Case 2:22-cr-20554-MFL-EAS ECF No. 1, PageID.

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AUSA: Filed 06/14/22Telephone:
Trevor M. Broad Page 1(313)
of 16
226-9100
AO 91 (Rev. ) Criminal Complaint Special Agent: Miguel A Colon Telephone: (313) 965-2323

UNITED STATES DISTRICT COURT

for the
Eastern District of Michigan
United States of America
v.
Brandon BOWDITCH Case No. 2:22-mj-30273
Judge: Unassigned,
Filed: 06-14-2022 At 03:28 PM
SEALED MATTER

CRIMINAL COMPLAINT

I, the complainant in this case, state that the following is true to the best of my knowledge and belief.

On or about the date(s) of June 2020 in the county of Wayne in the

Eastern District of Michigan , the defendant(s) violated:
Code Section Offense Description
18 U.S.C. § 1341 Mail Fraud
18 U.S.C. § 1343
Wire fraud

This criminal complaint is based on these facts:

See attached affidavit

✔ Continued on the attached sheet.

Complainant’s
C l i t’ signature
i t

Special Agent Miguel A. Colon

Printed name and title
Sworn to before me and signed in my presence
DQGRU E\ UHOLDEOH HOHFWURQLF PHDQV

Date: June 14, 2022 Judge’s signature

City and state: Detroit, MI Hon. Kimberly G. Altman, United States Magistrate Judge
Printed name and title
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AFFIDAVIT IN SUPPORT OF A COMPLAINT

I, Miguel A. Colon, being first duly sworn, hereby depose and state as

follows:

INTRODUCTION AND AGENT BACKGROUND

1. I am a Special Agent of the U.S. Department of Labor, Office of

Inspector General, Office of Investigations - Labor Racketeering and Fraud

(“DOL-OIG/OI-LRF”) and have been since December 2017. I am currently

assigned to the Federal Bureau of Investigation (“FBI”) Violent Gang Task Force

(“VGTF”), where I participate in investigations of street gangs committing various

violations of federal law, including weapons and narcotics trafficking, violent

crimes, and fraud. Prior to my current assignment, I was assigned to the Homeland

Security Investigations’ Document and Benefit Fraud Task Force, where I

investigated criminal activity including, but not limited to, identity theft, money

laundering, visa fraud and other financial fraud. I have conducted numerous

investigations involving identity theft, labor, financial and unemployment

insurance fraud schemes. In addition to my experience, I have also received

significant law enforcement training, including graduating from the Criminal

Investigator Training Program at the Federal Law Enforcement Training Center.

2. As a Special Agent, I have conducted numerous investigations into

criminal violations of both Title 29 and Title 18 of the United States Code. During
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this time, I have been either the lead agent or supporting agent on several

investigations involving criminal schemes targeting the unemployment insurance

(“UI”) program through the filing of false or fictitious UI claims. Based on my

direct personal experience with these cases, I have become familiar with the

methods that criminals use to attack and exploit the UI systems as well as the

criminals’ reliance on the use of email and other internet or online tools and

systems to facilitate that fraud.

3. Probable cause exists that Brandon BOWDITCH has engaged in an

unemployment insurance fraud scheme and has committed Mail Fraud (18 U.S.C.

§ 1341) and Wire Fraud (18 U.S.C. § 1343). The scheme involves the filing of

fraudulent UI claims through the internet, and the withdrawal of fraudulently

obtained UI funds at ATMs in the Eastern District of Michigan, often using UI

debit cards that were sent through the mail.

4. I make this affidavit based upon personal involvement in the subject

criminal investigation, including review of: financial, employment, internet service

provider, utility and property records; records from relevant state agencies

regarding UI claims; law enforcement surveillance; and information and evidence

from search warrants in this investigation. I have also been provided with

information from other law enforcement agents and officials, including agents and

officials from the FBI and various state Unemployment Insurance agencies. This

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affidavit does not contain all the facts developed to date in the underlying

investigation and is being submitted for the limited purpose of establishing

probable cause to secure a criminal complaint and arrest warrant.

