First and foremost, unemployment benefits are tied to the state where the beneficiary of the government benefit resides. If a recipient moves out of the state or abroad, they can no longer get unemployment benefits. But fraudsters know how to manipulate the program. Such as Bruce Jin, for instance, who pleaded guilty to committing unemployment fraud along with conspiracy to launder approximately $59 million in fraudulent gains to China.
Jin, and his two co-conspirators Brian Cleland and Carlos Grijalva, allegedly conspired to obtain state unemployment compensation funds, as well as other public funds, using fraudulent means, according to the indictment. The group allegedly appeared to operate legitimate businesses that sold masks and other COVID-19 personal protective equipment, when in reality, the funds that were obtained and eventually laundered were from fraudulently obtained state unemployment compensation benefits.
Using the personal identifying information from stolen identities, Jin had thousands of bank accounts established across the United States with which fraudulent claims were filed through. After the funds were paid out, the funds were then transferred from identity theft victims’ accounts to companies allegedly controlled by Jin, Cleland and Grijalva. After Jin received the fraudulent funds, either from identity theft victims’ accounts or from Cleland and Grijalva, he then made international wire transfers to bank accounts in China. Way out of state unemployment benefit borders!
On January 31, 2025, Jin pleaded guilty to unemployment fraud.
Great job by the U.S. Department of Labor in this case.
Today’s Fraud of The Day is based on “Florida Included in Massive COVID Fraud Scheme Laundering Millions to China” published by Newsbreak on January 31, 2025.
An international fraud scheme that illegally obtained nearly $59 million in public benefits, has led to one defendant pleading guilty and two others facing charges. Bruce Jin, a 60-year-old from California, admitted to conspiracy charges related to wire fraud and money laundering, operating a complex network that exploited unemployment insurance funds across multiple states. Florida was one of the key states impacted by the scheme, with fraudulent claims made under stolen identities and funneling public benefits abroad.
The investigation reveals that Jin, along with co-defendants Brian Cleland, 71, and Carlos Grijalva, 59, created fake businesses selling COVID-19 protective equipment to mask their fraudulent activities. The trio used these fabricated operations to steal millions of dollars from unemployment compensation programs in Florida, Pennsylvania, Virginia, and other states, including Economic Impact Payments (stimulus funds). Through false claims and identity theft, they secured payouts meant for American workers struggling during the pandemic.
