{"id":510464,"date":"2022-11-16T02:23:54","date_gmt":"2022-11-15T23:23:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/audit-finds-new-york-lost-11-billion-in-unemployment-fraud-in-2020\/"},"modified":"2022-11-16T02:23:54","modified_gmt":"2022-11-15T23:23:54","slug":"audit-finds-new-york-lost-11-billion-in-unemployment-fraud-in-2020","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/audit-finds-new-york-lost-11-billion-in-unemployment-fraud-in-2020\/","title":{"rendered":"#Audit finds New York lost $11 billion in unemployment fraud in 2020"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a24d53ec5e8b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a24d53ec5e8b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/audit-finds-new-york-lost-11-billion-in-unemployment-fraud-in-2020\/#%E2%80%9CAudit_finds_New_York_lost_11_billion_in_unemployment_fraud_in_2020%E2%80%9D\" >&#8220;Audit finds New York lost $11 billion in unemployment fraud in 2020&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CAudit_finds_New_York_lost_11_billion_in_unemployment_fraud_in_2020%E2%80%9D\"><\/span>&#8220;Audit finds New York lost $11 billion in unemployment fraud in 2020&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>New York let fraudsters make off with at least $11 billion in taxpayer cash as jobless claims soared during the height of the COVID-19 pandemic \u2014 aided by loosened eligibility rules and an already crumbling state unemployment system, Comptroller Tom DiNapoli charged Tuesday.<\/p>\n<p>The $11 billion was lost in 2020, under then-Gov. Andrew Cuomo, to outright fraud and overpayments, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.osc.state.ny.us\/files\/state-agencies\/audits\/pdf\/sga-2023-21s3.pdf\">DiNapoli\u2019s audit of the mess<\/a>. But he warned that despite the stunning theft in the the first year of the pandemic and lockdowns, billions more in fraud is likely to be uncovered. <\/p>\n<p>\u201cThere was a good intent to get as much money out the door \u2014 but the problem was that it made the system even more susceptible to fraud, particularly with regard to identity theft,\u201d the comptroller said.<\/p>\n<p>It hardly helped that the feds made changes to unemployment eligibility rules in March 2020 allowing people to self-certify their employment info amid record-high spikes in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications, according to the scathing audit.<\/p>\n<p>\u201cFor example, the CARES Act allowed claimants under these temporary programs to self-certify their eligibility and wages and required states to make im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te eligibility determinations,\u201d the audit says about legislation signed into law by then-President Donald Trump as COVID slammed New York in March 2020. <\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-02.jpg?w=1024\" alt=\"Relaxed regulations during COVID allowed for increased fraud. \" class=\"wp-image-24666485\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-02.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-02.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-02.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The $11 billion was lost in 2020, under then-Gov. Andrew Cuomo, to outright fraud and overpayments.<\/figcaption><figcaption><span class=\"credit\">Stephen Yang<\/span><\/figcaption><\/figure>\n<p>It remains unclear just how much unemployment fraud and waste cost the state after the first year of the pandemic, especially with the state Labor Department holding out on key data substantiating whether it prevented as much fraud as it claimed to DiNapoli.<\/p>\n<p>\u201cWe <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly find that in many agencies, the responsiveness and ultimately the transparency is not where it should be,\u201d DiNapoli said Tuesday, while noting months-long delays in getting responses from the Department of Labor while preparing the audit.<\/p>\n<p>The state spent roughly $76.3 billion on unemployment payments between April 1, 2020 and March 31, 2021 after claims skyrocketed by 3,140% from the year before, according to the audit.<\/p>\n<p>Jobless claims spiked after public safety measures shut down much of the economy, and suspected unemployment fraud increased to more than 17.59% of total applications compared to just 4.51% two years earlier, the audit found.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-01.jpg?w=1024\" alt=\"DiNapoli said this is a sign that New York state needs to tighten its regulations. \" class=\"wp-image-24666482\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-01.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-01.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-01.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Thomas DiNapoli said it\u2019s likely billions more in fraud will be uncovered throughout the audit. <\/figcaption><figcaption><span class=\"credit\">William C. Lopez\/New York Post<\/span><\/figcaption><\/figure>\n<p>\u201cWe\u2019re literally building the plane, while we\u2019re trying to fly it,\u201d Melissa DeRosa, secretary to then-Gov. Andrew Cuomo, claimed to reporters in May 2020 after a range of problems with the state unemployment system.<\/p>\n<p>This surge came after the state Department of Labor dawdled under Cuomo on overhauling an unemployment system ill-prepared for the historically high pandemic caseload considering its reliance on \u201coutmoded\u201d Cold War-era tech. <\/p>\n<p>\u201cDepartment officials did not heed warnings as far back as 2010 that the UI system<br \/>was out of date and, consequently, difficult to maintain and that it lacked the agility<br \/>necessary to adjust to new laws and the scalability to handle workload surges,\u201d DiNapoli\u2019s audit says.<\/p>\n<p>Its recommendations include calls for the department to turbocharge its efforts to track down fraudsters while improving its IT and financial transparency. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-03.jpg?w=1024\" alt=\"Claims increased by over 3000% during this period. \" class=\"wp-image-24666484\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-03.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-03.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/ny-state-unemployment-03.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The state spent roughly $76.3 billion on unemployment payments between April 1, 2020 and March 31, 2021.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>The audit sparked immediate criticism in light of ongoing efforts by state leaders including Gov. Kathy Hochul \u2013 who kept Labor Commissioner Roberta Reardon in place after Cuomo resigned in disgrace last year \u2014 to have the feds pick up the remaining costs of pandemic unemployment costs driven by public health shutdowns. <\/p>\n<p>\u201cIt\u2019s worth noting that\u2019s a larger sum than the $7.7 billion that New York owes the federal government for covering unemployment insurance claims during the pandemic,\u201d Justin Wilcox, the executive director of the advocacy group Upstate United, said in a statement following the release of the \u201cdamning\u201d report. <\/p>\n<p>\u201cThis stunning incompetence demands immediate accountability and action,\u201d he added.<\/p>\n<p>Representatives of the Department of Labor and Hochul\u2019s Office did not respond to requests for comment Tuesday about the report. <\/p>\n<p>DiNapoli said New Yorkers ought to take notice of the audit and its recommendations that the Hochul administration push for much-needed updates to the state unemployment system or else risk losing billions more dollars in the future. <\/p>\n<p>\u201cIt\u2019s public money. Some of it is state. Some of it\u2019s federal \u2014 and we need to be sure that taxpayer money is not being spent inappropriately,\u201d he said.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/11\/15\/audit-finds-new-york-lost-11-billion-in-unemployment-fraud-in-2020\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Audit finds New York lost $11 billion in unemployment fraud in 2020&#8221; New York let fraudsters make off with at least $11 billion in taxpayer cash as jobless claims soared during the height of the COVID-19 pandemic \u2014 aided by loosened eligibility rules and an already crumbling state unemployment system, Comptroller Tom DiNapoli charged Tuesday&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":510465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/newspress-collage-24661755-1668552631078.jpg?quality=75&strip=all&1668534674&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135574,70430,70344,71439,98806,32681,71147,5071,70840],"class_list":["post-510464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-11-15-22","tag-andrew-cuomo","tag-coronavirus-in-ny","tag-department-of-labor","tag-kathy-hochul","tag-politics","tag-thomas-dinapoli","tag-unemployment","tag-unemployment-benefits"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510464"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510464\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510465"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}