INGLEWOOD – An Inglewood woman is facing federal charges alleging she fraudulently obtained more than $1.3 million in COVID-19 pandemic relief funds by submitting over 100 fraudulent applications for unemployment insurance benefits using stolen identities, including those of California state prisoners, officials announced Thursday.
Selena Stewart, 45, was arrested and arraigned Wednesday in downtown Los Angeles, according to the U.S. Department of Justice.
At her arraignment, she pleaded not guilty to 10 counts of mail fraud, one count of use of unauthorized access devices, two counts of aggravated identity theft, and one count possession of at least 15 unauthorized access devices. A federal magistrate judge ordered Stewart released on $10,000 bond pending trial on Aug. 26.
According to the indictment, Stewart and co-defendants Toby Brazier, 48, of the Westlake area of Los Angeles, and Tony Queen, 67, of Culver City, filed with the California Employment Development Department bogus applications for UI benefits in the names of other people.
EDD administers California’s unemployment benefits program. The applications were filed using the personal identifying information obtained from individuals whose information was used without their permission, as well as individuals who did not qualify for UI benefits because they were in the custody of California state prisons.
The fraudulent applications falsely stated that the purported applicants had been negatively affected by the COVID-19 pandemic, which triggered eligibility for UI benefits under federal law. The applications also falsely stated that the named claimants resided and had worked in California when, in fact, most identity theft victims in the scheme did not live in California, the DOJ said.
The applications also provided false mailing addresses, false annual income information, and representations that the named claimants were self- employed individuals who were adversely impacted by COVID-19, court papers show.
As a result of the bogus UI applications, EDD authorized Bank of America to issue debit cards in the names of dozens of victims and straw claimants. Once in possession of the debit cards, the defendants allegedly withdrew the benefits by making cash withdrawals at ATMs and bank branches and by using the debit cards to buy items sold at businesses, the indictment said.
In total, Stewart, Brazier and Queen, caused at least 101 fraudulent applications for UI benefits to be filed, causing losses to EDD and the United States Treasury exceeding $1.3 million, according to the DOJ.
Brazier and Queen are charged with 10 counts of mail fraud. Queen is expected to appear next week in Los Angeles federal court for his arraignment and initial appearance. Brazier is considered a fugitive.
