(The Center Square) – The Michigan Unemployment Insurance Agency identified more than 10,000 fraudulent filings over a three-day period in which no money was paid out.
The unemployment insurance agency made the announcement in an Aug. 3 news release.
The state said Michigan’s “proprietary anti-fraud software and use of national databases to verify claimant identities stop criminals from successfully filing claims.”
“Anyone thinking about committing fraud to try and illegally obtain unemployment benefits should take this as a warning,” Michigan Unemployment Insurance Agency Director Julia Dale said in a statement. “Stopping crime and strengthening the integrity of the unemployment system is UIA’s top priority. Our team spotted the large number of attempts right away and put a stop to any further action on these false claims.”
On Aug. 1, 11 Michigan residents were charged in their alleged role in a multi-million-dollar unemployment insurance fraud scheme. The 11 defendants used stolen personal information to file for fraudulent claims in multiple states. They received $4.5 million in government funds.
On July 27, four Michigan residents were charged in their alleged role in a multi-million-dollar scheme in which they filed 700 unemployment insurance claims in Michigan and eight other states and Guam. They illegally received $3.5 million in government funds, according to a news release from the U.S. Attorney’s Office.
In March, a former unemployment claims examiner pleaded guilty to conspiring to steal federal unemployment benefits during the pandemic.
Semaje Reffigee of Detroit started working as a contract unemployment insurance examiner with the Michigan Unemployment Insurance Agency in October 2020, according to the U.S. Attorney’s Office. Reffigee used her insider access to work with co-conspirators to submit fraudulent claims in the names of people who were victims of identity theft or were fictitious. Reffigee was able to net $9,000 for herself.
The Center Square previously reported in January that an audit from the state’s Office of Auditor reported that the state’s unemployment office couldn’t support the appropriateness of $10.2 billion in pandemic unemployment assistance.
In October 2022, the state of Michigan reached a $20 million settlement with thousands of residents who were falsely accused of unemployment benefits fraud as far back as 2015. The erroneous claims by the state resulted in the seizure of their property including their paychecks, income tax refunds and other assets without due process, the state admitted. The state blamed the error on a decades-old computer system officials said would be updated.
