On December 19th, 2022

Former Mail Carrier and Co-Schemer Sentenced to Prison for COVID Fraud The California Employment Development Department Investigation Division assisted with investigation

“This investigation is an example of the work local, state and federal investigators are doing to identify, arrest, and assist in the prosecution of those people who illegally sought and received pandemic-related assistance.  It also demonstrates that those convicted are paying for their crimes in prison time and restitution.” – CSLEA President Alan Barcelona

LOS ANGELES – On December 12, 2022, a former United States Postal Service mail carrier was sentenced to 41 months in federal prison for scheming to steal more than $250,000 in unemployment insurance (UI) funds by making false claims of COVID-related job losses and for stealing UI debit cards intended for other people on his mail route.

Stephen Glover, 33, of Palmdale, was also ordered to pay $151,698 in restitution.

Glover pleaded guilty on July 11 to one count of mail fraud and one count of theft of mail matter by an officer or employee.

Also sentenced was Glover’s co-schemer, Travis McKenzie, 26, of Valencia, to 41 months in federal prison. McKenzie was also ordered to pay $448,228 in restitution. McKenzie, who lived on Glover’s mail route, pleaded guilty on July 13 to a three-count information charging him with mail fraud, mail theft and identity theft.

From August 2020 to June 2021, while he was employed at the United States Post Office in Valencia, Glover schemed to defraud the California Employment Development Department (EDD) out of hundreds of thousands of dollars in COVID-19 -related unemployment benefits. Glover’s co-schemers applied for unemployment benefits using false statements and sometimes using stolen identities. Based upon the fraudulent claims, EDD mailed out debit cards to addresses listed on the applications.

The fraudulent UI claims were federally funded through programs authorized by Congress in response to the pandemic, including the Pandemic Unemployment Assistance and Lost Wage Assistance programs.

Glover abused his position as a mail carrier by providing co-schemers with addresses on his mail route, which his co-schemers then used as mailing addresses on the fraudulent EDD applications. After EDD mailed debit cards to those addresses, Glover intercepted and stole that mail.

Glover also stole legitimate EDD debit cards intended for recipients on his mail route. Glover used the EDD debit cards in other people’s names to withdraw thousands of dollars in cash from ATMs. He also activated the debit cards in other people’s names by calling EDD and using PINs he had discovered from stolen EDD mail. During a search of his girlfriend’s residence in June 2021, law enforcement found 37 pieces of mail from EDD address to 15 different individuals.

The total intended loss related to Glover’s mail fraud scheme is $270,698.

McKenzie admitted in his plea agreement that law enforcement found more than 150 pieces of mail from EDD addressed to more than 50 different names, as well as mail from the Virginia Employment Commission, at his residence. McKenzie used cash withdrawn from ATMs using EDD debit cards to purchase items from luxury retailers including Louis Vuitton and Prada handbags from luxury retailers Nieman Marcus and Saks Fifth Avenue.

The intended loss applicable to McKenzie’s participation in the mail fraud scheme is approximately $577,522. McKenzie further admitted to possessing 317 pieces of stolen mail.

The United States Department of Labor, Office of Inspector General; the United States Postal Service, Office of Inspector General; the California Employment Development Department, Investigation Division; and the Los Angeles County Sheriff’s Department investigated this matter.

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