Chesco Inmates Claimed Work Eligibility, Collected Benefits: Feds

WEST CHESTER, PA —Prison walls did not deter a dozen Chester County inmates from scheming about how to collect pandemic unemployment, which some did, on prepaid cards accepted by outside accomplices, say federal prosecutors.

Twelve Chester County Prison inmates fraudulently filed for and received CARES Act pandemic unemployment benefits, according to the U.S. Attorney for Pennsylvania's Eastern District.

All the defendants were taken into custody Friday morning, or were already in custody, according to First Assistant United States Attorney Jennifer Arbittier Williams.

One team of alleged fraudsters made off with $12,000 in unemployment benefits on a prepaid card, filed in the name of an inmate and cashed by on accomplice outside prison walls. Some received more than $14,000 in payments after stating on applications that they were able to work, when they were actually incarcerated. One state inmate garnered $22,000 fraudulently, according to authorities.

The twelve charged from Chester County are: Vincent Hazzard, 49, Jacob Fulton, 32, Emily Baier, 26, Kenneth Huggins, 24, Patrice Hawthorne, 46, Biancha Kranzley, 31, Jennifer D’Hulster, 37, Arthur Johnson, 44, and Anthony Schweitzer, 20, all of Coatesville. Also charges from Chester County are: Christopher Hersh, 36, of Avondale, Zachary Gathercole, 30, of Sadsburyville, and Ashley Harrington, 30, of West Chester.

In all of the cases, the inmates falsely reported themselves eligible to receive PUA benefits when in fact they did not meet the eligibility requirements — namely, they were not able to report to a job each day because of their incarceration.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides unemployment benefits to people affected by the COVID-19 pandemic, not eligible for regular unemployment. Eligibility to receive state pandemic benefits (PAU) requires that an applicant's unemployment is related to the pandemic, and that the applicant is available for daily work.

According to the U.S. Attorney's report, Hazzard was charged in a federal indictment with mail fraud, fraud in connection with emergency benefits, theft of money of the United States, and aiding and abetting. According to the Indictment, Hazzard, in July 2020. got others to assist him in the scheme to obtain PUA funds by fraud.

Hazzard falsely stated on an application for funds that he was available for immediate employment, and that he was currently unemployed due to the pandemic, when in fact he was was incarcerated at the Chester County Prison, was not scheduled for release until late September 2020, and was not unemployed due to the pandemic.

Hazzard had $1,590 credited to him by means of a prepaid bank card in late July 2020, the indictment said. He got others to spend or withdraw almost all of the funds by the end of August in order to avoid leaving money in his account, if the fraud was discovered. If convicted of all charges, Hazzard faces a maximum sentence of 60 years in prison, three years of supervised release, and a $750,000 fine.

Huggins, of Coatesville, and Patrice Hawthorne, of Middletown, Del., were charged with conspiracy to commit mail fraud. Huggins, an inmate at Chester County Prison, and his mother, Hawthorne, conspired over a series of recorded prison telephone calls to submit a fraudulent application for PUA benefit payments on Huggins’s behalf, according to the complaint.

The application falsely stated that Huggins was available for immediate employment and that he was currently unemployed due to the COVID-19 pandemic, when in fact he had been incarcerated since January 2020 at Chester County Prison.

Huggins ultimately received more than $12,000 in unemployment benefits on a prepaid bank card; Hawthorne took custody of that card and withdrew funds for her own benefit. If convicted of all charges, both Huggins and Hawthorne face a statutory maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine.

"It is despicable that incarcerated people lined their pockets by taking advantage of the COVID-19 financial lifeline given to millions of honest, hardworking Pennsylvanians. Thank you to the U.S. Attorney’s Office of the Eastern District of Pennsylvania for your continuing efforts in fighting for justice," said Chester County District Attorney Deb Ryan.

Defendants Fulton and Baier, both of Coatesville, conspired to file claims for PUA benefits on behalf of inmates of Chester County Prison, between July 12 and August 26, and agreed to keep a portion of the PUA benefits for themselves, according to the U.S. Attorney.

They are charged with conspiracy to commit mail fraud, mail fraud and fraud in connection with major disaster or emergency benefits, and aiding and abetting. Fulton allegedly told Baier that with this scheme, they "can be f******* rich." The indictment also alleges that on or about May 11, 2020, Fulton and Baier filed PUA claims for themselves, fraudulently claiming that they are entitled to PUA benefits.

If convicted of all charges, Fulton faces a maximum sentence of 90 years in prison, five years of supervised release, and a fine of $2,250,000, and Baier faces a maximum sentence of 120 years in prison, five years of supervised release, and a fine of $2,500,000.

Hersh, of Avondale, was charged with conspiracy to defraud the United States and fraud in connection with major disaster or emergency benefits. According to the indictment, in July 2020, Hersch had a close relatives assist him in filing a fraudulent application for PUA funds.

The application falsely stated that Hersh was available for immediate employment, that he was currently unemployed due to the pandemic, and that his last day of work had been in November 2019 because he was laid off due to a business closure caused by the pandemic, when in fact he was incarcerated at the Chester County Prison, had been incarcerated since December 2016. If convicted of all charges, Hersh faces a maximum sentence of 35 years in prison, three years of supervised release, and a $500,000 fine.

