Skip to comments.States cracks down on unemployment insurance fraud
Posted on 07/03/2011 5:47:14 PM PDT by Kaslin
PROVIDENCE, R.I. A nationwide crackdown is coming for people fraudulently drawing unemployment payments those who were never eligible and workers who keep getting checks after they return to work a $17 billion benefits swindle last year alone, say federal officials.
With the poor economy lingering and the jobless rate remaining high, Rhode Island and other states are stepping up efforts to stop the fraud and improper payments.
As much as 30 percent of the wrong payments in 2010 went to people who had returned to the workforce but continued to claim benefits, according to Dale Ziegler, deputy administrator for the Office of Unemployment Insurance at the U.S. Department of Labor. Those payments came even after a 2009 executive order by President Barack Obama seeking new policies to cut payment errors, waste, fraud and abuse.
Ziegler said states will be required to submit plans by Sept. 30 to the federal government on how they plan to curb such payments, Ziegler said.
"This is a national concern," said Raymond Filippone, assistant director of income support at the Rhode Island Department of Labor and Training. "States across the country are stepping up and looking at overpayments and detection."
Since last year, Rhode Island now has four investigators assigned to ferret out double-dippers scamming the system, Filippone said and will add a fifth this year. The state has also for the first time retained a collection agency to recoup incorrectly paid payments.
Filippone said the state has paid out $33 million in overpayments since 2008. The May unemployment rate in Rhode Island is the third highest in the country at 10.9 percent.
(Excerpt) Read more at old.news.yahoo.com ...
I don’t know the protocol for signing up for unemployment checks in Rhode Island, but here in Pennsylvania they closed all the offices and all signups are done on the internet or by phone.
That kind of system makes it ripe for fraud.
The last time I signed up, in 1982, recipients had to stand in line and sign up in person.
Now, someone could be working, out of state, on vacation, in the hospital or otherwise ineligible and no one would be the wiser.
Its not just illegals learning to scam the system. I have several people who use to work for me as CNA’S. They now work for up to 4 different staffing agencies. With 2 of them they receive and total about 60 hours of work per week. The other 2 they are offered and turn down work for about 20 each (total 40). They then file for unemployment on the two they turn down. AND RECEIVE IT. I know this to be true as I know their bosses. My wife is one of them. Despite the agency saying they refuse the work, (their claim is it is not offered), they receive the unemployment and it is charged against they agency. Both agencies have fought hard to stop this but both girls are getting full time unemployment and working 60 hours a week.
It’s not just the illegals. Both ladies I know were very hard working when they worked for me. They have learned to game the system. These CNAs are making more a week total than I do as a RN Manager of 28 people
This is in SC. And they tell me many others are doing it. The key is work fot multiple staffing agencies. Too many people getting unemployment to be checked on.
Morals have gone down the tubes. Gaming the system seems to be because the system has gamed them. Wrong but somehow it seems justified. Over taxed, over regulated, thousands of laws make life in the United States a nightmare. Where will it end? Who in hell knows.
Good examples about gamming the system. Workman’s compensation programs are filled with fraud I bet.
Some sort of ‘whistleblower’ reward should be offered.
Blah, blah, blah....
What I should be reading about is the firing of those responsible for recklessly and incompetently handing out my tax dollars.
I don’t mean some office worker or bean counter, but the administrators responsible for this incompetent release of our tax dollars.
just wait til they start giving out Obamcare subsidies in 2014
those are 10-15,000 dollars a pop annually!
You'd be surprised how many times I uncover unemployment fraud while conducting investigations for my own job. I've discovered so many people who are incarcerated and receiving unemployment insurance that it stopped being funny. The 'puter and phone crap has got to stop. Computer applications are designed to encourage fraud. It's all part of the DemocRATS' "wealth redistribution" bull****.
Not to mention that the many ACORN individuals who are employees in the DHHS offices are aiding and abetting every family and friend to swindle those dollars because somehow they think they ‘deserve’ it.
Computer applications are designed to encourage multiple identity fraud.
