Detroit Man Pleads Guilty to Multi-State Unemployment Fraud and Identity Theft Scheme

Detroit, MI. — A Detroit resident has pleaded guilty in federal court to charges stemming from an extensive unemployment insurance fraud and identity theft scheme, federal prosecutors announced.

Nicholas Overton, 32, pleaded guilty before U.S. District Judge Denise Page Hood to one count of wire fraud and one count of aggravated identity theft, according to U.S. Department of Justice. The announcement was made by Jerome F. Gorgon Jr., United States Attorney, along with Megan Howell, Special Agent-in-Charge for the Great Lakes Region of the U.S. Department of Labor Office of Inspector General.

According to court records, Overton submitted or caused the submission of approximately 90 fraudulent unemployment insurance claims across 20 states and U.S. territories, primarily Michigan, California, New York, and Arizona. Authorities said the scheme resulted in more than $500,000 in fraudulent unemployment assistance payments.

Prosecutors stated that Overton used the personal identifying information of multiple individuals without their knowledge or consent, filing claims on their behalf while the victims were unaware their identities had been compromised.

“Identity theft is not a victimless crime. It is a deliberate exploitation of real people for personal gain,” Gorgon said. “With these pleas the defendant is being held accountable, and this Office will continue to pursue those who use fraud and stolen identities to undermine trust in public programs.”

Howell said the case highlights ongoing efforts to protect federal labor programs from abuse. “This conviction affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit Department of Labor programs,” she said.

Overton is scheduled to be sentenced on May 7, 2026. He faces up to 20 years in prison on the wire fraud charge and a mandatory consecutive two-year sentence for aggravated identity theft.

The case was investigated by special agents with the Department of Labor Office of Inspector General and prosecuted by Assistant U.S. Attorneys Ryan A. Particka and Jason D. Norwood.