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Audit estimate: $600 million in fraudulent unemployment claims paid in Kansas
Figures are double the estimates provided by Gov. Laura Kelly’s administration Share Updated: 6:45 PM CST Feb 24, 2021
Figures are double the estimates provided by Gov. Laura Kelly’s administration Share Updated: 6:45 PM CST Feb 24, 2021
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Show Transcript REPORTER: TONIGHT, MAJOR DISAGREEMENT, OVER HOW MUCH MONEY THE KANSAS DEPARTMENT OF LABOR HAS PAID TO SCAMMERS. >> ULTIMATELY WE ESTIMATED THAT ABOUT 600 MILLION IN UNEMPLOYMENT BENEFITS PAID IN KANSAS IN 2020 COULD HAVE BEEN FRAUDULENT. REPORTER: WEDNESDAY, THIS NEW STATE AUDIT SAYS SCAMMERS COULD HAVE STOLEN $600 MILLION IN UNEMPLOYMENT BENEFITS FROM THE STATE OF KANSAS. $200 MILLION FROM STATE’S UNEMPLOYMENT TRUST FUND. $400 MILLION FROM FEDERAL PANDEMIC PROGRAMS. >> WE RAISED SEVERAL AREAS OF CONCERN WITH THE AUDIT AS CONDUCTED. REPORTER: BUT LABOR LEADERS, AND GOVERNOR KELLY’S OFFICE SAY THE FIGURES ARE LOWER. ESTIMATING $140 MILLION TAKEN FROM THE STATE. $150 MILLION FROM THE FEDS. >> FROM WHAT WE CAN TELL, KANSAS WAS A MUCH BIGGER PROBLEM THAN MANY OTHER STATES. REPORTER: LAWMAKERS HAVE SLAMMED THE DEPARTMENT SAYING THEY DIDN’T CATCH FRAUD SOON ENOUGH. WITH DEPARTEMNT LEADERS, FIGHTING BACK SAYING OTHER STATES ARE SEEING THE SAME PROBLEMS. >> THAT KANSAS IS SOMEHOW, THE ONLY STATE OR AN OUTLIER OR NUMBER ONE AND FRAUD IS CATEGORICALLY FALSE AND
KansasUnited-statesSean-tarwaterLaura-kellyBrett-flachsbarthMatt-flenerUs-department-of-laborKansas-department-of-laborKansas-legislative-division-of-post-auditEconomic-developmentTuesday-theKansas-legislative-divisionLegislative audit pegs Kansas unemployment fraud at $600 million; KDOL says it's bunk Dion Lefler and Katie Bernard, The Wichita Eagle
Feb. 24—Kansas Legislative auditors are estimating that fraudulent claims accounted for at least $600 million worth of unemployment payments since the COVID-19 pandemic started last year — twice the rate the state Department of Labor is acknowledging.
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"Of the roughly $2.6 billion in state and federal unemployment benefits paid in Kansas in 2020, we estimated about $600 million (24%) could have been fraudulent," said a report prepared by the Legislative Division of Post Audit and presented to a joint House/Senate committee on Wednesday.
WellingtonNew-zealand-generalNew-zealandUnited-statesKansasOlatheKansas-cityTom-burroughsRenae-pherigoBrett-flachsbarthSam-brownbackRob-olsonTOPEKA — Gov. Laura Kelly on Friday tapped a Lawrence woman who has technology experience to run the Kansas Department of Labor, which has struggled to process a surge in claims from workers who lost their jobs during the coronavirus pandemic.
Amber Shultz will serve as acting labor secretary until the state Senate confirms her as the new head of the agency, the governor’s office said in a news release.
Kelly’s first labor secretary, Delia Garcia, resigned in June amid problems with the system for distributing unemployment benefits. Her replacement, Acting Secretary Ryan Wright was allowed by law to serve only six months. In December, Acting Secretary Brett Flachsbarth became the third person to lead the department while the governor worked to find a permanent leader for the agency.
KansasUnited-statesMissouriAmber-shultzDelia-garciaBrett-flachsbarthRyan-wrightJerry-grassoKansas-department-of-laborKansas-geologicalKansas-data-access-support-centerDepartment-of-labor