Respuesta del EDD ante el fraude

Our Investigations Department investigates cases and partners with local, state, and federal investigators and prosecutors. Since 2020, with our assistance, law enforcement has opened nearly 1,800 investigations, hundreds of suspects have been arrested, and many have been criminally charged and convicted.

California Governor Gavin Newsom appointed former two-time U.S. Attorney and elected District Attorney McGregor Scott to serve as our Fraud Special Counsel. Scott and his team help leverage our data sources and cutting-edge data analytics to identify and refer cases to law enforcement agencies for investigation and prosecution. To date, they have referred cases representing more than $223 million in fraudulent payments.

In addition, the team:

• Advises our leadership, Investigations Department, and Legal Office on fraud prevention strategies.
• Enhances our ability to recover and return lost funds.
• Works closely with the U.S. Department of Justice and U.S. Department of Labor to identify and coordinate potential criminal investigations in California.

The Fraud Special Counsel works with the California Office of Emergency Services (CalOES) PUA/COVID Task Force. Through the CalOES, $5 million was provided to reimburse District Attorneys’ offices for expenses related to investigating and prosecuting pandemic unemployment fraud. In June 2022, the Legislature approved an additional $5 million to be distributed by the EDD to the District Attorneys’ offices. In addition, the Legislature approved a separate $5 million to be distributed to state and local law enforcement through the High Technology Theft Apprehension and Prosecution Program.

The Biden Administration established three COVID-19 Strike Force teams across to country to target pandemic fraud with an emphasis on transnational and organized crime rings.  One of the Strike Force teams is in California and consists of representatives from various federal law enforcement agencies including the U.S. Department of Labor – Office of Inspector General and the FBI.  EDD’s Investigations Department is the only state or local agency on the Strike Force team and its participation enables the California Strike Force to quickly and effectively identify and prosecute pandemic fraud.  

We have created investigative guides for law enforcement and offer technical assistance to our partners working these cases. We have set up regional contacts for each division of the State and work with agencies that need assistance with unemployment fraud cases.  We have also set up a system where out-of-state state and local law enforcement agencies can obtain information from EDD to investigate and prosecute UI fraud in their jurisdiction.

To prevent identity fraud at the start of the application process, we launched a new identity verification system, ID.me. This new system has stopped more than $125 billion in attempted fraud.

In addition, our Special Counsel worked with ID.me to refer cases of fraudulent claims to law enforcement agencies. These cases represent more than $54 million in fraudulent payments. 

We have partnered with vendors and data scientists to identify potentially fraudulent claims using cutting-edge data analytics and to refer these cases to law enforcement agencies for further investigation and potential criminal prosecution. To date, utilizing work performed by ID.me, Accenture, and Thomson Reuters Special Services, we have referred cases representing more than $223 million in fraudulent payments.

We have partnered with Thomson Reuters to cross-check unemployment applications against law enforcement databases. Between October 2020 and January 2021, this effort stopped at least $60 billion in potential fraud. 

Other actions that we have taken to fight fraud include:

• Setting up a 1099-G call center to help victims of identity theft deal with any tax-related questions.
• No longer printing Social Security numbers on mailed documents to reduce the risk of identity theft.
• Working with Bank of America to:
  • Issue chip-enabled debit cards that enhance security.
  • Strengthen fraud-prevention strategies.
• Working with the CalOES PUA/COVID Task Force on thousands of active investigations, arrests, and prosecutions for unemployment fraud including setting up agreements to ensure seamless sharing of information.
• Delivering multiple customer alerts about text message and other phishing schemes.

