LANSING, Mich. — A recent state audit has revealed that the Michigan Unemployment Insurance Agency (UIA) has paid hundreds of millions of dollars in improper claims, including claims for deceased individuals, people in long-term care facilities, and even individuals who are incarcerated. The audit disclosed that the UIA made $245.1 million in incorrect payments to such claimants from January 2020 to October 2022. Even after confirming ineligibility, the agency continued to make payments totaling $1.7 million. This report marks the fifth and final investigation into the UIA’s pandemic operations by the Office of the Michigan Auditor General.

The audit also identified issues with the UIA’s internal data system, leading to an underestimation of fraudulent activities by nearly half. In response to the audit, UIA Director Julia Dale stated that they are committed to improving their systems and fighting against fraudulent activities. Under new leadership, they have reconstructed their organization and improved existing systems to better detect and combat fraud. These efforts have proven fruitful, as evidenced by the data.

The investigation led by the agency resulted in 162 charges against individuals committing fraud, 90 of whom were convicted. This action recovered about $90 million. According to the audit, the agency could still collect up to $840 million in penalties.

Further strengthening their efforts against fraud, the U.S. Department of Labor is providing funding to hire more staff to help review cases through the American Rescue Plan Act (ARPA) Integrity Grant. This grant will fund 30 new limited-term unemployment insurance examiners and regulation agents in the UIA’s Fraud and Investigations Division.

UIA reiterated their renewed dedication to combating fraud by introducing new tools and resources for employees and employers.