Tyler Hayden
This story was originally published by the Santa Barbara Independent and is reproduced here in partnership with Edhat.
By Tyler Hayden of The Independent
Santa Barbara County Jail inmates collected at least $1.4 million in COVID benefits, prosecutors say, as part of a massive unemployment scheme that’s played out in correctional institutions across the state. While the number of local fraudulent claims ― 143 ― was reported last month, the associated dollar figure was not previously known.
Senior Deputy District Attorney Brian Cota said it’s not yet clear how many inmates were involved; individuals may have filed multiple claims. He said his office is in the beginning stages of what will be an arduous investigation that will take several months to complete. No charges have been filed yet.
Last week, nine California District Attorneys described the scam in a letter to Governor Gavin Newsom as “the most significant fraud on taxpayer funds in California history,” estimating payments from the state to ineligible recipients behind bars could total more than $1 billion. More than $400,000 has gone to death-row inmates, including Scott Peterson, who was convicted in 2004 of murdering his wife and unborn child. Cota noted that the suspected Santa Barbara participants are among the county’s most serious offenders, as lower-level inmates were released or transferred to home confinement at the start of the pandemic.
The fraud, investigators say, was uncovered in both state prisons and county jails, and it took multiple forms. Inmates sometimes submitted the claims themselves, or friends and relatives on the outside would file the paperwork on their behalf. Authorities also discovered larger-scale rackets orchestrated by gangs. To be legally eligible for unemployment benefits, an applicant must be actively seeking work and be available to accept work. Duping the system is a felony crime punishable by up to three years in prison.
The situation first gained attention this summer when authorities investigating unrelated crimes took note of suspicious phone conversations among San Mateo County inmates. In Riverside County, one inmate was overheard bragging that he’d purchased a $400 watch for his mother, “thanks to the state.”
It appears that the state agency responsible for vetting and distributing unemployment funds ― the Employment Development Department (EDD) ― was ripe for criminal exploitation, especially during the chaos of COVID. Unlike equivalent departments in most other states, California’s EDD does not cross-reference applicants’ identifying information, such as Social Security numbers, with California Department of Corrections or county jail data before rubber-stamping claims. Shocked by the oversight, state legislators and prosecutors have pressed Newsom to take swift action to dramatically reform the agency.
In response, Newsom assigned a team of technology and government systems experts to study the department’s operations. He also promised to help local jurisdictions prosecute their cases. “To expedite and strengthen these efforts, I have directed the Office of Emergency Services to stand up a task force to coordinate state efforts and support investigations by local District Attorneys,” Newsom said in response. “We will continue to fully partner with law enforcement and direct as many resources as needed to investigate and resolve this issue speedily.”
Meanwhile, the EDD is struggling to process legal claims filed by unemployed Californians. According to the most recent numbers, the agency is saddled with a backlog of approximately 580,000 applications stuck somewhere in the approval process.
Great job Newsom…. he set up this task force months ago.
With less and less deterrent to be a criminal, why not? Plenty of “Get out of Jail Free” cards for everyone!!!
Why isn’t this story about the investigation and prosecution of these criminals? What is being done to punish the guilty and get the money back for those it was intended for? The sheriff and the D.A. Have some explaining to do.
This story is lacking on a lot of the details. From what I have read in other sources, this money came from the feds and they allowed people to self-certify their unemployment to get the money out to the people that needed it faster. They had to do it this way because the state unemployment computers in most states (and CA) are really old and cannot be reprogrammed to check for death certificates or prison status. They were having to search for retired computer programmers who knew the antiquated languages like COBOL to do the minor reprogramming that they did. Our esteemed local pols Limon and Jackson are responsible for letting the Unemployment infrastructure fall into disrepair over their lengthy terms. Hence the 580,000 people still waiting for their state unemployment 9 months later.
Plenty of blame to go around but there are reasons for all of it if you dig deep enough.
“Law of Unintended Consequences” I swear that must be in the CA State constitution somewhere…
Can you just repost this in every Covid related topic – just so everyone can check themselves?
VOR – do you ever have anything nice or supportive to say about anyone? My gosh, every day it’s the same thing…..
Edhat article: “Something something Covid something Newsom something…”
VOR: “Newsom is wrong, everyone is wrong”
PITMIX: “Actually, I think it’s not that wrong”
VOR: “Of course it’s wrong, and also probably unconstitutional”
GENERALTREE: “You should all be in jail” and then something rude that gets deleted
SACJON: “I don’t know, it might not be as wrong as VOR is saying. Also, GT, that’s really rude.”
GENERALTREE: Deleted
VOR: “Sac, you’re wrong and I think everyone is wrong still, but I’m very much right.”
MACPUZL: “VOR, here are the numbers to prove you are wrong.”
VOR: “Mac, you’re numbers are wrong, here are the right numbers.”
DUKEMUNSON: “Kids should be back in school now no matter what!”
GENERALTREE: Deleted
SAC: I think even the most cynical among us would have to agree that an opposing point of view is a healthy thing. You may think of VORs comments as negative, I look VORs comments as the other side of the coin, the half-full part of the half-empty glass, the yin to the yang, and so on. You have to admit that VOR avoids the name calling and shaming that so many others use as verbal weapons. I wish everyone would keep it as classy as VOR, who is definitely the “rebel” in most of the Edhat conversations.
(Nodding head in agreement)
I would like to add though… KIDS SHOULD BE BACK IN SCHOOL!!!!! (And not just the private school/rich kid public schools)…
Who said “crime doesn’t pay” the governor makes just over 200k a year….his crime was not overseeing helping (overtaxed state agencies, like EDD) and distressed Ca. citizens, instead closing churches, businesses and schools, and sending 1billion to China for low-grade protective masks
Best Post Ever on Edhat!
VOR – do you ever have anything nice or supportive to say about anyone? My gosh, every day it’s the same thing…..
Edhat article: “Something something Covid something Newsom something…”
VOR: “Newsom is wrong, everyone is wrong”
PITMIX: “Actually, I think it’s not that wrong”
VOR: “Of course it’s wrong, and also probably unconstitutional”
GENERALTREE: “You should all be in jail” and then something rude that gets deleted
SACJON: “I don’t know, it might not be as wrong as VOR is saying. Also, GT, that’s really rude.”
GENERALTREE: Deleted
VOR: “Sac, you’re wrong and I think everyone is wrong still, but I’m very much right.”
MACPUZL: “VOR, here are the numbers to prove you are wrong.”
VOR: “Mac, you’re numbers are wrong, here are the right numbers.”
DUKEMUNSON: “Kids should be back in school now no matter what!”
GENERALTREE: Deleted