A Vietnamese native and former resident of Des Moines has been sentenced to three years in federal prison for charges related to wire fraud and aggravated identity theft. Long Ly, 45, was found guilty of using his connections within the Des Moines Vietnamese community to convince five victims to allow him to file unemployment benefits claims on their behalf during 2020 and 2021. Despite being employed and thus ineligible for such benefits, Ly misrepresented both himself and his victims as unemployed.
Court documents reveal that several victims had limited English proficiency, which Ly exploited by filing claims without their knowledge or approval. He directed the payments from Iowa Workforce Development into bank accounts he controlled. This fraudulent activity resulted in nearly $100,000 in undeserved benefits payments, some linked to COVID-19 pandemic emergency declarations.
Following his prison term, Ly will serve a three-year supervised release period. The court also ordered him to pay $72,872.20 in restitution. Federal parole is not an option.
Casey Howard, Special Agent-in-Charge at the U.S. Department of Labor's Office of Inspector General, commented on the case: “Long Ly defrauded Iowa Workforce Development by filing for unemployment insurance benefits using the compromised identities of vulnerable and elderly victims who had limited English proficiency.” Howard emphasized the commitment to safeguarding unemployment insurance programs alongside federal and state law enforcement partners.
Beth Townsend, Executive Director of Iowa Workforce Development, stated: “Iowa Workforce Development takes unemployment fraud seriously and in recent years has significantly expanded its set of tools to help catch individuals who seek to defraud taxpayers.”
The announcement came from United States Attorney Richard D. Westphal of the Southern District of Iowa following an investigation by the U.S. Department of Labor Office of Inspector General.
The public is encouraged to report any information regarding attempted fraud involving COVID-19 through the Department of Justice’s National Center for Disaster Fraud Hotline or via their web complaint form.
