San Diego Union-Tribune

CALIFORNIA PAID INMATES $400M IN JOBLESS BENEFITS

Fraudulent claims OK’d in rush to send relief from pandemic

- BY ADAM BEAM SACRAMENTO Beam writes for The Associated Press.

California sent about $400 million in fraudulent unemployme­nt benefit payments to state prisoners, a state official said Tuesday, nearly triple the amount disclosed last week and a number that could grow as a criminal investigat­ion continues.

Nine county district attorneys and a federal prosecutor are investigat­ing unemployme­nt fraud involving payments from the California Employment Developmen­t Department, which was under intense pressure to quickly process millions of claims as the economic im

pact from the coronaviru­s intensifie­d last spring.

Criminals took advantage by submitting numerous fraudulent claims, many of which were approved by the state. Prosecutor­s discovered the fraud included

inmates working with people outside the prisons and last week estimated $140 million was paid to about 20,000 prisoners between March and August.

But Crystal Page, spokeswoma­n for the California Labor and Workforce Developmen­t Agency that oversees the unemployme­nt office, said a review of records now pegs the figure at about $400 million.

The new number includes not just the base benefits of $450 per week but also additional aid Congress approved during the pandemic — $600 per week for four months plus $300 a week for six weeks after that.

In all, records show benefit claims were submitted in the names of 31,000 inmates. About 20,800 inmates were paid and another $80 million in claims involving the other prisoners were not, according to Page.

The new figure came after comparing jobless claims data with the Social Security numbers of state prison inmates. That part of the investigat­ion was slowed — to the great frustratio­n of prosecutor­s — because of a state law that forbids the prison system from giving out inmates’ numbers.

State officials got around that law by convincing the Office of the Inspector General at the U.S. Department of Labor to issue a subpoena for the informatio­n, according to Dana Simas, press secretary for the California Department of Correction­s and Rehabilita­tion.

The subpoena is only a temporary solution because it covers just records between March 1 and Oct. 30.

California approved benefits for at least 133 inmates on death row, including some of the state’s most notorious serial killers. Prosecutor­s said someone filed a claim in the name of Scott Peterson, who was convicted and sentenced to death for the murder of his pregnant wife.

It’s unclear how many inmates actually got the money. It’s possible criminals applied for the benefits by stealing inmates’ identities. Peterson, whose death sentence was recently overturned, did not apply or receive any unemployme­nt benefits, according to his attorney.

Riverside County District Attorney Michael Hestrin said prosecutor­s “have quite a bit of evidence that the inmates are in on it,” including recorded phone calls from prison where inmates brag about how much they and their families are being paid by the state.

“We’re continuing to uncover more fraud, and the scale of it is frankly stunning,” Hestrin said.

 ?? ERIC RISBERG AP FILE ?? Records show unemployme­nt benefit claims were submitted in the names of 31,000 prison inmates.
ERIC RISBERG AP FILE Records show unemployme­nt benefit claims were submitted in the names of 31,000 prison inmates.

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