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As Unemployment Claims Rise, CA Officials Report Inmates Collected Millions in Benefits

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11 months ago

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  • Unemployment numbers spiked for the second week in a row, marking the highest amount of new claims made since early October with 778,000 people filing. Over 20 million Americans are still collecting some kind of joblessness aid.
  • Experts say this will only get worse as COVID cases continue to rise and states impose more restrictions. However, unlike during the spring shutdowns, struggling Americans and small businesses will likely not have any help from the federal government.
  • Meanwhile, law enforcement officials in California reported that tens of thousands of inmates received upwards of $1 billion in unemployment benefits as part of a scam that officials described as “the most significant fraud on taxpayer funds in California history.”

Unemployment Numbers Spike

Another 778,000 Americans filed for unemployment this week, the Department of Labor reported Wednesday, marking the highest spike since early October and the second week in a row that new claims have risen.

According to experts, this data signals that the massive coronavirus spikes the U.S. has seen in recent weeks are slowing the economy once again. On Wednesday, the country reported a record 2 million new cases in the same two weeks that joblessness claims also went up, bringing the official case count to more than 12.6 million Americans infected and over 260,000 dead.

As the COVID-19 spikes continue, and with more state and local governments imposing new restrictions on public gatherings, limiting hours and operations for restaurants and bars, and temporarily closing down some businesses entirely, economists say this situation will get worse before it gets better.

Unlike the first wave of shutdowns this past spring, it seems almost certain that struggling Americans will have to weather these latest closures without any help from the government.

Already, many of the programs that gave trillions of dollars to unemployed Americans and small businesses under the CARES Act have expired, and most of the few remaining programs will run out soon.

That is especially concerning when it comes to unemployment benefits. According to a recent report from the progressive think tank The Century Foundation, unless Congress and the White House sign off on a deal to extend key programs, roughly 12 million Americans will lose these benefits entirely the day after Christmas.

But after months of deadlock, any hopes for a new stimulus package petered out when the election came around. Democratic leadership is reportedly attempting to restart those talks, and Senate Majority Leader Mitch McConnell (R-Ky.) has said he wants to approve some kind of bill before the end of the year. 

However, it remains unclear how all the problems that had deadlocked the lawmakers for months during the earlier negotiations will be resolved in time.

Inmate Unemployment Fraud

Meanwhile, states are still continuing to struggle with distributing unemployment benefits to jobless Americans.

On Tuesday, a task force lead by nine district attorneys across the state of California reported in a letter to Gov. Gavin Newsom (D) that tens of thousands of prison and jail inmates — including more than 100 people on death row — have collected hundreds of millions of dollars in unemployment benefits as part of a scam that the officials say “appears to be the most significant fraud on taxpayer funds in California history,”

According to the task force, between March and August, inmates housed in every single California prison and in jails throughout the state filed 35,000 claims totaling at least $140 million in benefits, though the alleged crimes could total as much as $1 billion.

In most cases, officials said that the payments were given out in the form of prepaid debit cards sent to friends or family on the outside who would then later deposit the proceeds to inmate accounts.

In some cases, the joblessness benefits were sent directly to the jails and prisons. Sometimes the inmates used their real names, but other times, they used fake names and fake Social Security numbers.

In fact, prosecutors were tipped off to some of the cases by listening to inmates recorded phone calls, where they bragged about how easy it was the game the system.

As far as how such widespread fraud could happen, law enforcement officials blamed California’s Employment Development Department, which has been swamped with processing more than 16.4 million unemployment claims since March, resulting in a massive backlog of unfilled claims that, according to reports, has totaled upwards of more than 1.6 million people at times.

However, the task force also said that part of the problem was due to the fact that unlike at least 35 other states, California does not have the technology to crosscheck inmate rosters against unemployment claims.

Looking Forward

In their letter, the officials called on Newsom to crack down on the rampant fraud and provide “significant resources” to do so. 

Newsom, for his part, responded in a statement by calling the fraud “absolutely unacceptable,” and ordering the Office of Emergency Services to create a task force to help the prosecutors with their investigation.

