PHOENIX, AZ – Two former employees of the Arizona Department of Economic Security (DES) have been convicted of accepting bribes and embezzling millions while approving fraudulent unemployment insurance (UI) and Pandemic Unemployment Assistance (PUA) claims during the COVID-19 pandemic, the U.S. Attorney’s Office for the District of Arizona announced.
Jacqueline Espino, 53, of Phoenix, pleaded guilty last week to one count of Bribery Concerning a Program that Receives Federal Funds. She is scheduled for sentencing on May 5, 2025, before U.S. District Judge Michael T. Liburdi.
In a separate case, Brandilyn Lorenzen, 48, of Gilbert, was sentenced on January 22, 2025, to 30 months in prison by U.S. District Judge Diane J. Humetewa after pleading guilty on November 6, 2024. She was also ordered to pay over $2.9 million in restitution to DES.
Bribery and Embezzlement Scheme
Between 2020 and 2022, as DES faced a surge in unemployment claims due to the pandemic, Espino and Lorenzenused their positions as claims adjudicators to approve fraudulent UI and PUA claims in exchange for bribes.
They also embezzled funds from DES for personal benefit:
- Espino admitted to approving 9 fraudulent claims, resulting in $140,298 in improper payments, while personally embezzling $600,672.
- Lorenzen admitted to approving 24 fraudulent claims, causing $532,964 in wrongful payments, and embezzling $2,461,520. She was ordered to pay $2,994,484 in restitution at her sentencing.
Federal Officials Condemn Actions
“These defendants didn’t just accept bribes,” said U.S. Attorney Gary Restaino. “When public employees cheat, they damage the credibility of their colleagues across the country. In a time of unprecedented attacks against the integrity of public servants, it’s important to recognize the patriotic service of federal and state employees who protect and cherish Arizona and America.”
“Government employees are entrusted to protect the integrity of these crucial aid programs,” said DHS Inspector General Joseph V. Cuffari, Ph.D. “Those who betray that trust will be held accountable.”
Investigation and Prosecution
The U.S. Department of Homeland Security Office of Inspector General and the U.S. Department of Labor Office of Inspector General led the investigation. Assistant U.S. Attorney Aron Ketchel of the District of Arizona, Phoenix, prosecuted the case.
Espino’s sentencing is set for May 5, 2025.
