A former resident of Fort Worth, Texas, has been sentenced to five years in federal prison for participating in a scheme to fraudulently obtain unemployment benefits from the U.S. Department of Labor. Mark Alan Valles, 51, pleaded guilty in October 2025 to conspiring to steal government funds. On February 20, 2026, Chief U.S. District Judge Reed O’Connor handed down a sentence of 60 months in prison and ordered Valles to pay $407,724 in restitution to the Department of Labor and the Small Business Administration.
“This defendant exploited government programs and stole funds intended to aid Americans during a critical economic period in this country,” said U.S. Attorney Ryan Raybould. “I applaud the diligent work of our law enforcement partners in uncovering the fraud scheme and seeing justice done in this case.”
According to court documents, between April 2020 and September 2021, Valles conspired with others to use stolen personal identifying information from at least 44 victims. The group submitted false applications for unemployment insurance through the Texas Workforce Commission (TWC), which is funded by the Department of Labor. The fraudulent claims totaled $899,719. Debit cards linked to these claims were mailed to addresses accessible by Valles or his associates; they then retrieved the cards and withdrew cash from ATMs around Fort Worth.
“Mark Valles conspired with others to defraud the Texas Workforce Commission, U.S. Government, and the American taxpayers in an unemployment insurance fraud scheme that enriched himself at a time when millions of Americans desperately needed the money,” stated Anthony P. D’Esposito, Inspector General, U.S. Department of Labor, Office of Inspector General. “My office is committed to protecting the integrity of the unemployment insurance program by vigorously pursuing those who commit this type of fraud. Fraud will not be tolerated. Accountability is not optional.”
The investigation was conducted by multiple agencies including the U.S. Department of Labor-Office of Inspector General, U.S. Postal Inspection Service, and Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Mark McDonald prosecuted the case.
