Individual Charged in $1.1 million Fraudulent Unemployment Insurance Scheme

Federal agents arrested Terence Aubrey Larker this week following an alleged unemployment insurance fraud scheme that netted more than a million dollars, according to U.S. Attorney (USA) for the Eastern District of California Phillip Talbert. A federal grand jury indicted Larker last week on eight counts of mail fraud and aggravated identity theft. The indictment was unsealed Tuesday following his arrest.

Larker is accused of obtaining the personal identifying information of more than 80 people and fraudulently submitting unemployment insurance claims to the California Employment Development Department (EDD).

The EDD approved many of the fraudulent applications and mailed to Larker both state and local benefits, including assistance from the federal CARES Act (Pub.L. 116) and the Pandemic Unemployment Assistance program. At least 24 of the prepaid debit cards were mailed to Larker's home address in Sacramento, according to USA Talbert. Larker allegedly obtained $1.1 million from the EDD and the federal government in fraudulent claims.

Several agencies investigated this case, including the Department of Labor Office of Inspector General (DOL-OIG), the Department of Homeland Security Office of Inspector General (DHS-OIG), the Federal Bureau of Investigation (FBI), and the California Employment Development Department.

For mail fraud, Larker faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. Aggravated identity theft also carries a mandatory additional sentence of two years in prison. If a sentence is imposed, the court will consider any applicable statutory factors and the Federal Sentencing Guidelines.

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