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Millions of dollars lost in fraud unemployment benefits
A new report out of Maryland shows that tens of millions of dollars in unemployment benefits went to fraudulent claims. The Office of Legislative Audits' report found that tens of millions had been given out in potentially improper benefit payments during the pandemic, and top state officials tell FOX 5 that still might only be the tip of the iceberg.
A new report out of Maryland shows that tens of millions of dollars in unemployment benefits went to fraudulent claims.
The Office of Legislative Audits' report finds not only tens of millions had been given out in potentially improper benefit payments during the pandemic, and top state officials tell FOX 5 that still might only be the tip of the iceberg.
PREVIOUS COVERAGE: Fraudsters flood Maryland labor department with fake unemployment claims
The audit of Maryland's Department of Labor, Division of Unemployment Insurance, found a long list of problems including:
- Failing to stop $32 million in improper benefits
- Failing to stop $3.6 million in out-of-country claims
- Failing to stop $43 million in duplicate claims
Maryland Governor Larry Hogan spoke exclusively to FOX 5 about the report.
"Yeah, this is something that we’ve been talking about for a long time," Gov. Hogan says. "As you know, we were the first state to catch the unemployment fraud and alerted the federal government about it and there have been just billions of dollars of fraud taking place in nearly every state in the country. We started the investigation nationwide."
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During the pandemic, FOX 5 has reported stories of Marylanders who qualified for unemployment, but were denied, or unable to file claims.
The chairman of the investigating Senate committee tells FOX 5 it's clear: too many qualified applicants couldn't get their benefits while others were ripping off the system.
"What that also means is that they were struggling, they really needed this help, that they had earned their unemployment benefits because they had paid into the system but were unable to get benefits when they were really in need," says Sen. Clarence Lam. "So I think it’s unacceptable for the department to say, ‘Well, we couldn’t process your claims.'"
With less than two months left in Gov. Hogan's term, whatever reforms to Maryland's unemployment are needed will likely be up to the incoming administration of Governor-elect Wes Moore. Meanwhile, Chairman Lam tells FOX 5 he will hold hearings on the audit in Annapolis as soon as next month.