An Inglewood woman, Selena Stewart, has been arrested following a federal indictment accusing her of fraudulently acquiring over $1.3 million in COVID-19 relief funds. The Justice Department announced the charges which allege Stewart submitted more than 100 fraudulent unemployment insurance (UI) benefit applications using stolen identities, including those of California state prisoners.
Stewart, 45, appeared in court on Wednesday and pleaded not guilty to multiple charges: 10 counts of mail fraud, one count of use of unauthorized access devices, two counts of aggravated identity theft, and one count of possession of at least 15 unauthorized access devices. Her trial is set for August 26.
A judge ordered Stewart’s release on a $10,000 bond. The indictment states that from March to December 2020, Stewart collaborated with Toby Brazier and Tony Queen to file fraudulent UI benefit claims with the California Employment Development Department (EDD). These applications used personal identifying information without permission and included individuals incarcerated in state prisons who were ineligible for benefits.
The applications falsely claimed that applicants had been affected by the pandemic and resided or worked in California. Consequently, EDD authorized Bank of America to issue debit cards loaded with benefits to dozens of victims and straw claimants. The defendants then allegedly withdrew funds from these debit cards at ATMs and banks.
In total, Stewart and her co-defendants filed at least 101 fraudulent applications causing losses exceeding $1.3 million to both EDD and the U.S. Treasury.
Co-defendants Brazier and Queen face similar charges; Queen is scheduled for an arraignment next week while Brazier remains a fugitive.
The indictment serves as an allegation; all defendants are presumed innocent until proven guilty in court. If convicted, Stewart could face significant prison time: up to 20 years for each mail fraud count, up to 10 years for unauthorized access device usage, a mandatory two-year sentence for each aggravated identity theft count, and another potential decade for possessing unauthorized access devices.
The investigation involves several agencies including the United States Department of Labor Office of Inspector General; U.S. Department of Homeland Security Office of Inspector General; and California Employment Development Department Investigation Division.
Assistant United States Attorneys Clifford Mpare and Christina Lopez are leading the prosecution. Information about attempted COVID-19 related fraud can be reported through the National Center for Disaster Fraud Hotline or their online complaint form.
