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Editorial: California s new pay-first unemployment benefit policy is much better than it sounds
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Becca Camping of San Francisco, shown walking along Hyde Street in January, was one of thousands of Californians who whose legitimate unemployment insurance payments were frozen by the state Economic Development Department.Jessica Christian/The Chronicle
It’s a persistent paradox of California’s dysfunctional unemployment agency that it hemorrhaged billions of dollars in fraudulent payments even as it froze out thousands of often desperate legitimate claimants in the name of fraud prevention.
Now Employment Development Department officials promise to pay first and ask questions later on existing claims, allowing unemployed Californians to continue receiving conditional payments while eligibility questions are sorted out. That may not comfort anyone contemplating as much as $30 billion in EDD proceeds suspected of enriching identity thieves and scam artists sinc
California EDD to stop freezing unemployment benefits and adopt pay now policy
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Becca Camping, a restaurant worker whose unemployment benefits were frozen after she was laid off last year because of the pandemic, visits Fisherman’s Wharf.Stephen Lam/The ChronicleShow MoreShow Less
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Shelly Ross, who runs cat-sitting services Tales of the Kitty, was among thousands of Californians whose unemployment benefits were frozen by the state this year.Santiago Mejia/The ChronicleShow MoreShow Less
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Becca Camping, a restaurant worker whose unemployment benefits were frozen after she was laid off last year due to the pandemic, shops for fruit at Fisherman’s Wharf in San Francisco.Stephen Lam/The ChronicleShow MoreShow Less
By Kitty O Neal, News 93.1 KFBK
Jul 21, 2021
KFBK Legal Analyst and Former Federal Prosecutor Attorney Bill Portanova
LISTEN: KFBK Legal Analyst and former federal prosecutor attorney Bill Portanova. State officials have hired former federal prosecutor McGregor Scott to serve as special counsel to assist in the investigations of the massive EDD fraud and bogus claims that were filed by international criminal organizations, prison inmates and others resulting in the loss of billions of dollars.
California hires former federal prosecutor to investigate state s unemployment fraud
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McGregor Scott, the fomer United States Attorney for the Eastern District of California, will work the prosecute unemployment fraud that saw millions in benefits intended for Californians go to fraudsters.Rich Pedroncelli/Associated Press
Former federal prosecutor McGregor Scott has been appointed as special counsel to investigate unemployment fraud in California that saw billions of dollars go to fraudsters originally intended for Californians knocked out of work during the coronavirus pandemic
Scott, who previously served twice as the U.S. Attorney for the Eastern District of California, will “Aid the state’s work with law enforcement to combat fraud, including supporting the state, federal, and, local efforts to prosecute suspected criminal activity,” according to a press release from the state’s Employment Development Department.