California paid inmates $1B in fraudulent unemployment benefits, prosecutors say (Sacramento: crime, attorneys)

[Tulemutt]

California paid inmates $1B in fraudulent unemployment benefits, prosecutors say

Inmates in California's jails and prisons have stolen upwards of $1 billion in pandemic unemployment aid, four district attorneys and a federal prosecutor announced Tuesday.

The news: A multi-agency investigation found that 35,000 unemployment claims were filed in the name of California state prison inmates and that 20,000 have already been paid out, said Sacramento County District Attorney Anne Marie Schubert.


Schubert called the scale of the scheme "honestly staggering" and "one of the biggest fraud of taxpayer dollars in Calfornia history."

The investigation involved district attorneys from Sacramento, El Dorado, Kern and San Mateo counties as well as McGregor Scott, the U.S. Attorney for the Eastern District of California.

Context: Tuesday's announcement is only the latest twist in the fraud saga plaguing California's unemployment programs, a challenge facing states nationwide. For months, fraudsters have exploited programs designed to swiftly distribute federal pandemic aid to self-employed and contract workers through a self-certification process.
https://www.politico.com/states/cali...rs-say-9424792



Wow?

[CA4Now]

Wow is right....how discouraging.

It says here that Scott Peterson received unemployment benefits.

The D.A.s called the situation “the most significant fraud on taxpayer funds in California history,” according to a letter obtained by The Times, describing fraud that involves identity theft of prisoners as well as alleged scams by individual inmates and organized gangs to game the state system.

https://www.latimes.com/california/s...th-row-inmates

[NORTY FLATZ]

$1B divided into 20,000 inmates is $50,000 each.

That's pretty good $$$...

[TacoSoup]

Good luck ever seeing that money again

[mgforshort]

The sad part is that people go hungry or homeless because California can't handle the high number of incoming claims with our poorly-designed computer systems. At least Scotty got some cash. But you must admit the guy is honest, he was really out of work for a while lately.

By the way Mutt, when you are not defending the State of California, the end of the world must be near. I'm worried now.

[V8 Vega]

Government waste, keep on voting for Democrats

[1AngryTaxPayer]

Who said crime doesn't pay.

[Trekker99]

Originally Posted by V8 Vega

Government waste, keep on voting for Democrats

Dems; investing now for future votes.

[Tulemutt]

What the hell does this scam have to do with either political party? Graft and cons and cheating and scams are and have always been ever present in every society and every political persuasion for all time.

It’s just a startling example. Newsworthy. Funny in an *ouch!* kind of way.

[mgforshort]

The case, described as a “big spider web” by one prosecutor, represents the earliest whiff of an audacious statewide enterprise that officials now say could approach $1 billion in illegal benefits paid to inmates and their associates. Prosecutors said at least 35,000 unemployment claims were made on behalf of prison inmates, including serial killer Cary Stayner and convicted murderer Scott Peterson."

Imagine if the accountant of a private corporation would send checks worth millions of dollars to complete strangers. His career would be over and years in prison. Somehow I doubt the managers of the unemployment agency will face anything similar. In the worse case they'll retire early with the generous pension they (not) deserve.