Long Ly, a 45-year-old man, has been sentenced to three years in federal prison after being caught in a fraud and identity theft scheme. Long Ly used his connections within his local Vietnamese community in Des Moines to convince several people to let him file unemployment claims on their behalf. However, these individuals were not actually unemployed and were not eligible for such benefits.
Authorities say Long Ly specifically targeted victims who had limited knowledge of English. Some victims willingly gave him their information, trusting him, while others had their identities used without their knowledge. To make matters worse, Long Ly even filed fraudulent claims for himself while he was still employed.
Between 2020 and 2021, the fraudulent claims were submitted to Iowa Workforce Development, the state agency responsible for handling unemployment benefits. Long Ly falsely claimed that he and his victims were out of work and needed financial assistance. In several cases, he directed the benefits to bank accounts he controlled, ensuring that he would receive the money personally.
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A Costly Crime with Serious Consequences
Due to Long Ly’s actions, Iowa Workforce Development issued nearly $100,000 in benefits that should not have been granted. Some of this money came from special funds set aside to help people affected by the COVID-19 pandemic. These emergency funds were meant to support individuals who had lost jobs due to the crisis, not for those trying to take advantage of the system.
The fraudulent scheme came to light when authorities started investigating suspicious claims. Law enforcement and government agencies worked together to gather evidence, proving that Long Ly had knowingly and intentionally misrepresented information to receive benefits illegally.
After a thorough investigation, the court found Long Ly guilty of wire fraud and aggravated identity theft. As a result, he was sentenced to three years in federal prison. Unlike state prison sentences, federal sentences do not allow for parole, meaning he must serve the full term. Once he completes his sentence, he will also have to go through three years of supervised release, where authorities will monitor his activities to ensure he does not engage in further criminal behavior.
Authorities Take a Stand Against Fraud
Government officials and law enforcement agencies have strongly condemned this fraudulent activity. They emphasized that the unemployment system is designed to help those who genuinely need assistance. Fraudulent claims take money away from people who truly depend on these benefits during difficult times.
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Casey Howard, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, stated that this case highlights their commitment to protecting unemployment benefits from fraud. Howard explained that identity theft and fraudulent claims are serious crimes that harm both individuals and taxpayers.
Beth Townsend, Executive Director of Iowa Workforce Development, also weighed in on the case, stressing that the agency takes fraud very seriously. In recent years, they have improved their methods of detecting and preventing fraudulent claims. This case serves as an example that those who try to cheat the system will be caught and punished.
In addition to his prison sentence, Long Ly has been ordered to repay $72,872.20 in restitution. This means he must return a portion of the stolen money.
This case serves as a reminder that fraud and identity theft have severe consequences. Authorities continue to work hard to prevent similar cases and ensure that funds go to those who truly need them.
