Placer judge sentences man in California EDD fraud with inmates that took COVID money

A judge on Tuesday sentenced a man to seven years and four months in prison for conspiring with two inmates in Placer County to fraudulently receive California benefits intended to help unemployed workers during the COVID-19 pandemic.

Placer Superior Court Judge Colleen Nichols sentenced Peter James Nelson for his role in the July 2020 fraud scheme, the Placer County District Attorney’s Office announced in a news release.

A jury in May found Nelson guilty of felony unemployment fraud, conspiracy and grand theft. Deputy District Attorney Timothy O’Hair prosecuted the case.

“This crime was specifically abhorrent due to the defendant’s decision to exploit a system put in place to help people who were truly in need during the COVID-19 pandemic,” O’Hair said in the news release. “While in jail, Nelson mentioned they ‘wouldn’t get caught because too many people were filing claims.’”

Prosecutors said Nelson would also submit biweekly re-certifications to continue receiving unemployment payments from the state. One of the inmates Nelson conspired with was serving a life sentence.

This case was among a large number of fraud schemes involving inmates across the state to fraudulently receive up to $1 billion in payments from the California Employment Development Department during the COVID-19 pandemic, according to the District Attorney’s Office.

California lost an estimated $20 billion to fraudulent claims, most of it in federally funded benefit programs. EDD, which manages the state’s unemployment programs, has said there have been 278 convictions and more than $1.1 billion seized or recovered, so far.

As of February, dozens of investigations were underway aiming to catch and prosecute scammers and recover as much money as possible.

As of Tuesday afternoon, Nelson remained in custody at the Placer County Jail awaiting transfer to a prison.