LANSING, Mich. (FOX 2) - Nearly $250 million in potentially improper payments was issued by Michigan’s unemployment agency to ineligible individuals, including deceased and incarcerated citizens. This issue occurred during the period between January 2020 and October 2022, according to an audit of the state’s agency responsible for distributing unemployment benefits. The audit revealed that the Unemployment Insurance Agency released $1.7 million to individuals who were deemed ineligible for the funds.

Also highlighted in the Auditor General’s report were instances where the department failed to investigate claims by imposters and was negligent in attempting to recover fraudulent payments or assess penalties. Even though the agency could potentially recover the funds wrongly distributed and penalize those who fraudulently received it, the audit revealed that the agency did not attempt to recover 96.7% of such payments or assess any fraud-related penalties.

Furthermore, the agency was reported to lack follow-up procedures with nonresponsive employers and claimants flagged in some of its crossmatches. ©2023 FOX Television Stations.