Former Maryland Contractor Employee Admits to Defrauding Unemployment System During Pandemic

A former contractor employee for the Maryland Department of Labor (MD-DOL) has pleaded guilty to federal charges related to a scheme to defraud unemployment insurance (UI) benefits during the COVID-19 pandemic. The guilty plea, announced by the U.S. Attorney’s Office for the District of Maryland, is part of ongoing efforts to combat fraud within federal benefit programs.

The individual, Katrina McCant, aged 41, of Baltimore, entered her plea in federal court, admitting to charges of wire fraud and aggravated identity theft. According to court documents, McCant utilized her position as an employee of a contractor providing support services to MD-DOL to facilitate the fraudulent claims between January 2021 and December 2021. This access allowed her to manipulate the unemployment system for personal enrichment.

McCant’s scheme involved leveraging her insider access to MD-DOL databases. She was able to upload and approve documents supporting UI claims, some of which she initiated herself. In other instances, she took over existing claims by altering claimant information to her own, including changing email addresses and names. Court documents indicate she removed fraud holds on claims, certified weeks of eligibility, and took other actions to expedite the disbursement of fraudulent benefits. These actions directly enabled the improper payment of unemployment funds.

The fraudulent activities extended to McCant changing the names of claimants to ensure that funds were directly deposited into her own financial accounts. She also employed the personal identifying information of real individuals, who are now considered aggravated identity theft victims, to make modifications to UI claims within the MD-DOL system. Furthermore, McCant accepted payments from other individuals, often through platforms like PayPal, to fraudulently approve or facilitate their unemployment claims. These fees varied based on the size of the fraudulent claim, with McCant receiving amounts ranging from approximately $500 to $8,000 per claim.

As part of her plea agreement, McCant has consented to pay restitution to the Maryland Department of Labor totaling at least $550,000. She has also agreed to a forfeiture of assets amounting to at least $550,000. The Department of Justice has established a National Fraud Enforcement Division to investigate and prosecute fraud against the public, which includes efforts to combat fraud within federal benefit programs, aligning with broader governmental initiatives to eliminate waste and abuse.

This prosecution highlights the ongoing commitment by federal authorities to investigate and prosecute individuals who exploit government programs for illicit gain. Residents who have information regarding allegations of attempted fraud, particularly related to COVID-19 relief efforts, are encouraged to report such activities. The Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline is available at 866-720-5721, and an online complaint form can be accessed through the NCDF website.

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

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