UI fraud is rampant in Missouri too. The state started assessing monetary penalties about 5 years ago. First time fraud gets a 25% penalty and any prior fraud gets a 100% penalty. Earlier this year they added a provision to deny future claims to anyone with an outstanding penalty. Bunch of thieves are really pi$$ed off that they have been tossed off the rails of the gravy train.
those who were never eligible and workers who keep getting checks after they return to workNow hold it -- these folks are merely undocumented in those states! It tramples the Constitution to deny them unemployment benefits just because they're ineligible!
1 To have a job you must show your Social Security number, which is logged into the Federal database.
2. To get unemployment benefits you need to submit your Social Security number, and it is checked against the Federal database.
3. To get a new job, you have to first submit your Social Security number then be submitted to a employer to complete an I9 citizenship search before you can receive a paycheck, a number which is verified against the Federal Database.
4. ?? No-one is checking the SS numbers
But 30% of payments don't match up????
Now think how well Zer0care will work in a neighborhood next to you.
.....................In Florida I am sure Casey Anthony could file for unemployment benefits and probably get a check.....................
On that note, just what was Casey living on during her period of make believe employment, and how did George and Cindy not know of her financial condition???
Enquiring minds, etc!
In theory they can check employment histories and payroll records with Fed records if the wages were paid on a W2.
You sign a withholding slip and your employer submits
payments associated with your SSN.
Not clear how 1099 or Corp to Corp payments
would work. It could take the state/feds some time to suss out earnings derived from non W2 sources. Meanwhile the
perp of the fraud (Fraudoire?) makes weekly claims.
I have a neighbor who does paid computer work from her home...but is on disability. Hand washes her new car weekly...mows the lawn with a push mower. I’ve been so tempted to take pictures and turn her in. Her husband also is on disability but moon lights nites. They voluntered this information when I first moved here...go figure..no shame whatsoever!
Beautiful home...landscaped property...new car and truck. What a great life!
They did know...she was stealing from them ...maxing out credit cards....robbing her grandmother of thousands...who later said she no longer wanted her in her home. And countless friends and acquaintances she mooched off from.
“Ziegler said states will be required to submit plans by Sept. 30 to the federal government on how they plan to curb such payments, Ziegler said. “
Don’t you just love how they treat our States like their own personal puppets? They treat our States as if they did not already have their own elected governors and legislators subject to OUR more direct authority doing their own thing.
Instead they seem to think OUR states exist to serve them, rather then us.
Unemployment benefits are essentially a mandatory insurance policy your employer and the employee are forced to pay on your behalf. You cant opt out. So while you are employed this is in effect coming out of YOUR paycheck.
The correct way to handle unemployment is either:
- make the coverage optional so that the employer can pay more money up front to the employee
- Pay out all benefits in one lump sum just like any other insurance settlement with a valid claim on a loss.
If paid in a lump sum most people would have incentive to find work immediately.
Of course, those who would prefer to coddle their sheeple constituents would see this as ‘mean and unfair’.
Its a start, but they need to go after SSI fraud, too.
“Its a start, but they need to go after SSI fraud, too.”
Its crazy to think that they seriously can. Its a gigantic bureaucratic goverment with rules designed by people with little concern for financial consequence to their actions.
Good point; I’d like to see them devote some energy to ferret out wlefare abuse & such. It has gone on for much longer, and costs much more. Not defending the fraud mentioned here; just saying...
“They voluntered this information when I first moved here...go figure..no shame whatsoever!”
They should be shunned, as well as turned in. I wouldn’t lose a moment’s sleep over it.
I don’t know about other states but if you get caught in Texas commting fraud for UEI you are probably going to jail,even on first offence.Way back when employers reported earnings quarterly, so if you went back to work you could squeeze an extra check or two out of the system but not anymore, your earnings are reported weekly to the state.
That’s great; it is outright theft and should be treated as though they held up a liquor store.
I've always said I could become a millionaire easy with a 5% "finders fee" of uncovered fraud in the system.
5% would probably make it like shooting fish in a barrel though...Maybe 2% would make it a small challenge.
