Fairfax woman suing state over discrimination will serve prison time for embezzlement

A woman who embezzled more than $43,000 in unemployment insurance benefits from Iowa Workforce Development was sentenced Wednesday in U.S. District Court to four years in federal prison.

Linda F. Pippen, 42, of Fairfax, who is also lead plaintiff in a class action discrimination lawsuit against the state, pleaded guilty Dec. 28, 2011 to one court of embezzlement from a program receiving federal funds and one count of aggravated identity theft.

Pippen was also ordered to pay $43,582 in restitution to Iowa Workforce Development.

According to the plea agreement, Pippen admitted that from May 20, 2008, to November 6, 2009, while employed as a workforce advisor in Cedar Rapids, she embezzled about $43,582 in unemployment insurance funds.

Pippen admitted she altered the computerized accounts of individuals who had been receiving unemployment benefits. Pippen caused the accounts to inaccurately reflect that the individuals should continue to receive unemployment benefits after the individuals were no longer eligible for such benefits.

She also altered bank account and routing numbers associated with the accounts so that funds were fraudulently directed to bank accounts under her control. Pippen admitted she abused the authority of her position and misused the identities of several people.

Pippen has prior convictions for embezzlement, third-degree theft and identity theft, according to court documents.

Kerry Koonce, spokesperson for Iowa Workforce Development, said after Pippen pleaded guilty last year that Pippen was hired in September 1998. She pleaded guilty to third-degree theft in 2000 and felony identity theft in 2002 in cases in Waterloo, but the agency or state had no knowledge of those convictions.

Pippen remains the lead plaintiff in the discrimination lawsuit for black workers suing the state, but lawyers filed a motion to drop her from the suit after she pleaded guilty. According to court records, she hasn't been dropped at this time.

The lawsuit involves a class of up to 6,000 black people turned down for state jobs and promotions dating back to 2003. Pippen claimed in the suit she was unfairly passed over for a promotion given to a less-qualified white woman. Lawyers are seeking millions in lost wages.

Pippen was released on her previous bond Wednesday, but she must surrender to the U.S. Marshals by April 5 to begin serving her four-year term.