Concerns climb over California unemployment benefits fraud

SACRAMENTO, Calif. — Concerns are growing about possible widespread fraud in California’s unemployment system following numerous reports of people receiving unsolicited letters, some with debit cards, from the state’s jobless agency, and a suspicious number of claims involving independent contractors.

The California Employment Development Department has paid a staggering $76.9 billion in unemployment benefits since the start of the pandemic, processing more than 11.9 million claims, most the result of Gov. Gavin Newsom’s decision to shut down much of the economy to slow the spread of the disease.

The U.S. Department of Labor reported that California had processed more than 405,000 Pandemic Unemployment Assistance claims last week, accounting for more than half of all such claims nationally.

Michael Bernick, former director of the Employment Development

Department and now an attorney at the Duane Morris law firm, called that a “ridiculously high percentage.”

“This may be the potential fraud given the very, very outsized —

ridiculously outsized — number of claims filed in California,” he said.

In recent weeks, several reports have emerged of people receiving letters from the Employment Development Department that include the personal information of others.

David Robertson said his son applied for unemployment benefits in April. His son got a letter in August saying he was entitled to $167 per week. But when they called the agency to ask more questions, they found that the contact information on his son’s account had been changed and more than $14,000 in benefits had been issued to someone else.

“How did this happen? They can’t answer any of these questions,” Robertson said at a news conference this week organized by Republican Assemblyman Jim Patterson of Fresno.

Amy Brooks said she was denied unemployment benefits months ago. But the Fresno woman said she has recently received 24 pieces of mail from the agency. The letters have her address but different names and Social Security numbers. At least three contained debit cards.

Gov. Gavin Newsom said the state is working with local and federal authorities.

“It is a top priority for all of us,” he said.

The Associated Press file Visitors use the phone bank at the California Employment Development Department office in Sacramento, Calif. Concerns of possible fraud are growing after reports of unsolicited debit cards arriving in people’s mailboxes and a suspiciously high number of claims involving independent contractors.