Newt’s World – Episode 200: California Unemployment Fraud – A $31 Billion Theft

Part 1 – By January 2021 the California State Auditor had identified at least 11.4 billion dollars had been taken from the California unemployment insurance program, but many experts are now estimating the fraud could be as high as 31 billion dollars.  An unbelievable amount of taxpayer money that was stolen and more importantly did not get to the citizens of California who were unemployed due to the pandemic shutdowns.  Newt’s guest is McGregor Scott, United States Attorney for the Eastern District of California.

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Guest: U.S. Attorney McGregor Scott
COVID-19 Fraud

FBI Anticipates Rise in Business Email Compromise Schemes Related to the COVID-19 Pandemic

Massive Fraud Against State Unemployment Insurance Programs – Secret Service (May 14, 2020)

EDD Fraud in California – Reports

Significant Weaknesses in EDD’s Approach to Fraud Prevention Have Led to Billions of Dollars in Improper Benefit Payments – California State Audit Report

EDD’s Fraud Prevention Approach During the Pandemic Was Marked by Significant Missteps and Inaction

News Articles

CA EDD Admits Paying as much as $31 Billion in Unemployment Funds to Criminals – ABC 7 News

EDD Fraud Could Cost Average California Family Thousands of Dollars, said Rep. Tom McClintock – ABC 10 News

California Dropped its Guard Before it was Hit with $2 billion in Unemployment Fraud – Los Angeles Times