Who will pay for all of California’s unemployment fraud?
Lauren Hepler and Stephen Council
CalMatters
A 1-year-old in Fresno raking in $167 a week. An ex-state employee stealing $200,000 from California’s unemployment system, some by impersonating Sen. Dianne Feinstein. Another $1.2 million swindled by a rapper who bragged about it on YouTube, $1 billion drained in the name of state prisoners, and $2 billion in jobless benefits siphoned off state-issued debit cards.
If doing the math on unemployment fraud in California during the pandemic isn’t dizzying enough, add the untold numbers of workers still fighting for funds that they say were stolen in unauthorized transactions at faraway ATMs, casinos and convenience stores.
In summary
The battle has begun over billions of dollars allegedly stolen during the pandemic, pitting state officials against a web of scammers and their own private contractors. With another stimulus bill poised to inject more cash into a leaky system, taxpayers could be left holding the bag.
A 1-year-old in Fresno raking in $167 a week. An ex-state employee stealing $200,000 from California’s unemployment system, some by impersonating Sen. Dianne Feinstein. Another $1.2 million swindled by a rapper who bragged about it on YouTube, $1 billion drained in the name of state prisoners, and $2 billion in jobless benefits siphoned off state-issued debit cards.
Shouldn’t we fix current fraud problems before throwing more money at COVID relief?
CARES Act unemployment fraud was widespread yet appears tame compared to the fraud, abuse and waste in the Paycheck Protection Program for businesses.
Brad Polumbo
Opinion contributor
There s new momentum in Washington, D.C. for another COVID-19 stimulus package this month, and it may well be followed by another round after President-elect Joe Biden is inaugurated. Unfortunately, Congress has yet to fix the glaring problems that plagued its first relief package.
That didn t stop a bipartisan coalition of lawmakers from rolling out a $908 billion “compromise” package. Now the basis of bipartisan negotiations, the new bill would pump more money into the programs established in the $2 trillion-plus CARES Act passed in March.
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