UNEMPLOYMENT INSURANCE BACKGROUND

5. The Social Security Act of 1935 initiated the federal and state

Unemployment Insurance system. The system provides benefits to individuals who

are unemployed for reasons beyond their control. The purpose of the

Unemployment Insurance system is twofold: first, to lessen the effects of

unemployment through cash payments made directly to laid-off workers, and

second, to ensure that life necessities are met on a weekly basis while the worker

seeks employment. In the State of Michigan, the Unemployment Insurance system

is administered by the Unemployment Insurance Agency (“MUIA”), which is part

of the State of Michigan’s Department of Labor and Economic Opportunity. In the

State of Arizona, the UI system is administered by the Department of Economic

Security (“DES”). In the State of California, the UI system is administered by the

Economic Development Department (“EDD”). The U.S. Department of Labor

funds many Unemployment Insurance Agency administrative costs, including

salaries, office expenses, and computer equipment.

6. State unemployment systems and benefits are joint state and federal

enterprises largely financed by taxes on private employers located in that state. In

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2020 and 2021, the federal government provided significant supplemental benefits

to the states as a result of the COVID-19 pandemic. Beginning in or about March

2020 and continuing through September 4, 2021, the Families First Coronavirus

Response Act; Coronavirus Aid, Relief, and Economic Security Act; and the

American Rescue Plan Act of 2021 created federal programs that allowed for the

significant outlay of federal funds flowing to and through the states to offset the

historic need for unemployment benefits by the American workforce, including in

the states of Arizona, California, Michigan and in the Eastern District of Michigan.

Collectively, these benefits are often referred to as Pandemic Unemployment

Assistance (“PUA”).

7. Normally (in the absence of fraud), an unemployed worker initiates a

UI claim. This can be accomplished by submitting a claim in person, over the

telephone, or via the Internet. Currently, most UI claims in Michigan, California

and Arizona are filed online via the Internet through the MUIA and DES’ websites.

When a claimant using an internet protocol (“IP”) address registered in Michigan

files a claim with an out-of-state UI agency, the servers used to process those

claims are located outside the state of Michigan. For example, an Arizona UI claim

or California UI claim filed from an IP address registered to a Michigan residence

will be processed through a server located outside of the state of Michigan.

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8. To be eligible for UI benefits, the worker must demonstrate a certain

level of earnings in several quarters immediately preceding the application. The

amount of benefits that a UI claimant might be eligible for depends on a variety of

factors, including but not limited to the length of his or her previous employment

and the amount of wages he or she earned.

9. The MUIA, EDD or DES will either approve or reject a UI claim

based on the application made by the unemployed worker. If the MUIA, EDD or

DES approves a UI claim, the claimant is required to re-certify the claim via

telephone or Internet at various times during the life of the claim. The worker must

also certify that he or she is still unemployed and actively seeking work. In

Michigan and Arizona, one way in which unemployment benefits are provided to a

claimant is with a debit card, issued by the Bank of America (“BOA”), which is

mailed to the claimant through the U.S. Postal Service. In California, claimants can

only accept UI benefits through the BOA debit card, also mailed to the claimant

through the U.S. Postal Service.

10. Alternatively, a claimant can provide the state Unemployment

Insurance Agency with a bank routing number and bank account number so his or

her Unemployment Insurance benefits can be transferred via electronic funds

transfers (“EFTs”) into his or her bank account. These EFTs originate from one or

more accounts maintained by the state Unemployment Insurance Agency at Bank

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of America, N.A., which is a subsidiary of Bank of America Corporation, a bank

holding and financial holding company headquartered in Charlotte, North Carolina.

All EFTs of UI benefits to Michigan or California UI claimants, whether via a

BOA-provided debit card or via a claimant-provided bank account, involve the

transmission of electronic signals through one of BOA’s two data centers, which

are located in Virginia and Colorado, and from those data centers to banks and/or

ATMs located, for example, in Michigan. In addition, any other state that disperses

UI benefits using BOA prepaid debit cards, including Arizona, also involve the

transmission of electronic signals through the aforementioned BOA data centers.

These are interstate wire communications.

