Tax Preparer Gets 3 Years for $11M COVID Fraud

ORLAND PARK, Ill. — An Illinois tax preparer has been sentenced to 36 months in federal prison for running a pandemic unemployment fraud scheme that caused more than $11 million in fraudulent benefits to be paid, federal officials announced.

Read the U.S. Department of Justice release: https://www.justice.gov/opa/pr/illinois-tax-preparer-sentenced-stealing-more-11m-taxpayers-covid-19-assistance-fraud-scheme

The sentence was announced by the Justice Department's Office of Public Affairs on November 10, 2026.

Hiam Hmaidan, 54, of Orland Park, Illinois, received the sentence on Friday, according to the release.

In addition to the prison term, Hmaidan was ordered to serve two years of supervised release, pay $11,130,490 in restitution, and forfeit $1,965,712, officials reported.

Nearly 700 Claims, Client Identities, And Debit Cards

According to court documents and evidence presented at trial, Hmaidan operated an unemployment insurance fraud scheme from May 2020 through December 2022.

The scheme targeted the Pandemic Unemployment Assistance Program, which Congress established in 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), according to the release.

Hmaidan and her co-conspirators submitted nearly 700 fraudulent unemployment insurance claims, officials reported.

Those claims caused more than $11 million in fraudulent unemployment benefits to be disbursed, according to the release.

Investigators established that many claims contained false information about the claimants' employment status and the effect of the pandemic on their ability to earn a living, officials reported.

Hmaidan abused her position as a tax preparer by submitting many of the claims using her clients' names and personal information, according to the release.

Benefits were loaded onto debit cards and mailed to Hmaidan or to addresses accessible to her and her co-conspirators, officials reported.

Once the cards were obtained, approximately $2.8 million was withdrawn in cash from ATMs near where they lived, according to the release.

A Mail Fraud Conviction, Two Investigating Agencies, And Official Reaction

Hmaidan was convicted of one count of conspiracy to commit mail fraud and five counts of mail fraud, officials reported.

The case was investigated by the U.S. Department of Labor Office of Inspector General and IRS-Criminal Investigation, according to the release.

Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division said Hmaidan exploited a pandemic relief program designed to help workers and families in need, according to the release.

McDonald said the sentence reflects the seriousness of the crimes and that the Fraud Division will continue to pursue individuals who steal public funds, officials reported.

Prosecutors Named, Sentence Imposed, And What Happens Next

The case was prosecuted by Trial Attorneys Meredith B. Healy, of the Criminal Division's White Collar and Corporate Enforcement Section, and Kashan Pathan and Christopher Berridge, of the National Fraud Enforcement Division's Public Trust and Financial Integrity Section, according to the release.

What happens next is the prison term, followed by two years of supervised release, along with the restitution and forfeiture orders.

Anyone with information about fraud against federal benefits programs is asked to contact the Department of Labor Office of Inspector General or local law enforcement.

Sources

U.S. Department of Justice, Office of Public Affairs, "Illinois Tax Preparer Sentenced for Stealing More than $11M from Taxpayers in COVID-19 Assistance Fraud Scheme," November 10, 2026: https://www.justice.gov/opa/pr/illinois-tax-preparer-sentenced-stealing-more-11m-taxpayers-covid-19-assistance-fraud-scheme