Woman Pleads Guilty to Exploiting Prison Inmates in COVID Fraud Scheme

KANSAS CITY, Mo. – In a federal court hearing, a woman from St. Joseph, Missouri, pleaded guilty to charges of utilizing the stolen identities of prison inmates to unlawfully obtain federal unemployment benefits through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Brooke Stewart, 38, entered a guilty plea before U.S. District Judge Brian C. Wimes for one count of stealing government property.

By admitting guilt, Stewart acknowledged her involvement in orchestrating false claims for unemployment benefits by utilizing stolen identity information from five individuals who were incarcerated in state or federal prisons, making them ineligible to receive both Missouri and enhanced unemployment benefits. Additionally, Stewart unlawfully received federal unemployment benefits in her own name and another individual’s name.

Stewart’s fraudulent scheme resulted in the theft of at least $139,663 in benefits under the CARES Act. This legislation provided additional federal pandemic unemployment compensation to eligible individuals who were already receiving other unemployment benefits under state laws.

It is important to note that none of the inmates whose identities were stolen received any of the fraudulently obtained benefits. Among the individuals whose stolen identity information was used to obtain benefits between May 2020 and June 2021 were federal defendants Garland Nelson and Brooke Beckley. Nelson is currently serving a 32-year federal prison sentence for a cattle fraud scheme that resulted in two murders in Braymer, Missouri, as well as for illegal firearm possession. In a separate state case, he received two life sentences for the murders. Beckley, on the other hand, is serving a 40-year prison sentence for her involvement in the murder of a Mexican national as part of a drug-trafficking conspiracy in the Springfield, Missouri, area.

Under federal statutes, Stewart could face a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is set by Congress and is provided here for informational purposes, as the court will ultimately determine the defendant’s sentence based on advisory sentencing guidelines and other relevant statutory factors. A sentencing hearing will be scheduled following a presentence investigation conducted by the United States Probation Office.

The case of Brooke Stewart sheds light on the severity of identity theft and the abuse of federal programs intended to provide assistance during times of crisis. Such fraudulent activities not only undermine the integrity of the CARES Act but also negatively impact individuals who genuinely require financial support. The guilty plea serves as a reminder of the government’s commitment to combatting identity theft and ensuring that those who exploit the system are held accountable for their actions.