Silver Spring Woman Admits Guilt in Large-Scale Unemployment and Pandemic Relief Fraud Scheme

A Silver Spring, Maryland woman has pleaded guilty to federal charges related to a significant unemployment insurance and pandemic relief fraud scheme. Elizabeth Maria Ceballos, 49, entered a guilty plea in federal court for conspiracy to commit wire fraud and aggravated identity theft. The plea was announced by the U.S. Attorney’s Office for the District of Maryland, in conjunction with the U.S. Department of Labor – Office of Inspector General and Homeland Security Investigations.

According to court documents, Ceballos, along with Vanessa Valdez, 42, of Burtonsville, Maryland, participated in a conspiracy that defrauded the Maryland Department of Labor (MD-DOL) of unemployment insurance benefits. The scheme, which ran from at least May 2020 through September 2021, involved the use of personal identifying information belonging to others to file fraudulent claims. These benefits were intended to provide financial assistance to individuals who lost employment or experienced reduced hours due to the economic impact of the COVID-19 national emergency. Instead, Ceballos and Valdez allegedly diverted these funds for their own personal gain.

The fraudulent activities extended beyond unemployment benefits. Ceballos also admitted to assisting Valdez with fraudulent activities related to funds from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). Both programs were established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, federal legislation enacted in March 2020 to provide economic relief during the pandemic. The PPP, administered by the Small Business Administration, aimed to help businesses cover operational costs, while EIDL provided financial assistance, including advances of up to $10,000 that did not require repayment.

Ceballos faces a maximum penalty of 22 years in federal prison. This includes a mandatory consecutive sentence of two years for the aggravated identity theft charge. Her sentencing is scheduled for August 3. Vanessa Valdez previously pleaded guilty to similar charges of conspiracy to commit wire fraud and aggravated identity theft in December 2025 and also faces a maximum of 22 years in prison, including a mandatory two-year consecutive sentence for aggravated identity theft. Her sentencing date is pending.

The investigation was a collaborative effort involving the Department of Labor’s Office of Inspector General and Homeland Security Investigations in Maryland. The District of Maryland Strike Force, one of five established across the nation, was instrumental in identifying and prosecuting this case. These strike forces are dedicated to investigating and prosecuting large-scale fraud schemes related to COVID-19 relief funds, often involving criminal organizations and transnational actors.

Individuals with information regarding alleged fraud involving COVID-19 relief funds can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or by submitting a complaint form online through the Department of Justice’s National Center for Disaster Fraud website.

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

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