Convicted murderers among 10 charged in separate EDD fraud schemes: Orange County DA


Ten individuals, together with convicted murderers, have been charged in separate schemes that defrauded California’s employment company out of tons of of hundreds of {dollars}, prosecutors introduced Monday.

The defendants supposed to bilk the state Employment Improvement Division out of taxpayer {dollars} meant for struggling Californians hit hardest by coronavirus-related closures and enterprise restrictions, in keeping with a information launch from the Orange County District Legal professional’s workplace.

They had been concerned in “three separate and unrelated advanced schemes,” the discharge learn.

Amongst these charged: two enterprise homeowners who allegedly arrange a pretend storefront in Backyard Grove for the aim of accumulating unemployment in a single scheme, in addition to eight individuals — together with six state prisoners — concerned in two different schemes, in keeping with prosecutors.

The DA’s Workplace stated the company launched its investigation final November after receiving a tip {that a} enterprise in Backyard Grove had been promoting help to these making use of for the Pandemic Unemployment Help program. The PUA is a part of federal assist for employees who usually wouldn’t qualify for unemployment, equivalent to impartial contractors and the self-employed.

The enterprise — Nguyen Social Providers, LLC, situated at 9840 Backyard Grove Blvd. — was arrange by Huy Duc Nguyen, 32, and Mai Dacsom Nguyen, 40, each of Backyard Grove, in keeping with the discharge.

They allegedly marketed the scheme in Vietnamese to usher in enterprise and get individuals to file false claims on their behalf, which might earn them a kickback price of as much as $700,000.

Investigators imagine the enterprise filed greater than 1,000 fraudulent purposes on behalf of people that didn’t qualify for PUA advantages, in keeping with the discharge.

Among the many claims had been one from a 99-year-old girl who stated on her software that the pandemic price her work as a housekeeper. However in keeping with prosecutors, she hadn’t even labored for a number of a long time.

After serving a search warrant on the storefront final month, investigators seized $490,000 in money believed to be linked to EDD fraud, together with cash in frozen financial institution accounts tied to the enterprise, in keeping with the DA’s workplace.

Mai Nguyen has been charged with 4 felony counts apiece of perjury and false assertion, and one felony rely of conspiracy to defraud one other of property.

Huy Nguyen was charged with one felony rely every of perjury, false assertion and conspiracy to defraud one other of property.

Extra expenses are doable in opposition to the pair because the investigation continues, in keeping with the DA’s workplace. They’re each scheduled to be arraigned on March 19.

In one other scheme, an Anaheim tax preparer is accused of conspiring with 4 prisoners, together with two convicted murders, to file fraudulent unemployment claims.

The 2 convicted murderers “claimed the COVID-19 pandemic had impacted their skill to work when in actuality it was the truth that they’re serving sentences as much as life in jail that prevented them from being gainfully employed,” the DA’s launch acknowledged.

One of many claims 35-year-old Sandra Pineda allegedly filed was on behalf of 30-year-old Leonel Hernandez, who has been incarcerated in Kern Valley State Jail for a decade.

Within the software, she acknowledged that Hernandez had labored 40 hours every week within the final 18 months, with an earnings of $45,263, however that he was pressured to cease working because of the pandemic.

Pineda is additional suspected of conspiring to file false unemployment purposes with three different inmates, together with 29-year-old Greg Garcia, 36-year-old Ryan Vargas and 31-year-old Hector Jimenez.

She was arrested on Jan. 14 and charged with 11 felonies, together with 5 counts every of perjury and making a false assertion.

Her arraignment is scheduled for April 14.

Garcia, Hernandez, Vargas, and Jimenez had been additionally charged with one felony rely of submitting a false assertion and one other felony rely of conspiracy to commit theft by false pretenses.

Within the third case, a 35-year-old Irvine girl is accused of plotting with two inmates, one in all them her brother, to cheat the EDD out of not less than $50,000.

Rosalva Bahena — a convicted carjacker who was out on parole — allegedly aided her brother, 44-year-old Bruno Galindo, and one other prisoner Guillermo Rodriguez, prosecutors stated.

The trio are suspected of filling out fraudulent unemployment purposes utilizing info from the California Division of Corrections and Rehabilitation, which was then processed via the EDD.

Bahena then allegedly used EDD debit playing cards to withdraw cash on a weekly foundation.

She was arrested on Jan. 14 and pleaded not responsible to expenses together with perjury, submitting a false assertion and cash laundering derived from prison exercise.

Galindo has been charged with three felony counts of submitting a false assertion, three felony counts of cash laundering derived from prison exercise and a felony rely of conspiracy to commit theft by false pretenses.

Rodriguez was charged with two felony counts, one every of submitting a false assertion and conspiracy to commit theft by false pretenses.

“These investigations are usually not the top; they merely scratch the floor of the depth of unemployment fraud within the state of California,” DA Todd Spitzer stated within the launch. “All my fraud investigative sources have been devoted to EDD fraud over the previous couple of months, leaving no sources for our common fraud instances. It’s merely not sustainable – and it’s not honest to the victims of fraud in Orange County and it’s not honest to the taxpayers of the state of California.”

The DA’s workplace famous that EDD fraud has been a problem statewide throughout the pandemic; they stated a state contractor employed to establish suspected instances discovered not less than 10% of unemployment claims might have been fraudulent previous to restrictions being put in place in October.

That might translate to just about $10 billion in fraudulent EDD funds between March and September.

Because the begin of the pandemic, the employment company has paid out $113 billion in advantages, together with $43 billion from the PUA program, in keeping with the DA’s workplace.

“This isn’t an Orange County downside. It is a statewide downside that has price California taxpayers practically $10 billion {dollars} in pretend unemployment claims,” Spitzer stated. “Cash that ought to have gone to out-of-work hairstylists, waiters, and different out-of-work Californians as a substitute ended up within the pockets of cold-blooded murderers and businessmen who noticed a possibility to make a fast buck and took it – on the expense of taxpayers.”



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