Siblings Sentenced for $1.1 Million Unemployment Fraud

News Summary

Four siblings from Orange County have been sentenced for their role in a scheme that fraudulently obtained over $1.1 million in unemployment benefits. Latrice, Evelyn, Raschell, and Laron Taylor created fake businesses to file claims with the California Employment Development Department, further complicating matters by using stolen identities. As part of their sentencing, they received prison terms and were ordered to pay restitution. This case highlights ongoing issues of unemployment fraud affecting California during and after the COVID-19 pandemic.

Four Siblings Face the Music for Stealing Over $1.1 Million in Unemployment Benefits

In a surprising turn of events from Orange County, four siblings have recently been sentenced for running a deceitful scheme that defrauded the state’s unemployment benefits system out of more than $1.1 million. Latrice Taylor, aged 42, her sisters, 41-year-old Evelyn Taylor and 35-year-old Raschell Taylor, along with their brother, 38-year-old Laron Taylor, found themselves in hot water when their fraudulent activities came to light.

The Sentencing Details

On April 24, 2025, U.S. District Judge John A. Kronstadt laid down the law. The sentences were as follows:

• Latrice Taylor: just over two years in prison
• Evelyn Taylor: 18 months behind bars
• Raschell Taylor: two years in prison
• Laron Taylor: a hefty four and a half years

The siblings also received an order to pay back a substantial restitution amounting to $567,334.

A Sneaky Scheme

The Taylors were found guilty of conspiracy to commit wire fraud after a lengthy six-day trial that wrapped up in July 2024. From February 2013 until July 2016, they were part of a scheme that saw them creating and registering non-existent companies with the California Employment Development Department (EDD). These fake businesses had no genuine operations or employees but served as a cover for filing fraudulent unemployment claims.

Not only did they submit claims using their names, but they also went a step further, using identities swiped from unsuspecting victims. The siblings withdrew cash at various ATMs throughout the greater Los Angeles area, pocketing the money via multiple EDD-funded debit cards.

A Larger Problem

This situation isn’t unique to the Taylors. They are the second group of defendants to face sentencing for this type of fraud. Catrina Gipson and Vernisha Jolivet were previously punished for their involvement in the same scheme. There have also been other cases making headlines, including DeShawn Oshaea Campbell, who pleaded guilty to mail fraud involving unauthorized unemployment benefits totaling around $1 million. In what adds to the drama, he was also charged for possessing a firearm illegally.

Massive Losses in California

The scams carried out during the COVID-19 pandemic have cost California’s EDD an estimated $20 billion in fraudulent claims. In response to rampant scams, the EDD intensified its investigations, managing to claw back approximately $6 billion in lost funds. Their efforts have led to over 2,000 investigations concerning unemployment benefit fraud arising from the overwhelming surge in claims during the pandemic.

Identifying the Issues

The Department of Government Efficiency (DOGE) recently pinpointed California, New York, and Massachusetts as states grappling with significant unemployment benefit fraud. Of the total issues identified, California alone accounted for $305 million in improper claim payments. Reports also noted some highly questionable claims from recipients, some of whom were even over 115 years old, which has sparked further investigations and reform efforts within California’s unemployment system.

As the Taylors and others deal with the consequences of their actions, this case serves as a stark reminder of the lengths some will go to for a quick buck. While it may seem like a mere scam, it showcases a larger issue that states are now working hard to combat in the hopes of preventing similar incidents in the future.

Deeper Dive: News & Info About This Topic

HERE Resources

Los Angeles County’s January Job Market Overview

Additional Resources

• Daily Breeze: Former EDD Employee Admits to Fraud
• Google Search: Unemployment Fraud California
• Fox 5 San Diego: EDD Employee Sentenced
• Wikipedia: Unemployment Insurance
• KMPH: Government Watchdog Uncovers Unemployment Fraud
• Encyclopedia Britannica: Fraud
• Sacramento Bee: Four Siblings Face the Music
• Google News: Unemployment Fraud EDD