CHARLOTTE — A Charlotte man pleaded guilty and was sentenced Thursday to five years in prison for using stolen identities to get $219,000 in COVID-19 relief funds, according to the Department of Justice.
According to an indictment, from at least March 2020 through February 2021, 31-year-old Keon Taylor engaged in a scheme to defraud the U.S. Department of Labor, the U.S. Small Business Administration, the North Carolina Division of Employment Security, and the states of Tennessee, Texas, Ohio, Massachusetts, Nevada, and Arizona by filing fraudulent claims for COVID-19 related unemployment insurance benefits using stolen information of identity theft victims.
The indictment alleges that, as part of the scheme, Taylor obtained over the internet and elsewhere multiple victims’ stolen personal identifying information, including victims’ names, Social Security numbers, dates of birth and addresses.
Taylor then reportedly used the stolen information of more than 35 victims to apply for and receive over $219,000 in fraudulent unemployment benefits, and to submit numerous additional applications seeking fraudulent unemployment insurance benefits.
The indictment further alleges that Taylor also used false information to fraudulently apply for three Economic Injury Disaster Loans (EIDL) under the expanded CARES Act, which is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
“Taylor took advantage of the American people whose lives have been disrupted by the pandemic to try and enrich himself through fraud,” stated Inspector in Charge Coke. “The U.S. Postal Inspection Service will continue to work with our law enforcement partners to bring justice to criminals exploiting the American people.”
In addition to Taylor’s prison sentence, he will spend three years on supervision.
Taylor was ordered to pay $252,849.50 in restitution.
The CARES Act is a federal law enacted March 29, 2020 and is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
“His conduct further exacerbated the distribution of unemployment benefits at a time when so many Americans are in desperate need of this assistance,” the DOJ said in a statement.
Taylor’s charges included, eight counts of wire fraud, which carry a maximum sentence of 20 years in prison and a $250,000 fine per count, with additional penalties possible because the offenses relate to a presidentially declared emergency; two counts of making a false statement to the SBA, which carry a maximum prison sentence of 30 years and a $1 million fine per count; three counts of aggravated identity theft, which carry a minimum prison term of two years, consecutive to any other prison term imposed, per count; and one count related to possessing equipment that can be used to make fake identity documents, which carries a term of imprisonment of up to 15 years and a $250,000 fine.
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