Read the letters: California DAs urge Newsom to address prison unemployment fraud
County prosecutors from around California blasted state government leaders in a press conference two days before Thanksgiving for failing to prevent a massive unemployment insurance fraud scheme carried out by prisoners.
Sacramento County District Attorney Anne Marie Schubert said at the press conference that tens of thousands of prison inmates had bilked taxpayers out of up to $1 billion by filing fraudulent claims. Schubert urged Gov. Gavin Newsom to “turn off the spigot” on improper payments, saying inmates were still receiving the money.
Schubert detailed her concerns in a letter to Newsom. The following week, Newsom defended his administration’s actions in a letter of his own, saying the state took action when it learned about the scheme. That prompted another letter from the DAs, who reiterated their criticisms of the state’s Employment Development Department and urged Newsom to take immediate action.
Below are each of the three letters, along with a charging document filed in San Mateo County, where the scheme first came to light.
District attorneys’ first letter:
Newsom responds:
DAs reiterate their concerns:
San Mateo charging document: