COVID Feature: Snowball Effect

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Hacking and criminal concept.A hacker in a secret hiding place is neon light.

A snowball effect is described metaphorically as a process that begins as something very small, but as it gains momentum, it becomes larger, more serious, and perhaps even dangerous or devastating. Rashawn Prioleau, 35, of Charlotte, N.C., triggered an avalanche when he allegedly engaged in a scheme to defraud the U.S. Department of Labor (DOL), the U.S. Small Business Administration (SBA), and several North and South Carolina state agencies. Now he’s sliding down the slippery slope of COVID-19 related unemployment insurance (UI) fraud and aggravated identity theft. (I have a feeling he’s going to be buried beneath an avalanche of fraud.)

Over approximately six months, Prioleau accessed the personal information of at least seven identity theft victims. (He captured names, Social Security Numbers, birth dates, and addresses. Then he used that information to illegally file for UI benefits in North and South Carolina.) He then allegedly directed the UI benefits to debit cards or bank accounts he controlled.

Court documents show that as Prioleau’s purported fraud scheme gained momentum, he also fraudulently applied for two Economic Injury Disaster Loans (EIDL) based on incorrect information. (That snowball was gaining speed and growing larger as it descended deeper into the dark abyss of fraud.) As a result of these alleged illegal actions, he received $60,397 in government-funded COVID-19 benefits he did not deserve.

Prioleau is charged with nine counts of bank fraud, two counts of making a false statement to the SBA, and two counts of aggravated identity theft. It’s important to remember that these charges are merely allegations. However, if convicted, this North Carolinian could spend a very long time behind bars and pay millions of dollars in fines. (That avalanche of fraud could very well eliminate any possibility of life outside of prison in the future.)

If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form.

Today’s Fraud of the Day comes from a Department of Justice press release, “Federal Indictment Charges Charlotte Man for Defrauding COVID-19 Government Benefits Programs,” dated February 22, 2021.

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Rashawn Prioleau, 35, of Charlotte, on multiple financial institution fraud and aggravated identity theft charges, for stealing more than $60,000 from government-funded COVID-19 benefit programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney Murray in making today’s announcement.

 

 

 

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.