In 2020, the California Employment Development Department (EDD) experienced significant operational issues as an unprecedented number of unemployment claims were filed due to the effects of the COVID-19 pandemic. However, the EDD is now facing outrage as it is revealed that they inadvertently sent funds to prison inmates convicted of serious crimes such as murder and rape. Prosecutors allege that inmates requested and received hundreds of millions of dollars in unemployment funds, potentially constituting the largest taxpayer fraud scheme in state history.

District attorneys from nine Counties in California believe this issue could’ve been avoided if the EDD had crossmatched its list of claimants with state and county inmate records, a system utilized by 35 other U.S states. EDD spokesperson Loree Levy said the agency is currently working to implement this strategy to prevent future fraud.

Despite the improvements made so far, Governor Newsom stated that the state needs to do more. He emphasized the EDD would work in partnership with local district attorneys to resolve the issue as rapidly as possible. It has been found that over 20,000 claims were paid to inmates, amounting to more than $140 million.

This recent discovery is a further complication for the EDD, which has already been plagued with issues like fraud and payment backlogs since the pandemic began. An initial backlog of 1.6 million claims has since been reduced to fewer than 600,000 claims. The Governor established a ‘strike team’ last summer to tackle claim backlogs and other user issues, and while there has been progress, there’s more work to be done.

The California District Attorneys Association has requested that Governor Newsom personally intervene to halt fraudulent payments. By addressing these systemic issues promptly, those legitimately entitled to unemployment benefits will be able to receive the aid they desperately need.

For further assistance regarding claims and for more information about edd customer service, Californians are urged to visit eddcaller.com. The website is a dedicated resource designed to provide necessary contact details, assistance, and guidelines for individuals seeking to get in touch with the EDD. The goal is to ensure that those rightfully entitled to receive help find it as smooth as possible to make their claims.