Baltimore Man Sentenced for Unemployment Fraud Targeting Vulnerable Victims

On January 8, 2026, a U.S. District Judge sentenced Duane Watts, 46, of Baltimore, to 54 months in prison followed by three years of supervised release for his role in a scheme that obtained and used the personal identifying information of vulnerable victims to file fraudulent unemployment insurance claims. The scheme produced financial losses exceeding $167,000 and targeted people described in court records as having mental or cognitive impairments.

Prosecutors said Watts and others exploited sensitive personal data to submit claims to unemployment insurance programs, diverting benefits intended for eligible claimants. Federal investigators built the case with assistance from multiple agencies, including the Department of Labor Office of Inspector General and components of the Federal Bureau of Investigation. The sentence reflects the court's focus on deterring fraud that preys on people least able to protect themselves and on preserving the integrity of public benefit programs.

For Baltimore residents, the case carries immediate local consequences. Families and caregivers who support people with disabilities and cognitive impairments should be alert to signs of identity misuse, including unexpected unemployment notices, unexplained changes to benefit statements, or communications about claims they did not file. Fraud against unemployment systems can delay legitimate payments for neighbors who depend on them, strain local social services, and increase scrutiny that slows program administration.

The prosecution reinforces that federal law enforcement remains active in investigating economic crimes that cross municipal and interstate lines. Community organizations and service providers that work with vulnerable populations may need to review privacy practices and advise clients about safeguarding personal identifying information such as Social Security numbers and dates of birth.

If you believe you or someone you know has been victimized by similar fraud, contact the U.S. Attorney's Office for the District of Maryland at USAMD.Press@usdoj.gov or 410-209-4946 for guidance on reporting and next steps. Local residents can also raise concerns with their caseworkers and Maryland Department of Labor offices to check the status of benefits and correct any fraudulent claims.

The conviction of Watts is a reminder that protecting the most vulnerable in Baltimore requires coordination between federal investigators, local service providers, and families. Ensuring accurate enrollment and rapid response to suspected identity misuse will be critical to prevent further harm to residents who rely on public benefits.