In all 18 Pennsylvania prison inmates and accomplices are charged with fraudulently obtaining pandemic unemployment assistance funds, said the U.S. Attorney's office for Pennsylvania's Eastern District.

Six of the 18 charged are state prison inmates, accused of fraudulently applied for and obtained the same type of emergency unemployment benefits, according to Pennsylvania Attorney General Josh Shapiro.

"After announcing our first round of arrests in these COVID unemployment scams, I promised that there were more to come," said Shapiro.

"Last week, my office charged 20 more individuals with illegally taking benefits away from hard-working Pennsylvanians who are struggling during this crisis, including six inmates from SCI Phoenix in Montgomery County. These arrests are not the end of our investigation, and I’ll continue working with my colleagues at the federal level to track down those heading these schemes, along with those who are willfully participating and breaking the law."

"These fraudsters – many of whom were already incarcerated for breaking the law - treated a national public health crisis as an opportunity to cash in," said Williams.

"This callous attitude rips off honest taxpayers who fund relief programs and also makes it much more difficult to provide funds to those who deserve and need them. My office will do everything in its power to ensure that coronavirus fraud scams are stopped and punished," Williams added.

These cases are being prosecuted and investigated by the United States Attorney’s Office and the Pennsylvania Office of Attorney General with assistance from the Chester County District Attorney’s Office and agencies of the Coronavirus Working Group led by the United States Attorney’s Office, including the Internal Revenue Service — Criminal Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Labor — Office of Inspector General.

Kranzley, of Coatesville, was charged with fraud in connection with major disaster or emergency benefits. The complaint alleges she submitted a fraudulent application for benefits on behalf of a person who was and had been incarcerated at the Chester County Prison since early 2019.

The defendant allegedly received a prepaid debit card loaded with more than $13,000 in PUA benefits. She has used or withdrawn more than half of those funds. If convicted of all charges, Kranzley faces a maximum sentence of 30 years in prison, five years of supervised release, and a fine of $250,000.

D’Hulster, of Coatesville, Gathercole, of Sadsburyville, Harrington, of West Chester, and Schweitzer, of Coatesville, are all charged with conspiracy, fraud in connection with emergency benefits and aiding and abetting, and mail fraud.

Charges state in June 2020, D’Hulster fraudulently applied for benefits for Schweitzer, who has been an inmate at Chester County Prison since June 2020, and, in July 2020 applied for benefits for a different inmate who has been incarcerated at State Correctional Institute Phoenixville (SCIP) since March 2020, neither of whom lost a job because of COVID-19.

D’Hulster successfully enabled the SCIP inmate to receive unemployment benefits totaling approximately $11,410 credited to the inmate by means of a prepaid bank card, according to the complaint.

In May 2020, Harrington fraudulently applied for benefits for Gathercole, who has been an inmate at Chester County Prison since August 2019, did not lose a job because of COVID-19, and has not been able to work. Harrington successfully enabled Gathercole to receive unemployment benefits totaling approximately $14,140.

Additionally, D’Hulster and Gathercole collected personal identification information for other individuals, including inmates at Chester County Prison, to use to submit additional fraudulent applications for PUA benefits.

If convicted of all charges, the defendants face the following maximum sentences: D’Hulster faces 90 years in prison, three years of supervised release, and a $1 million fine; Gathercole faces 140 years in prison, three years of supervised release, and a $1.5 million fine; Harrington faces 70 years in prison, three years of supervised release, and a $750,000 fine; and Schweitzer faces 50 years in prison, three years of supervised release, and a $500,000 fine.

Johnson, of Coatesville, was charged with fraud in connection with major disaster or emergency benefits. The complaint says Johnson submitted a fraudulent application for benefits on behalf of an inmate at the Chester County Prison.

Johnson allegedly received a prepaid debit card loaded with approximately $13,500 in PUA benefits. All of the funds have been withdrawn. If convicted of all charges, Johnson faces a maximum sentence of 30 years in prison, five years of supervised release, and a fine of $250,000.

Among State Correctional Institution Phoenix (SCIP) inmates charged are: Jermaine Plumer, who allegedly received $18,264 worth of PUA paid out after he provided personal identifying information to non-incarcerated persons; Rafael Rodriguez received $22,109 worth of PUA paid out after he provided personal identifying information to non-incarcerated persons; Dwayne Washington received $3,510 worth of PUA paid out after he provided personal identifying information to a non-incarcerated person; Leroy Barnes was never paid, but who provided his personal identifying information to a non-incarcerated person, to have them complete a PUA application on his behalf; Andrew Simms was never paid, but provided his personal identifying information to a non-incarcerated person, to have them complete a PUA application on his behalf; and Dexter Pitts, a.k.a. Kevin Perry, who received $3,150 worth of PUA paid out after he provided his personal identifying information to a non-incarcerated person, according to the Eastern District's complaint.

The federal cases are being prosecuted by Assistant United States Attorneys Judy Smith, Jeanette Kang, Anthony Wzorek, Jessica Rice, Anita Eve, Chris Mannion, and Melanie Wilmoth.

Also assisting in the cases were law enforcement officials at the Chester County Prison and officials at the Pennsylvania Department of Labor and Industry, the Pennsylvania Department of Treasury and the Pennsylvania Department of Corrections for their important assistance in these cases.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

This article originally appeared on the West Chester Patch