A Florida woman was convicted on June 3 for her involvement in a scheme to fraudulently obtain unemployment insurance benefits across multiple states.
Cheryl Galloway, 67, of Yulee, Florida, was found guilty of Conspiracy to Commit Mail Fraud in U.S. District Court, according to Margaret E. “Meg” Heap, U.S. Attorney for the Southern District of Georgia. Galloway faces up to 20 years in prison, a $250,000 fine, and up to three years of supervised release when sentencing is scheduled by Judge Dudley H. Bowen at a later date. There is no parole in the federal system.
“Using the postal system to advance a fraudulent scheme in order to enrich yourself will result in the harshest of consequences,” said Heap. “This case, and many others like it, demonstrate that federal investigators and prosecutors will identify these criminals and hold them accountable.”
Court documents and testimony described how Galloway and her co-conspirators electronically submitted fraudulent applications with agencies in at least 40 states over two years. The group filed for pandemic unemployment benefits around the country by falsely claiming they were impacted by job loss or reduction and providing false information on their applications. They received approximately $480,000 through this method and attempted to obtain additional funds using similar tactics. Some benefits were issued as debit cards sent through the mail directly to Galloway.
“After a five-day jury trial, Cheryl Galloway was found guilty for her role in a scheme that stole taxpayer-funded benefits. Galloway and her co-conspirators filed fraudulent claims with workforce agencies across the country, falsely claiming employment and pandemic-related unemployment to obtain benefits they never deserved,” said Anthony P. D’Esposito, Inspector General for the U.S. Department of Labor. “This conviction is a stark reminder that my office will continue to aggressively investigate, prosecute, and pursue anyone who steals from American taxpayers.” In March 2020 Congress expanded eligibility for state-administered unemployment programs under the Coronavirus Aid Relief and Economic Security Act (CARES), leading oversight agencies such as OIG-DOL to monitor potential fraud cases closely.
The Office of Inspector General for the U.S. Department of Labor investigated this case alongside Assistant U.S. Attorneys Kelsey L. Scanlon and J. Bishop Ravenel from the Southern District of Georgia prosecuting it for the United States.
The U.S Attorney’s Office for the Southern District of Georgia operates out of Savannah with an additional branch office in Augusta; it employs about 70 attorneys and staff members while prosecuting federal crimes—including those related to public benefit fraud—and managing civil litigation on behalf of the United States under authority from its parent agency within the United States Department of Justice.
