Please ensure Javascript is enabled for purposes of website accessibility

Corporation for Public Broadcasting to Close After Funding Cut, in Blow to Local Media

3 hours ago

‘Freedom Week’: California Gun Owners Rush to Buy Ammo After Court Ruling

6 hours ago

Wall Street Selloff Sparked by Trump Tariffs, Amazon Results, Weak Payrolls

7 hours ago

US Construction Spending Extends Decline in June

7 hours ago

Global Shares in Red After US Jobs Data, Trump’s Tariff Salvo

7 hours ago

Construction of $200M Trump Ballroom at the White House to Begin in September

1 day ago

US Senate Committee Backs $1 Billion for Ukraine in Pentagon Spending Bill

1 day ago

Trump Says Mexico Trade Deal Extended for 90 Days

1 day ago

Fresno Unified Trustee Susan Wittrup Responds to $162,000 Payout

2 days ago
Fraudulent Inmate Unemployment Claims Now Almost Triple Initial Estimate
gvw_ap_news
By Associated Press
Published 5 years ago on
December 2, 2020

Share

SACRAMENTO — California sent about $400 million in fraudulent unemployment benefit payments to state prisoners, a state official said Tuesday, nearly triple the amount disclosed last week and a number that could grow as a criminal investigation continues.

Nine county district attorneys and a federal prosecutor are investigating unemployment fraud involving payments from the California Employment Development Department, which was under intense pressure to quickly process millions of claims as the economic impact from the coronavirus intensified last spring.

Criminals took advantage by submitting numerous fraudulent claims, many of which were approved by the state. Prosecutors discovered the fraud included inmates working with people outside the prisons and last week estimated $140 million was paid to about 20,000 prisoners between March and August.

But Crystal Page, spokeswoman for the California Labor and Workforce Development Agency that oversees the unemployment office, said a review of records now pegs the figure at about $400 million.

The new number includes not just the base benefits of $450 per week but also additional aid Congress approved during the pandemic — $600 per week for four months plus $300 a week for six weeks after that.

In all, records show benefit claims were submitted in the names of 31,000 inmates. About 20,800 inmates were paid and another $80 million in claims involving the other prisoners were not, according to Page.

The new figure came after comparing jobless claims data with the Social Security numbers of state prison inmates. That part of the investigation was slowed — to the great frustration of prosecutors — because of a state law that forbids the prison system from giving out inmates’ numbers.

State officials got around that law by convincing the Office of the Inspector General at the U.S. Department of Labor to issue a subpoena for the information in late September, according to Dana Simas, press secretary for the California Department of Corrections and Rehabilitation.

The subpoena is only a temporary solution because it covers just records between March 1 and Oct. 30. State officials say they are working on a more permanent fix.

California OK’d benefits for at least 133 inmates on death row, including some of the state’s most notorious serial killers. Prosecutors said someone filed a claim in the name of Scott Peterson, who was convicted and sentenced to death for the murder of his pregnant wife following a trial that gripped the nation.

Newsom ‘Deeply Alarmed’ by the Problem

It’s unclear how many inmates actually got the money. It’s possible criminals applied for the benefits by stealing inmates’ identities. Peterson, whose death sentence was recently overturned by the California Supreme Court, did not apply or receive any unemployment benefits, according to his attorney Pat Harris.

Riverside County District Attorney Michael Hestrin said prosecutors “have quite a bit of evidence that the inmates are in on it,” including recorded phone calls from prison where inmates brag about how much they and their families are being paid by the state.

“We’re continuing to uncover more fraud, and the scale of it is frankly stunning,” Hestrin said.

Hestrin is among the nine DAs leading a statewide task force that also includes U.S. Attorney McGregor Scott. Prosecutors first disclosed the scheme during a news conference last week, where they decried the dysfunction of the Employment Development Department that they said has hindered their investigation. They sent Gov. Gavin Newsom a letter asking him to get involved.

“This has hardly been transparent at this point,” said El Dorado County District Attorney Vern Pierson, who is also president of the California District Attorneys Association.

Newsom responded to the letter Tuesday, saying he has been “deeply alarmed” by the problem. He blamed the fraud in part on Congress’ decision to expand unemployment benefits during the pandemic while mostly relying on applicants to self-certify that they were eligible.

“While this helped many individuals in need during this pandemic, bad actors took advantage of the crisis to abuse the system,” Newsom said.

Newsom tapped Mark Ghilarducci, director of the Governor’s Office of Emergency Services, to smooth things out by coordinating the state’s cooperation with the investigation. Ghilarducci’s main job is to help multiple state and federal agencies cooperate when there is a natural disaster.

His skills could be useful in the investigation, which crosses multiple jurisdictional boundaries.

