BRIAN: WE HAVE NEW DEVELOPMENTS TONIGHT WITH THE INVESTIGATION OF FRAUDULENT EMPLOYMENT CLAIMS IN CALIFORNIA.
SINCE LAST MONTH, KCRA-3 INVESTIGATES HAS BEEN LOOKING INTO STACKS OF LETTERS FROM THE STATE EMPLOYMENT DEVELOPMENT DEPARTMENT, SHOWING UP IN THE MAILBOXES.
AND FOR WEEKS, WE GOT VIRTUALLY NO ANSWERS ABOUT WHAT EDD WAS DOING ABOUT IT UNTIL TODAY >> WE WERE ALL IN OUR COMPARTMENT.
THEY BOUND IT WITH A RUBBER BAND.
BRIAN: STEVE SMITH GOT ALL THESE LETTERS FROM EDD ON THE SAME DAY.
THE ONLY PROBLEM IS -- >> I HAVE NEVER HAD AN UNEMPLOYMENT CHECK IN MY LIFE.
BRIAN: SMITH IS THE LATEST TO CALL ABOUT STACKS OF LETTERS COMING TO THEIR HOMES.
ALL OF THEM TO THE RIGHT ADDRESS.
NONE OF THEM FOR PEOPLE WHO LIVE THERE.
>> TWO LETTERS TO A MARRIED COUPLE.
EACH GETTING A LETTER OR SOMETHING LIKE THAT.
OK, THE POST OFFICE PUT IN THE WRONG BOX.
OR IF THE ADDRESS WAS, YOU KNOW, ACROSS THE STREET OR SOMETHING LIKE THAT.
THAT’S A MISTAKE.
34 LETTERS TO 15 DIFFERENT PEOPLE FROM OFFICES ALL UP AND DOWN THE STATE?
SOMETHING IS GOING ON.
BRIAN: F WEEKS, KCRA THREE INVESTIGATES HAS BEEN TRYING TO GET ANSWERS FROM EDD ABOUT HOW MANY FRAUDULENT LETTERS, HOW MANY FRAUDULENT CLAIMS, OR EVEN HOW THE STATE’S UNEMPLOYMENT
DEPARTMENT WAS HANDLING WHAT IT CALLS FRAUD, TO NO AVAIL, UNTIL TODAY, WHEN EDD SENT THIS PRESS RELEASE SAYING, "PERPETRATORS ARE OFTEN USING STOLEN IDENTITY INFORMATION FROM NATIONAL AND
GLOBAL DATA BREACHES, AS WELL AS EXPLOITING EXPEDITED PAYMENT EFFORTS IN THE FEDERAL PUA PROGRAM." EDD OUTLINED TWO STEPS TO FIGHT FRAUD.
FIRST, IT’S GOING TO LIMIT MULTIPLE CLAIMS AT THE SAME ADDRESS.
SECOND, TO FIGHT THE FRAUD IN THE FEDERAL PUA PROGRAM, IT WILL NO LONGER ALLOW AUTOMATIC BACK TIMING ABOUT EMPLOYMENT BENEFITS, SOMETHING A LOT OF RIDESHARE DRIVERS AND
CONTRACTORS NEED.
[LAUGHTER] EXCUSE ME FOR LAUGHING.
I JUST FIND THIS -- I JUST FIND THIS RELEASE ABSOLUTELY ASTOUNDING.
BRIAN: JIM PATTERSON AND OTHER MEMBERS OF THE LEGISLATURE SAY REQUESTED AND GOT AN EMERGENCY AUDIT OF THE AGENCY BECAUSE OF WHAT HE CALLED A LACK OF TRANSPARENCY.
PATTERSON HAS RAISED SOME BIG ISSUES WITH THE STEPS EDD IS SPELLING OUT TO STOP FRAUD IN THIS PRESS RELEASE.
>> FIRST OF ALL, THIS RELEASE ADMITS TO ASTOUNDING INCOMPETENCE WHERE THEY ARE NOW SAYING WE ARE GOING TO STOP SENDING THESE MULTIPLE ENVELOPES TO THIS SINGLE ADDRESS.
WELL, WHERE WERE THEY WHEN THE FIRST 30, READY, 50 SHOWED UP -- 30, 40, 50 SHOWED UP WEEKS AND MONTHS AGO?
TO SUGGEST THAT JUST NOW, THEY ARE CAPABLE OF IDENTIFYING AND STOPPING MULTIPLE LETTERS TO A SINGLE ADDRESS, WHY IN THE WORLD DIDN’T YOU FIGURE THAT OUT IN THE FIRST FEW WENT OUT?
YOU HAVE A COMPUTER THAT WILL TELL YOU THINGS LIKE THAT.
BRIAN: HE ALSO THINGS PREVENTING BACK TIMING FOR CLAIMS IS THE WRONG APPROACH, PARTICULARLY SINCE GETTING THROUGH TO SOMEONE CAN TAKE HOURS IF THEY EVER GET A RESPONSE AT ALL.
>> THEY ARE BASICALLY PUTTING IT ON THE BACKS OF THE UNEMPLOYED IN THE STATE OF CALIFORNIA.
TO GO FIGURE OUT A WAY, HOW THEY WORK THEMSELVES THROUGH THE MINEFIELD OF INCOMPETENCE AT THE EDD IN ORDER TO GET THEIR UNEMPLOYMENT DATED BACK FROM WHEN THEY WERE FIRST UNEMPLOYED.
BRIAN: THE MULTIPLE CHECKS AND MONEY THAT MAY HAVE BEEN PAID OUT CONCERNS STEVE SMITH.
>> ABSOLUTELY IT WORRIES ME.
I’M A STATE WORKER.
THEY JUST CUT MY PAY 10%.
AND THERE’S A RUMOR THEY ARE CUTTING OUR MEDICAL BENEFITS.
THESE ARE ALL CHECKS GOING TO PEOPLE?
COME ON, MAN.
BRIA LATE THIS AFTERNOON, STEVE SMITH CALLED US BACK TO SAY THAT JUST TODAY, HE GOT 13 MORE LETTERS, ALL ADDRESSED TO THE SAME PEOPLE, AND SO FAR, EDD HAS BEEN UNABLE TO TELL US HOW
WIDESPREAD THIS FRAUD IS, HOW MUCH MONEY HAS BEEN LOST.
MEMBERS OF THE LEGISLATURE SAY THEIR QUESTIONS ARE NOT BEING ANSWERED EITHER.
EDIE: I THINK IF I GOT 15 OF THESE LETTERS, I WONDER WHAT DO I DO WITH THEM?
I WOULD NOT WANT TO BE ON HOLD TO ACTUALLY REACH SOMEONE.
BRIAN: WE HAVE HAD A STACK FOR QUITE SOME TIME AND EDD HAS NEVER EVEN ASKED US WHAT WE ARE GOING TO DO WITH THEM BUT WHAT THEY DO TELL PEOPLE IS THAT THEY WOULD LIKE YOU TO SEND THEM BACK
TO EDD OR PUT RETURN TO SENDER ON THE ENVELOPE BUT AT THE SAME TIME, AS PATTERSON POINTS OUT, WHAT ABOUT THE FRAUDSTERS?
THEY KNOW PEOPLE WILL BE DOING THAT.
THEY GO INTO MAILBOXES AND COULD POTENTIALLY TAKE IT OUT.