A state prison inmate suspected of participating in the fraud to help inmates who were victims of unemployment by Covid-19 did not object to the charges of conspiracy to defraud, San Mateo County prosecutors said Tuesday.
Joseph Anthony Smith III was part of an alleged scheme operating in the San Mateo County Jail.
Inmates at the San Mateo County Jail, San Francisco County Jail and the state prison joined residents of these areas in filing 16 complaints of unemployment assistance scheme fraud due to Covid-19 in June and July through the Employment Development Department.
The complaints accumulated more than $250,000 for fraud, according to the district attorney's office.
The complainants added thirty inmates in the San Mateo County Jail alone, who were deprived of their liberty at the time.
In July, the San Mateo County Sheriff's and District Attorney's offices began investigating and concluding that it was a fraudulent scheme.
In addition, a total of 21 people were identified as being involved in 16 of the fraud claims that were filed between June 9 and July 30. The sheriff's office worked with other police departments to notify them of the multiple arrests and search warrants of the released residents involved in the alleged fraud.
During those searches, authorities recovered $150,000 in cash and further fraudulent movements continue to be investigated. Inmates held in the state's various jails and prisons were again sentenced for the crimes of fraud.
During a preliminary hearing in San Mateo County Superior Court on Tuesday, Smith did not oppose the charges.
For these reasons, Smith was sentenced to state prison for four years and eight months. The sentence adds up to the 17 years he had previously been charged with for firearm homicide.
Smith's case was postponed until October 20 by a return order, when the court will decide the amount Smith will have to pay the State for the fraud scheme.
The preliminary hearing for the other defendants was held this Wednesday and Thursday. Meanwhile, preliminary hearings for the other defendants are set for September 23, October 15 and November 6 of this year.
On September 4, Freeman Owens, an inmate at the San Mateo County Jail, also did not object to the charges of fraud and was consequently sentenced to 16 months in prison, in addition to his current sentence for murder, which totals 97 years or life in prison. Owens' case will resume on October 15 for the filing of a report and a restitution order.
[With NCB information]
