LOS ANGELES – Phyllis Hope Stitt, 61, a former employee of the California Employment Development Department (EDD), was sentenced to 20 months in federal prison on Friday for her role in a fraudulent scheme that stole hundreds of thousands of dollars in unemployment benefits meant for Californians during the COVID-19 pandemic.
Stitt, who worked for over a decade as an employment program representative with the EDD, exploited her position within the department, which manages California’s unemployment insurance program. According to the U.S. Attorney’s Office, between March 2020 and September 2021, Stitt accessed personal information of victims, including their names, dates of birth, and Social Security numbers. She used this sensitive data to file unemployment insurance benefit applications without the victims’ knowledge or consent.
Stitt falsified the claims, certifying that these individuals were unemployed due to the pandemic but actively seeking work. The Justice Department added that she backdated many of the claims, inflating the size of the fraudulent applications to receive higher payouts.
Stitt used a mailing address that was linked to her long-term boyfriend, Kenneth Earl Riley, 64, of South Los Angeles. Riley then used various debit cards and bank accounts to access the stolen funds, making retail purchases, withdrawing cash from ATMs, and transferring money to other accounts.
In addition to their prison sentences, U.S. District Judge André Birotte Jr. ordered both Stitt and Riley to pay restitution. Stitt was directed to repay $768,958, and Riley was ordered to pay $611,458 for the stolen benefits.
The case highlights the ongoing efforts by federal authorities to combat fraudulent activities that exploit government programs designed to help those affected by the pandemic. The U.S. Attorney’s Office is continuing to pursue those responsible for defrauding relief programs.
