Two Cordele, Georgia men were sentenced after authorities say they ran a large COVID-era unemployment fraud ring that filed thousands of fake claims and stole millions from state and federal relief programs.
Two men from Cordele, Georgia, were sentenced today for their roles in a scheme that targeted unemployment benefits meant to help people during the COVID-19 pandemic. The case centers on alleged abuse of the Georgia Department of Labor and a string of fraudulent claims filed during 2020–2022.
Malcolm Jeffrey, 34, received a 10-year prison term and was ordered to pay $16,958,372 in restitution. Gerard Towns, 34, was sentenced to six years in prison and ordered to pay $365,066 in restitution, marking the final sentences in a broader investigation.
“The defendants orchestrated an egregious scheme to steal $17 million of unemployment insurance payouts using stolen identities,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These defendants exploited a government program designed to alleviate economic hardship to line their own pockets. The sentencings today demonstrate that the Criminal Division will hold accountable fraudsters who steal from the public fisc.”
Jeffrey and Towns were the last of 12 defendants tied to Operation Cordele Partial, described as one of the largest domestic unemployment insurance fraud probes the Department of Labor has seen. The overall operation uncovered multiple schemes in central Georgia that allegedly defrauded the Georgia Department of Labor of over $45 million and reached into more than 20 states.
“Malcolm Jeffrey, Gerard Towns, and their co-conspirators participated in an unemployment insurance fraud scheme that targeted the Georgia Department of Labor,” said Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG) Southeast Region. “The conspirators submitted fraudulent UI claims using the stolen identities of identity theft victims to obtain debit cards loaded with UI benefits. We will continue to work closely with our law enforcement partners to hold accountable those who attempt to exploit these vital U.S. Department of Labor programs.”
According to court records, from March 2020 through November 2022 the group caused more than 2,500 fraudulent UI claims to be filed with the Georgia Department of Labor. Investigators say those filings resulted in at least $17 million in stolen benefits that were routed through prepaid debit cards sent to various Georgia locations.
The scheme allegedly relied on fabricated employers and fake employee rosters built from personally identifiable information taken from thousands of victims. Investigators say conspirators paid an employee of an Atlanta-area health care network to access patient data and also bought PII from other sources to populate fraudulent claims.
“Exploiting pandemic relief programs meant to help Americans at the height of the COVID-19 pandemic for personal enrichment is unconscionable,” said Inspector General Joseph V. Cuffari, Ph.D., of The Department of Homeland Security Office of Inspector General (DHS-OIG). “DHS-OIG will continue to prioritize pandemic-related fraud investigations and work with our law enforcement partners to bring perpetrators to justice.”
“Today’s sentencings emphasize our dedication and commitment to holding individuals accountable who exploit federal relief programs for personal gain, “said Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG). “As proven in this case, our criminal investigators, along with our law enforcement partners, will work together and diligently pursue anyone who attempts to exploit programs created to help legitimate people and businesses affected by the global pandemic.”
In related court developments, Towns pleaded guilty in June 2025 to conspiracy to commit mail fraud, and Jeffrey was convicted at trial in August 2025 of conspiracy to commit mail fraud. Investigators warned that the passage of laws in 2022 extending statute of limitations for COVID-era fraud makes further prosecutions possible.
“IRS Criminal Investigation special agents are continuing to find and hold accountable criminals who defrauded COVID-19 programs,” said Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office. “With the passage and signing of bills in 2022 establishing a 10-year statute of limitations for those who defrauded the COVID-19 programs, I want to putthose who stole from the taxpayers on notice that it is only a matter of time before IRS-CI special agents and our law enforcement partners uncover their crimes and bring them to justice.”
The investigation involved a coalition of agencies: DOL-OIG, DHS-OIG, IRS-CI, USPS-OIG, U.S. Postal Inspection Service, U.S. Secret Service, and Homeland Security Investigations. Trial Attorneys Lyndie Freeman, Siji Moore, and Kyle Crawford of the Criminal Division’s Fraud Section prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to coordinate federal efforts against pandemic-related fraud. That task force aimed to concentrate resources and share information across agencies to pursue the most serious domestic and international fraud schemes tied to relief programs.
