Three Indicted for Defrauding California’s EDD of Over $1 Million in COVID Unemployment Benefits Scheme

Federal prosecutors announced that three individuals face indictment for defrauding California’s Employment Development Department (EDD) out of more than $1 million in COVID-related unemployment benefits.

U.S. Attorney Eric Grant confirmed the arrests, which took place across several states:

Yolanda Butler, arrested in Oklahoma
Legerrius Holt, her son, arrested in Colorado
Quamaine Massey, arrested in Ohio

The U.S. Attorney’s Office for the Eastern District of California issued the statement.

A federal grand jury indictment filed on August 7, 2025, charges Butler, 49, Holt, 28, both formerly of Stockton, and Massey, 33, formerly of North Carolina.

Prosecutors allege the trio filed at least 69 fraudulent unemployment insurance claims using stolen personal information.

Between April 2020 and June 2021, prepaid debit cards loaded with unemployment benefits were mailed to:

Butler and Holt’s previous address in Stockton
Massey’s residence in North Carolina (at least three cards)

Once in possession of the cards, the defendants allegedly activated and used them for personal expenses.

Court filings state their scheme cost the EDD and U.S. government more than $1.1 million, with attempted theft exceeding $1.4 million.

The investigation drew on resources from multiple agencies, including:

U.S. Department of Labor – Office of Inspector General
Federal Bureau of Investigation (FBI)

Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

If convicted, the defendants face severe consequences:

Mail fraud: Up to 20 years in prison
Aggravated identity theft (Butler and Holt): Mandatory 2-year sentence
Fines: Up to $250,000 per count

Final sentencing will depend on statutory factors and the federal Sentencing Guidelines. The U.S. Attorney’s Office for the Eastern District of California emphasized that the charges remain allegations and the defendants are presumed innocent until proven guilty.

The arrests are part of the ongoing campaign by the California COVID-19 Fraud Enforcement Strike Force, created by the U.S. Department of Justice.

This strike force targets large-scale, multi-state pandemic relief fraud. By combining resources from the Eastern and Central Districts of California, the initiative focuses on dismantling criminal organizations and transnational actors that exploited COVID-19 relief programs.