Fraud concerns over California’s unemployment benefits – By Associated Press (FOX Business) / Sept 3 2020
People have received unsolicited letters, some with debit cards, from the state’s jobless agency
Concerns are growing about possible widespread fraud in California’s unemployment system following numerous reports of people receiving unsolicited letters, some with debit cards, from the state’s jobless agency, and a suspicious number of claims involving independent contractors.
The California Employment Development Department has paid a staggering $76.9 billion in unemployment benefits since the start of the pandemic, processing more than 11.9 million claims, most the result of Gov. Gavin Newsom’s decision to shut down much of the economy to slow the spread of the disease.
The U.S. Department of Labor reported Thursday that California had processed more than 405,000 Pandemic Unemployment Assistance claims last week, accounting for more than half of all such claims nationally. Congress authorized the program earlier this year to help people not normally eligible to receive unemployment benefits, including independent contractors.
Michael Bernick, former director of the Employment Development Department and now an attorney at the Duane Morris law firm, called that a “ridiculously high percentage.”
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