Michigan Attorney General Busts Massive ID Theft Scheme
DETROIT (WWJ) - Michigan Attorney General Bill Schuette Thursday announced 41 criminal charges against three people accused of running a sophisticated criminal enterprise that defrauded the state of more than a quarter of a million dollars.
The 23-year-old Jamal Cann and his wife, 26-year-old Kellee Cann of Shelby Township, along with 27-year-old Darnell Bailey of Dearborn, are accused of setting up 19 companies with 170 employees. The trio then allegedly laid of the employees and collected the unemployment benefits of the people.
The "fake" employees were established with the stolen identities of Michigan residents, some in prison.
Schuette said the three are also accused of welfare and tax fraud.
The defendants allegedly fabricated W-2 forms reflecting income from retailers Target and Wal-Mart and then filed false returns for individuals who otherwise would not file a return because they had no qualifying income. Schuette alleges the Canns collected approximately $15,000 in tax refunds deposited by the State into bank accounts controlled by the couple and may have received an additional $55,000 through other means.
"This investigation is far from over," said Schuette, who has declined to give details on how the scam came together.
The defendants were arrested by Attorney General investigators and arraigned this week in 41-A District Court.
"Individuals defrauding the UI system are not only stealing from the hardworking job providers who completely fund the system, but they are also threatening the availability of benefits for those truly in need," said Jim Holcomb, Senior Vice President of the Michigan Chamber of Commerce. "We appreciate the Attorney General's strong efforts to send a clear message that UI fraud will be prosecuted to the fullest extent of the law."
