California dropped its guard before it was hit with $2 billion in unemployment fraud - News Summed Up

California dropped its guard before it was hit with $2 billion in unemployment fraud


AdvertisementThe controversy hindered the ability of investigators outside the prison system to discover rampant fraud, some officials said. As fraud totals continue to balloon — one prosecutor says there is unverified evidence it may total $4 billion — the state is playing catch-up to right past wrongs in the unemployment system. Bolstered by the new legal opinion, it has finally begun cross-checking prison inmate data with unemployment claims, and it has rehired the antifraud contractor. In addition, lawmakers have introduced several bills this month to fight fraud, including a measure by Petrie-Norris that would require EDD to cross-check prisoners’ data with unemployment claims. The state Department of Justice has in the last few weeks issued a legal opinion rejecting the CDCR’s interpretation of the law.


Source: Los Angeles Times December 21, 2020 13:02 UTC



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