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Millions in California coronavirus jobless benefits sent to out-of-state prisoners

Millions in California coronavirus jobless benefits sent to out-of-state prisoners
Anita Chabria, Richard Winton, Patrick McGreevy
© (Mark Boster / Los Angeles Times)
A month after officials estimated $400 million in unemployment benefits have been paid on fraudulent claims in the names of California prison inmates, a report to the agency has warned California benefits appear to have been paid to thousands of others behind bars in other states. (Mark Boster / Los Angeles Times)
In the latest revelation of potential criminal fraud involving California jobless benefits, an analysis has found that more than $42 million in claims went to out-of-state prison and jail inmates, giving more clarity to what officials now estimate could be $4 billion in scammed coronavirus relief funds. ....

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How California COVID benefits went to out-of-state prisoners

The new total is nearly three times the $140 million in claim payments estimated last week by a group of California DAs and a federal prosecutor.
The analysis identified inmates receiving California benefits in other states, including Nevada, Illinois and South Carolina. Prison officials in Nevada and Illinois did not immediately comment on the allegations, but South Carolina Department of Corrections spokeswoman Chrysti Shain said her department had “not been notified by California authorities or anyone that any of our inmates are involved in this.”
Officials with the district attorney’s offices in Clark County and Washoe County in Nevada said that any allegations of inmate fraud allegations would be handled by Nevada’s attorney general’s office. ....

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California may have paid out-of-state inmates job benefits

A report says more than $40 million in California funding intended to help people left jobless by the coronavirus pandemic probably went to inmates in out-of-state jails and prisons ....

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California may have paid Florida, other out-of-state inmates job benefits

California may have paid Florida, other out-of-state inmates job benefits
$40 million in funding was intended to help people left jobless by coronavirus pandemic
Associated Press
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LOS ANGELES – More than $40 million in California funding intended to help people left jobless by the coronavirus pandemic probably went to inmates in out-of-state jails and prisons, it was reported Tuesday.
The state has acknowledged that its Employment Development Department was bilked out of hundreds of millions of dollars in COVID-19 unemployment funds that went to fraudsters, including some in the name of U.S. Sen. Dianne Feinstein.
But a December analysis commissioned by the state s EDD found that the department approved more than 6,000 claims totaling more than $42 million involving people who probably were incarcerated out of state, including at least 2,000 Florida county jail and state prison inmates that included a man serving time for second-degree murder who r ....

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EDD didn't guard against unemployment fraud, legislators say

The bank, which has contracted with the state Employment Development Department to issue debit cards containing unemployment benefits, issued the warning in a letter to California legislators.
The EDD also has not acted swiftly enough on warnings from March 2019 that it was exposing claimants’ Social Security numbers to fraud by sending them in the mail, according to the state auditor, who said Washington and Texas are among states that do not include full numbers in mail.
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In addition, legislators are questioning why the EDD canceled a contract five years ago with a firm that was using sophisticated software to help ferret out bogus claims. The firm is being used in dozens of federal and state agencies, including in Nevada and Wisconsin. ....

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