In short
- Rinehart used over twenty-four EBP debit cards sent to her address to withdraw funds, buy money orders, and purchase cryptocurrency.
- The fraudulent benefits were obtained using identities from multiple states, with none of the claimants residing in West Virginia or authorizing Rinehart's actions.
What happened
Leigh Ann Rinehart, age 54, admitted to participating in a scheme to fraudulently obtain over $440,000 in COVID-related unemployment benefits by using the identities of individuals from several states. She received and activated more than twenty-four EBP debit cards at her Elkins, West Virginia address, using them to withdraw funds and make purchases.
The investigation revealed that none of the claimants whose identities were used lived in West Virginia or authorized Rinehart to access their benefits. The case was prosecuted by Assistant U.S. Attorney Jennifer Conklin and investigated by multiple federal agencies, including the Department of Labor Office of Inspector General and Homeland Security Investigations.
Those EBP cards were loaded with benefits totaling more than $440,000 from these various states for individuals whose identity was fraudulently used to obtain the benefits, regardless of where they lived.
In numbers
- $440,000 Total fraudulent unemployment benefits
What compliance teams should check
- Review all unemployment benefit claims involving EBP debit cards issued to addresses in West Virginia for links to Leigh Ann Rinehart.
- Screen for benefit applications using out-of-state identities with West Virginia mailing addresses, especially from Nevada, California, and New York.
- Cross-check EBP card activations and fund withdrawals from June 2020 through November 2022 for patterns matching this fraud typology.
Why it matters
This case highlights the risks of identity theft and interstate fraud in pandemic-related benefit programs, emphasizing the need for robust verification and monitoring of unemployment claims. Compliance officers must be vigilant for schemes involving multiple identities and out-of-state benefit applications, as well as the misuse of EBP debit cards. The involvement of several federal agencies and the DOJ’s new National Fraud Enforcement Division underscores the heightened enforcement environment and the importance of proactive fraud detection and reporting in AML/CFT programs.
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