"Fresno County Man Indicted for Mailing Falsified Disability Insurance Claims"
– U.S. Attorney’s Office, Eastern District of California, November 12, 2024

"San Bernardino County Woman and Man Arrested on Indictment Alleging $2.1 Million Scheme to Illegally Get COVID Jobless Benefits"
– U.S. Attorney’s Office, Central District of California, November 5, 2024

"68 Defendants Charged in Indictment of Dozens of Members and Associates of San Fernando Valley White Supremacist Gang"
– U.S. Attorney’s Office, Central District of California, October 2, 2024

"Tracy Woman Sentenced to 9 Years in Prison for Fraudulent Scheme to Steal California Unemployment Insurance Benefits"
– U.S. Attorney’s Office, Eastern District of California, September 18, 2024

"Sacramento, California Man Sentenced to 18 Months’ Imprisonment for Unlawfully Collecting $100,000 in Unemployment Benefits During COVID-19"
– Sierra Sun Times, June 27, 2024

"CEO of Non-Profit that Provided Mentoring Services to Public School Students Arrested on COVID Jobless Benefits Fraud Charges"
– U.S. Attorney’s Office, Southern District of California, June 26, 2024 

“Ex-USC football player agrees to plea bargain in fraudulent COVID benefits case"
– Los Angeles Times, June 10, 2024

“Alleged Mastermind of $5 Million Unemployment Fraud Scheme Extradited from Romania"
– U.S. Attorney’s Office, Southern District of California, February 23, 2024

“Husband and Wife Plead Guilty to $5 Million Unemployment Fraud Scheme"
– U.S. Attorney’s Office, Southern District of California, February 15, 2024

“Mother and Daughter Team Plead Guilty in COVID-19 Related Jailhouse Unemployment Insurance Fraud”
– U.S. Attorney’s Office, Eastern District of California, January 16, 2024

“Two Nigerian Nationals Based in Maryland Sentenced for Schemes to Steal California and Other States’ Unemployment Insurance Benefits”
– U.S. Attorney’s Office, Eastern District of California, October 10, 2023

“Nigerian National Based in Maryland Sentenced to 4 Years and 9 Months in Prison and Nigerian House Ordered Forfeited for Schemes to Steal Unemployment Insurance Benefits”
– U.S. Attorney’s Office, Eastern District of California, July 25, 2023

“California Resident Sentenced To Prison For Committing Unemployment Insurance Benefits Fraud”
– U.S. Attorney’s Office, District of Nevada, July 25, 2023

“Suspect Arrested on Charges for EDD Fraud After Thorough Investigation by District Attorney’s Bureau of Investigations”
– Kern County District Attorney, July 24, 2023

“Hospital Employee Sentenced to 3 Years in Prison for Using Patient Information to Steal Pandemic Unemployment Benefits”
– U.S. Attorney’s Office, Southern District of California, July 21, 2023

“San Diego Couple Charged with Stealing Stimulus Payments During Pandemic and Purchasing Luxury Mercedes-Benz and Jewelry”
– U.S. Attorney’s Office, Southern District of California, July 17, 2023
*Note: The couple was charged with crimes related to fraudulent UI applications to EDD even though not mentioned in the headline.

“Romanian National Pleads Guilty to $5 Million Covid Relief Fraud”
– U.S. Attorney’s Office, Southern District of California, July 11, 2023

“Convicted Murderer Who Ran $1.5 Million COVID Jobless Benefits Fraud from Behind Bars Sentenced to 7 Years in Federal Prison”
– U.S. Attorney’s Office, Central District of California, July 10, 2023

“Victorville Woman Sentenced to 2½ Years in Federal Prison for Using Inmates’ Info to Illegally Obtain Over $500,000 in COVID Jobless Aid”
– U.S. Attorney’s Office, Central District of California, June 26, 2023

“New Jersey Man Sentenced to 6.75 Years in Prison for Schemes to Steal California Unemployment Insurance Benefits and Economic Injury Disaster Loans”
– U.S. Attorney’s Office, Eastern District of California, May 22, 2023

“L.A. Man Sentenced to More Than 24 Years in Prison for $5.5 Million COVID Jobless Benefits Scam, Tax Fraud and Drug Trafficking”
– U.S. Attorney’s Office, Central District of California, March 6, 2023

"Romanian Citizen Arrested and Charged in $5 Million Covid Relief Fraud"
–U.S. Attorney’s Office, Southern District of California, March 2, 2023

"Two Nigerian citizens indicted for attempting to defraud the United States of over $25 million"
– U.S. Attorney’s Office, Western District of Washington, February 22, 2023 

