SC inmates plead guilty to using cellphones in prison to commit $5 million in COVID fraud
Twenty-nine people have pleaded guilty to fraudulently obtaining almost $5 million in COVID-19 unemployment benefits in a scheme led by South Carolina Department of Corrections inmates, the U.S. Attorney’s office announced in a Thursday release.
The defendants, according to the release, used Social Security numbers and other personal information from other inmates to apply for the benefits. Some were also found to have used contraband cellphones within the facility to extract information from people on the outside.
The inmates would pose as young adults, asking people they messaged to send nude or compromising photos, according to the release.
“After obtaining the photos, the inmates used a second line feature on their contraband cell phones and contacted the victim posing as law enforcement,” the release details. “The inmates then extorted the victims into sending them money and/or photos of their social security cards and driver’s license.”
Family members and friends outside of the prison then helped the inmates by taking the government checks issued and using various payment methods — ATM withdrawals, wire transfers, mobile banking apps such as Venmo and Cash App — to send the money to the people in prison.
The defendants allegedly submitted applications in South Carolina, Pennsylvania, North Carolina, Nevada, New Jersey, Missouri, Arizona and California, the U.S. Attorney’s office said.
“This extensive fraud scheme exploited and misused individuals’ personal information, some unknowingly, for financial gain at the expense of American taxpayers,” said Brook Andrews, the acting U.S. Attorney for the District of South Carolina. “The individuals involved showed a complete disregard for the law and used deception, manipulation, and extortion to unlawfully obtain nearly $5 million in unemployment benefits.”
Fourteen of the 29 defendants have been sentenced. Each person faces up to 20 years in federal prison and a fine of $250,000.
Thirty-one inmates have been identified as being part of the scheme, the release said. Apart from the ones who have pleaded guilty, one has died, while another, Christine Hawkins, remains at large as a fugitive.
This story was originally published February 21, 2025 at 11:04 AM.
