December 21, 2009
EIGHT CURRENT AND FORMER COLORADO SPRINGS RESIDENTS INDICTED FOR STEALING UNEMPLOYMENT MONEY DUE MILITARY VETERANS
DENVER – Eight current or former Colorado Springs residents have been indicted by a federal grand jury in Denver on charges of receipt of stolen government property, the U.S. Attorney’s Office, the Colorado and U.S. Department of Labor, and the Department of Defense, announced today. One of the eight defendants is also charged with aggravated identity theft. The sealed indictment was returned on December 15, 2009. It was unsealed on December 16, 2009, following the arrest of the first of the eight defendants. Now six of the eight have been arrested. Earl L. Hall, Renita L. Blunt, Conslyn L. Hall, Terrance R. Wray, Demetrius L. Harper, and Corey D. Ladson were arrested without incident. Eric G. Adams is presently in custody in the El Paso County Jail. Jermaine L. Hall is a fugitive from justice.
Some of those arrested in Colorado appeared in U.S. District Court in Denver last week, where they were advised of the charges pending against them. They will next appear in federal court early this week for arraignment.
According to the indictment, beginning in November 2006, and continuing through January 2008, the defendants conspired together and with others to receive and retain money from the United States, with the intent to convert it to their personal use, knowing the money had been stolen.
The defendants allegedly submitted or caused to be submitted fraudulent applications for unemployment benefits due to ex-members of the United States military. The program, known as Unemployment Compensation for Ex-Military (UCX), was administered by the Colorado Department of Labor and Employment (CDLE). Benefits paid by CDLE were funded by the United States Department of Defense.
As part of the conspiracy, the defendants submitted or caused to be submitted fraudulent applications for UCX benefits to the CDLE. The applications were submitted in various names, including the names of some of the defendants, aliases, names of defendants’ family members, and false names. The submissions included a variety of materially false and fraudulent information, including false names, false Social Security numbers, false dates of birth, and false information about the applicants’ military service. The defendants allegedly submitted or caused to be submitted false Certificates of Release or Discharge from Active Duty, in support of their false applications. Some of the certificates were completely fraudulent in that they reflected military service by people who either did not exist or who had not served in the military. Other certificates reflected the true names of defendants and others who had served in the military but contained false information about the applicants’ Social Security numbers, dates of birth, dates of military service, pay grade, rank, and character of military service. Over the course of the scheme the defendants negotiated over 200 such warrants (checks). In total, the defendants received $214,000 from the U.S. government.
Earl L. Hall, who was born in 1976, is charged with one count of conspiracy, 10 counts of receipt of stolen government property, and one count of aggravated identity theft.
Renita L. Blunt, who was born in 1985, is charged with one count of conspiracy, and 13 counts of receipt of stolen government property.
Eric G. Adams, who was born in 1971, is charged with one count of conspiracy, and 9 counts of receipt of stolen government property.
Conslyn L. Hall, who was born in 1981, is charged with one count of conspiracy, and 6 counts of receipt of government property.
Jermaine L. Hall, who was born in 1974, is charged with one count of conspiracy, and 6 counts of receipt of government property.
Terrance R. Wray, who was born in 1981, is charged with one count of conspiracy, and 8 counts of receipt of government property.
Demetrius L. Harper, who was born in 1970, is charged with one count of conspiracy, and 4 counts of receipt of government property.
Corey D. Ladson, who was born in 1973, is charged with one count of conspiracy, and 4 counts of receipt of government property.
“Thanks to cooperation among state and federal authorities, eight people have been indicted for defrauding a program designed to help our unemployed veterans,” said U.S. Attorney David Gaouette. “Those who would take money from a program that supports our veterans is not only criminal, but is totally inexcusable.”
“We appreciate the vital role played by the United States Department of Labor, Defense, and Justice in reducing fraud and its debilitating effects,” said Colorado Department of Labor and Employment Executive Director Donald J. Mares. “Investigating and prosecuting white-collar criminals is critical to the integrity of the state’s Unemployment Insurance program. Fraud is a crime against the employers who fund the program as well as those truly in need of unemployment benefits.”
Daniel R. Petrole, Acting Inspector General, United States Department of Labor, stated: “Detecting and deterring fraud in our nation’s unemployment insurance system, particularly the program for ex-members of our military, is critical to its integrity. We will continue to work closely with our law enforcement partners to fight this type of corruption.”
“Individuals who fraudulently obtain benefits reserved for former service members do a grave injustice to brave Soldiers, Sailors, Airmen, and Marines who faithfully served their country,” said Sharon Woods, Director of the Defense Criminal Investigative Service. “The Defense Criminal Investigative Service remains committed to working with the Department of Labor, the Department of Justice, and other law enforcement partners to prosecute benefit fraud of this nature to the fullest extent of the law.”
If convicted of conspiracy, the defendants face not more than 5 years in federal prison, and up to a $250,000 fine, or twice the gain or loss from the offense, as well as restitution and forfeiture.
If convicted of receipt of stolen government property, the defendants face not more than 10 years’ incarceration, as well as up to a $250,000 fine, or twice the gain or loss from the offense, as well as restitution and forfeiture.
If convicted of aggravated identity theft, the defendants face not more than 2 years in federal prison, to be served consecutive to any term of imprisonment imposed for the other counts, as well as up to a $250,000 fine, or twice the gain or loss from the offense, as well as restitution and forfeiture.
This case was investigated by the Department of Labor Office of the Inspector General, the Department of Defense, Defense Criminal Investigative Service, and the Colorado Department of Labor & Unemployment, Unemployment Insurance Integrity Branch.
The case is being prosecuted by Assistant U.S. Attorney Matthew T. Kirsch.
These charges are only allegations and the defendants are presumed innocent unless and until proven guilty.
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