Crime Pays the Price: Center Point Man Sentenced to Federal Prison
Center Point, Iowa – In a shocking turn of events, Larry Neal Wells, a 63-year-old resident of Center Point, Iowa, has been sentenced to 5 months in federal prison for COVID-19 unemployment benefits fraud. The sentence was handed down on September 20, 2021 by United States District Court Judge C.J. Williams in Cedar Rapids.
Wells’ sentence stems from his guilty plea on April 5, 2021 to one count of wire fraud. The prosecution revealed that Wells received a staggering $16,978 in unemployment funds to which he was not entitled from the states of Maine and New York. The funds were obtained through the CARES Act, a federal program designed to provide financial assistance to individuals affected by the COVID-19 pandemic.
According to the sentencing and plea agreement, Wells withdrew the funds in cash, kept some of the money for himself, and mailed the rest to other individuals. This brazen scheme not only cheated the system but also put an unnecessary strain on the financial resources of the states of Maine and New York. As a result, Wells was ordered to make $7,728 in restitution to the New York State Department of Labor and $9,250 in restitution to the Maine Department of Labor.
Wells’ fate was sealed when he was sentenced to 5 months’ imprisonment, followed by a 5-year term of supervised release. The court also ordered him to surrender to the United States Marshal on October 4, 2021. This prosecution serves as a stark reminder of the consequences of committing fraud and highlights the federal government’s commitment to combating COVID-19-related crimes.
Fighting COVID-19-Related Crimes
As the nation continues to grapple with the effects of the COVID-19 pandemic, the federal government remains vigilant in its pursuit of those who seek to exploit the system for personal gain. The National Center for Disaster Fraud Hotline has been established to receive tips and complaints from the public regarding COVID-19-related crimes. Citizens can report any suspicious activities by calling 866-720-5721 or submitting a complaint online at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Prosecution Details
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation and the United States Department of Labor Office of Inspector General. The case file number is 20-CR-113, and court documents can be accessed at ecf.iand.uscourts.gov/cgi-bin/login.pl.
Related Federal Cases
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- Sergio Niz-Mendez, Illegal Reentry, Iowa 2026 · New York
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Key Facts
- State: Iowa
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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