UNEMPLOYMENT FRAUD

A Detroit man conspired with a Michigan unemployment worker to steal thousands of dollars intended to help people who lost jobs due to the COVID pandemic.

The Secret Service is investigating unemployment fraud across the country and returning cash to state’s impacted.

A Novi man used the identities of several prison inmates to file fraudulent pandemic unemployment claims and stole more than $300,000 in the process, federal officials said.

A Geico breach is connected to a big unemployment scam in Michigan.

DETROIT – Some Michigan residents have been receiving 1099-G forms for unemployment benefits that they never applied for or received. The Michigan Unemployment Insurance Agency was hacked last year. She said receiving the 1099-G is just the latest update in a long struggle with the unemployment agency. The larger problem for many people is that they’re getting kicked up into a higher tax bracket, where the tax bill is still higher. READ: Task force cracking down on unemployment fraud in Michigan

That includes a Metro Detroit man who investigators said withdrew nearly $150,000 before he was arrested. The scheme spread across two states and involved fake social security numbers, addresses and driver’s license numbers. The investigator reported large cash withdrawals at bank machines across Oakland County. Federal investigators said Baker received unemployment benefits from Pennsylvania in various victims’ names on the prepaid debit cards and used those cards to make the cash withdrawals. Surveillance images from the banks where cash withdrawals were made were used to identify Baker.

DETROIT – The US Attorney’s office in Detroit has charged 39-year-old Brandi Hawkins of Detroit as a key figure in a scheme to defraud the Michigan Unemployment Insurance Agency of millions of dollars. Hawkins was hired as a contract worker for the state’s unemployment agency in April 2020. The feds say she used her access to sign off on $2 million in fraudulently filed claims. When federal agents went to her Detroit home they found $200,000 in cash and numerous new high end luxury items. The federal investigation is ongoing in tracking down everybody who received fraudulent funds as part of the scheme.

State worker accused of bilking Michigan unemployment insurance agency of $2 millionPublished: July 17, 2020, 11:13 pmThe US Attorney’s office in Detroit has charged 39-year-old Brandi Hawkins of Detroit as a key figure in a scheme to defraud the Michigan Unemployment Insurance Agency of millions of dollars.

DETROIT – A Detroit woman has been charged for her alleged role in a multi-million dollar unemployment insurance fraud scheme, according to officials. View more Detroit crime reports hereBrandi Hawkins, 39, was a contract employee for the State of Michigan Unemployment Insurance Agency. She was involved in the reviewing, processing and verifying the legitimacy of unemployment insurance claims. More than $2,000,000 of federal and state funds intended for unemployment assistance during the pandemic were fraudulently released. READ: Michigan investigating if new hires are stealing from Unemployment Insurance AgencyMore than $200,000 in cash was found at her residence by police.

The state of Michigan has brought on Deloitte to help sort out issues with unemployment during the coronavirus pandemic. The state says Deloitte will assist the Unemployment Insurance Agency (UIA) with financial operations, investigations into imposter claims, and a forensic review to help in identifying fraudulent activity that can be quickly turned over to law enforcement for prosecution. “As the UIA works to improve its systems to enhance customer service, data transparency, payment systems and fraud prevention, we’re glad to have Deloitte on our team,” said UIA Director Steve Gray. “The Deloitte team’s skills and experience help us protect Michiganders and provide unemployment benefits to our working families.”Deloitte will also bring additional capacity to help the state identify potential cybersecurity vulnerabilities and take action to mitigate identified risks. “Consistent with our commitment to our clients and our communities, Deloitte is pleased to bring our deep understanding of unemployment insurance systems and our broad capabilities in cybersecurity and forensic assessment to support the State of Michigan’s efforts to protect the integrity of their complex systems,” said David Parent, Michigan Managing Principal, Deloitte LLP.

LANSING, Mich. – Michigan Attorney General Dana Nessel created a new task force to prioritize the investigation and prosecution of fraud in the unemployment insurance program amid the coronavirus (COVID-19) pandemic. The task force plans to use IP addresses and financial records to identify and prosecute the fraudsters. Officials say this year’s surge in unemployment claims from Michigan families due to the COVID-19 crisis and the urgency to process the claims created opportunities for fraudsters to exploit the system. MORE: Scammers causing even more delays for Michigan unemployment systemThe task force will be led by Nessel, the U.S. Department of Labor, Michigan State Police (MSP) and the Michigan departments of Labor and Economic Opportunity, Management & Budget and Treasury. “Our message to those who wish to fraudulently benefit from the COVID-19 crisis is that we’re watching and you will be caught.”Individuals can report fraud in the unemployment insurance program online here.