A man from Detroit has pled guilty to engaging in an extensive unemployment fraud conspiracy with a former State of Michigan unemployment insurance agency contract employee to steal over $550,000 in public funds.
William Haynes, 26, pleaded guilty Wednesday (July 12) to engaging in a criminal conspiracy with Autumn Mims, a former contract unemployment insurance examiner for the State of Michigan.
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Mims’ duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
Officials say Mims previously pleaded guilty to the same charge and is currently awaiting sentencing.
Court documents indicated that shortly after Mims began working with the Michigan Unemployment Insurance Agency in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization.
The scheme featured Hayes altering direct deposit information for third-party unemployment insurance assistance and accessing third-party unemployment insurance assistance claim information without authorization.
Haynes then completed false and fraudulent certifications for third-party unemployment insurance assistance benefits then opened unauthorized bank accounts in the names of third parties while providing stolen personal identifying information to his co-conspirator, Mims.
Officials said they would then conduct cash withdrawals of unemployment insurance assistance issued in the names of third parties. They then conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties; then, they received non-cash benefits from his involvement in the conspiracy, including rent payments made by his co-conspirator, Mims.
“We are committed to prosecuting those who engage in schemes to steal public funds,” stated U.S. Attorney Dawn Ison. “We will continue working with our law enforcement partners to bring them to justice, whether they are insiders who abuse their positions of trust or outsiders who enable that abuse.”
“William Haynes conspired with former Michigan Unemployment Insurance Agency Examiner Autumn Mims to defraud the state of Michigan,” said Special Agent-inCharge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “Haynes worked with Mims to certify Pandemic Unemployment Assistance (PUA) unemployment insurance (UI) claims he knew were fraudulent. The proceeds from the fraudulent claims were deposited into bank accounts that Haynes and Mims controlled. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of the UI system.”
“Haynes used his co-defendant’s official position at the Michigan Unemployment Insurance Agency to steal money from people who were struggling through pandemic-related economic challenges,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI will continue working alongside our state and federal partners to investigate this type of scheme and bring to justice those who defraud the unemployment system.”
“Add William Haynes to the growing list of fraudsters that UIA’s investigators have identified as brazenly violating the trust Michiganders put in an unemployment system that is their lifeline when they lost work,” said Julia Dale, Director of the Michigan Unemployment Insurance Agency. “That Mr. Haynes found a willing accomplice within the UIA to help carry out his devious scheme is also appalling. Today’s guilty plea should put bad actors on notice that the UIA won’t tolerate the theft of public funds. Our nearly 50 convictions so far prove they won’t get away with defrauding taxpayers.”
The conspiracy was over $550,000 in fraudulent unemployment assistance payments were made by the State of Michigan, in which Haynes agreed to be held accountable for $448,614 in restitution.
Haynes is expected to be sentenced on Nov. 28. He faces up to 20 years in prison.
