California officials pay at least $ 20 billion in fraudulent lawsuits

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Alas! Roommates during the COVID-19 pandemic, many people have found creative ways to earn an income. Some started a new business, some rushed, and others turned to scams to make a living and move online. While several states have been affected by fraudulent unemployment claims and the distribution of large sums of money to people claiming to be in need, the state of California appears to have been severely affected.

According to the LA Times, CA has given at least $ 20 billion to criminals in the form of fraudulent unemployment benefits, government officials said yesterday. Although the number confirmed that the amount was less than originally calculated, it still represents more than 11% of all compensation paid since the start of the pandemic last year.

California officials have blamed nearly all the scams on Congress’ expansion of unemployment benefits. The enlargement has allowed self-employed people to receive weekly checks from the government with little precautionary measures to prevent people who do not qualify.

The scam became so widespread in California that government officials at least approved $ 810 million in compensation the names of people in prison. Dozens of them were notorious murderers on death row. Government officials even sent $ 21,000 in benefits at an address in Roseville under the name and social security number of U.S. Senator Diane Feinstein (D-California). This allowed someone to access $ 2 million in total fraudulent payments.

CA is not the only country dealing with the outcome of fraud. Unfortunately, unemployment agencies across the country have approved at least $ 87 billion in fraudulent payments from several states, according to June report from the office of the Chief Inspector of the United States Department of Labor.

IN Arizona itself, government officials said the fraudsters had collected nearly 30% of all her unemployment benefit payments. Roommates, you all know that California Gov. Gavin Newsom doesn’t play when it comes to his state. The report says Governor Newsom’s administration has tried to reassure lawmakers in the state that the California fraud pipeline is closed. Employment Development Director (EDD) Rita Saenz said the state has introduced new identity verification software and other preventative measures that have helped stop fraud attempts for approximately $ 120 billion.

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