“Two Men Plead Guilty To COVID-19 Unemployment Insurance Benefits Fraud Conspiracy”
– U.S. Attorney’s Office, District of Nevada, February 17, 2023

“Woodbridge Man Pleads Guilty to Pandemic Unemployment Insurance Fraud”
– U.S. Attorney’s Office, Eastern District of Virginia, February 16, 2023

“Two Euclid Men Charged with Stealing COVID-19 Pandemic Unemployment Insurance Benefits”
– U.S. Attorney’s Office, Northern District of Ohio, February 15, 2023

"Kern County Resident Sentenced to 9 Years in Prison for Role in Disability Benefits Fraud Scheme and Money Laundering"
– U.S. Attorney’s Office, Eastern District of California, February 13, 2023

“Fresno Man Sentenced to 2 Years in Prison for Unemployment Benefit Fraud Scheme and Possession of Stolen Mail”
– U.S. Attorney’s Office, Eastern District of California, February 9, 2023

"Inland Empire Woman Pleads Guilty to Using Prison Inmates’ Names to Fraudulently Obtain Over $500,000 in COVID Jobless Relief"
– U.S. Attorney’s Office, Central District of California, January 23, 2023

"Orange County Man Pleads Guilty to Using Stolen Identities to Apply for More Than $1 Million in COVID Jobless Benefits"
– U.S. Attorney’s Office, Central District of California, January 23, 2023

“New Jersey Man Pleads Guilty to Fraudulent Schemes to Steal California Unemployment Insurance Benefits and to Steal Economic Injury Disaster Loans”
– U.S. Attorney’s Office, Eastern District of California, January 9, 2023

The EDD's Response to Fraud Archive Page

"Justice Department Announces Results of Nationwide COVID-19 Fraud Enforcement Action"
- U.S. Department of Justice, Office of Public Affairs, August 23, 2023

"Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat COVID-19 Health Care Fraud"
- United States Attorney's Office Central District of California, April 20, 2023

"Tackling the biggest fraud in US history – pandemic relief"
- The Christian Science Monitor, April 3, 2023 

"Employment Development Department Reminds Californians to Guard Against Identity Theft “ Smishing ” Scams"
– EDD, October 18, 2022

"Justice Department Announces COVID-19 Fraud Strike Force Teams"
– U.S. Attorney’s Office, Eastern District of California, September 14, 2022

"California recovers $1.1 billion in unemployment aid amid fraud investigation”
– Los Angeles Times, June 21, 2022

“EDD Halts New Unemployment Insurance Fraud Attempt, Begins Notifying Claimants and Potential Victims”
– EDD, May 26, 2022

“Employment Development Department and California Office of Emergency Services Announce More Unemployment Insurance Fraud Crackdowns”
– EDD, April 12, 2022

"We will continue working with law enforcement to put fraudsters behind bars and recover every stolen dollar that we can.”
– Fraud Special Counsel McGregor Scott, June 21, 2022

“Criminals will probe for weakness every day of the year and EDD will keep blocking them…EDD will continue to strengthen its fraud fighting capability and remind Californians to guard against identity theft.”
– Fraud Special Counsel McGregor Scott, May 26, 2022

"Fraudsters attacked California and every state in the country with unprecedented criminal activity in 2020…These criminals defrauded taxpayers and stole benefits from workers in need. California responded aggressively with new anti-fraud measures that blocked billions of dollars in fraud attempts. We are now engaged in a monumental effort to uncover these complex fraud schemes and deliver investigations to law enforcement and prosecutors across California.”
– Fraud Special Counsel McGregor Scott, April 12, 2022

“State unemployment systems last year were under attack by sophisticated international and domestic organized fraud schemes…We look forward to working with EDD, Cal OES, and local, state, and federal prosecutors to identify, investigate and prosecute those who stole benefits that rightly belonged in the pockets of Californians in need.”
– Fraud Special Counsel McGregor Scott, July 20, 2021

“Through the joint agency fraud task force put in place by the Governor and coordinated by the Governor’s Office of Emergency services, hundreds of investigations, arrests, and prosecutions have already occurred or are underway—with much more to come.”
– Cal OES Director and task force chair Mark Ghilarducci, July 20, 2021