Two individuals from San Bernardino County were taken into custody following a federal grand jury indictment, which alleges their involvement in a scheme to fraudulently procure over $2.1 million in unemployment benefits during the COVID-19 pandemic by submitting in excess of 120 fraudulent claims utilizing stolen identities, including those of prisoners.
The accused, Lisa Puente, aged 43, from Rialto, and Arthur Marquez, aged 53, from San Bernardino, faced arraignment in the United States District Court in Riverside. Both Puente and Marquez have been charged with six counts of mail fraud and one count each of using unauthorized access devices. They are also facing charges of aggravated identity theft. Both pleaded not guilty, and their trial is set for December 30. A magistrate judge released Puente on a $20,000 bond and Marquez on a $10,000 bond.
The indictment, initially returned on October 9, outlines that from February 2020 to August 2023, Puente and Marquez allegedly submitted fraudulent applications for unemployment insurance with the California Employment Development Department (EDD). These applications were filed in the names of individuals who either did not qualify due to incarceration or whose personal information was used without consent. These applications falsely claimed that the applicants were unemployed due to the pandemic and had previously worked in California, although many victims lived outside the state.
The fraudulent applications led EDD to issue debit cards through Bank of America in the names of identified victims. The defendants allegedly withdrew funds by making ATM cash withdrawals and purchasing goods.
The actions of Puente and Marquez reportedly resulted in at least 124 fraudulent applications, causing a financial loss of an estimated $2,136,768 to the EDD and the U.S. Treasury.
An indictment includes charges that a defendant has allegedly committed a crime, but they remain presumed innocent unless proven guilty in a court of law. If convicted, the pair could face significant prison time, with each mail fraud charge bearing a potential maximum sentence of 20 years, the unauthorized access device charge carrying up to 10 years, and the aggravated identity theft count mandating a consecutive two-year sentence.
The investigation is led by several government entities: the Department of Labor Office of Inspector General, the EDD Investigation Division, Homeland Security Investigations, and more.
The case is being prosecuted by Assistant United States Attorney Mitchell M. Suliman. In response to pandemic-related fraud, the Attorney General convened the COVID-19 Fraud Enforcement Task Force in 2021 to strengthen efforts against such activities. The U.S. Attorney’s Offices in California head a national Strike Force addressing multi-state pandemic fraud.
Concerns or information regarding COVID-19-related fraud can be reported to the Department of Justice’s National Center for Disaster Fraud Hotline.
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