On April 13th, 2021

Two Plead Guilty in COVID-19 Unemployment Benefit Fraud Scheme California EDD assisted with investigation

FRESNO – On April 12, 2021,  Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, each pleaded guilty to one count of conspiracy to commit mail fraud and one count of aggravated identity theft in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits intended for Californians hit hardest by the COVID-19 pandemic shutdown.

According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the Vertz and Powers provided.

The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.

“It’s crushing to know how many unscrupulous individuals and convicted criminals conducted schemes to get their hands on money meant for people who suddenly found themselves out of work due to the pandemic,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona.  “Investigators on every level are working to identify these suspects, arrest them and assist in prosecutions.  They have much work ahead of them.”

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.

Vertz and Powers are scheduled to be sentenced on July 6, 2021.   For the count of conspiracy to commit mail fraud, Vertz and Powers face a maximum statutory penalty of 20 years in prison and a $250,000 fine. For the count of aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence.


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