A Southfield man who officials describe as the “ringleader” of a multi-million dollar insurance fraud scheme during the COVID-19 pandemic will spend the next several years in prison, a federal judge has ordered.
At a court hearing March 13 in Detroit, U.S. District Judge Linda Parker sentenced 34-year-old Kenny Lee Howard III to 94 months in prison — just shy of eight years incarceration.
Howard, along with three co-defendants including his sister, was charged with conspiracy to commit wire fraud. Howard was also charged with aggravated identity theft.
Court records state that from April 2020 to August 2021, Howard and his co-conspirators filed more than 700 unemployment insurance claims across multiple states, primarily Michigan and California. Awarded funds were loaded onto pre-paid debit cards and mailed to addresses controlled by Howard and the co-defendants, who would use them to withdraw cash at ATMs.
According to the Department of Justice, the fraudsters were successful approximately 60% of the time, and stole $6.3 million from state unemployment insurance agencies. If 100% of the fraudulent claims had been approved, the loss would have topped $11 million, the DOJ stated.
Co-defendant David Davis, 27, of Detroit was previously sentenced to 30 months in prison, and co-defendant Keila Howard — Kenny Howard’s sister — is awaiting sentencing. The case against co-defendant Stevenvan Ware is pending.
“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,” Megan Howell, acting special agent-in charge, stated in a news release. The sentencing, she stated, “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.”
Pontiac man arraigned, accused of stabbing woman for wearing his clothes
Jail worker accused of sex crimes against teen inmates competent for trial, scheduled for April