California has frozen 1.4 million unemployment claims because it fights fraud in its massive coronavirus unemployment program, it was reported this week.
According to the San Francisco Chronicle, the Department of Employment Development said it was investigating existing claims from people who said they lost their jobs during the COVID-19 pandemic.
Nearly 2 million of these claims have already been disqualified and payment was suspended for approximately 1.4 million until it could be verified. The EDD said it would contact plaintiffs to tell them how to prove their identity, the newspaper said.
California, the population of the country, has been processing more than 16 million unemployment benefits since March, a byproduct of the pandemic that prompted Gavin Newsom to end businesses. The EDD struggled to keep up with demand and had intense pressure to work out a backlog that once numbered more than 1.6 million people.
The state acknowledged that the department had donated hundreds of millions of dollars in COVID-19 unemployment funds that went to fraudsters, including some in the name of U.S. Senator Dianne Feinstein.
The agency acknowledged that others had been sent to prisons and prisons, including some in California’s death struggle.
Last month, Bank of America, which issued EDD benefit cards, told lawmakers in the state that it had identified about 345,000 fraudulent claims worth about $ 2 billion, although the figure is expected to be much higher.
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