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Will County Gazette

Thursday, November 21, 2024

Unemployment Fraud with federal money: 'more than half of the $3.6 billion' was tied to fraud

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Illinois State Rep. Mark Batinick (R-Plainfield) on the House floor | repbatinick.com

Illinois State Rep. Mark Batinick (R-Plainfield) on the House floor | repbatinick.com

A state audit showed that $2 billion in federal money was defrauded and not reaching Illinoisans out of work during the height of the COVID-19 pandemic.

“A recent audit has revealed that more than half of the $3.6 billion in Pandemic Unemployment Assistance paid out in Illinois from July 2020 through June 2021 was tied to fraud,” Representative Mark Batinick wrote on Facebook.

The Chicago Tribune reported the Illinois Department of Employment Security knew of approximately 200,000 fraudulent unemployment claims but didn’t do anything after.

A report released on June 16 revealed that nearly $2 billion in federal money for Illinois residents who were out of work was stolen by fraudsters.

The Chicago Tribune wrote that “the audit offers the first estimate for Illinois’ share of the mammoth fraud that swept the country during the pandemic as states were hit with a deluge of unemployment claims. The audit covers much of the period the program was in use, from July 2020 through June 2021.”

The Tribune also reported that federal unemployment officials and law enforcement warned thieves may abuse asking for the income support meant for people like gig-workers.

In a May 13 report, CBS 2 announced that IDES had lost $1.2 million in taxpayer funds to fraud during the pandemic.

“On January 10, CBS 2 filed an appeal with the Illinois Attorney General's Office, asking the agency to review IDES’ denial for potential FOIA violations. That process revealed what IDES originally told CBS 2 wasn't true: the agency does track how much it has paid back claimants due to fraud. 

“As a result, on March 31 IDES was forced to send the data to CBS 2. It contains information on more than 1,000 tracers that were filed by claimants from January 2021 through March of this year. That’s more than 1,000 times IDES paid people back after they reported they never received their benefits.”

The Tribune added IDES blames the Trump administration for the failure to stop payment on fraudulent claims.

By February state leaders had identified more than 1 million affected by fraud through IDES, and while claimants were willing to talk to the media, IDES didn't want to chat.

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