Federal investigators are uncovering extraordinary amounts of unemployment fraud in the state of California.
California Labor Secretary Julie Su said out of the $114 billion the
state has paid out so far during the pandemic, approximately 10 percent
or around $11.4 billion has been confirmed as fraudulent. On top of
that, another $20 billion is being considered suspicious.
Su said at the beginning of the pandemic, the state did not have
sufficient security measures in place to prevent national and
international crime organizations from stealing billions in state funds.
These malicious actors were reportedly able to take advantage of the
system due to overly broad and loose eligibility requirements, which
made the state’s pandemic assistance fund an easy target.
Earlier this month, state officials temporarily halted benefits for
more than 1.4 million Californians in an attempt to verify the identity
of thousands deemed suspicious. In that time, state authorities have
uncovered completely fabricated individuals, fake businesses, federal
funds going to criminals in prison as well as funds going to individuals
in countries like Russia and Nigeria.
“There is a human need for this money, a real human need,” stated
Todd Spitzer, Orange County District Attorney. “And instead, this money
went to six state prisoners, including two convicted murderers.”
Some California residents have found themselves the victims of fraud,
left with no money and seemingly no one to reach out to due to how
convoluted the state’s unemployment system is.
The inability of the state’s government to prevent such widespread
fraud has caused many local officials and residents to become furious
with Democrat Gov. Gavin Newsom’s administration.
Officials have stated that investigations into fraudulent unemployment claims are currently ongoing.
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