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Mastermind behind US unemployment insurance scam sentenced to 8 years in prison

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Kathmandu. The mastermind of a gang that embezzled millions of dollars in unemployment insurance in the United States has been sentenced to nearly 8 years in prison.

US Court Judge Linda V. Parker has sentenced the mastermind to 94 months (nearly 8 years) in prison, finding him guilty of defrauding millions of dollars in unemployment insurance. The man who will be sentenced is 32-year-old Kenny Lee Howard of Southfield.

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The other young people involved in Howard’s scheme are David Davis, Kayla Howard and Steve Van Weir. Davis was already sentenced to 30 months in prison, while Kayla Howard has yet to be sentenced. The case against another young man, Ware, has been postponed for now.

The four men were accused of defrauding unemployment insurance funds.

According to a US court, from April 2020 to August 2021, Kenny Lee Howard’s mastermind scheme successfully collected $6.2 million (Rs. 861.8 million) in payments by submitting 700 fake unemployment insurance claims. They committed this fraud in 5 states in the US. The court said that many of the fraudulent claims were filed in Michigan and California.

Court records show that 60 percent of the fraudulent claims filed by this gang were paid. As soon as the claim payment amount arrived in their bank accounts, they would go to ATMs to withdraw money.

The unemployment insurance scheme was introduced in the US to provide relief to young people during the Corona period. It seems that this scam has caused great damage to the state. –Agency

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