Maryland Woman Sentenced to Over Three Years for Multi-Million Dollar COVID-19 Unemployment Fraud Scheme

A Maryland woman has been sentenced to federal prison for her involvement in a conspiracy that defrauded the United States of more than $3.5 million in unemployment insurance benefits, as announced by the U.S. Attorney’s Office for the District of Maryland. The scheme exploited provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which aimed to provide financial assistance during the pandemic. The case highlights the ongoing efforts by federal authorities to combat fraud targeting government relief programs.

The sentence was handed down by District Judge Deborah L. Boardman, who ordered Kiara Smith, a 28-year-old resident of Prince George’s County, to serve 42 months in federal prison. This will be followed by one year of supervised release. In addition to the prison term, Smith was ordered to pay 3.5 million in restitution to victims of the fraud and forfeit 275,000 in illicit gains. Smith was convicted of conspiracy to commit wire fraud and aggravated identity theft.

Smith’s role in the fraudulent operation was significant, as she was employed as a contractor for the Maryland Department of Labor (MD-DOL). In this capacity, she misused her access and her work laptop to facilitate the scheme. Court documents reveal that Smith allowed her co-conspirators to use her company-issued laptop to alter and approve fraudulent unemployment insurance claims submitted under the CARES Act. Beyond her involvement in the conspiracy, Smith also independently sought and obtained a substantial amount of unemployment benefits through fraudulent means.

The investigation, a joint effort involving the U.S. Department of Labor – Office of Inspector General (DOL-OIG) and the Federal Bureau of Investigation (FBI) – Baltimore Field Office, uncovered a broad identity theft scheme that ran from May 2021 to June 2022. During this period, Smith and her accomplices systematically defrauded the United States, the State of Maryland, multiple financial institutions, and numerous individuals. The conspirators submitted false and fraudulent unemployment insurance benefits claims to the MD-DOL, the state agency responsible for processing such claims. The total amount fraudulently obtained through these claims exceeded $3.5 million.

As a contractor for a company providing professional support services to the MD-DOL, including fraud detection, Smith’s access to sensitive data was crucial to the conspiracy’s success. She provided her company-issued laptop to her co-conspirators, granting them access to non-public unemployment insurance data and internal MD-DOL databases. This unauthorized access enabled the conspirators to manipulate claims and maximize payouts on fraudulent applications. The co-conspirators specifically targeted existing UI claims, altering contact information, online account passwords, and payment methods.

Further complicating the scheme, the perpetrators utilized the personal identifying information (PII) of identity theft victims. Their access to MD-DOL databases was exploited to upload and approve supporting documents for fraudulent claims, remove existing fraud holds, and certify claim weeks to ensure the illicit benefit payments were processed. The MD-DOL, believing it was disbursing unemployment benefits to legitimate applicants via debit cards or direct deposits, was instead sending funds to accounts that were established and controlled by the co-conspirators.

Several other individuals have already received sentences for their participation in this extensive fraud. Lawrence Nathanial Harris, 32, of Temple Hills, Maryland, was sentenced to 180 months in prison. Ahmed Hussain, 23, of Prince George’s County, Maryland, received a 102-month sentence. Zakria Hussain, 28, of Oxon Hill, Maryland, was sentenced to 36 months, and Bryan Nushawn Ruffin, 27, of Woodbridge, Virginia, received a 27-month sentence. Another individual, Terry Chen, 25, of Prince George’s County, Maryland, was scheduled to receive his sentence on May 20.

The Department of Justice has been actively combating fraud, particularly in the wake of the pandemic. In April 2026, the Department announced the establishment of the National Fraud Enforcement Division (Fraud Division) to specifically target and prosecute individuals who commit fraud against Americans. This initiative is part of a broader governmental effort, including President Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, aimed at identifying and eliminating waste, fraud, and abuse within federal benefit programs.

The U.S. Attorney’s Office for the District of Maryland encourages anyone with information about attempted fraud related to COVID-19 or other federal benefit programs to report it. Information can be provided by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by submitting a complaint through the NCDF Web Complaint Form available on the Department of Justice website.

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

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