{"id":121818,"date":"2026-02-21T10:00:21","date_gmt":"2026-02-21T15:00:21","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/labor-dept-deploys-strike-team-to-california-over-21b-unemployment-debt-fraud-concerns-121818"},"modified":"2026-02-21T10:00:21","modified_gmt":"2026-02-21T15:00:21","slug":"labor-dept-deploys-strike-team-to-california-over-21b-unemployment-debt-fraud-concerns","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/labor-dept-deploys-strike-team-to-california-over-21b-unemployment-debt-fraud-concerns-121818","title":{"rendered":"Labor Dept deploys \u2018strike team\u2019 to California over $21B unemployment debt, fraud concerns"},"content":{"rendered":"
\n

The Labor Department deployed a “strike team” to California to address federal findings of improper payments and alleged fraud within the state\u2019s unemployment insurance (UI) program.<\/p>\n

California has been found to have a depleted UI trust fund, along with $21 billion in borrowed federal funds to keep the system running \u2014 which federal officials say has led state employers to pay higher UI taxes to repay the debt.<\/p>\n

In a statement, the department cited an 83-page California State Auditor report that determined the state\u2019s UI system is high-risk, in part due to “inadequate fraud prevention and claimant service [in its employment development department (EDD)], as well as a high rate of overturned eligibility decisions in its Unemployment Insurance Program.”<\/p>\n

EXCLUSIVE: SENATE BILL TARGETS MINNESOTA-STYLE \u2018RUNAWAY FRAUD\u2019 TO FORCE SCAMMERS REPAY TAXPAYERS<\/strong><\/a><\/p>\n

“Financial issues and potential fraud in California\u2019s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs: This ends now,” Labor Secretary Lori Chavez-DeRemer said.<\/p>\n

“Immediately, we are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers. I look forward to restoring the California UI program\u2019s integrity and financial health.”<\/p>\n

Chavez-DeRemer added that the “strike team” will include Labor Department specialists from both its national and regional offices.<\/p>\n

The secretary also wrote a letter to the EDD, citing increasing improper payment rates, insufficient timeliness, data accuracy and quality concerns, and questions about participants\u2019 eligibility and the use of taxpayer funds.<\/p>\n

California received about $290 billion in COVID relief, part of, part of which helped what the California Post<\/a> described as “rapidly implementing expanded unemployment benefits.”<\/p>\n

FEDERAL PROSECUTOR CALLS NEWSOM ‘KING OF FRAUD’ AS TRUMP LAUNCHES CALIFORNIA CORRUPTION PROBE<\/strong><\/a><\/p>\n

At least one California UI steward was convicted of using her position to file nearly $860,000 in fraudulent UI claims,<\/a> while some civilians were convicted of creating nonexistent businesses to claim UI.<\/p>\n

Just prior to the strike team\u2019s deployment, DOL Inspector General Anthony D\u2019Esposito said he found nearly $1 billion in taxpayer funds “at risk” nationwide due to COVID-related UI fraud.<\/p>\n

D\u2019Esposito, a former NYPD officer and ex-congressman from Long Island, said in a statement that an analysis of 6.5 million prepaid debit cards used for COVID UI benefits still had $720 million loaded on them.<\/p>\n

WALZ\u2019S MINNESOTA MESS COULD SPARK THE TOUGHEST FRAUD REFORMS IN DECADES<\/strong><\/a><\/p>\n

“My office has warned that, absent swift action, U.S. taxpayers risk losing nearly a billion dollars in fraudulently obtained benefits,” D\u2019Esposito said in a statement.<\/p>\n

“This is taxpayer money \u2014 and it demands immediate attention.”<\/p>\n

D\u2019Esposito said fraud is not a victimless crime<\/a> and that every misspent dollar is one that an actual needy family could use.<\/p>\n

“When we root out fraud, we protect taxpayers and lower the real cost of living,” he said.<\/p>\n

Fox News Digital reached out to Newsom and the state Senate\u2019s top Republican for comment.<\/p>\n<\/div>\n

Source – https:\/\/www.foxnews.com\/politics\/labor-dept-deploys-strike-team-california-21b-unemployment-debt-fraud-concerns <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Labor Department deployed a “strike team” to California to address federal findings of improper payments and alleged fraud within the state\u2019s unemployment insurance (UI) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[16563],"tags":[],"stock_ticker":[],"class_list":["post-121818","post","type-post","status-publish","format-standard","hentry","category-market-news","entry"],"acf":[],"yoast_head":"\nLabor Dept deploys \u2018strike team\u2019 to California over $21B unemployment debt, fraud concerns - Wall Street PR<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cablemanpro.com\/wallstreetpr\/labor-dept-deploys-strike-team-to-california-over-21b-unemployment-debt-fraud-concerns-121818\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labor Dept deploys \u2018strike team\u2019 to California over $21B unemployment debt, fraud concerns - 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