A Dominican Republic national who held U.S. permanent residency has pleaded guilty for her role in a multi-person identity theft and unemployment fraud scheme that relied on stolen personal data, prepaid cards, and ATM withdrawals to siphon hundreds of thousands of dollars from benefit programs.
The case centers on Karin L. Contreras, 45, a Dominican Republic citizen and U.S. lawful permanent resident, who pleaded guilty in U.S. District Court to conspiracy to commit wire fraud. The plea was entered before the Honorable Beryl A. Howell and was announced by U.S. Attorney Jeanine Ferris Pirro. Court filings describe a coordinated effort that exploited pandemic-era unemployment systems.
Following the hearing, sentencing in the matter has been scheduled for Nov. 6, 2026. The charge to which Contreras pleaded guilty specifically involves agreement and action to use electronic communications and financial instruments to deprive programs of funds. The procedural timetable now moves toward restitution and penalty decisions at the November sentencing.
U.S. Attorney Pirro commented on the outcome and the conduct involved, stating: “Contreras came to our country, was given the privilege of permanent residency, and then turned around and defrauded the American people,” said U.S. Attorney Pirro. “This behavior won’t be tolerated, and thieves will be held accountable. Contreras will suffer the consequence of her attempt to cheat the American taxpayers.”
According to court documents, the scheme ran from June 2020 through March 2021 and involved submitting fraudulent applications to obtain unemployment insurance benefits using other people’s names and personal identity information. Those filings generated approval and the issuance of prepaid ATM cards tied to the illegally obtained benefits. The paperwork and digital submissions described in the filings formed the paper trail investigators used to identify the pattern of fraud.
Benefits from the fraudulent applications resulted in prepaid ATM cards that, in total, were loaded with more than $1 million. The overwhelming majority of those cards were mailed to a Washington, D.C. address located directly adjacent to Contreras’ residence, according to court records. Conspirators then accessed those cards and made withdrawals, typically in $1,000 increments, which matched common daily ATM limits and helped move cash quickly out of the system.
Investigators report that between July 1, 2020, and July 14, 2020, Contreras personally used 12 different fraudulently obtained cards to withdraw $23,000 from ATMs in Washington, D.C. Over the course of the broader scheme, conspirators were able to take more than $550,000 in cash and benefits. Those figures reflect the sums traced to withdrawals and card transactions tied to the fraudulent applications.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division, a unit focused on identifying and prosecuting large-scale schemes that target Federal benefit programs. The Fraud Division’s mandate is to coordinate investigations and prosecutions aimed at preserving program integrity and recovering funds lost to fraud. The Department described the effort as part of a broader, whole-of-government push to curb fraud, waste, and abuse in public benefit systems.
The investigation in this case was handled by the FBI Washington Field Office and the Department of Labor, Office of Inspector General. Prosecution is led by Assistant U.S. Attorney Kondi Kleinman of the U.S. Attorney’s Office for the District of Columbia and John Kosmidis of the Justice Department’s Fraud Section. Court records and the pending sentencing will determine the full scope of accountability and any financial remedies ordered by the court.
https://x.com/USAO_DC/status/2075637413334892868
