Pennsylvania Woman Sentenced for Exploiting COVID-19 Relief Efforts in Unemployment Fraud Scheme

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SCRANTON, PA — A former claims specialist with the Social Security Administration, Takiyah Gordon Austin, 47, was sentenced to three years in prison on Wednesday for her role in a fraudulent scheme that siphoned off nearly $289,000 in unemployment benefits meant to aid those financially impacted by the COVID-19 pandemic. Following her prison term, U.S. District Court Judge Malachy E. Mannion has also mandated a three-year period of supervised release and ordered Austin to repay the stolen funds.

The Pandemic Unemployment Assistance (PUA) program, established under the CARES Act on March 27, 2020, aimed to extend a financial lifeline to individuals who lost their jobs due to the pandemic but were ineligible for conventional unemployment insurance. This program was part of a broader federal effort to cushion the economic blow delivered by the health crisis.

U.S. Attorney Gerard M. Karam revealed that Austin admitted to charges of wire fraud and aggravated identity theft. From May 2020 to May 2021, while employed as a claims specialist, she exploited her position to file PUA claims on behalf of individuals who did not qualify for the program, receiving payments from them in return. Furthermore, Austin utilized her access to Social Security Administration databases to steal personal information from unsuspecting victims, redirecting the unemployment benefits to addresses under her control to finance her personal expenses.

This case highlights a troubling exploitation of emergency relief measures designed to assist millions of Americans grappling with unemployment during the pandemic’s peak. The investigation involved the collaborative efforts of the Social Security Administration’s Office of the Inspector General, the Department of Labor’s Office of the Inspector General, and the United States Postal Inspection Service, underscoring the seriousness with which authorities are addressing fraud against federal assistance programs.

Prosecuted by Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Alisan V. Martin, Austin’s sentencing serves as a stark warning to others who may consider defrauding government initiatives intended to help those in need. As the country continues to recover from the economic ramifications of the pandemic, ensuring the integrity of assistance programs remains a top priority for law enforcement agencies nationwide.

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