A Garland man has been handed a two-year prison sentence for his involvement in a multi-million-dollar unemployment insurance fraud scheme. Frank Sherman, 60, pleaded guilty to the theft of government funds after being indicted in November 2022, his conviction arising from a fraudulent operation that spanned from July 2020 to September 2021, according to the U.S. Attorney's Office for the Northern District of Texas.
U.S. District Judge David Godbey sentenced Sherman on Monday, in addition to ordering him to pay nearly $2.3 million in restitution, for which he is held jointly and severally liable with his coconspirators. Sherman admitted to collaborating with individuals he met on social media to distribute illegally obtained funds using preloaded debit cards issued by the Nevada Department of Employment, Training & Rehabilitation.
During the scheme's operation, Sherman shipped at least 200 Nevada unemployment insurance debit cards to Canada, which were loaded with over $2 million. He confessed that although most of the cards reached their North American destination, he had used at least one card for his gain.
Aside from his dealings involving the Nevada fund, Sherman also admitted to wrongfully receiving $3,000 from the California Employment Development Department – despite never having been employed in the state. The case, which highlights the vulnerabilities in unemployment insurance systems across states, was investigated by the U.S. Department of Labor – Office of Inspector General and the U.S. Department of Homeland Security – Office of Inspector General, with Assistant U.S. Attorney Marty Basu leading the prosecution.
Contacted for comment, Press Officer Erin Dooley reiterated the details of the sentence. For more information, please contact Erin Dooley at 214-659-8707 or via email at [email protected].
