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At least $11 billion has been looted from California’s coffers in an unemployment fraud scheme run rampant across the state, while another $20 billion in possible losses is still being investigated.
California Labor Secretary Julie Su told reporters in a conference call Monday that of the $114 billion the state has paid in unemployment claims during the coronavirus pandemic, 10 percent, or $11.4 billion, involves fraud and another 17 percent is under investigation. There is no sugarcoating the reality, Su said during a press conference Monday. California has not had sufficient security measures in place to prevent this level of fraud, and criminals took advantage of the situation.
New charges were announced Monday against six inmates and four others involved in scamming California unemployment benefits.
In addition to the 10% of benefits confirmed to involve fraud, the state is investigating another 17% of benefits involving suspicious claims that have not yet been proven to be fraudulent about $19 billion worth.
Officials said a large number of those claims could end up being fraudulent as well.
Su said part of the blame goes to the Trump administration, which she said failed to provide adequate guidance and resources to California to counter fraudulent claims, almost all of which were filed through a new federal program that provides unemployment benefits to gig workers, independent contractors and the self-employed.
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