An independent audit of the unemployment benefits system found the administration of Michigan Gov. Gretchen Whitmer paid up to $1.5 billion in "Fraudulent" claims.
Fox 17 reported on the investigation of the Michigan Unemployment Insurance Agency conducted by Deloitte: "The company interviewed 24 UIA and Department of Labor and Economic Opportunity personnel including executive leadership. They reviewed documents, emails, charts, polices, and federal and state UI guidance."
The report found the agency paid $22.9 billion in claims from March 15, 2020, to October 23, 2020, as the unemployment rate skyrocketed from 3.6 percent to 24 percent amid Whitmer's coronavirus lockdown orders.
On May 27, 2020, UIA estimated that $1.5 billion of higher-risk claims had potentially been paid prior to running through Fraud Manager.
UIA had identified multiple instances of potential internal fraud by UIA personnel and contractors using their access to UIA procedures and systems to fraudulently approve/disburse millions of dollars in federal and state UI claims to ineligible claimants in exchange for payments and kickbacks.
Susie Wiseman, Claims Department Analyst, UIA. Frost, the report said, conducted the interview with Jeff Donofrio, director of LEO, and provided "a verbal summary" to the company, which "Did not have an opportunity to participate."
"No legislator ever said, 'UIA change your fraud detection systems in order to pay claims quicker'. It's actually the opposite," state Rep. Matt Hall told Fox 17.
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Friday, November 27, 2020
Michigan May Have Paid Billions in 'Fraudulent' Jobless Claims; Gretchen Whitmer Administration Hit with 'Kickback' Allegations
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