A Pontiac man has admitted to his role in an elaborate identity theft and unemployment fraud scheme that netted over $4 million in Pandemic Unemployment Assistance funds. According to a U.S. Department of Justice press release, 36-year-old Terrance Calhoun, Jr. entered a guilty plea for multiple charges including aggravated identity theft, wire fraud, and the possession of unauthorized access devices.
Calhoun, along with unnamed co-conspirators, were involved in a six-month fraud operation spanning Michigan, Arizona, and Maryland. They reportedly utilized stolen personal identification to file hundreds of false unemployment claims and had the funds sent to controlled addresses. In the depths of the scheme, roughly $1.6 million were extracted from the fraudulently obtained debit cards through purchases and cash withdrawals. "Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance," Acting U.S. Attorney Julie A. Beck told The Department of Justice.
The guilty plea carries a substantial penalty for Calhoun—up to 20 years for each wire fraud count, a 10-year maximum for possessing the unauthorized access devices, and a mandatory two-year sentence for the aggravated identity theft. His sentencing is expected on August 27, 2025. "Individuals who commit identity theft and unemployment insurance fraud of this magnitude deserve to be punished to the fullest extent of the law," remarked Charles Miller, Special Agent-in-Charge of the Detroit Field Office of IRS Criminal Investigation, as per the Department of Justice.
The case was a joint effort among federal and state agencies, with investigators from the Department of Labor Office of the Inspector General, IRS Criminal Investigations, FBI, Secret Service, and others. When the law enforcement executed warrants at the mailing addresses, including Calhoun's residence, they discovered ample evidence including documents with personal identification information, numerous debit cards, and firearms. "Today’s guilty plea by Terrance Calhoun, whose involvement in a multi-state fraud scheme, is a clear reminder that bad actors will be stopped, and we will ensure integrity will prevail," Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office, told the Department of Justice.
