FOR IMMEDIATE RELEASE	CONTACT: Lauren Horwood
March 1, 2011	PHONE: (916) 554-2706
www.usdoj.gov/usao/cae	usacae.edcapress@usdoj.gov
Docket #: 2:11-cr-0085 GEB

SACRAMENTO-- United States Attorney Benjamin B. Wagner announced that a five count indictment was unsealed today charging Donye Marcell Mitchell, Sr. of Los Angeles with mail fraud.  Mitchell was arrested this morning in Los Angeles. 

This case is the product of a joint investigation by the United States Department of Labor, Office of Inspector General and the Criminal Investigations Division of EDD.  Assistant United States Attorney Jared C. Dolan is prosecuting the case.

The indictment alleges that between January 2008 and February 2011, Mitchell registered fictitious employers with the California Employment Development Department (EDD) and then recruited other individuals to pose as laid-off employees of those companies.  These fake employees would then file for and collect unemployment insurance benefits based on the wages reported to EDD by the fictitious employers.  Mitchell’s scheme resulted in over $5 million in fraudulent benefits being paid out.  

The maximum statutory penalty for a violation of twenty years in prison and a $250,000 fine.  The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

               

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

               

(Download Factual Basis)

####

 

Return to Top