However, as The New York Times pointed out, Newsom had already formed a “strike team” a few months ago to help the state’s employment department speed up claims and address other issues, including fraud at correctional facilities.

The district attorneys were still forced to form their own task force with the California Department of Corrections and Rehabilitation after the reports of fraud in the employment department continued and the “strike team” failed to uncover the large amounts of fraud the other groups had seen.

Currently, it is unclear how Newsom’s new task force is different from the largely unsuccessful “strike team.” 

California, of course, is not the only state having these issues with unemployment insurance fraud. There have also been similar reports of fraud in Massachusetts, Illinois, Kansas, and other states.

These problems also go beyond unemployment. There have been frequent reports of CARES Act funding being misused, including by people using small business loans to buy luxury cars, as well as large companies or businesses connected to President Donald Trump Trump and members of Congress improperly receiving funding.

As Congress considers another much-needed stimulus package, these issues of transparency and accountability have now become paramount. 

See what others are saying: (The New York Times) (NBC News) (USA Today) 

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Katie Couric Says She Edited Ruth Bader Ginsburg Quote About Athletes Kneeling During National Anthem

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2 days ago

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October 14, 2021

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Couric said she omitted part of a 2016 interview in order to “protect” the justice.

Kate Couric Edited Quote From Justice Ginsburg

In her upcoming book, journalist Katie Couric admitted to editing a quote from Supreme Court Justice Ruth Bader Ginsberg in 2016 in order to “protect” Ginsberg from potential criticism. 

Couric interviewed the late justice for an article in Yahoo News. During their discussion, she asked Ginsburg about her thoughts on athletes like Colin Kaepernick kneeling for the national anthem to protest racial inequality.

“I think it’s really dumb of them,” Ginsburg is quoted saying in the piece. “Would I arrest them for doing it? No. I think it’s dumb and disrespectful. I would have the same answer if you asked me about flag burning. I think it’s a terrible thing to do, but I wouldn’t lock a person up for doing it. I would point out how ridiculous it seems to me to do such an act.”

According to The Daily Mail and The New York Post, which obtained advance copies of Couric’s book “Going There,” there was more to Ginsburg’s response. Couric wrote that she omitted a portion where Ginsburg said the form of protest showed a “contempt for a government that has made it possible for their parents and grandparents to live a decent life…Which they probably could not have lived in the places they came from.“

Couric Says She Lost Sleep Making Choice

“As they became older they realize that this was youthful folly,” Ginsberg reportedly continued. “And that’s why education is important.“

According to The Daily Mail, Couric wrote that the Supreme Court’s head of public affairs sent an email asking to remove comments about kneeling because Ginsburg had misspoken. Couric reportedly added that she felt a need to “protect” the justice, thinking she may not have understood the question. Couric reached out to her friend, New York Times reporter David Brooks, regarding the matter and he allegedly likewise believed she may have been confused by the subject. 

Couric also wrote that she was a “big RBG fan” and felt her comments were “unworthy of a crusader for equality.” Because she knew the remarks could land Ginsburg in hot water, she said she “lost a lot of sleep” and felt “conflicted” about whether or not to edit them out. 

Couric was trending on Twitter Wednesday and Thursday as people questioned the ethics behind her choice to ultimately cut part of the quote. Some thought the move showed a lack of journalistic integrity while others thought revealing the story now harmed Ginsburg’s legacy.

See what others are saying: (New York Post) (The Daily Mail) (Insider)

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Biden Administration Orders ICE To Halt Workplace Raids

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3 days ago

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October 13, 2021

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The Department of Homeland Security will now focus on targeting employers who exploit undocumented workers, instead of carrying out raids that dissuade those workers from reporting labor violations.

DHS Reverses Worksite Raid Policy

The Biden administration announced Tuesday that it was ordering Immigration and Customs Enforcement (ICE) to stop workplace raids.

The move marks a reversal from Trump administration policies that have been strongly criticized by immigration activists who argue the efforts created fear in immigrant communities and dissuaded them from reporting labor violations or exploitative employment practices.

In addition to stopping the raids, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas said in a memo that the administration will refocus enforcement efforts to instead target “employers who exploit unauthorized workers, conduct illegal activities or impose unsafe working conditions.” 

