Fraudsters Claimed $2 Billion In Unemployment Benefits, Maryland Comptroller Peter Franchot Says

ANNAPOLIS (WJZ) — Maryland authorities Comptroller Peter Franchot connected Wednesday estimated that astir $2 cardinal successful national and authorities unemployment funds distributed during the pandemic were fraudulently obtained.

The Maryland Department of Labor is acceptable to clasp a proceeding astatine 1:30 p.m. Thursday to code what happened and however the authorities tin bash amended moving forward.

READ MORE: More Than 80% Of Eligible Howard County Residents Now Fully Vaccinated For COVID-19

Franchot said Maryland is not unsocial successful being a people for unemployment fraud. In California, $30 cardinal successful paid-out claims were aboriginal determined to beryllium fraudulent.

Franchot said that, since the COVID-19 pandemic began, 1 cardinal Marylanders person filed first-time unemployment claims. They’re the ones who request the money, helium said.

“They needed unemployment alleviation due to the fact that they were not working, could not wage bills, truthful payments were critical,” Franchot said.

Franchot said helium doesn’t judge determination was intentional wrongdoing by authorities labour officials. Rather, helium said, the pandemic sent everyone into an exigency authorities and mediocre judgement whitethorn beryllium to blame. Many of the fraudulently obtained payments “went straight to crooks, galore successful Russia and China,” Franchot said.

READ MORE: Baltimore City Employees Should Get Vaccinated For COVID-19 Or Face Weekly Testing, Comptroller Says

Besides draining authorities coffers, the fraudulent claims and payments besides hold morganatic claims, with galore radical telling WJZ they person holds connected their accounts for reasons they cannot explain.

“There are tons of radical denied benefits due to the fact that of the fraud incidents,” Franchot said.

Franchot said his bureau pays astir fractional a cardinal dollars for a cybersecurity strategy to support tabs connected wealth being sent out. It’s an physics cheque connected the strategy successful place. Franchot hopes officials volition put successful thing similar this truthful much wealth is not mislaid for good.

“We walk a batch of clip making definite the Maryland treasury is not robbed by criminals successful the taxation area. The Department of Labor did not bash that,” Franchot said.

MORE NEWS: Maryland Weather: Severe Thunderstorm Warnings Issued For St Mary's, Calvert Counties

Labor officials did not instantly respond to a petition for comment.

Rachael Cardin