Dawn N. Ison, U.S. Attorney | Department Of Justice Eastern District Of Michigan
Kenny Lee Howard, a 32-year-old resident of Southfield, has been sentenced to 94 months in prison for his involvement in a scheme to defraud state unemployment insurance agencies during the Covid-19 pandemic. The announcement was made by Acting United States Attorney Julie A. Beck.
Megan Howell, Special Agent-in-Charge of the Great Lakes Region for the U.S. Department of Labor-Office of Inspector General, joined Beck in making the announcement.
United States District Judge Linda V. Parker handed down Howard's sentence. Co-defendant David Davis, aged 27 from Detroit, had previously been sentenced to 30 months in custody. Another co-defendant, Keila Howard, has pleaded guilty and is awaiting sentencing. The case against co-defendant Stevenvan Ware is still pending. All four individuals were charged with conspiracy to commit wire fraud; Kenny Howard faced an additional charge of aggravated identity theft.
Court records reveal that between April 2020 and August 2021, Howard and his associates filed over 700 unemployment insurance claims across five states, mainly targeting Michigan and California. Once processed, funds were loaded onto pre-paid debit cards sent to addresses controlled by the defendants. These cards were then used at ATMs to withdraw cash. Approximately sixty percent of these fraudulent claims succeeded, resulting in a $6,336,575 loss to state unemployment insurance agencies. Had all claims been approved, losses could have exceeded $11 million.
Acting United States Attorney Beck emphasized the ongoing efforts to prosecute those who exploited government programs during the pandemic: “The pandemic may be over, but the prosecutions of those who took advantage of government programs during the pandemic are not. 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."
Megan Howell added: “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.”
Assistant United States Attorneys Ryan A. Particka and Timothy Wyse are prosecuting this case following an investigation conducted by the Department of Labor's Office of Inspector General.