Mayorkas added that the immigration agencies housed in DHS will have the next 60 days to identify harmful existing policies and come up with new ones that provide better deportation protections for workers who report their employers.

In the Tuesday memo, the secretary argued that shift of focus will “reduce the demand for illegal employment by delivering more severe consequences to exploitative employers” and “increase the willingness of workers to report violations of law by exploitative employers and cooperate in employment and labor standards investigation.”

Labor Market Implications

The new policy comes at a time when the U.S. is experiencing a critical labor shortage, including in many sectors that rely on immigrant labor.

Some companies that use undocumented workers pay them wages that are far below the market rate, which is not only exploitative but also undercuts competitors.

According to Mayorkas, the pivot to employer-based enforcement will help protect American businesses.

“By exploiting undocumented workers and paying them substandard wages, the unscrupulous employers create an unfair labor market,” he said in the memo. “They also unfairly drive down their costs and disadvantage their business competitors who abide by the law.”

It is currently unclear how effective the new efforts will be, but historical precedent does not paint an optimistic picture.

The Biden administration’s efforts closely mirror a similar move by the Obama administration, which attempted to reverse workplace raids authorized under President George W. Bush by targetting those who employ undocumented workers rather than the workers themselves.

That effort, however, still led to thousands of undocumented workers being fired.

See what others are saying: (The Washington Post) (The New York Times) (ABC News)

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Mom Charged for Hosting Secret Teen Parties, Pressuring Kids To Drink and Engage in Sex Acts

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3 days ago

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October 13, 2021

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Investigators said some of the sex acts between teens were non-consensual and at times took place while the mother stood by laughing.

Mother Hit With Dozens of Charges

A California mother is facing 39 criminal charges after hosting a series of illegal parties for her teenage son and his mostly 14- and 15-year-old friends that regularly led to dangerous accidents and sexual assaults.

The mother, 47-year-old Shannon O’Connor, also known as Shannon Bruga, is currently awaiting extradition to Santa Clara County. According to The Mercury News, she was arrested Saturday in Ada County, Idaho, where she has a home in addition to her property in Los Gatos that is currently on the market.

Her criminal charges include 12 felony counts and 10 misdemeanor counts of child endangerment, one count of misdemeanor sexual battery, three counts of misdemeanor child molestation, and 13 misdemeanor counts of providing alcohol to minors.

“It took a lot of brave children to come forward and to untangle this deeply disturbing case,” Santa Clara County District Attorney Jeff Rosen said in a press release regarding the case. “As a parent, I’m shocked. As the DA, I’m determined to hold those adults who endanger children fully accountable to the law and our community.”

What Happened During the Parties?

Investigators claim O’Connor organized the functions, attended by as many as 20 teens, via text message and Snapchat. She would then allegedly supply the teens with alcohol and push them to binge drink, often to the point of illness or unconsciousness.

The harm that resulted from their intoxication included one teen breaking a finger and another almost drowning in a hot tub, among other serious situations.

In another instance, O’Connor let an unlicensed drunk teen drive her car. Her son and another one of his friends then hung off the back while it was moving, which caused the friend to fall, hit his head, and become unconscious for 30 seconds. He was later diagnosed with a concussion after spending the night vomiting.

O’Connor is additionally accused of manipulating and encouraging drunk teens to participate in sex acts with one another, which were sometimes non-consensual or carried out while she watched. In some cases, she allegedly laughed while the sexual acts happened or when assault victims asked her why she didn’t step in to help.

Investigators added that O’Connor required teens who attended her parties to keep them a secret. She’s even accused of helping them sneak out of their homes so she could drive them to her events. Authorities said she was found to have bullied at least one teen who she suspected of breaking the secret.

“Everyone should feel relieved this woman’s not on the street,” the parents of one assault victim told The Mercury News. “She was grooming these kids, setting them up for sexual acts, and she’s a mother and doing this to her own child. … I’ve been racking my brain trying to think what was in it for her.“

See what others are saying: (The Mercury News) (ABC 7) (CBS San Francisco)

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