Jaime Ornelas, 27, a former resident of Modesto, has been sentenced to three years and one month in prison. U.S. District Judge Dena Coggins also ordered him to pay $150,000 in restitution for conspiracy to commit mail fraud related to fraudulent unemployment insurance benefits. This announcement was made by Acting U.S. Attorney Kimberly A. Sanchez.
Previously, on June 6, 2025, Jaime’s mother and co-defendant Misty Ornelas, 48, from Turlock, received an 18-month prison sentence.
Court documents reveal that starting in June 2020, Jaime and Misty Ornelas orchestrated a scheme involving the submission of false unemployment insurance claims to the California Employment Development Department (EDD). While incarcerated at High Desert State Prison in Lassen County, Jaime provided Misty with personal information of fellow inmates. Misty used this information to file fraudulent claims with EDD. These applications falsely stated that the inmates had recently worked and lost their jobs due to the COVID-19 pandemic. The fraudulent claims exceeded $150,000.
The investigation was conducted by the Federal Bureau of Investigation and EDD. Assistant U.S. Attorneys Chan Hee Chu and Denise N. Yasinow handled the prosecution.
This case is part of the California COVID-19 Fraud Enforcement Strike Force initiative led by the United States Department of Justice. The strike force targets large-scale pandemic relief fraud using a combination of law enforcement and prosecutorial resources across Eastern and Central Districts of California.
