By: Richard L. Smith
Two men from New York have pleaded guilty to multiple charges, including COVID-19 unemployment fraud and drug conspiracy, as announced by U.S. Attorney Philip R. Sellinger.
The defendants appeared in Trenton federal court, facing serious accusations of exploiting pandemic relief efforts and engaging in narcotics distribution.
Natanael Valdez Brito, 35, from the Bronx, admitted to charges related to fentanyl distribution and conspiracy to commit wire fraud, involving the creation of fake online profiles to illicitly claim unemployment benefits.
Alexander Arismendy Alix Hernandez, 23, also of the Bronx, pleaded guilty to his role in the wire fraud scheme.
The fraud operation led by Valdez and Alix involved submitting false unemployment claims in several states, deceiving the labor departments of Puerto Rico, Pennsylvania, New York, New Jersey, and others, which secured over $25 million in fraudulent benefits.
Valdez also admitted to attempting to defraud the IRS of more than $1.9 million in tax credit benefits.
In addition to the financial fraud, Valdez was involved in distributing significant quantities of fentanyl, sourced from Mexico and intended for sale in New Jersey.
This operation was disrupted by law enforcement, who arrested co-conspirators and seized narcotics along with evidence of unemployment fraud.
Both men are scheduled for sentencing on August 27, 2024. They face up to 20 years in prison for each of the major charges.
The case underscores ongoing federal efforts to prosecute those exploiting public assistance programs and engaging in drug trafficking.