A Sacramento County man, Carlos E. Sanchez Jr., is among three individuals indicted by a federal grand jury for allegedly using stolen debit cards to siphon nearly $1 million in unemployment benefits. The indictment, issued on October 10, accuses Sanchez and Nevada resident Kimberly Ann Wallace of conspiracy and illegally accessing debit cards. Another suspect, Ricky Lee Ware, also from Nevada, has been named in the conspiracy but remains at large.
The arrests, which took place on October 17, are part of ongoing investigations into widespread unemployment fraud that emerged during the COVID-19 pandemic. California’s Employment Development Department (EDD) has faced significant scrutiny for its handling of these fraudulent claims, with state auditors labeling the agency as “high-risk.” Reports estimate that California lost around $20 billion in pandemic-related unemployment aid to fraudsters, a figure that will be challenging to recover. As of now, the EDD has successfully recovered about $6 billion in improperly obtained benefits.
The indictment alleges that the accused participated in the fraudulent scheme from July 2020 to January 2021, using debit cards issued by the EDD intended for unemployed individuals. However, it does not specify how they obtained these cards or accuse them of defrauding the state directly.
Sanchez, 44, faces one count of conspiracy, one count of conducting a fraudulent transaction at a bank in Sacramento, and one count of being a felon in illegal possession of a firearm. Wallace, 28, has been charged with two counts of fraudulent transactions at banks in Sacramento and West Sacramento. Both Sanchez and Wallace have been released on bond, while Ware has yet to be arrested. Together, the trio is accused of illegally obtaining at least $900,000 through the scheme.