A man has been arrested for his alleged role in a $1.2 million scheme to fraudulently secure Covid-19-related unemployment assistance.
Omar Thompson, 39, of Paterson, was arrested on Wednesday and charged with wire fraud. He appeared before a judge in Newark federal court and was released on conditions.
Thompson and his co-conspirator submitted more than 100 fraudulent pandemic unemployment assistance claims to the Department of Unemployment Assistance in Massachusetts that resulted in more than $1.2 million in payments.
Authorities said half of the claims were made on behalf of people residing outside of Massachusetts. Thompson allegedly recruited people from other states to apply for pandemic unemployment assistance in Massachusetts. He allegedly submitted claims on their behalf and received kickback payments in return.
Thompson will appear at a federal court in Boston at a later date. He could receive 20 years in prison if convicted.