SOUTHFIELD, MI – Kenny Lee Howard, 32, of Southfield, Michigan, has been sentenced to nearly eight years in prison for his role in a scheme to defraud state unemployment insurance agencies during the COVID-19 pandemic, the U.S. Attorney’s Office for the Eastern District of Michigan announced Thursday.
Howard, along with co-defendants, conspired to file fraudulent unemployment claims across five states—primarily Michigan and California—causing millions of dollars in losses. Between April 2020 and August 2021, Howard and his co-conspirators filed more than 700 fraudulent claims, leading to over $6.3 million in losses to state unemployment agencies.
The fraudulent claims were processed, and funds were loaded onto prepaid debit cards, which were then mailed to addresses controlled by the defendants. Once the cards were received, the conspirators withdrew cash from ATMs, using the stolen funds for personal gain.
Co-defendant David Davis, 27, of Detroit, had previously been sentenced to 30 months in prison, while Keila Howard, another co-defendant, pleaded guilty and is awaiting sentencing. The case involving Stevenvan Ware remains pending.
All four defendants were charged with conspiracy to commit wire fraud, and Howard’s actions significantly contributed to the scheme’s success. The U.S. Attorney’s Office reported that more than half of the fraudulent claims were approved, totaling a $6,336,575 loss. If all claims had been approved, the loss would have exceeded $11 million.
Acting U.S. Attorney Julie A. Beck stated, “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.”
Howard’s nearly 8-year prison sentence serves as a strong message against those who attempt to exploit government programs meant to provide support during a crisis.
