Press Releases
Participant in $16 Million Fraud Scheme Convicted
February 7, 2008
A participant in one of the nation’s largest unemployment insurance (UI) benefits scam nicknamed Gold Rush, was indicted last year by the US Department of Justice. Salameh Mohammad Rashid of Reedley, California was sentenced to six years of imprisonment stemming from his laundering of fraudulent unemployment insurance benefits checks. The fraudulent benefits checks were not only issued by California, but five other western states.
Rashid who owns Primo Market convenience store, knowingly cashed thousands of fraudulent UI benefits checks. Rashid would charge his co-defendants in the case a percentage of the face value of each check as a fee. From 1999 to 2003, Rashid cashed checks totaling approximately $16 million dollars. At the time of his arrest, agents seized $430,000 from Rashid’s home and business. As part of his sentence, he is required to repay $16,266,908.24.
Not only was UI fraud at the heart of this case, but identity theft as well. The defendants were using identities of unknowing victims to file the claims in order to receive the UI benefits checks. The identities were obtained by breaking into dumpsters and stealing employee payroll information.
The case involved investigation by several government agencies, including the U.S. Department of Labor, Office of Inspector General, the California Employment Development Department, Investigation Division and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.