PROBABLE CAUSE

11. The Federal Bureau of Investigation and the Bureau for Alcohol,

Tobacco, and Firearms have been investigating criminal activity conducted by

members and associates of the Detroit street gang, DWBI or “Don’t Worry About

It.” As part of that investigation, I identified DWBI members, associates, and

others who appeared to be engaged in unemployment insurance fraud schemes.

Through this investigation, I have probable cause to believe that Brandon

BOWDITCH engaged in a UI fraud scheme that has defrauded multiple states of

thousands of federal dollars earmarked for Pandemic Unemployment Assistance.

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12. I identified an IP address, 68.49.22.205 (“IP 205”), to be responsible

for submitting approximately 109 UI claims in 109 unique individuals’ names and

Social Security Numbers (“SSNs”). I know from my training and my experience

in other UI fraud investigations that a large volume of claims from a single IP

address with numerous unique individuals’ names and SSNs is indicative of

fraudulent UI claims. Based on my experience in other UI fraud investigations, the

number of UI claims and the number of unique individuals’ names and SSNs

listed in those claims, all associated with this single IP address, i.e. 109 claims,

constitutes a large volume of claims and unique individuals’ names and SSNs,

which provides reason to believe the IP address was used to submit, access and/or

modify fraudulent UI claims. To date, approximately $468,291 in UI benefits has

been disbursed on claims connected to IP 205.

13. Agents uncovered the 109 claims linked to IP 205 in part through

searches of a DOL-OIG database that contains information related to UI

applications and benefits paid. A search in that database for claims filed, accessed

or modified using IP 205 indicated that IP 205 is associated with (i.e., the IP

address was used to file, access and/modify) UI claims in eight different states. The

search results also indicated that the address X02X Greenview Ave, Detroit, MI

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48228 was listed as the account mailing address on at least seven of the 109 UI

claims connected to IP 205.

14. Agents also learned from subscriber and billing records from Comcast

that the service and billing address for IP 205 is X02X Greenview Ave. in Detroit,

Michigan, and the subscriber is Conspirator #1, a real person whose identity I

know, with an account phone number of 313-XXX-6206.

15. Agents identified that Conspirator #1 was living at X02X Greenview

Ave, Detroit, MI 48228, from at least May 2, 2020 through October 9, 2020, which

covers the period during which the 109 claims linked with IP 205 were submitted.

Fraud Indicators

16. Agents reviewed the email addresses, claimant phone numbers, bank

accounts and IP addresses related to the UI claims associated with IP 205. Agents

found numerous commonalities among the claims, which are strong indicators of

fraud. For instance, phone number 313-XXX-1592, was used on 14 separate UI

claims in the states of Michigan, Arizona, Guam, and Hawaii. A separate phone

number, 313-XXX-7897 was used on five separate UI claims in the states of

Michigan and Arizona. As previously stated, the claims were all filed under a

single IP address. Bank accounts were also used multiple times between claims.

For instance, Green Dot bank account ending X-5128 was used in four of the 109

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UI claims. A separate Axos bank account ending X-6937 was used in seven of the

109 UI claims in three different states.

17. Based on my training and my experience with fraud and identity theft

schemes targeting state UI agencies, I know that the filing of 109 distinct claims

from one IP address in less than a year, with claims within that population having

repeat phone numbers and/or repeat bank accounts, are strong indicators of an

identity theft and unemployment insurance fraud scheme.

June 2021 Search of X02X Greenview Ave

18. On June 11, 2021, agents executed a federal search warrant at X02X

Greenview Avenue in Detroit, Michigan. BOWDITCH, Conspirator #1, and

another individual were present at the time of the search. Agents seized evidence

of identity theft and UI fraud inside the house. For example, multiple debit cards

corresponding to fraudulent UI claims were found in the house.

19. During the search, agents seized cell phones belonging to

BOWDITCH and Conspirator #1, and subsequently obtained and executed a

search warrant to search the phones, which in turn uncovered additional evidence

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(some of which is described below) of BOWDITCH’s involvement in perpetrating

UI fraud.

