Fraudsters Thwarted From Stealing $44 Million of Unemployment Stimulus Money

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PHILADELPHIA – Federal and state law enforcement, in collaboration with the Pennsylvania Department of Labor & Industry, and together with measures implemented by US Bank, have successfully prevented over $44 million from reaching criminals who attempted to steal Pandemic Unemployment Assistance (PUA) funds in Pennsylvania. The U.S. Department of Labor Office of Inspector General (DOL-OIG) utilized sophisticated data analytics to identify the fraudulent claims.

PUA is funded entirely by federal dollars under the CARES Act and the program is administered by the state. Data analytics enabled DOL-OIG and the other law enforcement agencies to trace clusters of fraudulent claims for PUA funds back to the same criminals. The Department of Labor & Industry then used the information to stop the payment of PUA funds to those criminals.

The outstanding work of law enforcement saved over $28 million in PUA funds that would have been paid to fraudsters by check or direct deposit. In addition, US Bank administers the Pennsylvania debit card program used to make some PUA payments. US Bank applied analytics to identify an additional $16 million in fraudulent claims, and those funds will be returned to the Pennsylvania Department of Treasury.

Many of the fraudsters stole identities of real Pennsylvanians to file their fraudulent claims. Law enforcement’s ability to track the fraud was greatly enhanced by Pennsylvanians who came forward and reported that they had received PUA funds but had never applied for them. Anyone who receives state unemployment compensation funds that they did not apply for, whether by check, direct deposit or debit card, are probably victims of identity theft. If you find yourself in that position, U.S. Attorney McSwain strongly encourages you to report it immediately to the Department of Labor & Industry and return the funds.

“Pandemic Unemployment Assistance funds are intended to help Pennsylvanians who lost their jobs because of the coronavirus,” said U.S. Attorney Bill McSwain. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. I want to commend the outstanding cooperation and coordination among federal and state agencies, and private banking institutions, that together achieved this remarkable success. The U.S. Attorney’s Office Coronavirus Working Group enables us to combine the tremendous resources and skill of federal and state law enforcement to do what it takes to bring these criminals to justice.”

“The ongoing work of this joint task force has prevented criminals from stealing tens of millions of dollars meant for out-of-work Pennsylvanians,” Attorney General Josh Shapiro said. “If you receive unemployment compensation you did not apply for, notify state officials right away. With your help we will take down these sophisticated scammers who are trying to use the COVID-19 pandemic for their own selfish, illegal, gain.”

“Criminals continue to exploit the Unemployment Insurance program for personal gain, and with selfish disregard for their fellow citizens. Fraud against the UI program distracts state workforce agencies from serving individuals in need of assistance, and siphons taxpayer funds from those who are qualified and eligible to receive UI benefits. The Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Pennsylvania Department of Labor & Industry, and our many law enforcement partners, to see to it that these criminals are sought out and held accountable,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

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