Mississippi auditor arrests three in unemployment fraud scheme

JACKSON, Miss. — State Auditor Shad White announced Monday that special agents from his office have arrested Chadwick Stubbs, Blair Stubbs, and Shinka Stubbs in connection with a scheme to defraud unemployment benefits. The arrests are part of Operation Payback, a detailed investigation into pandemic-related unemployment fraud.

The three individuals allegedly submitted fraudulent claims to the Mississippi Department of Employment Security using the identities of 13 inmates, some of whom were incarcerated with Chadwick and Blair Stubbs at the time. White said that during the COVID-19 pandemic, Mississippi distributed more than half a billion dollars in improper unemployment payments.

White emphasized the state’s commitment to holding criminals accountable, adding that if convicted, the suspects could face up to $36,000 in fines and 45 years in prison. All those arrested are presumed innocent until proven guilty in a court of law. The auditor’s office encourages the public to report suspected fraud via its website or by calling 1-800-321-1275 during business hours.

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