A Capitol Heights man has been handed a 53-month sentence for his involvement in a fraud scheme and illegal firearm possession. Stephawn Watson, 28, known as "O Dawg," received the sentence on July 18th after pleading guilty to charges stemming from a pandemic-related unemployment insurance fraud that swindled more than $1.5 million in Maryland and California. In addition to his prison term, U.S. District Judge Brendan A. Hurson ordered Watson to forfeit over $90,000 and to pay restitution of $2,094,319, as reported by the U.S. Attorney's Office for the District of Maryland.
According to the official statement, from March 2020 to October 2021, Watson and his co-conspirators used stolen personal identifying information to falsely claim pandemic unemployment aid. They went to extensive lengths to prepare and submit fraudulent applications, causing financial institutions to mistakenly load benefits onto debit cards. The scheme was part of a larger set of fraudulent activities to have explosively taken advantage of the crisis funding intended to alleviate the hardships wrought by the pandemic.
The investigation into Watson's dealings led to the confiscation of 11 unemployment insurance debit cards linked to nine victims, along with evidence of extensive communication with his accomplices. An inquiry of Watson's home in February 2021 also uncovered a fake account created in his own name, facilitating further illicit transactions. Erek L. Barron, U.S. Attorney for the District of Maryland, commended the coordination and hard work of the investigating agencies, including the U.S. Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, among others.
Besides the wire fraud charges, Watson was also sentenced for illegally possessing a firearm—a weapon that turned out to be stolen. His arrest back in January 2022 by the Cumberland Police Department occurred when he was already wanted on three separate warrants in three different jurisdictions, all firearms-related offenses.
