Victorville woman takes plea in benefits scheme

A Victorville woman pleaded guilty to fraudulently obtaining more than $500,000 in COVID-19 pandemic-related unemployment insurance benefits, the Department of Justice reported on Monday.

Cynthia Ann Hernandez, 33, aka "Cynthia Roberts," obtained the funds by using the names of inmates in the California state prison system.

She pled guilty to one count of mail fraud and one count of access device fraud over $1,000, the DOJ reported.

According to her plea agreement, from June to August 2020, Hernandez filed fraudulent applications for unemployment benefits in the names of inmates with the California Employment Development Department.

Hernandez falsely stated on the benefits applications that the named claimants were individuals whose employment had been negatively affected by the COVID-19 pandemic and were eligible for pandemic unemployment assistance under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Congress passed the CARES Act in March 2020 to help individuals whose employment and finances were adversely affected by the pandemic.

The applications also falsely stated that the named claimants were eligible for the benefits and that they resided and worked in Los Angeles and Orange counties.

The California Employment Development Department then authorized Bank of America to issue debit cards in the claimants' names which were mailed to Hernandez's mailing address. Once Hernandez received the debit cards, she used them to withdraw cash at ATMs.

Hernandez admitted to filing at least 29 fraudulent applications, resulting in losses to the California Employment Development Department and the U.S. Treasury of $515,138.

United States District Judge Mark C. Scarsi scheduled an April 17 sentencing hearing.

At that time, Hernandez will face a statutory maximum sentence of 20 years in federal prison for the mail fraud count and up to 15 years in federal prison for the access device fraud count.

This matter was investigated by the U.S. Department of Labor – Office of Inspector General; the California Employment Development Department – Investigation Division; Homeland Security Investigations; the California Department of Corrections and Rehabilitation; the United States Department of Homeland Security – Office of Inspector General; the United States Postal Inspection Service; and United States Customs and Border Protection – Special Response Team.

Assistant U.S. Attorney Haoxiaohan Cai of the General Crimes Section is prosecuting this case.