Please ensure Javascript is enabled for purposes of website accessibility
Over 40 Arrested for Fraud of California COVID Unemployment Benefits
gvw_ap_news
By Associated Press
Published 4 years ago on
September 18, 2020

Share

Investigators unraveling an identity fraud scheme targeting California’s unemployment system have arrested 44 people in Beverly Hills this month alone, officials said Thursday.

More arrests are expected as the California Employment Development Department and federal authorities investigate reports of people receiving unsolicited letters, some with debit cards, from the state’s jobless agency, the EDD said.

“Scammers are using a complex profile of stolen personal identifying information most likely obtained from national and global data breaches,” the department said.

Investigators suspect scammers are attempting to intercept fraudulent items when they are mailed so they can cash in on the jobless benefits, the agency said.

The agency is focusing on a segment of jobless claims called Pandemic Unemployment Assistance, which helped people not normally eligible to receive unemployment benefits, including independent contractors.

Some of the PUA claims were backdated in an effort to speed up the delivery of benefits. But that practice created a vulnerability in the system that enabled fraud rings to capitalize on earlier payments, officials said.

A Total of $289,000 in Cash Also Was Seized From the Suspects Along With Seven Handguns

“The EDD took action to shut down automatic backdating in the PUA program,” EDD said. “Following that, PUA applications dropped sharply to 145,790 last week, a decline of more than 72%.”

In Beverly Hills, 129 EDD debit cards were recovered with a total value exceeding $2.5 million, the city’s Police Department said in a statement Wednesday.

A total of $289,000 in cash also was seized from the suspects along with seven handguns.

The investigation found that people were coming into California from out of state to fraudulently obtain EDD debit cards using stolen identities.

The monetary value placed on the cards can be as high as $20,000 and cardholders are able to withdraw up to $1,000 per day per card, police said.

“The suspects will most often have numerous EDD cards in their possession with other people’s identities, along with large amounts of cash. They will then use the cards to lease short-term rentals, rent luxury vehicles, dine at restaurants and purchase high-end merchandise,” the department said.

RELATED TOPICS:

DON'T MISS

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

DON'T MISS

‘Once in a Lifetime’ Snow Hits Parts of the US South

DON'T MISS

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

DON'T MISS

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

DON'T MISS

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

DON'T MISS

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

DON'T MISS

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

DON'T MISS

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

DON'T MISS

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

DON'T MISS

Much of the Damage from the LA Fires Could Have Been Averted

UP NEXT

CA Sued the Tar Out of Trump the First Time Around. How Did It Do?

UP NEXT

Musk’s Straight-Arm Gesture Embraced by Right-Wing Extremists

UP NEXT

As Trump Declares Border Emergency, CA’s Targeted Immigrants Lie Low

UP NEXT

Dangerous Winds Return to Southern California as New Wildfires Break Out

UP NEXT

Trump’s Executive Orders: Reversing Biden’s Policies

UP NEXT

Gusty Winds, Extreme Fire Weather Return to Southern California

UP NEXT

Trump Wants to Deport Immigrants Accused of Crimes. CA Sheriffs Could Make It Easy

UP NEXT

Trump Returns to Power After Unprecedented Comeback, Emboldened to Reshape US

UP NEXT

Trump to Release Records on the Assassinations of the Kennedys and Martin Luther King

UP NEXT

Governor Newsom Negotiates Mortgage Relief for LA Firestorm Victims

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

2 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

2 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

2 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

2 hours ago

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

3 hours ago

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

3 hours ago

Much of the Damage from the LA Fires Could Have Been Averted

5 hours ago

CA Sued the Tar Out of Trump the First Time Around. How Did It Do?

5 hours ago

Israel’s Top General Resigns over Oct. 7 Failures, Adding to Pressure on Netanyahu

6 hours ago

Musk’s Straight-Arm Gesture Embraced by Right-Wing Extremists

6 hours ago

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

NEW YORK — Ichiro Suzuki became the first Japanese player chosen for baseball’s Hall of Fame, falling one vote shy of unanimous when he was ...

1 hour ago

Ichiro Suzuki in Yankee Pinstripes
1 hour ago

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

People walk past the 1900 Storm memorial sculpture on Seawall Blvd. during an icy winter storm on Tuesday, Jan. 21, 2025 in Galveston, Texas. (Brett Coomer/Houston Chronicle via AP)
1 hour ago

‘Once in a Lifetime’ Snow Hits Parts of the US South

The five turbines of Block Island Wind Farm operate, Dec. 7, 2023, off the coast of Block Island, R.I., during a tour organized by Orsted. (AP File)
2 hours ago

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

Photo of Mexican Oxy, fentanyl laced blue pills
2 hours ago

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

President Donald Trump talks about the Endurance all-electric pickup truck, made in Lordstown, Ohio, at the White House, Sept. 28, 2020, in Washington. (AP File)
2 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

A Border Patrol truck rides along the border wall in Sunland Park, N.M., Tuesday, Jan. 21, 2025. (AP/Andres Leighton)
2 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

Police are investigating after a man was found shot near a Visalia shopping center and transported to Kaweah Health.
2 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

3 hours ago

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

Help continue the work that gets you the news that matters most.

Search

Send this to a friend