EDD fraudulent accounts now total $20 billion, nearly double original estimate

New figure comes during hearing about fraud, call centers and more at state Capitol

By January, in the wake of two state audits into dysfunction inside the department, the EDD gave a first, very broad estimate.

At a Monday joint hearing of Assembly and Senate members, EDD's director answered questions along with the California State Auditor.

EDD put the blame, mostly, on criminal gangs and organized crime.

Those loans will be required to be paid back, not by the state but by the state's businesses.

Still, EDD has implemented roughly 60% of the auditor's recommendations, including phasing in new computer systems over time.

As for the fraud, EDD says they are investigating 700 cases of fraud across the state.

The problem they have is prosecuting them for EDD fraud because, they say, EDD has not given them the cooperation or documentation to properly charge and prosecute these people for defrauding EDD..

https://www.kcra.com/article/edd-fraudulent-accounts-total-20-billion-nearly-double-estimate/38059096#