A man from Harrisburg, Pennsylvania, was sentenced to more than four years in prison for his role in a multi-state, million-dollar unemployment insurance fraud scheme during the COVID-19 pandemic.
Facts
Adrian Fluellen had previously pleaded guilty to wire fraud and conspiracy to commit wire fraud in February 2024. Wire fraud involves communication sent across state lines to promote or commit fraud. Conspiracy to commit wire fraud consists of an agreement between two or more persons to commit wire fraud, with one of them taking an “overt act” towards making that happen.
According to court records, between April and December 2020, Fluellen and his co-defendant, Tracey Dotson, conspired to defraud the federal government and the states of Michigan, Pennsylvania, and Maryland. They used stolen personal identification, including stolen Social Security numbers, to file hundreds of false unemployment (U.I.) claims electronically. Specifically, the defendants and other individuals were accused of creating email accounts to link with U.I. claims, submitting fraudulent U.I. claims, re-certifying fraudulent U.I. claims, collecting mail and prepaid debit cards on which U.I. benefits had been deposited, and sharing information via text message and telephone about filing the fraudulent claims and collecting the mail and debit cards loaded with the benefits.
The government alleged that Fluellen and Dotson fraudulently received correspondingly numerous prepaid Bank of America debit cards loaded with roughly $1 million in Pandemic Unemployment Assistance funds. Of that amount, the government claims, more than $930,000.00 was used for cash withdrawals and purchases, including jewelry, drugs, at least one vehicle, and at least one firearm.
“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in less money and fewer resources being available for those genuinely in need at that challenging time,” said U.S. Attorney Dawn Ison. “Along with our law enforcement partners, our office will continue to work to hold individuals who have committed and are committing such crimes of fraud, greed, and avarice responsible.”
Prosecution
The charges were brought in the Eastern District of Michigan. At the time of the charges, Fluellen was in the custody of the Dauphin County Prison, Harrisburg, Pennsylvania, in connection with a different case.
Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan prosecuted this case. The investigation was conducted jointly by IRS Criminal Investigation, the Federal Bureau of Investigation, and the Department of Labor, Office of Inspector General.
“Pandemic Unemployment assistance granted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act was meant to be a lifeline for those affected the most by the global covid-19 pandemic, not as an unlimited well of funds for Adrian Fluellen,” said Special Agent in Charge Charles Miller, Detroit Field Office, IRS Criminal Investigation (CI). “Not only did Mr. Fluellen defraud the U.S. government, but he also stole the identities of hundreds of victims, jeopardizing the personal security of countless hard-working Americans. CI and our law enforcement partners are dedicated to holding accountable those who intend to game the system to feed their own unchecked greed.”
Sentencing
Before sentencing, U.S. District Judge Matthew F. Leitman advised that he was considering “imposing a sentence above—and perhaps substantially above—the Sentencing Guidelines range of 51-63 months.” That’s allowed when the range may not account for the nature and circumstances of the offense—in this case, that it was committed during a pandemic, which the court noted was “a time of special vulnerability and limited resources.”
Fluellen’s attorney argued for leniency in court documents, noting his age (25 at the time of the crime), saying he “exercised poor judgment.” Fluellen’s attorney also stressed his difficult upbringing, including a lack of a father and early substance abuse. Fluellen dropped out of school in the 9th grade following the death of his best friend and the birth of his first child. Now, at age 29, he has three children, ages 10, 5, and 3.
Fluellen’s brother wrote a letter of support, saying, “Adrian played a major role in my life growing up not only as an older brother, but a father figure that we both lacked. Adrian always made sure that I was taken care of and doing things the right way because he believed in me and believed that our environment would not hold me back from succeeding. Adrian had to grow up a lot faster than any ordinary child and he took a role in helping develop me as a man. For example, when Adrian found out that I wanted to become a police officer, despite the interactions and negative publicity surrounding policing, he was very encouraging and proud.” Officer Laron S. Woody was appointed to the West Manchester Township Police Department in 2022 after earning a bachelor’s degree in criminal justice at Shippensburg University, where he played linebacker and was enrolled in the Army ROTC program.
Ultimately, Fluellen was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution.
COVID-Related Fraud
Earlier this year, IRS-Criminal Investigation (CI) reported that since 2020, the agency has investigated 1,644 COVID-related tax and money laundering cases potentially totaling $8.9 billion, with well over half that amount coming from cases opened in the last year. Those cases included crimes related to several programs intended to address economic damages caused by the pandemic, including individual payments for families, extended unemployment assistance, and provided for small business relief, including the Employee Retention Credit (ERC), Paycheck Protection Program (PPP), and emergency loans including Economic Injury Disaster Loans (EIDL).
