Stockton Woman Charged with Half Million Dollar Unemployment Fraud

SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Deborah Hollimon, 39, last known residences of Stockton, California and West Memphis, Arkansas, charging her with unemployment fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, between September 2012 and September 2015, Hollimon operated a “fictitious employer” scheme. Hollimon created employers with the California Employment Development Department (EDD) that were entirely fictitious and did not conduct any business. Hollimon then caused the submission of information to the EDD falsely indicating that various persons, including herself and various unwitting victims of identity theft, were employed by the fictitious entities. Hollimon subsequently filed unemployment claims in her own name and the names of the fake laid-off employees. The fraudulent unemployment insurance benefits were usually mailed to an address controlled by Hollimon. In this way, Hollimon collected over $550,000 in fraudulent unemployment insurance benefits.

This case is the product of an investigation by the Department of Labor, Office of Inspector General, the California Employment Development Department – Investigations Division, and the U.S. Postal Inspection Service. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

Hollimon’s current whereabouts are unknown. Anyone with information on her whereabouts should call (415) 625-2685.

If convicted, Hollimon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. She also faces a mandatory minimum two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would 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; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.