“We’re going to have to rethink our system here,” Hestrin said. “The safeguards that were supposed to prevent this from happening didn’t work.”

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

US Judges Speak Out About Death Threats, ‘Swattings,’ and ‘Pizza Doxings’

DON'T MISS

It’s Raining Cash for Some 2026 Fresno City Council Hopefuls

DON'T MISS

Fresno County Finds E. Coli at Avocado Lake. Don’t Swim There

DON'T MISS

Trump Fires US Labor Department’s Statistical Leader After Weaker Than Expected Jobs Report

DON'T MISS

Corporation for Public Broadcasting to Close After Funding Cut, in Blow to Local Media

DON'T MISS

Trump Eyes Bringing Azerbaijan, Central Asian Nations Into Abraham Accords, Sources Say

DON'T MISS

Farmers in West Fresno County to Consider 200% Groundwater Pumping Fee Hike

DON'T MISS

Trump Orders Nuclear Submarines Moved Near Russia

DON'T MISS

Fresno Councilmember Vang Accused of Conflict of Interest in Budget Vote

DON'T MISS

Ghislaine Maxwell Moved From Florida Prison to Lower-Security Facility

UP NEXT

It’s Raining Cash for Some 2026 Fresno City Council Hopefuls

UP NEXT

Fresno County Finds E. Coli at Avocado Lake. Don’t Swim There

UP NEXT

Trump Fires US Labor Department’s Statistical Leader After Weaker Than Expected Jobs Report

UP NEXT

Corporation for Public Broadcasting to Close After Funding Cut, in Blow to Local Media

UP NEXT

Trump Eyes Bringing Azerbaijan, Central Asian Nations Into Abraham Accords, Sources Say

UP NEXT

Farmers in West Fresno County to Consider 200% Groundwater Pumping Fee Hike

UP NEXT

Trump Orders Nuclear Submarines Moved Near Russia

UP NEXT

Fresno Councilmember Vang Accused of Conflict of Interest in Budget Vote

UP NEXT

Ghislaine Maxwell Moved From Florida Prison to Lower-Security Facility

UP NEXT

Trump Escalates Trade War With Canada Following Palestine Stance

Trump Fires US Labor Department’s Statistical Leader After Weaker Than Expected Jobs Report

3 hours ago

Corporation for Public Broadcasting to Close After Funding Cut, in Blow to Local Media

3 hours ago

Trump Eyes Bringing Azerbaijan, Central Asian Nations Into Abraham Accords, Sources Say

3 hours ago

Farmers in West Fresno County to Consider 200% Groundwater Pumping Fee Hike

4 hours ago

Trump Orders Nuclear Submarines Moved Near Russia

4 hours ago

Fresno Councilmember Vang Accused of Conflict of Interest in Budget Vote

5 hours ago

Ghislaine Maxwell Moved From Florida Prison to Lower-Security Facility

5 hours ago

Trump Escalates Trade War With Canada Following Palestine Stance

5 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Scott Oscar Whitehead

6 hours ago

‘Freedom Week’: California Gun Owners Rush to Buy Ammo After Court Ruling

6 hours ago

US Judges Speak Out About Death Threats, ‘Swattings,’ and ‘Pizza Doxings’

United States judges spoke out against the unprecedented surge in violence and disturbing threats made against members of the judicial branc...

13 minutes ago

United States judges speaking about receiving violent threats over rulings
13 minutes ago

US Judges Speak Out About Death Threats, ‘Swattings,’ and ‘Pizza Doxings’

Fresno city hall with council campaign finance money
2 hours ago

It’s Raining Cash for Some 2026 Fresno City Council Hopefuls

E. coli identified at avocado lake
2 hours ago

Fresno County Finds E. Coli at Avocado Lake. Don’t Swim There

President Donald Trump speaks at a dinner with Republican Senators, in the State Dining Room at the White House in Washington, D.C., U.S., July 18, 2025. (Reuters File)
3 hours ago

Trump Fires US Labor Department’s Statistical Leader After Weaker Than Expected Jobs Report

Breaking News from Reuters
3 hours ago

Corporation for Public Broadcasting to Close After Funding Cut, in Blow to Local Media

President Donald Trump delivers remarks in the Roosevelt Room at the White House in Washington, D.C., U.S., July 31, 2025. (Reuters File)
3 hours ago

Trump Eyes Bringing Azerbaijan, Central Asian Nations Into Abraham Accords, Sources Say

4 hours ago

Farmers in West Fresno County to Consider 200% Groundwater Pumping Fee Hike

President Donald Trump speaks after disembarking Marine One, as he departs for Scotland, at Joint Base Andrews, Maryland, U.S., July 25, 2025. (Reuters/Evelyn Hockstein)
4 hours ago

Trump Orders Nuclear Submarines Moved Near Russia

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

Search

Send this to a friend