployment system and harm Nevadans in need,” U.S. Attorney Trutanich said in a news release.

Since the COVID-19 pandemic crippled the economy, the federal government has allocated more than $300 billion to supplement unemployment insurance benefits.

Nevada’s unemployment rate ballooned to about 30% in April, a dramatic increase from the 3.6% rate reported in February, the month before the first COVID-19 infection was detected here.

Currently, Nevada’s 10.1% unemployment rate is tied with Hawaii for second worst in the U.S., according to the Bureau of Labor Statistics. New Jersey tops the list at 10.2%.

“The substantial increase in funding for (unemployment insurance) benefits spurred a dramatic spike in fraud across the country,” officials said in the release. “Resulting in the theft of federal funds intended to help those struggling with unemployment during the current pandemic and economic crisis.”

Alan Ray, a previously deported undocumented immigrant from England, was charged this week with one count each of possession of counterfeit and unauthorized access devices, and aggravated identify theft, officials said.

The case unfolded in late October when a Las Vegas resort reported finding ledgers with the personal information of 80 victims, 24 debit cards from the Nevada Department of Employment, Training and Rehabilitation and its California counterpart, and mailbox keys.

It wasn’t clear how Ray, 33, came across the cards, which weren’t registered under his name, or how authorities linked him to them, but officials said he tried to ship the package to Texas, and later tried getting the package back from the casino.

Officials said Ray, who was deported in 2011, had been using assumed identities as a U.S. citizen. He is accused of trying to defraud the government out of more than $1 million.

Previously, in October, the Nevada U.S. attorney’s office charged 10 defendants with unemployment insurance fraud in six other cases.

People who suspect their identity is being used to apply for unemployment benefits can contact the FBI at ic3.gov and to DETR’s Fraud Report.