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Maryland Man Jailed in COVID-19 Fraud

A Collaborative Effort Against Economic Crime

In a remarkable display of investigative collaboration, the HSI Baltimore field office, alongside several other law enforcement agencies, successfully brought to justice a Maryland man for his role in a substantial COVID-19 fraud scheme. Dementrous Von Smith, a 36-year-old from Waldorf, Maryland, faced a hefty sentence of 53 months in federal prison following his involvement in an elaborate conspiracy that exploited the CARES Act unemployment insurance program, resulting in losses of over $1.5 million.   The CARES Act: A Beacon of Hope Exploited The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, was a federal initiative designed to provide critical financial support to Americans impacted by the COVID-19 pandemic's economic fallout. Unfortunately, this well-intentioned program became a target for fraudsters like Smith, who saw an opportunity for personal gain amidst a global crisis.  

The Scheme: A Web of Deceit

From March 2020 to October 2021, Smith and his associates engaged in a sophisticated fraud operation. They impersonated victims to file fraudulent unemployment insurance claims across Maryland, California, and Arizona. Utilizing electronic communication, they traded the personal information of unsuspecting victims, crafting false email addresses and phone numbers to bolster their fraudulent applications.   Cashing In: The Unlawful Gain The group skillfully converted the fraudulent benefits into cash, using debit cards for withdrawals and various financial transactions. One notable incident involved Smith withdrawing $4,000 using a victim's UI profile. Further investigation revealed numerous instances where Smith personally manipulated victim profiles for monetary gain.   The Raid: A Turning Point On July 7, 2022, a critical operation led to the search and subsequent seizure of evidence from Smith's residence and vehicle. This operation not only unearthed a significant amount of cash but also revealed an alarming cache of firearms and ammunition, highlighting the severity of Smith's criminal endeavors.   A Co-Conspirator's Fate Michael Akame Ngwese Ay Makoge, a co-defendant in the scheme, also faces severe legal consequences. Pleading guilty, Makoge is set to receive his sentence in early 2024, which could amount to a substantial period in federal prison.  

The Bigger Picture: A United Front Against Pandemic Fraud

This case is part of a broader effort by the District of Maryland Strike Force to combat pandemic-related fraud. These strike forces, established across the United States, play a pivotal role in addressing large-scale, multi-state frauds, particularly those involving pandemic relief funds. Their success in this case underscores the importance and effectiveness of interagency cooperation in tackling complex financial crimes.   HSI's Role in Upholding Justice HSI, the principal investigative arm of the U.S. Department of Homeland Security, was instrumental in this operation. With a vast network of agents and international presence, HSI continues to be a key player in combating transnational crime and threats, exemplifying the power of collaboration in upholding justice.   Sources: THX News & US Immigration and Customs Enforcement. Read the full article