Bank of America – California EDD Fraud Victims, Lawmakers Annoyed About Newest Unemployment Rip-off Involving Prisoners – CBS San Francisco

SAN FRANCISCO (KPIX 5) – Prosecutors and district attorneys from 9 counties throughout California consider greater than $140 million in state advantages have been paid out to prisoners, even these on dying row.

This comes on the heels of one other massive downside with unemployment insurance coverage advantages from the California Employment Improvement Division (EDD).

“The news was incredibly disturbing and disheartening. But unfortunately, it’s not a surprise. This is a department that has been failing California for many months, in many different regards,” mentioned Assemblymember David Chiu (D-San Francisco).

As KPIX 5 has been reporting for weeks, individuals who misplaced their jobs throughout the pandemic and received their EDD advantages via Bank of America debit playing cards had their accounts drained of 1000’s of {dollars} and nonetheless haven’t acquired credit.

Final month, EDD introduced the freezing of greater than 350,000 accounts resulting from suspicious exercise.

Fraud victims are livid their accounts may have been frozen due to the latest rip-off involving prisoners.

• ALSO READ: Prosecutors: Over 35,000 Unemployment Claims Filed In Names Of Jail Convicts, Together with Dying Row Inmates Scott Peterson And Cary Stayner

Prosecutors consider prisoners themselves, or folks related to them, had been utilizing their identities to bilk the state out of a whole bunch of thousands and thousands of taxpayer {dollars}.

Greater than 50 folks have contacted KPIX 5 concerning their accounts that had been both frozen, hacked into and depleted of funds. Some fraud victims acquired refunds after KPIX 5 highlighted their circumstances to EDD and Bank of America.

For them, information of this newest fraudulent exercise involving prisoners, is tough to listen to.

“You have these guys scamming the system working their way through and they were able to get it, so it’s frustrating,” mentioned Union Metropolis resident Maria Ramirez.

Michael Bernick is the previous director of the Employment Improvement Division.  He believes there are three elements contributing to the rampant fraud, and the latest use of prisoners’ identities to recreation the system.

“The amount of money going through the system, over $110 billion paid out in unemployment assistance here in California. Two, the emphasis earlier this year on paying quickly, and three, the more sophisticated forms of identity theft are factors,” Bernick instructed KPIX 5.

Prosecutors consider the fraudulent claims may have been filed by prisoners themselves, or by members of the family, or associates. Some may be victims.

“Now we’re seeing the other side of things. So it’s frustrating, really frustrating,” mentioned Ramirez.

Prosecutors consider this fraud is preventable with a system utilized by different states to cross-check inmate knowledge towards unemployment claims, and are calling for Gov. Gavin Newsom’s assist.

A part of the issue is there are solely 17 EDD fraud investigators statewide.

Months into the pandemic, EDD was confronted with thousands and thousands of unemployment claims.

“It’s interesting to note that some of the people who are saying this is outrageous are the same people who were saying to EDD, ‘pay people, pay people, pay people and don’t worry about program integrity,’” mentioned Bernick “And so, there is that tradeoff.”

Assemblyember Phil Ting (D-San Francisco) introduced Wednesday a bipartisan effort to get extra solutions from Bank of America on behalf of constituents whose accounts had been hacked or frozen and are unable to get their points resolved.