Michigan Man Pleads Guilty to Multi-Million Dollar Unemployment Fraud Scheme

Terrance Calhoun, Jr. has pleaded guilty to federal charges involving identity theft and unemployment fraud, including aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and possession of unauthorized access devices.

The scheme, which occurred between April and September 2020, involved filing over 500 fraudulent unemployment insurance claims across Michigan, Arizona, and Maryland, resulting in the misappropriation of more than $4 million in government funds. Calhoun and co-defendant Jermaine Arnett utilized multiple mailing addresses and the internet to obtain unemployment benefits, withdrawing over $1.7 million from ATMs in Michigan cities including Troy, Bloomfield Hills, and Rochester Hills.

The investigation leveraged surveillance technology and coordinated raids that led to the seizure of debit cards, firearms, and personal identification information. Calhoun faces up to 20 years for wire fraud, 10 years for possessing unauthorized devices, and a mandatory two years for aggravated identity theft. T

his case reflects broader efforts by federal and state agencies to combat the surge in unemployment insurance fraud during the COVID-19 pandemic. Previous convictions in Michigan highlight the significant financial impact of fraudulent claims on state insurance funds and underline ongoing challenges in regulatory enforcement and compliance. Officials emphasize the commitment to maintaining the integrity of unemployment insurance programs and prosecuting financial crimes that redirect taxpayer funds from legitimate recipients.