Contreras Gets 27 Months in Unemployment Fraud

Karin L. Contreras was sentenced for her role in a pandemic-era scheme that defrauded unemployment insurance programs of more than $1 million.

Updated on Nov. 6, 2026 in Financial Crime

Bold flat-color editorial illustration of a neoclassical courthouse facade with tall stone columns, rendered in deep navy and cream. — Karin L. Contreras was sentenced to 27 months in prison and ordered to pay $551,674.78 in restitution for her role in a pandemic-era unemployment fraud scheme. AI Illustration. Upload story photo >

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Karin L. Contreras, 45, was sentenced to 27 months in prison for conspiracy to commit wire fraud tied to a scheme that obtained unemployment benefits using stolen identities. Judge Beryl A. Howell also ordered her to pay $551,674.78 in restitution and serve two years of supervised release.

Why it matters

The case shows how pandemic-era unemployment programs were exploited with stolen identity information and prepaid cards, and it illustrates the restitution and supervision penalties federal courts impose on participants. Prosecutors had requested a 41-month term, so the sentence reflects the court's judgment on the appropriate punishment.

Contreras pleaded guilty on July 10, 2026, to conspiracy to commit wire fraud and was sentenced on November 6, 2026, to 27 months in prison with two years of supervised release. Federal prosecutors had sought 41 months, and the court ordered restitution of $551,674.78.

The players

Karin L. Contreras

Contreras is a 45-year-old citizen of the Dominican Republic and U.S. lawful permanent resident who pleaded guilty to conspiracy to commit wire fraud.

Beryl A. Howell

Judge Beryl A. Howell presided over the sentencing and ordered the prison term, restitution, and supervised release.

The details

From June 2020 through March 2021, conspirators used stolen personal identity information to fraudulently obtain unemployment benefits, with prepaid ATM cards mailed largely to a D.C. address next to Contreras's residence. Contreras and others withdrew funds, often in $1,000 increments, including $23,000 she withdrew using 12 fraudulent cards between July 1 and July 14, 2020.

June 2020 through March 2021: Conspirators fraudulently obtain unemployment benefits using stolen identities.
July 1 to July 14, 2020: Contreras uses 12 fraudulent cards to withdraw $23,000 in D.C.
July 10, 2026: Contreras pleads guilty to conspiracy to commit wire fraud.
November 6, 2026: Contreras is sentenced to 27 months in prison.

Legal Context

Pandemic-era unemployment insurance fraud has produced a continuing wave of federal prosecutions, and this sentencing extends that enforcement record into late 2026. The Justice Department's April announcement of a National Fraud Enforcement Division signals continued federal focus on this type of offense.

Residents of the Washington area should note that prepaid card schemes using stolen identities can affect local bank accounts and benefit programs. Anyone who receives an unexpected unemployment card or notice should report it to the issuing state agency.

The takeaway

Unemployment fraud carries serious federal penalties, including prison time and restitution, even years after the crime. Individuals who suspect misuse of their identity should promptly contact their state workforce agency and credit bureaus.