On July 18, 2024, U.S. District Judge Brendan A. Hurson sentenced Stephawn Watson, also known as O Dawg, 28, of Capitol Heights, Maryland, to 53 months in federal prison, followed by three years of supervised release for charges related to a Maryland and California unemployment insurance (UI) fraud scheme totalling more than $1.5 million, as well as Illegal Possession of a Firearm.Â
Judge Hurson also ordered Wason to forfeit over $90,000 and to pay restitution of $2,094,319.
Financial assistance offered through the CARES Act included expanded eligibility for Unemployment Insurance benefits and increased UI benefits through the Pandemic Unemployment Assistance Program, Federal Pandemic Unemployment Compensation, and the Lost Wages Assistance Program.
According to his plea agreement, from March 2020 to October 2021, Watson and his co-conspirators impersonated victims to submit fraudulent claims for pandemic-related UI benefits in Maryland and in California.Â
As part of the scheme, Watson and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information of numerous victims, which they used to prepare and submit fraudulent applications for UI benefits.Â
The applications contained false information, including the victims’ contact information, states of residence, and availability for work. These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cars to physical addresses provided and monitored by co-conspirators.Â
Once Watson and his co-conspirators received fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own benefit.Â
A search of Watson’s residence in February 2021 recovered 11 UI debit cards in the names of nine victims and a fraudulent account created in Watson’s name. The investigation also revealed numerous text messages between Watson and his co-conspirators exchanging PII of victims and discussing the execution of the UI fraud scheme.Â
In all, Watson and his co-conspirators submitted more than 200 fraudulent UI claims using the names and PII of victims, resulting in more than $1.6 million in losses.
Watson was also sentenced for his Illegal Possession of a Firearm based on his arrest in January 2022 by the Cumberland Police Department.Â
At the time of his arrest, Watson was wanted for three different warrants in three different jurisdictions for firearms-related offences. The firearm was later determined to be stolen.
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