Riverside County man sentenced for fraudulently obtaining $2.1 Million in COVID jobless benefits

RIVERSIDE, Calif. - Robert Campbell Jr., a 30-year-old resident of Corona, was sentenced to 68 months in federal prison Monday for masterminding a scheme to fraudulently secure over $2.1 million in pandemic-related unemployment insurance (UI) benefits. The benefits were obtained by submitting deceptive claims that purportedly represented salon and barbershop workers affected by the COVID-19 pandemic.

United States District Judge Jesus G. Bernal, overseeing the case, also mandated Campbell to reimburse the sum of $2,113,966, which he wrongfully acquired through his fraudulent activities.

Campbell, the primary defendant in this case, had previously entered a guilty plea on March 6, acknowledging one count of conspiracy to commit mail fraud during a presidentially declared emergency and one count of mail fraud concerning benefits linked to such an emergency. Since his arrest in July 2022, he has remained at liberty on a $100,000 bond.

Between March 2020 and July 2021, Campbell and his co-conspirators exploited the personally identifiable information (PII) of others, including their names, dates of birth, and Social Security numbers. They used this information to submit fraudulent UI applications to the California Employment Development Department (EDD), which manages the state's unemployment insurance program.

The fraudulent UI claims were funded through federal programs established by Congress in response to the pandemic, including the Pandemic Unemployment Assistance and Lost Wage Assistance programs. A considerable number of these claims were made on behalf of individuals ineligible for benefits, either because they resided outside of California or were incarcerated, with one claimant located in Texas.

The fraudulent applications falsely indicated that claimants had annual incomes of $42,000 and were self-employed individuals adversely affected by the closure of salons and barbershops due to the COVID-19 pandemic. The applications listed addresses under Campbell's control, and once approved, debit cards were dispatched to these locations.

In total, Campbell and his associates filed 174 fraudulent applications with the EDD, resulting in 125 illegitimate claims being paid and losses totaling approximately $2,113,966.

This marks the conclusion of the legal proceedings for Campbell, who is the eighth and final defendant sentenced in this case. Earlier, seven other defendants pleaded guilty, and Judge Bernal issued varying sentences, including probation, home confinement, and up to 18 months in federal prison.

Prosecutors emphasized the audacity and exploitation inherent in Campbell's actions, given the devastating effects of the COVID-19 pandemic. They stated in a sentencing memorandum, "[Campbell] organized, led, and encouraged his co-conspirators throughout, and mocked considerations of decency and honesty at every turn in his communications with them."

The investigation into this matter involved the United States Department of Labor Office of Inspector General and the California Employment Development Department Investigation Division, with substantial assistance provided by Homeland Security Investigations, the United States Postal Inspection Service, the California Department of Corrections and Rehabilitation's Special Services Unit, and the United States Secret Service.

Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section led the prosecution of this case.

For those with information regarding fraud related to COVID-19, you can report it by contacting the Department of Justice's National Center for Disaster Fraud Hotline at (866) 720-5721 or by using the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.