Description: Cleveland, Ohio criminal defense lawyers represented the Defendants charged with illegally obtaining more than $800,000 in pandemic unemployment insurance benefits using other people’s personal identifying information.

From May to October 2020, the defendants, Errol Bennett, Jr., 26, of University Heights; Kojo Lockhart, 29, of Cleveland Heights; Mauri Nichols, 25, of South Euclid; Khyri Grace, 30, of Cleveland Heights; and Malik Grace, 26, of Cleveland Heights; submitted and caused the submission of fraudulent applications for pandemic unemployment insurance benefits to the California Employment Development Department (EDD), and other State Workforce Agencies around the country.

As part of the scheme, the members of the conspiracy knowingly made false statements and omissions on pandemic unemployment insurance benefits applications regarding employment history, residency, and more to appear eligible to receive benefits. As a result, California EDD and other State Workforce Agencies approved more than $800,000 in unemployment insurance benefits in the names of unwitting individuals. The benefits were pre-loaded on bank-issued debit cards and sent through the U.S. mail. After receiving the debit cards, the defendants used the cards issued in the names of other people to make cash withdrawals at various ATMs in the Northern District of Ohio.

The Court determined each defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. The defendants received the following terms of imprisonment: Errol Bennett, 54 months; Kojo Lockhart, 48 months; Mauri Nichols, 78 months; Khyri Grace, 60 months; and Malik Grace, 44 months. The defendants were also ordered to pay $872,143 in restitution for fraudulently obtained benefits.

The Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, and the United States Postal Inspection Service investigated this case with assistance from the Cleveland Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Kathryn Andrachik and Alejandro Abreu.

18:1349 Conspiracy to Commit Mail Fraud and Wire Fraud
(1)

18:1341 and 2 Mail Fraud
(9-11)

18:1343 and 2 Wire Fraud
(17-18)

18:1028(A)(a)(1) and 2 Aggravated Identity Theft
(46-47)

Outcome: Mauri Nichols: Custody Bureau of Prisons 54 months on each of Counts 1, 9, 10, 11, 17, and 18, to be served concurrently, and 24 months on each of Counts 46 and 47, to be served concurrently to each other but consecutively to Counts 1, 7, 8, and 16, for a total imprisonment term of 78 months; Supervised Release for a term of 3 years. This term consists of 3 years on Counts 1, 9, 10, 11, 17, and 18, and a term of 1 year on Counts 46 and 47, all such terms to run concurrently, with conditions; Fine waived; Special Assessment $800; Restitution $872,143.00.

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Defendant's Experts:

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