Silver Spring Woman Sentenced to Over Three Years for COVID-19 Fraud Scheme

A Silver Spring woman has been sentenced to more than three years in federal prison for her involvement in a scheme to defraud the unemployment insurance system during the COVID-19 pandemic. Elizabeth Maria Ceballos, 50, received a sentence of 40 months incarceration followed by two years of supervised release from U.S. District Judge Matthew J. Maddox. The sentence also includes an order for Ceballos to pay $638,889 in restitution.

According to information from the U.S. Attorney’s Office for the District of Maryland, Ceballos was convicted of conspiracy to commit wire fraud and aggravated identity theft. Her fraudulent activities were part of a larger scheme that began around May 2020 and continued through at least September 2021. During this period, Ceballos, along with a co-conspirator, Vanessa Valdez, 42, of Burtonsville, Maryland, allegedly defrauded the Maryland Department of Labor by submitting false tax documents to support fraudulent unemployment insurance benefit claims. This prosecution is connected to efforts to combat fraud within federal benefit programs.

The scheme exploited provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide financial relief amid the pandemic’s economic impact and to increase unemployment benefits. Ceballos’s role involved fabricating tax documents that were then used to bolster these fraudulent claims submitted to the state. In addition to her involvement in unemployment fraud, Ceballos also admitted to assisting Valdez with fraudulent applications related to Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). The PPP, administered by the Small Business Administration, and EIDL were established by the CARES Act to assist businesses facing financial difficulties. EIDL advances of up to $10,000 were available and did not require repayment, even if a business was not approved for a full EIDL loan.

Vanessa Valdez, the co-conspirator, pleaded guilty in December 2025 to conspiracy to commit wire fraud and aggravated identity theft, with her sentencing date still pending. The investigation and prosecution were conducted by the U.S. Department of Labor’s Office of Inspector General and Homeland Security Investigations in Maryland.

The Department of Justice has prioritized combating fraud against the American public, recently announcing the creation of the National Fraud Enforcement Division. This division is dedicated to investigating and prosecuting fraud schemes. The efforts to combat pandemic-related fraud are part of a broader governmental initiative aimed at eliminating waste and abuse within federal benefit programs. Individuals with information regarding attempted fraud related to COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud hotline or through their web complaint form.

The sentence imposed on Ceballos means she will serve a significant prison term, and upon her release, will be subject to two years of supervised release. The restitution order requires her to repay the substantial amount of funds defrauded from the government. This case highlights the severe consequences for individuals who exploit federal relief programs designed to assist citizens during times of crisis. Residents are reminded that fraudulent claims against government programs carry serious penalties.

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

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