WASHINGTON, D.C. – Karin L. Contreras, a 45-year-old citizen of the Dominican Republic and lawful permanent resident of the United States, pleaded guilty today in U.S. District Court to charges related to a $1 million unemployment fraud scheme, U.S. Attorney Jeanine Ferris Pirro announced. The plea was entered before Judge Beryl A. Howell, who has scheduled sentencing for November 6, 2026.
According to court documents, between June 2020 and March 2021, Contreras conspired with others to fraudulently obtain unemployment insurance benefits using the names and personal information of other individuals. Their fraudulent applications resulted in the issuance of prepaid ATM cards loaded with benefits exceeding $1 million, with the majority of the cards sent to a D.C. address adjacent to Contreras’ residence. She and her co-conspirators withdrew funds in increments of $1,000, the maximum allowed for daily ATM withdrawals.
Specifically, between July 1 and July 14, 2020, Contreras utilized 12 different fraudulently obtained cards to withdraw $23,000 from ATMs located in Washington, D.C. In total, the conspirators managed to extract over $550,000 from the scheme. U.S. Attorney Pirro emphasized the serious nature of the crime, stating, “Contreras came to our country, was given the privilege of permanent residency, and then turned around and defrauded the American people.”
This case forms part of a broader effort by federal authorities to tackle fraud against government programs. On April 7, the Department of Justice announced the establishment of the National Fraud Enforcement Division, which aims to investigate and prosecute individuals committing fraud against American taxpayers. The investigation was conducted by the FBI’s Washington Field Office and the Department of Labor’s Office of Inspector General, with prosecution led by Assistant U.S. Attorney Kondi Kleinman and John Kosmidis from the Justice Department’s Fraud Section.
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