A Norfolk woman has pleaded guilty to conspiracy to commit mail fraud in connection with a COVID-era unemployment fraud scheme that cost the government more than $424,000.
Cherrelle Williams admitted to illegally applying for unemployment benefits over a year and a half using stolen personal information, according to federal prosecutors. Her co-defendant, Richard Upchurch, is currently serving a 48-month prison sentence for his role in the crime.
Court records reveal an unnamed co-conspirator — an employee at an assisted living facility in Norfolk — stole personal information from coworkers, including their names, addresses, birthdates and other identifying details, then provided that information to Williams and Upchurch.
The scheme resulted in 51 successful fraudulent unemployment claims. Williams collected more than $175,000 from Virginia, more than $239,000 from California, more than $10,000 from Puerto Rico and more than $800 from Rhode Island.
Federal prosecutors recovered some of the money but recorded a loss of more than $424,000.
Authorities used ATM security camera footage as evidence against the pair. Prosecutors also examined Upchurch's text messages, in which he stated he "had over 70 socials" and was "getting 9500 a week."
Legal analyst Sonny Stallings said the case reflects a broader pattern of deliberate, organized fraud.
"These people go to a lot of trouble to develop these schemes to defraud the government. I guess the good news here is, it's catching up with them," Stallings said.
Stallings said the scale of COVID relief fraud was no accident.
"Too much money has been stolen from the government in these schemes and this isn't an accident, these people didn't accidentally get it. They went to a lot of trouble to develop these schemes. It's very sophisticated theft but it's still theft, and they're still going to pay for it," Stallings said.
Williams is awaiting sentencing. Upchurch, who is currently serving his 48-month sentence, has requested compassionate release from prison due to medical issues.
WTKR first reported on this case in 2024.
