Oops: California paid $20 billion in fraudulent unemployment benefits

For decades, California was known as a land of immense productivity and innovation. Defense companies, technology companies and entrepreneurs of all backgrounds flock to the beautiful state and its pleasant climate. Now, however, it has been transformed from a land of productivity into a land of wasteful welfare spending. Cheat, exactly wasteful welfare spending.

According to an Open The Books Articles in RealClearPolicy, “California has extracted at least $20 billion in fraudulent unemployment benefits since the start of the pandemic, 11 percent of all benefits paid in the Golden State.“For perspective, the author of the paper notes that”That’s more than .’s 2021 budget Delaware, Maine and Montana combine.

That RealClearPolicy article was based on a report from the LA Times, which initially broke the news that California had paid tens of billions of dollars in welfare fraud in the past year. Follow LA Times article:

State officials said Monday that California has given at least $20 billion to criminals in the form of unemployment benefits fraud, confirming a smaller number than initially feared but still accounting for more than 11% of total benefits paid since the pandemic began. .

State officials blame nearly all of that fraud on Congress rushing to approve an unemployment benefit expansion that would allow freelancers to be screened by the government weekly with some measure. safeguards to prevent those who are not eligible to receive them.

Apparently, fraud in California was rampant at least 810 million dollars in benefits to former prisoners, including dozens of notorious murderers on death row.

Or, at least, the approved benefit goes to those claiming the names of those notorious killers.

However, it remains unclear if the benefit actually goes to those jailed killers or whether the check will be approved for fraudulent benefit claimants with a fake name attached. The latter case seems more likely, as $2 million in benefits were awarded to people claiming to be Senator Dianne Feinstein and the sheer scope of the matter suggests that insurance claims Unemployment is sent by scammers, not criminals themselves.

In response to the fraud, California lawmakers have imposed stricter identity verification controls that they say have prevented $120 billion in fraudulent payments.

However, the scale of the fraud is puzzling. To help put it into perspective, “Congressman Tom Lackey,” LA Times reports, “carried an illustration of 29 trucks laden with $100 bills, representing just over half of the money lost to fraud. ”

While the scale of the fraud in California was the largest at $20 billion, other states struggled with similar problems.

ONE Report from Department of Laborfor example, made a conservative estimate that “before[CARES’s]program ends $873 billion in UI payments may be improperly paid with a substantial amount of fraud[theCARESprogram’s}end3billioninUIbenefitscouldbepaidimproperlywithasignificantportionattributabletofraud[chươngtrìnhCARES’s}kếtthúc873tỷđôlatiềntrợcấpBHTNcóthểbịtrảkhôngđúngcáchvớimộtphầnđángkểlàdogianlận[theCARESprogram’s}end3billioninUIbenefitscouldbepaidimproperlywithasignificantportionattributabletofraudAnd note that that $87.3 billion figure is likely to be low, as it is based on a 10% fraud rate while the actual incorrect payout rate could be much higher, possibly up to 15 % or even 19%. If the 19% estimate is correct, that means nearly $166 billion in taxpayers’ money was sent to fraudsters in the form of improper unemployment insurance checks.

And that higher rate is not an unreasonable estimate. In Arizona, for example, a The AP report found thatnearly 30% of the $16 billion in unemployment insurance payments sent out by Arizona since the start of the coronavirus pandemic“Sent to scammers. That means that in Arizona, which is hardly a major state, between $4.3 billion and $4.4 billion in welfare checks were sent to scammers and fraudsters.

So while California’s incompetence is the easiest to spot due to its sheer size, the Golden State is hardly alone in paying out huge sums of money to scammers.

https://smartzune.com/oops-california-paid-out-20-billion-in-fraudulent-unemployment-benefits/ | Oops: California paid $20 billion in fraudulent unemployment benefits

Huynh Nguyen

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