A federal jury in the Northern District of Illinois has convicted an Orland Park woman for orchestrating a massive unemployment insurance scheme that siphoned more than $11 million from taxpayers during the COVID-19 pandemic. Hiam Hmaidan, 54, was found guilty of using her professional position as a tax preparer to exploit the very people she was hired to assist, marking a significant victory for federal investigators targeting pandemic-era theft.
The conviction centers on a sophisticated operation that ran from May 2020 through December 2022. During this window, Hmaidan and her co-conspirators submitted nearly 700 fraudulent claims to the Pandemic Unemployment Assistance (PUA) program, a critical safety net established by the CARES Act to support workers who lost their livelihoods during the global health crisis.
Court evidence revealed that the Illinois tax preparer convicted COVID-19 fraud didn’t just fabricate identities; she weaponized the trust of her own clients. By utilizing the personal information and Social Security numbers of her tax clients without their knowledge or consent, Hmaidan was able to bypass initial verification hurdles and trigger the disbursement of millions of dollars in fraudulent benefits.
The Mechanics of the $11 Million Scheme
The scale of the fraud was enabled by the rapid deployment of federal funds during the pandemic, which investigators say Hmaidan viewed as an opportunity for personal gain. According to court documents, Hmaidan and her associates filed claims containing false information regarding employment status and the impact of the pandemic on the alleged claimants’ ability to work.
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Once the fraudulent claims were approved, the benefits were loaded onto debit cards and mailed to addresses accessible to Hmaidan and her co-conspirators. This allowed the group to maintain control over the funds while keeping the actual victims—the clients whose identities were stolen—entirely in the dark.
The financial trail became a focal point for investigators. Federal authorities determined that the group used these debit cards to withdraw approximately $2.8 million in cash from ATMs located near their residences, effectively scrubbing the digital trail of the stolen funds.
A Breach of Professional Trust
The case has been highlighted by officials as a particularly egregious breach of professional ethics. As a tax preparer, Hmaidan had legal and ethical access to sensitive financial data, which she used to facilitate the theft.
Inspector General Anthony P. D’Esposito of the U.S. Department of Labor emphasized the cruelty of the crime, noting that Hmaidan stole benefits meant for struggling Americans. “Fraud is a tax you never voted for, and we’re coming after the people collecting it,” D’Esposito said, signaling a zero-tolerance approach to those who exploited the national crisis.
Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS-CI) Chicago Field Office noted that the scheme targeted a program that families relied on to keep food on their tables and roofs over their heads. The IRS-CI worked in tandem with the Department of Labor to follow the money and expose the full scope of the operation.
Legal Breakdown and Potential Penalties
The jury’s verdict covers multiple counts of federal crimes, reflecting the organized nature of the conspiracy. Hmaidan now faces a significant prison term as the court moves toward the sentencing phase.
| Charge | Count | Maximum Potential Penalty |
|---|---|---|
| Conspiracy to Commit Mail Fraud | 1 | 20 Years |
| Mail Fraud | 5 | 20 Years (per count) |
Broadening the Federal Crackdown on Fraud
The conviction of Hmaidan is not an isolated event but part of a systemic shift in how the federal government is pursuing pandemic-related theft. On April 7, the Department of Justice announced the creation of the Fraud Division, a specialized unit designed to be “laser-focused” on prosecuting those who defraud the American public.
This effort is integrated into a wider, whole-of-government strategy known as the Task Force to Eliminate Fraud. Chaired by Vice President J.D. Vance, the task force aims to eliminate waste and abuse within all federal benefit programs, ensuring that future emergency relief is better protected from opportunistic criminals.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division stated that the division will continue to find and prosecute those who exploited the pandemic, serving as a deterrent to others who may have attempted similar schemes.
Disclaimer: This report is based on federal court proceedings and official government statements. It is provided for informational purposes and does not constitute legal advice.
Hiam Hmaidan is scheduled to be sentenced on Oct. 2. A federal district court judge will determine the final sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors. We will provide updates following the sentencing hearing.
Do you have thoughts on the government’s current approach to pandemic fraud recovery? Share this story and join the conversation in the comments.