A former Marysville resident has been sentenced to prison and ordered to pay back $3 million in fraudulently obtained unemployment compensation. US Attorney Benjamin B. Wagner said 31-year-old Manuel Mejia Ordonez was sentenced to eight years and one month in prison for conspiracy to commit mail fraud and identity theft. (Excerpt) Read more at sfgate.com ...
QUESTION So how does an impoverished citizen of Mexico (just here for a "better life") make $3 million in unemployment claims? A. By establishing multiple identities. The fraudster, Manuel Mejia Ordonez, got eight years for conspiracy to commit mail fraud........and identity theft.
REFERENCE Hayward, California woman charged in mass thefts of IDs
Henry K. Lee / Copyright San Francisco Chronicle. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Oakland Police Dept Mug Shot: Mishel Caviness, Hayward, accused of
running a large-scale operation devoted to stealing people's identities.
HAYWARD, CALIFORNIA -- A Hayward woman has been charged with numerous felony counts for allegedly running an identity-theft operation that created fake Social Security and California identification cards, checks and credit cards. Mishel Caviness, 40, was arrested after an investigation by Oakland police and the U.S. Secret Service.
The probe began when an Oakland city employee reported in January that someone was fraudulently cashing her checks, according to police Officer Ryan Goodfellow and court records. Caviness was identified with the help of surveillance-camera footage from Bay Area stores, police said.
A search of her apartment on the 21000 block of Foothill Boulevard in Hayward last week uncovered a printing operation capable of making fake checks and credit cards, police said. Also found were 900 blank credit cards, personal information belonging to as many as 1,000 people, blank checks and computers, police said.
Alameda County prosecutors charged Caviness with forgery, identity theft, forgery of a driver's license and grand theft. She has a previous conviction for welfare fraud and told police that she is disabled and unemployed. She is being held at Santa Rita Jail in Dublin in lieu of $325,000 bail.
SOURCE http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/16/BAPP1JGPTT.DTL#ixzz1MotxGM5R Page C - 3 of the San Francisco Chronicle
THE LUCRATIVE PHONY ID BUSINESS---TEXAS STYLE
NORTH BERGEN, NJ -- July 21, 2006 -- Pelcastre brothers, Angel and Jorge, Dallas, Texas, were a walking threat to US national security, expert document forgers who, for a few thousand dollars, could give anyone a new identity, L/E said. The Texas brothers turned a NJ hotel room into a business office and were readying a massive cache of fake Social Security cards for delivery to a local NJ identity broker.
The Texas brothers were a "one-stop shop" for a myriad of fake US documents, including birth certificates, Social Security cards, driver's licenses for any state in the US, passports and resident alien cards, said state police. Officers happened upon two cars bearing Texas plates in a NJ hotel parking lot. Authorities wouldn't identify the NJ hotel by name for fear it would spark retribution from savage drug cartels operating in the US.
The Texas brothers were followed to a NJ office supply store nearby where they purchased computer supplies. Officers then followed the Texans to a NJ storage facility in Secaucus, NJ, where the Texans loaded several boxes into a car. One of them stood lookout. L/E approached the Texas brothers when they returned to the NJ hotel and questioned them separately. The Texas brothers consented to a search.
Police recovered laminating sheets with built-in security features, pages of blank documents waiting for fake names and information, finished documents, computers and software to create the fake IDs.
All told, the haul was worth about $500,000 on the street. Police also recovered $6,000 in cash, which was the first payment from a NJ fake document broker for a shipment of 500 fake Social Security cards. ####
I have heard of teachers and other govt worker retiring on six-figure state pensions AND collecting unemployment checks.
After all, they are “unemployed” (/snix).
I don’t think the computer or automated systems is the cause of the fraud. In fact, TN unemploymnet offices bogged down and you couldn’t get through on the phones. No state staffs unemployment offices for Great Recession levels. The automated systems save us a lot of tax dollars.
If it hadn’t been for the automated systems. A lot of people would have been denied benefits that needed them and had dutifully paid for the insurance through withholding.
The problem is a lack of controls to stop a person once they go back to work. As soon as that I9 or W4 or first Payroll tax is reported, the system should check to see if the person has reported their income correctly, and stop the benefits if they haven’t been reporting truthfully.
Seems that a sub routine could be written into the program to do that.