DA vows to halt inmate EDD fraud

SAN JOSE >> The Santa Clara County District Attorney’s Office has assembled a team to tackle a “major new rise” in unemployment benefits fraud by inmates in county jail

ithin the past two months, tens of thousands of local, state and federal inmates have been involved in state Employment Development Department fraud, the District Attorney’s Office said in a news release. The statewide fraud trend is estimated to cost California hundreds of millions in taxpayer dollars, and in just one case alone in the county, an inmate is suspected of defrauding the EDD out of $12 million.

Inmates are not entitled to receive EDD benefits. However, an accomplice will use an inmate’s identifying information to submit an application on his behalf, the District Attorney’s Office said. To avoid alerting the EDD the applicant is incarcerated, the accomplice receives and transfers benefit payments back to the inmate.

“To those who have abused the system during this pandemic: You will be caught and pay the price from stealing from the pockets of the needy,” said District Attorney Jeff Rosen said in a statement. “Fraudulent unemployment claims deny benefits to those who are legally entitled to receive them and who truly are in need.”

No charges have been filed yet, but Rosen said he has created a team to tackle the problem and expects imminent prosecutions. A conviction carries a maximum sentence of three years in state prison and a fine up to $20,000.