A former EDD employee from Southern California, was sentenced to more than 5 years in federal prison for obtaining nearly $4.3 million dollars in fraudulent COVID-19 related unemployment relief claims.
Unemployment departments in all 50 states are asking Congress not to make workers pay back benefits they received by mistake during the pandemic.
"Llerenas charged the named claimants a fee for filling the applications, which was often paid out of the fraudulently obtained benefits. In at least one case," said DOJ."She told the named claimant that she was still employed at EDD and could control the distribution of the unemployment insurance benefits, and then demanded an additional payment for 'releasing' the benefits.
As a result of the fraudulent applications, EDD authorized Bank of America to mail debit cards at the different addresses Llerenas provided, which included addresses to her own home, her husband's workplace, mother's apartment, friends, and other family members.