IDs of 65 people used in fraud scheme to draw jobless benefits

Olivier Uyttebrouck, Albuquerque Journal, N.M.
·3 min read

May 21—Federal agents searched an Albuquerque residence this month seeking evidence that at least two men fraudulently obtained New Mexico unemployment benefits using the identities of 65 people — two of whom are dead.

Details of the scheme are contained in a federal search warrant affidavit filed in U.S. District Court in Albuquerque recently. The plot began to unravel in August when a UPS driver reported that a man had offered him $4,000 for two packages that the driver had attempted to deliver to a vacant Albuquerque residence.

Each package contained a debit card issued through the New Mexico Department of Workforce Solutions, the agency that issues unemployment benefits to New Mexicans.

A report released by state lawmakers on Wednesday found that New Mexico may have overpaid unemployment benefits by $250 million during the pandemic, including an estimated $133 million due to potentially fraudulent claims.

Reasons for the overpayment include understaffing at Workforce Solutions and a backlog of investigations into potentially fraudulent claims, the report found.

Agents with the Department of Homeland Security, who obtained the search warrant, found key information on a series of Facebook messages that appear to outline a plan to apply for unemployment benefits using counterfeit New Mexico identity cards, Social Security numbers and other identifying information of unsuspecting people.

One of the men wrote in a Facebook message, "I need some COVID money lol."

The men also discuss their plans for spending the money, including shopping trips and purchases of controlled substances.

Agents also identified several ATMs that were used to withdraw funds using debit cards issued by the state to dispense unemployment benefits, according to the search warrant affidavit.

Agents who viewed surveillance video observed two men using the debit cards to make a series of ATM withdrawals from July to October 2020.

The two men observed in the video had not been criminally charged as of Thursday.

Agents opened the investigation after a UPS driver reported that a man tried to purchase two packages from the driver on Aug. 24, according to the affidavit.

The UPS driver had attempted to deliver the packages to a residence in the 400 block of Solano NE. After the driver left the packages on the front porch, a neighbor told the driver that the residence was vacant.

The driver retrieved the packages and continued making deliveries. About a block away, the driver noticed a gray Dodge Journey following the UPS truck.

A man driving the Dodge Journey later approached the UPS driver and asked for the two packages. The UPS driver refused the request.

The man later offered to pay the UPS driver $2,000 for the packages.

After the UPS driver turned down the payment, the man doubled the offer to $4,000, but again the driver refused, the affidavit said.

During this interaction, the UPS driver was on the phone with a UPS manager, who told the driver to report the incident to the New Mexico State Police. They later turned the investigation over to Homeland Security agents.

The Department of Workforce Solutions told federal agents of other unemployment claims connected with the vacant property.

Agents identified 65 people whose identities were used to obtain unemployment benefits through the state's online application process. Two of those people are dead. Agents contacted six people who said that they never filed for unemployment claims.

That information led agents to investigate a series of ATM withdrawals made by two men using state-issued debit cards, the affidavit said.

Agents were able to identify the two men based on visual similarities between images in the security video with their driver's license photos and images the men posted on Facebook.

The affidavit details a series of Facebook messages between one of the two men and a third man discussing the manufacture of counterfeit New Mexico identification cards and other identifying information, including Social Security numbers.

Federal agents used the search warrant to search a residence in the 2300 block of Penn SE on May 13 and obtained controlled substances, including methamphetamine and Xanax, a benzodiazepine.