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While a million workers still can t get unemployment benefits, EDD paid out a quarter million dollars to jail inmates running a scheme behind bars.
It also failed to cross-check claims with the Department of Corrections, and jail inmates were filing phony claims from behind bars, collecting at least $810 million dollars in benefits. EDD was so overwhelmed it didn t have a system to catch this type of a fraud, said San Mateo County District Attorney Steve Wagstaffe.
The report says EDD had only two staffers assigned to manually inspect reports of suspected fraud.
To correct problems, the EDD froze thousands of accounts to weed out fraud. But that swept many legitimate claims into the mix - leaving many honest workers with no income.