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Fraudsters and cyber-criminals stole billions of dollars of COVID unemployment aid

How fraudsters and cyber criminals stole billions in unemployment aid from federal program after officials warned it was at high risk of exploitation
The Pandemic Unemployment Assistance program was created under the CARES Act last spring as the pandemic left millions of Americans out of work
About $630million in aid has been doled out under the program aimed at helping workers who are not typically eligible for unemployment insurance
A new report from NBC News broke down how billions of dollars PUA aid ended up in the wrong hands as fraudsters exploited overwhelmed state agencies
Experts described a veritable tsunami of fraudulent claims flooding agencies ....

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California paid out $11 billion in fake jobless claims last year, official says

California paid out $11 billion in fake jobless claims last year, official says
KABC
LOS ANGELES (KABC) The state of California paid out $11 billion in fake jobless claims and billions more in payments are being investigated as possible fraud, according to the state Labor Secretary Julie Su.
Out of the $114 billion paid in unemployment claims, nearly 10% have been confirmed as fraudulent, said Su. Another 17%, or nearly $20 billion is under investigation.
There is no sugarcoating the reality, Su said. California did not have sufficient security measures in place to prevent this level of fraud, and criminals took advantage of the situation. ....

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OC's DA charges 10 suspects, including murderers, for stealing $500,000 in all in coronavirus unemployment claims [The Orange County Register]

FAIRFIELD-SUISUN, CALIFORNIA
OC’s DA charges 10 suspects, including murderers, for stealing $500,000 in all in coronavirus unemployment claims [The Orange County Register]
Jan. 25 Orange County District Attorney Todd Spitzer on Monday, Jan. 25, announced three criminal cases involving $500,000-plus in fraudulent unemployment claims while urging a “massive response” by state officials to a suspected wave of theft across the state of money meant for those out of work because of the coronavirus pandemic.
The 10 suspects include two men accused of opening a Garden Grove business in order to file false unemployment claims, as well as an Anaheim tax preparer and an Irvine woman accused of helping prisoners, including convicted murderers, improperly receive unemployment benefits. ....

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State Unemployment Fraud Amid Pandemic 'Despicable,' Says Norris

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Three new fraud cases in California s EDD scandal are just the tip of the iceberg, says Laguna Beach Assemblywoman Cottie Petrie-Norris. (Photo: Jeff Walters)
LAGUNA BEACH, CA Orange County District Attorney Todd Spitzer announced three cases including two that involved convicted murderers of defrauding the state s unemployment program during the COVID-19 pandemic the eve of hearings in Sacramento on Tuesday to address how to tackle the thefts.
The three cases are unrelated but part of a rash of unemployment fraud that has touched off hearings in Sacramento led by Assemblywoman Cottie Petrie-Norris, D-Laguna Beach.
It is beyond disturbing, Spitzer said of the fraud. People should be very, very upset and angry about this. I m very angry about this. ....

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Garden Grove men charged with opening business to defraud California Employment Development Department

Orange County District Attorney Todd Spitzer was joined by Assemblywoman Cottie Petrie-Norris at a press conference this morning to announce the prosecution of two business owners who opened up a Garden Grove storefront with the sole purpose of filing false unemployment claims with the state of California for people who did not qualify in order to steal taxpayer dollars intended to help those out of work due to the COVID-19 pandemic.
Nearly $500,000 in cash and bank accounts was recovered during the District Attorney’s investigation in conjunction with the fraudulent activity being carried out by that business.
District Attorney Spitzer also announced the prosecution of eight more people, including six state prisoners, involved in two other unemployment schemes to also defraud California taxpayers of tens of thousands of dollars. Among those charged with filing false unemployment claims are two convicted murders who claimed the COVID-19 pandemic had impacted their abilit ....

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