UI Fraud Associated with BOWDITCH

20. On April 27, 2020, a Michigan UI claim was filed in the name of

Brandon BOWDITCH. The email address provided with the UI claim was

“[email protected].” The phone number listed on the claim was 313-XXX-

1027, which is the phone number that BOWDITCH gave to federal agents as his

phone number on June 11, 2021. The address registered on BOWDITCH’s

Michigan UI claim for the mailing, via USPS, of a Bank of America UI debit card

was 197XX Winthrop St., Detroit, MI, which is the same address that is listed on

BOWDITCH’s Michigan driver’s license.

21. On June 12, 2020, a UI claim was filed in Brandon BOWDITCH’s

name and SSN in the state of Arizona. The phone number listed on the claim was

313-XXX-1027, which is the same phone number on BOWDITCH’s Michigan UI

claim. The email address registered on the Arizona claim was

“[email protected].” The address listed on the claim for the mailing of a

BOA UI debit card, via USPS, was 34XX Collins Ferry Rd, Morgantown, WV.

22. On or around June 16, 2020, an Arizona BOA UI debit card ending in

4830 in BOWDITCH’s name for the June 12 Arizona UI claim was mailed, via

USPS, to 34XX Collins Ferry Rd, Morgantown, WV. Between July 16 and July

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17, 2020, $9,960 was deposited into the debit account established by the Arizona

DES in BOWDITCH’s name.

23. On July 17, 2020, a UI claim was filed in Brandon BOWDITCH’s

name, SSN and date of birth in the state of California. The address listed on the

claim for the mailing of a Bank of America UI debit card, via USPS, was 34XX

Collins Ferry Rd., Apt 6, Morgantown, WV, consistent with the address on

BOWDITCH’s Arizona UI claim, above. The email address registered with the

claim was “[email protected].”

24. On or around July 22, 2020, a California BOA UI debit card ending in

-0015 in BOWDITCH’s name was mailed, via USPS, to 34XX Collins Ferry Rd,

Morgantown, WV. On July 23, 2020, $18,600 was deposited into the debit account

established by the California EDD in BOWDITCH’s name.

25. Documents provided by BOA revealed that the email address

registered to this State of California UI account was changed by the account holder

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to “[email protected],” which is BOWDITCH’s email account on his

Michigan UI claim, identified above.

26. I interviewed BOWDITCH in person in June 2021 and am familiar

with his appearance. I am thus able to positively identify him in surveillance

images.

27. BOA provided agents with ATM surveillance images of a withdrawal

made from the State of California UI account on September 9, 2020 in the Eastern

District of Michigan. Based on my review of the ATM surveillance image, I have

concluded that the individual in the ATM surveillance images making the

withdrawal is BOWDITCH.

28. The ATM surveillance image below shows BOWDITCH

withdrawing funds on September 9, 2020 in the Eastern District of Michigan

using the mailed California UI debit card. Although the individual is masked, I

observed the gold necklace worn by BOWDITCH in the image. I saw a photo of

BOWDITCH wearing the same gold necklace as is seen in the ATM surveillance

image on BOWDITCH’s cell phone that was seized on June 11, 2021. A photo of

an invoice from Golden Sun Jewelry bearing a description of “4 w/Clover” for the

purchased item was also found on BOWDITCH’s phone. In addition, the name

on the invoice was “Brandon ROSS” (the use of “Ross” ties him to email

addresses on UI claims), and the listed phone number was 313-XXX-1027, which

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is the phone number on BOWDITCH’s UI claims and that he gave as his phone

number to agents in June 2021.

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29. The filing of multiple UI claims in multiple states is an indication of

fraud because it is generally unlikely that an individual will qualify for UI benefits

in multiple states due to employment history requirements.

CONCLUSION

30. Based on the forgoing, there is probable cause to believe that

Brandon BOWDITCH has committed Mail Fraud (18 U.S.C. § 1341) and Wire

Fraud (18 U.S.C. § 1343), in connection with a scheme to defraud the federal/state

UI program and obtain unemployment benefits by means of false and fraudulent

pretenses and representations.

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Respectfully submitted,

Miguel A. Colon
Special Agent
U.S. Department of Labor
Office of Inspector General

Sworn to before me and signed in my presence

and/or by reliable electronic means.

Date: June 14, 2022

Kimberly G. Altman
United States Magistrate Judge

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