California suspends 1.4 million virus unemployment claims

The state Employment Development Department on Wednesday said it had examined existing claims from people who said they lost their jobs during the COVID-19 pandemic and found about 3.5 million claims were “potentially fraudulent.”

Newsom appoints new director to Employment Development Department

The department also has been criticized for granting payouts on hundreds of thousands of fraudulent claims, including some in the name of U.S. Sen. Dianne Feinstein. The state has acknowledged that it has paid about $400 million in the names of prison inmates.

Ex-California EDD worker filed fraudulent claims under Dianne Feinstein's name: feds

“Think about this for a minute: EDD issues a debit card to Senator Dianne Feinstein! How does that happen?” Jim Patterson, a Republican in the state Assembly, said Thursday. “I’ll tell you how, EDD is complicit in the fraud by mailing out Social Security numbers to scammers; or they are utterly incompetent by not even checking eligibility before they issue the debit card. Either way, EDD has aided and abetted the fraud.”

Lawmakers say California jobless claims still a 'black hole'

Republican Assemblyman Jim Patterson, the committee’s vice chairman and a frequent critic of Gov. Gavin Newsom’s Democratic administration, cited complaints from two whistleblower employees of the Employment Development Department as well as customers who contacted his office in saying the new ID.me verification system “is failing substantially.”

California paid $400 million in jobless benefits to inmates

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.