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Fraud linked to California’s Unemployment Department may hit eight billion dollars and expands to other states
SANTA BARBARA, Calif. - Our series of Tipline reports about fraud in California’s unemployment system indicates the loss to taxpayers could hit a staggering eight billion dollars.
Some law enforcement officials have already confirmed the fraud has been linked to prisoners at every jail and prison in California. That massive and complex investigation is underway right now and it s expanding to other states.
Authorities are investigating inmates at prisons across the U.S. who ve allegedly been scamming the system and getting money from California s Employment Development Department, the EDD, which oversees the state s unemployment benefit system.