Savannah jury convicts Florida woman in multi-state pandemic benefits fraud case

SAVANNAH, Ga. (WTOC) - A Florida woman has been convicted in federal court in Savannah for her role in a scheme that fraudulently obtained nearly half a million dollars in pandemic unemployment benefits from states across the country, federal prosecutors said.

A jury found Cheryl Galloway, 67, of Yulee, Florida, guilty of conspiracy to commit mail fraud following a five-day trial in U.S. District Court for the Southern District of Georgia.

Prosecutors said Galloway and her co-conspirators submitted fraudulent unemployment claims in at least 40 states over a two-year period, falsely claiming eligibility for pandemic-related benefits created under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The scheme resulted in approximately $480,000 in improperly obtained benefits, according to court testimony and documents. Investigators said some of the benefits were delivered to Galloway through the U.S. mail in the form of debit cards.

The case was prosecuted in Savannah by the U.S. Attorney’s Office for the Southern District of Georgia, which said the conviction underscores ongoing efforts to recover taxpayer-funded benefits lost to fraud during the COVID-19 pandemic.

“Using the postal system to advance a fraudulent scheme in order to enrich yourself will result in the harshest of consequences,” U.S. Attorney Margaret E. “Meg” Heap said in a statement. “This case, and many others like it, demonstrate that federal investigators and prosecutors will identify these criminals and hold them accountable.”

Galloway faces a maximum sentence of 20 years in federal prison, a fine of up to $250,000 and up to three years of supervised release. A sentencing date has not been set. There is no parole in the federal system.

Anthony P. D’Esposito, inspector general for the U.S. Department of Labor, said the case involved fraudulent claims that falsely represented employment and pandemic-related job losses in order to obtain benefits.

“This conviction is a stark reminder that my office will continue to aggressively investigate, prosecute and pursue anyone who steals from American taxpayers,” D’Esposito said.

Congress expanded unemployment insurance programs and eligibility through the CARES Act in March 2020 as the pandemic disrupted the U.S. economy. The Department of Labor’s Office of Inspector General has since investigated thousands of cases involving attempts to fraudulently access those funds.