Bank of America – Largest taxpayer fraud in CA historical past

Santa Barbara County officers examine allegations of fraud in County Jail

Santa Barbara authorities are at the moment investigating allegations that a minimum of 157 Santa Barbara County jail inmates have stolen $1.2 million or extra in unemployment profit funds in a large-scale, statewide fraud scheme. 

The inmates allegedly filed bogus claims by California’s Employment Growth Division, and because the investigation remains to be ongoing, the quantity of inmates and cash stolen might be increased. 

In an announcement to the Information-Press, EDD Deputy Director of Public Affairs Loree Levy stated: “EDD has been working with the assistance of the U.S. Department of Labor and the Office of Inspector General on cross-matches with inmate populations to identify suspect claims. We’re also pursuing how to integrate such cross-matches moving forward as part of enhanced prevention efforts during this unprecedented time of pandemic-related unemployment fraud across the country. In addition, EDD is working collaboratively with state cyber-security experts.”

Santa Barbara County Assistant District Lawyer Brian Cota sat in on a Zoom name Tuesday with greater than 100 legislation enforcement officers throughout the state to debate how the fraud was dedicated. 

He informed the Information-Press on Wednesday that whereas he can’t communicate to how the inmates may have pulled it off, it’s possible they’d have wanted exterior accomplices. 

“The process for signing up (for the benefits) is you do it online and answer some questions and provide information, then they send out forms that you have to reaffirm every couple of weeks,” he stated. “You are able to do it on-line and there’s nobody that has to go in particular person. 

“Our supposition right now is that, as far as we understand at least, our local county inmates don’t have access to computers so they would have to have outside help.”

Mr. Cota stated that the EDD works with Bank of America, so every particular person that’s accepted for unemployment receives a Bank of America card within the mail. 

“At some point, there’s somebody taking that card and authorizing and using it,” he stated. 

Officers estimated about $150 million stolen within the state jail system and an extra $100 million from the federal prisons within the state. This doesn’t embody the county jails, both. 

“If you’re looking at our County Jail, and we’re saying $1.2 million, and it’s a small jail. If you assume that that’s going on in every county jail, the numbers can get up there pretty quickly,” Mr. Cota stated. “I’m certain that there’s fraud happening simply with individuals exterior of jail, stealing individuals’s identities and making use of and receiving. 

“I don’t think it’s an exaggeration to say it’s probably one of the largest taxpayer frauds in California history.”

Authorities haven’t investigated the crimes the inmates are in for, however due to the current releases for nonviolent criminals, the vast majority of the inmates within the County Jail are excluded from $zero bail, that means they dedicated typically severe, violent-type felonies. 

In Tuesday’s press convention, officers stated 37 states have a course of to cross reference the names of individuals receiving advantages with inmates behind bars in hopes of stopping conditions like this. California doesn’t have that cross-referencing course of, in line with Mr. Cota. 

The scheme is comparable to 1 that occurred on the San Mateo County Jail over the summer season, the place media experiences stated 21 inmates obtained greater than $250,000 in funds from the EDD. 

In accordance with state legislation, an individual can’t begin receiving unemployment advantages whereas they’re in custody, but when they had been receiving advantages previous to their arrest, they’re allowed to proceed receiving them.

No costs have been filed but, and the District Lawyer’s Workplace is ready on investigation from the EDD. 

“For at least six to eight weeks, we’ve been working on this and trying to get the evidence we need,” Santa Barbara County District Lawyer Joyce Dudley informed the Information-Press. “Once I first heard about it, I used to be shocked and upset as a result of there are lots of people on the market who want these EDD advantages and have a proper to these advantages. 

“If the allegations are correct, it’s so unfair to those who need to support their families.”

e mail: gmccormick@newspress.com