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Newsom Issues Defense Of EDD Following Prisoner Unemployment Fraud Scheme

Governor Gavin Newsom is coming to the defense of California's Employment Development Department after prison inmates were able to collect unemployment benefits. The Governor is responding to criticism from Sacramento County District Attorney Anne Marie Schubert, who recently pointed to an unemployment claim that was filed in the name of convicted killer Scott Peterson as just one example of widespread fraud taking place behind the bars of California's prisons and jails.

"Quite frankly, the inmates are mocking us," Schubert said at a press conference last month. She claimed then that at least 35,000 unemployment claims had been made on behalf of prison inmates just between March and August. At least 158 claims have been filed for 133 inmates on death row, resulting in more than $420,000 in benefits paid, she added.

However, Newsom said fraudulent claims were filed through the federal Pandemic Unemployment Assistance program. He added that even though around one-billion-dollars was paid to prison inmates, they had exploited a self-certification option meant to fast-track approval of claims during the COVID-19 pandemic.

State officials and the Governor say the EDD is working with the federal government to implement better security measures.

EDD has been received strong criticism for a failure to process legitimate unemployment claims in a timely manner for months, while Department officials note that the system was overwhelmed by the pandemic.


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