California Man Receives Lengthy Prison Sentence for COVID Unemployment Benefits Fraud Scheme, Laundering Millions to China

UPDATE 5/16/2026 – This article originally had the headline “Laundering 46 million to China” however $46 million is the forfeiture amount, and the amount laundered to China was slightly less.

A California man has been sentenced to 10 years in federal prison for his role in a sophisticated scheme that defrauded the government of approximately $46.4 million in public benefits, which were then laundered to China. Brian R. Cleland, a 72-year-old resident of Los Angeles, was sentenced on May 14, 2026, by United States District Judge Jennifer P. Wilson to 120 months of incarceration for conspiracy to launder monetary instruments.

According to information from the U.S. Attorney’s Office for the Middle District of Pennsylvania, Cleland, along with his co-conspirators Bruce Jin and Carlos A. Grijalva, both also of Los Angeles, and other unnamed individuals, conspired to fraudulently obtain state unemployment compensation funds and other public benefits. The group allegedly created the facade of legitimate businesses selling masks and personal protective equipment during the COVID-19 pandemic. The substantial sums of money obtained through these fraudulent activities, including state unemployment benefits and Economic Impact Payments, were then laundered through their companies.

The intricate network involved individuals, some believed to be located in China, who established thousands of bank accounts across the United States. These accounts were reportedly opened using the personal identifying information of identity theft victims. Fraudulent unemployment claims were then submitted and paid into these accounts, including accounts belonging to individuals within the Middle District of Pennsylvania. The press release indicates that these fraudulent claims were also generated by individuals in China, resulting in millions of dollars being paid out by states such as Pennsylvania, Virginia, and Florida, among others.

Following the disbursement of these fraudulent unemployment funds, the money was transferred from the accounts of identity theft victims to companies controlled by Cleland, Jin, and Grijalva. Bruce Jin, through his companies Ample International and Jin Commerce, is reported to have received over 12 million in unemployment funds from victim accounts. Additionally, the defendants utilized Automated Clearing House (ACH) processing to acquire over 45 million in fraudulent funds. This large sum was predominantly transferred from victim accounts to entities controlled by Cleland and Grijalva, including MexUS Service, Group Mex USA, CCB Group, GC Accounting, and CLECO. Subsequently, Cleland and Grijalva allegedly transferred over 30 million to Jin’s companies and more than 6 million to a company associated with one of Jin’s associates.

After receiving the illicit funds, either directly from victim accounts or from Cleland and Grijalva via ACH transfers, Bruce Jin then executed international wire transfers totaling over 35 million to a bank account linked to a company in China, identified as “COMPANY 2” in the indictment. Further transfers of over 2 million were made by Jin directly to an individual in China who controlled that company, referred to as “COCONSPIRATOR 2” in the indictment. Cleland was also ordered to pay approximately $46.4 million in forfeiture, representing the proceeds of his criminal activity.

The Department of Justice has been actively combating fraud, with the recent creation of the National Fraud Enforcement Division. This division is dedicated to investigating and prosecuting individuals who perpetrate fraud against the American public, supporting broader government initiatives aimed at eliminating fraud, waste, and abuse within federal benefit programs.

Bruce Jin was sentenced on April 30, 2026, to 144 months in prison and was ordered to forfeit over $59 million in U.S. currency, along with other assets. Carlos A. Grijalva has pleaded guilty and is scheduled for sentencing on May 19, 2026. The investigation into this extensive fraud operation was conducted by the Federal Bureau of Investigation and the U.S. Department of Labor’s Office of Inspector General.

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

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