Fraudulent Unemployment Insurance Payments Returned to Maryland
Maryland officials announced that unemployment insurance payments suspected of fraud during the pandemic have been returned, thanks to efforts from the U.S. Department of Labor, led by a representative of former President Trump.
The announcement came from Lori Chavez Deremar’s secretary on Thursday, noting that this recovery was possible through teamwork between her department and the Maryland Labor Department’s Employment and Training Bureau.
The 2020 CARES Act became a prime target for fraudulent activities as both domestic and international criminals engaged in various identity theft schemes to collect unemployment benefits.
“In many instances, banks recognized attempts at fraud related to unemployment insurance and halted payments,” DOL officials commented.
The $520 million that had been frozen by banks will be distributed between Maryland and the federal government based on how the benefits were funded.
“Under President Trump’s leadership, the Labor Department is working to eliminate waste, fraud, and abuse from taxpayer-funded unemployment insurance programs, ensuring that these benefits support American workers,” stated Chavez Deremar.
She added that this development is another win for hardworking Americans who trust that their taxes will be managed responsibly.
“I commend our team, the ETA, and the Maryland Department of Labor for their unwavering efforts to hold those who abuse the system accountable,” she concluded.
Deputy Assistant Inspector General Michael C. Mikulka expressed concern about the way significant amounts of pandemic-related UI meant for supporting American workers could be misappropriated by criminals through stolen identities and fraudulent claims.
“The Inspector’s Office is pleased to have contributed to the return of funds to Maryland and the U.S. Treasury,” Mikulka remarked. “We are committed to maintaining the integrity of the U.S. Department of Labor programs and ensuring that vital resources reach those who truly need them.”
