Stephen Watson was proudly known as O’Dawg. Watson must have been viewed pretty favorably amongst family and friends being that nicknames are usually used to express affection, amusement, or a character trait. Sometimes though, a nickname comes from a defamation of character. In which case, Watson could have been called “O’Fraudster.” Not sure that is something to be proud of.
From March 2020 to October 2021, Watson and his co-conspirators impersonated victims to submit fraudulent claims for pandemic-related unemployment insurance benefits in Maryland and in California. As part of the scheme, Watson obtained the birthdates, social security numbers, and other personal identifying information (“PII”) of numerous victims which they used to prepare and submit fraudulent applications for UI benefits. The stolen information included the victims’ contact information, states of residence, and availability for work. They went to extensive lengths to prepare and submit complete, albeit fraudulent, applications. These fraudulent applications caused financial institutions to load more than $1.5 million in UI benefits onto debit cards mailed to Watson. Once Watson received the debit cards, he used them for cash withdrawals and other transactions for their own benefits. Can’t call Watson “Robin Hood.”
The investigation into Watson’s dealings led to the confiscation of eleven unemployment insurance debit cards linked to nine victims, along with a fake account created in his own name. Investigators also uncovered evidence of extensive communication with his accomplices proving his intent to steal from the U.S. taxpayer.
On July 18, 2024, Watson was sentenced to fifty-three months in federal prison for charges related to a Maryland and California unemployment insurance fraud scheme. While Watson stole $1.5 million in government benefits, he was ordered to pay restitution of $2,094,319. The judge added on a fraudster finder’s fee.
Shout out to the Department of Labor’s Office of Inspector General in this case.
Today’s Fraud of the Day is based on article “Capital Heights Man Sentenced To 53-months for $1.5 million Pandemic Fraud and Firearm offense” published by Hoodline News on July 22, 2024.
A Capitol Heights man has been handed a 53-month sentence for his involvement in a fraud scheme and illegal firearm possession. Stephawn Watson, 28, known as “O Dawg,” received the sentence on July 18th after pleading guilty to charges stemming from a pandemic-related unemployment insurance fraud that swindled more than $1.5 million in Maryland and California.
In addition to his prison term, U.S. District Judge Brendan A. Hurson ordered Watson to forfeit over $90,000 and to pay restitution of $2,094,319, as reported by the U.S. Attorney’s Office for the District of Maryland.
