Maryland Man Pleads Guilty to COVID-19 Relief Fraud, Gun and Drug Charges

A Temple Hills, Maryland man has pleaded guilty to federal charges related to a scheme to defraud the government through fraudulent unemployment insurance claims filed under the CARES Act. The plea also includes charges stemming from the possession of a machine gun, illegal drugs, and a firearm used in a drug-trafficking offense, as announced by the U.S. Attorney’s Office for the District of Maryland.

Lawrence Nathanial Harris, 33, admitted to his role in a conspiracy that began in January 2021 and continued until September 2023. During this period, Harris and his co-conspirators allegedly defrauded the United States, the State of Maryland, various financial institutions, and numerous individuals through identity theft. The fraudulent unemployment insurance claims were submitted to the Maryland Department of Labor (MD-DOL). Harris’s participation in this scheme resulted in losses exceeding $550,000, with the total amount defrauded potentially reaching $1.5 million. He utilized debit cards issued in the names of identity theft victims to access the illicitly obtained unemployment funds.

The investigation revealed that two co-conspirators, Bryan Nushawn Ruffin, 27, of Woodbridge, Virginia, and Kiara Smith, 27, of Fort Washington, Maryland, were employed by a company that provided support services to the MD-DOL for reviewing unemployment claims and administering benefits. Harris and his associates gained access to computers issued to Ruffin and Smith, which were used to access non-public unemployment insurance data and databases maintained by the MD-DOL. This access allowed them to alter critical information on existing unemployment claims, including email addresses, account passwords, and payment methods. The scheme was further facilitated by the use of personal identifying information belonging to identity theft victims. The co-conspirators also exploited their access to MD-DOL databases to upload and approve supporting documents for fraudulent claims, remove fraud holds, certify weeks for benefit eligibility, and perform other actions to enable fraudulent benefit payments. The MD-DOL believed it was disbursing benefits to legitimate applicants, but Harris and his co-conspirators had established and controlled the accounts receiving these funds.

In a separate but related matter, Harris also admitted to actions taken on November 16, 2022, when law enforcement executed a search warrant at his residence. During the search, Harris was observed throwing a firearm and a bag of marijuana from his room. He possessed this firearm in connection with his drug-trafficking activities. A subsequent search of an attic accessible to Harris uncovered three additional firearms, one of which was identified as a machine gun. Harris was aware that this firearm was capable of functioning as a machine gun. Authorities also recovered approximately 37 pounds of marijuana, which Harris intended to distribute.

Harris faces significant federal penalties for these crimes. He could receive a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and a mandatory consecutive sentence of two years for aggravated identity theft. Additionally, he faces up to 10 years for possession of a machine gun, 20 years for possession with intent to distribute marijuana, and a potential life sentence for possessing a firearm in furtherance of drug trafficking. The actual sentences will be determined by a federal district court judge after considering sentencing guidelines and other relevant factors. Harris’s sentencing is scheduled for Thursday, November 6, at 2 p.m.

This case is being handled by the District of Maryland COVID-19 Strike Force, one of five such units established by the U.S. Department of Justice nationwide. These strike forces are tasked with investigating and prosecuting fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was enacted to provide financial assistance during the COVID-19 pandemic. The strike forces focus on large-scale, multi-state fraud schemes perpetrated by criminal organizations and other actors. They employ a prosecutor-led, data-driven approach to identify and prosecute those who have stolen pandemic relief funds.

The public is encouraged to report any suspected fraud involving COVID-19 relief funds. Information can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by submitting a complaint form online at justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

This prosecution is part of Project Safe Neighborhoods (PSN), an initiative aimed at reducing violent crime and gun violence by fostering trust between law enforcement and communities, supporting community-based violence prevention programs, and implementing focused enforcement strategies.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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