Labor department found $8.9 million in unemployment fraud last year

Labor department found $8.9 million in unemployment fraud last year

by
Idaho Freedom Foundation staff
February 26, 2010
Idaho Freedom Foundation staff
Author Image
February 26, 2010

The Idaho Department of Labor said it uncovered $8.9 million in unemployment fraud and benefit overpayments in 2009, which is an 82 percent jump from the previous year.  The department recovered $4.3 million of that money, according to a news release.  Those inappropriate activities include people and businesses filing false reports to the labor department.  Out-of-work Idahoans received a record $643 million in unemployment in 2009

That rise is linked to an increase in people receiving unemployment benefits, according to Michael Johnson, the compliance bureau chief for the department.  The number of people receiving unemployment rose 43 percent from 2008 to 2009.  "The longer some people are out of work, the more desperate they become and, unfortunately, the more likely they are to make mistakes or commit fraud," he said.  “Unemployment insurance fraud is a felony. My advice to those tempted to cheat the system is – don’t do it. The stakes are high and with all the technology at our disposal, the chances of getting caught are greater every day.”

Read a full news release at the Idaho Department of Labor website.

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