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Feds allege record $25 million in claims from jobless scam

Employment Development Department - EDD (FILE)
Posted at 5:25 PM, Feb 14, 2022
and last updated 2022-02-14 20:25:55-05

SACRAMENTO, Calif. (AP) — Authorities say an unemployment scam operated out of California prisons sought a record $25 million from the state and U.S. governments.

Federal authorities said Friday it netted more than $5 million that went for vehicles, furniture, handbags and jewelry.

Former U.S. attorney McGregor Scott is working with the state Employment Development Department to coordinate investigations into fraud related to pandemic relief. He says the $25 million is the largest known single intended haul in California.

Yet it and the $5 million actual loss remains a fraction of the more than $20 billion in unemployment benefits that authorities believe has been stolen since March 2020.