A Michigan man has been sentenced to 94 months in federal prison for his role in a multi-state scheme to defraud unemployment insurance agencies during the COVID-19 pandemic. Acting United States Attorney Julie A. Beck announced the sentencing this week.
Kenny Lee Howard, 32, of Southfield, was sentenced by United States District Judge Linda V. Parker.
Co-defendant David Davis, 27, of Detroit, was previously sentenced to 30 months in prison. Co-defendant Keila Howard has pleaded guilty and is awaiting sentencing, while the case against co-defendant Stevenvan Ware remains pending.
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All four were charged with conspiracy to commit wire fraud, and Kenny Howard was also charged with aggravated identity theft.
Court records revealed that between April 2020 and August 2021, Howard and his co-conspirators filed over 700 fraudulent unemployment insurance claims across five states, primarily Michigan and California. Once the claims were approved, funds were loaded onto prepaid debit cards and mailed to addresses controlled by the defendants. They then used ATMs to withdraw cash.
Approximately 60% of the fraudulent claims were successful, resulting in a loss of $6,336,575 to state unemployment insurance agencies. Had all the claims been approved, the loss would have exceeded $11 million.
“The pandemic may be over, but the prosecutions of those who took advantage of government programs during the pandemic are not,” stated Acting United States Attorney Beck. “This office continues—and will continue—to hold those responsible for these fraudulent schemes accountable for their actions, and today’s sentence is evidence of that important work.”
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“Kenny Howard III and his co-conspirators engaged in a scheme to defraud multiple state workforce agencies by filing for unemployment insurance in the names of identity theft victims who were not entitled to such benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit U.S. Department of Labor programs,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Timothy Wyse, and the investigation was conducted by the Department of Labor, Office of Inspector General.
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