Former Contractor Sentenced for Unemployment Fraud
Katrina McCant received four years in federal prison for exploiting insider access to Maryland's unemployment insurance system.
Updated on Nov. 9, 2026 in Financial Crime
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A federal court sentenced Katrina McCant, 41, of Baltimore, to four years in prison followed by three years of supervised release for wire fraud and aggravated identity theft. McCant agreed to pay $753,551 in restitution to the Maryland Department of Labor.
Why it matters
The case shows how insider access by a contractor can be used to push fraudulent unemployment claims through state systems. For Baltimore residents, it underscores the scale of benefits fraud that affects the public funds meant to support people out of work.
McCant was sentenced to four years in prison and three years of supervised release after pleading to wire fraud and aggravated identity theft. She agreed to forfeit at least $550,000 and pay $753,551 in restitution to the Maryland Department of Labor.
The players
Katrina McCant
A 41-year-old Baltimore woman who was a contractor supporting the Maryland Department of Labor and was sentenced for unemployment benefits fraud.
Maryland Department of Labor
The Maryland state agency that administers unemployment insurance benefits and was the victim of the fraudulent claims.
The details
McCant worked as a contractor supporting the Maryland Department of Labor and used insider access to upload and approve documents supporting unemployment claims. She changed claimant names and email addresses to her own, used the personal information of real individuals, removed fraud holds, and charged claimants between about $500 and $8,000 per approved claim.
Timeline
January 2021: McCant's fraudulent scheme began while she worked as a contractor for the state agency.
December 2021: The fraudulent scheme ended.
November 9, 2026: McCant was sentenced in federal court.
Legal Context
The Justice Department announced a National Fraud Enforcement Division on April 7, signaling heightened federal focus on fraud involving public benefit programs. McCant's sentencing fits that enforcement direction, which targets insider-enabled schemes against state-run unemployment systems.
Benefits fraud diverts state unemployment funds meant for eligible workers, which can slow or complicate legitimate claims. Residents who suspect fraud involving federal disaster or benefit programs can report it through the National Center for Disaster Fraud.
The takeaway
Insider access to government systems is a recognized fraud risk, so agencies rely on oversight of contractors as much as claimants. Anyone who notices unusual changes to their own benefits records should report them promptly.
Further reading
For related coverage, see Financial Crime in Baltimore.
More information
To report suspected benefits fraud, use the National Center for Disaster Fraud complaint form.
Source note: This article includes information reported by The United States Department of Justice.
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