East St. Louis woman accused of unemployment insurance scam totaling more than $800K
An East St. Louis woman has been indicted on charges she participated in a scheme that fraudulently garnered more than $800,000 in unemployment insurance benefits from three states.
According to a press release from the United States Attorney for the Southern District of Illinois, a federal grand jury in East. Louis indicted Talfanita M. Cobb, 49, on seven counts including conspiracy, mail fraud, and aggravated identity theft.
Some of the money allegedly came from federal pandemic unemployment compensation funds.
Cobb is scheduled to be arraigned by United States Magistrate Judge Mark A. Beatty on July 7 at the federal courthouse in East St. Louis.
“The COVID-19 pandemic has caused tremendous pain and suffering in our country,” U.S. Attorney for the Southern District of Illinois Steven D. Weinhoeft said in a statement. “So many Americans have lost their lives, and many thousands more face severe economic hardship after losing their jobs. For those most affected, the federal government has approved special funds.
“It is reprehensible that unscrupulous individuals would take advantage of these new programs to line their own pockets. These individuals should take note: We will investigate and prosecute them to the fullest extent of the law.”
According to the indictment, Cobb’s co-conspirators used stolen identities to apply for unemployment insurance benefits in Arizona, Ohio, and Texas. Each application allegedly listed Cobb’s address in East St. Louis as the address of the applicant.
The applications were approved, and unemployment benefits were issued to the individuals whose names and identities had been stolen, prosecutors say. Some of the funds were allegedly deposited directly into a bank account controlled by Cobb.
After a short time, however, the co-conspirators acquired debit cards, which the states issued in the names of the identity theft victims and allegedly mailed to Cobb in East St. Louis, the indictment says.
The indictment also alleges that, after she received the unemployment debit cards in the mail, Cobb went to various ATMs in the metro-east and withdrew funds from the cards. She is accused of transferring some of the funds to a co-conspirator using Bitcoin and keeping a percentage of the money for herself.
Mail fraud and conspiracy to commit mail fraud are punishable by up to 20 years in prison and fines of up to $250,000, according to the court. Each of the aggravated identity theft charges carries a mandatory two-year prison sentence, which must be served consecutively to any sentences imposed on the fraud counts. Cobb also could be ordered to pay restitution.
The case was investigated by the U.S. Postal Inspection Service and Department of Labor with assistance from the Arizona Department of Employment Security, Special Investigations Division, and the Southern District of Illinois’ coronavirus fraud task force.
Assistant United States Attorney Scott A. Verseman is prosecuting the case.