CaliToday (11/12/2025): Two Georgia men who treated the global pandemic as a "get-rich-quick" opportunity have been handed heavy federal prison sentences. Authorities revealed that the pair orchestrated a massive $17 million unemployment fraud ring that preyed on the identities of thousands of unsuspecting victims, including hospital patients.
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| Acting Assistant Attorney General Matthew R. Galeotti |
The sentencing marks the conclusion of a significant branch of "Operation Cordele Partial," a sweeping federal investigation that has exposed over $45 million in fraudulent claims spanning 20 states.
1. The Sentence: A Heavy Price to Pay
According to federal prosecutors, the ringleaders, Malcolm Jeffrey and Gerard Towns, both 34, built an empire on deceit between March 2020 and November 2022.
Malcolm Jeffrey: Identified as the primary architect, Jeffrey was sentenced to 10 years in federal prison. In a crushing financial blow, he has also been ordered to pay nearly $17 million in restitution.
Gerard Towns: His co-conspirator received a 6-year prison term and was ordered to repay approximately $365,000 to the federal government.
Acting Assistant Attorney General Matthew R. Galeotti condemned the pair’s actions, stating they "orchestrated a serious plot to steal unemployment insurance money using stolen identities, exploiting a program designed to alleviate economic hardship for personal gain."
2. The Scheme: Phantom Firms and Insider Threats
The sophistication of the fraud went far beyond simple identity theft. Investigators revealed a multi-layered operation designed to bleed the Georgia Department of Labor dry.
The "Company Man" Ruse: The duo created sham corporations companies that existed only on paper. They then registered lists of "fake employees" using stolen identities to file for unemployment benefits when the pandemic hit.
The Hospital Connection: In a particularly egregious breach of privacy, court documents revealed that the group bribed an employee within the Atlanta health system. This insider illegally extracted patient data from hospital databases, which Jeffrey and Towns then purchased to fuel their fraud machine.
The Cash-Out: Over 2,500 fraudulent claims were filed. The benefits were loaded onto prepaid debit cards, which were mailed to addresses controlled by the ring, allowing them to siphon millions meant for struggling workers.
3. The Crackdown Continues
Special Agent in Charge Mathew Broadhurst emphasized that the investigation does not end here. This case serves as a warning to others who think the chaos of the pandemic provided a perfect cover for crime.
Inspector General Joseph V. Cuffari labeled the behavior "unacceptable," noting the moral depravity of looting safety net programs during a national crisis.
A Warning to Fraudsters: Federal officials highlighted that Congress has extended the statute of limitations for COVID-19 related fraud to 10 years. This gives investigators a decade to track down, charge, and prosecute individuals involved in similar schemes.
CaliToday.Net"These defendants are the final individuals to be sentenced in this specific operation, but the hunt for pandemic fraudsters is far from over," officials noted.