A Garland man, Frank Sherman, 60, was sentenced Monday to two years in prison for his involvement in a $2 million unemployment insurance fraud scheme, U.S. Attorney for the Northern District of Texas Leigha Simonton announced.
Sherman, who was indicted in November 2022, pleaded guilty to theft of government funds in October 2023. U.S. District Judge David Godbey handed down the sentence and ordered Sherman to pay nearly $2.3 million in restitution jointly and severally.
According to plea documents, Sherman admitted that from July 2020 through September 2021, he collaborated with unknown coconspirators he met on social media to funnel fraudulently-obtained unemployment funds to individuals in Canada. He agreed to ship preloaded debit cards issued by the Nevada Department of Employment, Training, & Rehabilitation from his home in Garland to unknown recipients in Canada.
During the 14-month period, Sherman received at least 200 Nevada unemployment insurance debit cards loaded with more than $2 million in funds. While he shipped most of the cards to Canada, he kept and used one debit card for his personal benefit.
Additionally, Sherman admitted to unlawfully obtaining $3,000 in unemployment funds from the California Employment Development Department, despite having never worked in the state.
The investigation was conducted by the U.S. Department of Labor – Office of Inspector General and the U.S. Department of Homeland Security – Office of Inspector General. Assistant U.S. Attorney Marty Basu prosecuted the case.
