Unemployment money is going to the wrong people in California. Is it fraud?
Hundreds of mailings purportedly from the state’s unemployment agency — some with valuable debit cards — are flooding the wrong homes and are addressed to the wrong people, and Gov. Gavin Newsom and other state officials are eyeing the possibility of a massive fraud scheme.
“Yes, we are concerned about fraud in this space,” Newsom said at a news conference Wednesday.
He said his office is working with state, local and federal officials to learn more, calling it a top priority at every level.
Lawmakers have found “People all over the state are being sent debit cards and Social Security numbers that do not belong to them,” said Assemblyman Jim Patterson, R-Fresno.
“We are finding instances of thousands of dollars by fraud taken from individuals’ accounts,” he told reporters Wednesday.
David Robertson of Clovis told reporters his unemployed son’s debit card was improperly used by someone else for $14,876.
A constituent of Sen. Melissa Melendez, R-Lake Elsinore, showed her 116 envelopes addressed to 33 different people. Two had debit cards.
Amy Brooks, of Fresno, Wednesday described to reporters 22 letters sent to her home that were addressed to five different people in the last week and a half.
When she opened one she thought was hers, she found a bank card and very personal information for someone else.
“I just don’t understand how this happened,” she said.
Go to Twitter, Facebook and elsewhere on social media and there are similar stories. Fox26 News reported a Fresno man has received 62 letters.
Officials from California’s unemployment agency, the Employment Development Department, have not commented on the reports Wednesday.
Saturday, the agency tweeted that “Identity theft is a growing problem affecting millions of people and their livelihoods. If you think someone has filed an Unemployment Insurance (UI) claim in your name, report it. Visit http://Bit.ly/UIFraudPenalties … to find out how you can report UI fraud to the EDD.”
The agency has been overwhelmed by a historic volume of unemployment claims, starting in mid-March as the COVID-19 pandemic sent the economy reeling. It’s had to add huge numbers of employees to handle the deluge, as people have found it difficult to reach anyone at the agency.
One possibility for the chaos, said the Republican lawmakers, is that EDD is still disorganized and mismanaged.
“Can we get serious about the absolute disaster that is the EDD?” asked Melendez.
The state auditor is well aware of EDD’s controversies. Last week, it said the state’s management of federal funds related to the COVID-19 pandemic “is a high-risk issue for California.”
The likelihood of mismanagement, it warned, “is great enough to create a substantial risk of serious detriment to the State and its residents, including a reduction in residents’ overall health or safety, widespread damage to public confidence in California government, and impairment of the delivery of important government services.”
While it’s not clear why the unsolicited, inaccurate letters and debit cards are popping up, this much is known: There are multiple reports of similar problems throughout the state, and those receiving them are often frustrated trying to get through to EDD for answers.
Brooks, who is unemployed, said she tried to call EDD, which has been having huge problems with its jammed phone lines since the COVID-19 pandemic sent the number of claims soaring in March.
“There’s no answer..you’re on hold for hours and hours at a time before they hang up on you,” she said.
David Robertson, Forrest’s father, said he was told to fax the EDD’s fraud cases department. His father was incredulous. “I don’t even have a fax machine anymore. Who uses a fax machine?” he asked.
He said EDD paid $14,876 to someone who had access to his son’s account.
“This system is completely and totally broken,” Robertson said. “There are criminals who are benefiting from this to a greater degree than my son is entitled to.”
This story was originally published September 2, 2020 at 2:34 PM.
.jpg)