Hiam Hmaidan
Introduction
Hiam Hmaidan is a 54-year-old tax preparer from Orland Park, Illinois, who was sentenced to 36 months in federal prison and two years of supervised release for running a pandemic-era unemployment insurance fraud scheme that caused more than $11 million in fraudulent benefits to be paid . She was also ordered to pay $11,130,490 in restitution and a forfeiture money judgment of $1,965,712 . The Justice Department announced the sentence on November 10, 2026, days after it was imposed .
Background Information
Hmaidan worked as a tax preparer, a position that gave her access to clients’ names and personal information — access prosecutors say she turned against the Pandemic Unemployment Assistance Program, the benefits program Congress created in 2020 under the CARES Act for workers whose livelihoods collapsed in the pandemic . According to court documents and trial evidence, from May 2020 through December 2022 she and her co-conspirators submitted nearly 700 fraudulent unemployment insurance claims, which caused more than $11 million in fraudulent unemployment benefits to be dispersed .
The Controversy or Incident That Led to Their Cancellation
Convicted and sentenced. A jury convicted Hmaidan of one count of conspiracy to commit mail fraud and five counts of mail fraud; the sentence followed that conviction.
The claims submitted by Hmaidan and her co-conspirators contained false information about claimants’ employment status and the pandemic’s impact on their ability to earn a living . Prosecutors said she abused her position as a tax preparer by submitting many of the fraudulent claims using her own clients’ names and personal information . Based on those claims, benefits were loaded onto debit cards and mailed directly to Hmaidan or to addresses accessible to her and her co-conspirators; once they held the cards, they withdrew approximately $2.8 million in cash from ATMs near where they lived .
“Hiam Hmaidan exploited a pandemic relief program designed to help workers and families in need, causing more than $11 million in fraudulent benefits to be paid,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division, calling the sentence a message that those who abuse federal benefits programs for personal gain will be held accountable .
Public Reaction and Consequences
The case was investigated by the U.S. Department of Labor Office of Inspector General and IRS Criminal Investigation, and prosecuted by trial attorneys from the Justice Department’s White Collar and Corporate Enforcement Section and the National Fraud Enforcement Division’s Public Trust and Financial Integrity Section . McDonald said the Fraud Division would continue pursuing individuals who steal public funds and undermine programs meant to protect the American people . The announcement landed alongside a same-day release against a New Jersey tax preparer who pleaded guilty to filing false client returns, part of a visible Justice Department push against preparer fraud .
Current Status
Hmaidan, 54, is serving a 36-month federal prison term followed by two years of supervised release, and owes $11,130,490 in restitution plus a $1,965,712 forfeiture judgment . Her conviction — one count of conspiracy to commit mail fraud and five counts of mail fraud — followed a trial rather than a plea .
Impact on Their Career/Life
The fraud conviction and the sentence ended Hmaidan’s work as a tax preparer and attached a seven-figure restitution obligation to her future, with the forfeiture judgment on top . The scheme she ran for roughly two and a half years — nearly 700 false claims, debit cards routed to herself and her associates, $2.8 million pulled from ATMs — now stands as the record of how she used the trust her clients placed in her to bill a pandemic relief program .
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 — source