Detroit, MI. – A former State of Michigan Unemployment Insurance Agency (MUIA) employee and her former romantic partner were sentenced Wednesday for their roles in a wide-ranging unemployment insurance fraud scheme that stole more than a quarter-million dollars, U.S. Attorney Jerome F. Gorgon Jr. announced.
Timeka Johnson, 44, received a 42-month federal prison sentence after pleading guilty to aggravated identity theft and conspiracy to commit wire fraud. Her co-conspirator, 45-year-old Ray Anthony Eddington, was sentenced to 36 months for his role in the conspiracy. Chief U.S. District Judge Stephen J. Murphy III imposed both sentences.
Johnson worked as an Unemployment Insurance Examiner, responsible for reviewing and verifying the legitimacy of claims. Prosecutors said she used her insider access to override fraud prevention systems, close out investigative triggers, upload falsified documents, certify illegitimate claims, and cause unauthorized debit cards to be issued in the names of unsuspecting third-party claimants. She also induced another MUIA employee to alter claim information in exchange for financial compensation.
According to the investigation, many of the fraudulent benefits were withdrawn from ATMs by Eddington.
In total, the conspiracy resulted in more than $250,000 in improper unemployment payments, and both defendants were ordered to pay $250,001 in restitution.
“It is one thing to steal if you are hungry and can’t find a job. But it is despicable to abuse your position of trust so that you can steal from a program needed to help the unemployed,” U.S. Attorney Gorgon said.
DHS Inspector General Joseph V. Cuffari added that government employees who betray the public trust “will be held accountable,” emphasizing the importance of protecting aid programs intended for vulnerable populations.
Megan Howell, Special Agent-in-Charge for the Department of Labor OIG, said the case demonstrates the agency’s commitment to investigating “serious insider threats,” noting Johnson’s abuse of her position.
FBI Detroit Field Office Special Agent in Charge Jennifer Runyan said Johnson’s actions “harmed the very communities that rely on these unemployment resources the most,” and warned that the FBI will continue pursuing individuals who defraud Michigan’s assistance programs.
Jason Palmer, Director of the Michigan Unemployment Insurance Agency, stated that the case shows “crime doesn’t pay” and praised investigators for bringing those responsible to justice.
The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind and jointly investigated by the Department of Homeland Security OIG, the Department of Labor OIG, the FBI, and the Michigan Department of Labor and Economic Opportunity’s Unemployment Insurance Agency. Updated December 4, 2025.
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