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EDD admitted to paying out $20 billion in fraud. Here’s what you could buy with that money

Unemployed Californians struggled to get money for legitimate claims, all while the EDD paid out more than $20 billion to fraudulent accounts.

EDD admitted to paying out $20 billion in fraud. Here’s what you could buy with that money

Unemployed Californians struggled to get money for legitimate claims, all while the EDD paid out more than $20 billion to fraudulent accounts.

anytime there is a big event in the world we can expect criminals to try to capitalize on that event, California just released new historic unemployment numbers. The south Welcome to the employment development department were currently receiving more calls than we can answer. They were getting inundated with these claims of identity theft and those claims were not being processing. A large E. D. D. Fraud rate is 35,000 claims filed in. The names of E. D. D. Check verification problem, rampant fraud. Another issue D. D. D. D. D. D. D. D. One of the biggest fraud of taxpayer dollars in California history here in El Dorado County half of the inmates in the jail were collecting unemployment benefits. I was shocked at how you know it was mini mouth making a claim or poopy britches. An inmate is telling his girlfriend and she expressed reservations and saying this is so easy. There's no way this could be right, cops from new york are saying oh yeah they're all coming to California to do this because it was so easy. I have heard several times that there was a fraud detection system that was approximately $2 million a year and a decision was made to save the $2 million for what 31 billion plus dollars with the fraud just here in California. We really couldn't believe that the technology center of America couldn't process unemployment in a safe, reliable way California contracted with Bank of America to provide debit cards. These debit cards lacked the anti fraud chip technology That has been standard for the banking industry for years. Some houses got 70 cards sent to them. You know that should be a flag that someone should have said oh this is a problem. We got 70 E. D. D. Cards going to a house that's only occupied by two people. People should have been held accountable and in my mind no one has been held accountable still this is obviously not the first audit you have had to do. So there were different things that we identified in 2011. We did a follow up in 2012 Still had identified the same problems and then fast forward to 2020 and we found the same problems. Again the idea how much money taxpayers have lost due to some of these fraudulent claims. No that's not something that we track. Mhm. Okay that's a little it's gonna be the hundreds of millions. They either have this information or they don't if they haven't disgorge it right now if they don't shame on them for not having the technology the ability and the expertise to find out the answers to our question what I know about fraud is that most often what we see is just on the surface so if someone were to come up and tell me that There's $30 billion fraud. I would increase that by four or five times. And I would say we're probably gonna creep up close to 100 billion. This is white color crime. It's easy money.
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EDD admitted to paying out $20 billion in fraud. Here’s what you could buy with that money

Unemployed Californians struggled to get money for legitimate claims, all while the EDD paid out more than $20 billion to fraudulent accounts.

For more than a year, KCRA 3 Investigates has been looking into the unprecedented number of fraudulent Employment Development Department claims that were paid out at the start of — and well into — the pandemic.Unemployed Californians struggled to get money for legitimate claims, all while the EDD paid out more than $20 billion to fraudulent accounts.KCRA 3's documentary Easy Money: Fraud, Fortune and Failures explores the wave of problems created by the failures of the EDD, and speaks with frustrated unemployment applicants, legislators, detectives and business owners who were impacted. You can watch the special at KCRA.com/easymoney. Here's what you could buy with $20 billion (App users, click here for the best mobile experience): Easy Money Related ContentInteractive Timeline: What led up to the unprecedented fraud at the EDD

For more than a year, KCRA 3 Investigates has been looking into the unprecedented number of fraudulent Employment Development Department claims that were paid out at the start of — and well into — the pandemic.

Unemployed Californians struggled to get money for legitimate claims, all while the EDD paid out more than $20 billion to fraudulent accounts.

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KCRA 3's documentary Easy Money: Fraud, Fortune and Failures explores the wave of problems created by the failures of the EDD, and speaks with frustrated unemployment applicants, legislators, detectives and business owners who were impacted.

You can watch the special at KCRA.com/easymoney.

Here's what you could buy with $20 billion (App users, click here for the best mobile experience):

Easy Money Related Content