The Warren Sun

A Michigan Unemployment Insurance Agency (UIA) employee and a Detroit woman have been charged with bilking the state of Michigan out of $1.1 million in funds allocated for unemployment assistance to help struggling Michiganders during the COVID-19 pandemic, reported The Center Square.

Jermaine Rose, 41, a UIA lead claims examiner, and Serenity Poynter, 36, are accused of collaborating on a scheme to defraud the state, according to U.S. Attorney Matthew Schneider.

As a UIA employee, Rose was tasked with reviewing, processing and verifying the legitimacy of unemployment insurance claims. According to a criminal complaint, Rose used his position to order the payouts of hundreds of fraudulent claims, beginning in May, and overrode the system’s “fraud stops.” He is accused of fraudulently disbursing over $1.1 million of federal and state funds intended for unemployed Michiganders impacted by the COVID-19 pandemic.

“At a time when thousands of people in Michigan are out of work because of the pandemic, the defendants are charged with stealing unemployment benefits that should have gone to Michiganders trying to feed their families," Schneider said, according to The Center Square. "Anyone who steals unemployment funds steals from the people of Michigan,” he added.

Poynter allegedly collaborated with Rose to file at least 25 fraudulent claims seeking more than $350,000 in benefits by using falsified Social Security numbers and variations of her name.

“The defendants in this case took advantage of the goodwill and generosity of the American people," U.S. Secret Service Special Agent Douglas J. Zloto said, according to The Center Square. "Out of greed and blatant disregard for those suffering during this pandemic, the perpetrators manipulated the Michigan Unemployment Insurance Agency system for personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring these criminals to justice.”

The state’s automated system flagged many of those claims as potential fraud, but Rose allegedly overrode those safeguards and was in the process of attempting to override another $761,000 in fraudulent unemployment claims before the state stopped them from paying out.

“It’s disheartening that a public servant would abuse the trust of Michiganders because of their own greed, especially during a time when workers need this financial assistance the most," UIA Special Fraud Advisor Jeffrey Frost said, according to The Center Square. "We thank the U.S. Attorney’s Office and our other state and federal law enforcement partners for their efforts to protect workers and the integrity of the unemployment system."