'Hundreds of Millions of Dollars' Lost in Washington to Unemployment Fraud
Washington state officials have acknowledged the loss of "hundreds of millions of dollars" to an international fraud scheme that hammered the state's unemployment insurance system and could mean even longer delays for thousands of jobless workers still waiting for legitimate benefits.
Suzi LeVine, commissioner of the state Employment Security Department (ESD), disclosed the staggering losses during a news conference Thursday afternoon. LeVine declined to specify how much money was stolen during the scam, which is believed to be orchestrated from Nigeria. But she conceded that the amount was "orders of magnitude above" the $1.6 million that the ESD reported losing to fraudsters in April.
LeVine said state and law enforcement officials were working to recover as much of the money as possible, though she declined to say how much had been returned so far. She also said the ESD had taken "a number of steps" to prevent new fraudulent claims from being filed or paid but would not specify the steps, to avoid alerting criminals.
"We do have definitive proof that the countermeasures we have put in place are working," LeVine said. "We have successfully prevented hundreds of millions of additional dollars from going out to these criminals and prevented thousands of fraudulent claims from being filed."
Thursday's disclosure, which came after state officials had largely refused to discuss the scale of the fraud, helped explain the unusual surge in the number of new jobless claims filed last week in Washington. For the week ending May 16, the ESD received 138,733 initial claims for unemployment insurance, a 26.8% increase over the prior week and one of the biggest weekly surges since the coronavirus crisis began.
That sharp increase came as the number of initial jobless claims nationwide fell 9.2%, to 2.4 million, according to data released earlier in the day by the Labor Department.
Indeed, the surge in claims made Washington the state with the highest percentage of its civilian labor force filing unemployment claims -- at 30.8%, according to an analysis by the Tax Foundation, a nonpartisan Washington, D.C., think tank. Nevada, the next-highest state, reported claims from 24.5% of its civilian workforce.
Thursday's disclosures also raised new questions about what, if anything, the ESD could have done to detect and prevent the fraudulent activity.
Last week, the U.S. Secret Service issued an alert warning that Washington was the "primary state targeted" by a "well-organized Nigerian fraud ring exploiting the COVID-19 crisis to commit large-scale fraud against state unemployment insurance programs." The alert, which said there was "also evidence of attacks in North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida," noted "potential losses in the hundreds of millions of dollars."
Among the criminal groups implicated in the fraud is a Nigerian organization known as Scattered Canary, according to a report released this week by Agari, a California-based cybersecurity firm that has tracked the African organization's activities. The group has been running scams for more than a decade, working to steal Social Security payments, student aid and disaster relief funds, among other targets, the report said.
The group likely used personal information about Washingtonians from previous consumer-data breaches to slam Washington's unemployment system with phony claims, which were paid out along with hundreds of thousands of legitimate ones.
"These crime rings are indiscriminate and very quick to jump on an opportunity," said Armen Najarian, chief identity officer for Agari, in an interview.
"It is clear this is not just a Washington state problem," said a statement from Gov. Jay Inslee's office Thursday. "This is a national and international criminal conspiracy. We were among the first states hit by these fraudsters but we will not be the last."
ESD officials have argued that fraudsters targeted Washington because it was among the first states to begin paying new benefits available under the $2.2 trillion federal stimulus bill. The legislation not only boosted benefits available under existing state unemployment insurance systems, including an extra $600 per week; it also gave state officials less time to verify new claims for those benefits.
ESD officials have acknowledged that, because of the elimination of the so-called waiting week between the time a claim is filed and the time the benefit is paid, the agency wasn't always able to get verification from employers about a claim before payment was made.
Furthermore, because federal benefits were technically available beginning in March, several weeks before Washington was able to upgrade its processing system to be able to pay them, many claimants had retroactive claims for multiple weeks waiting to be paid in the ESD's system. Those retroactive payments went out all at once, which added to the volume of the fraud.
At the federal level, the fraud is being investigated by the inspectors general of the Social Security Administration and the Department of Labor; the Secret Service; the FBI; and the U.S. attorney's office in Seattle, which is coordinating the effort.
In a statement Thursday, U.S. Attorney Brian Moran said federal officials worked with a "diligent financial institution" to "prevent $120 million from being distributed to criminals, and were "assisting in recovering millions of additional dollars, with assistance from scores of other banks and credit unions."
Thursday's disclosures come as Washington was struggling to process an unprecedented wave of legitimate jobless claims amid one of the worst economic crises in U.S. history. On Wednesday, the state's monthly employment report for April showed Washington with a seasonally adjusted unemployment rate of 15.4%, up from 5.1% in March. The national unemployment rate for April stood at 14.7%, seasonally adjusted.
The massive number of new claims had already led to delays in benefits being paid to tens of thousands of workers, who have periodically overwhelmed the ESD's telephone lines and website with inquiries.
On Thursday, LeVine acknowledged that, because of the fraud, some additional delays in benefit payments to legitimate claimants are likely as the ESD subjects all claims to more scrutiny.
"This makes me the most angry, and the most upset -- that we need to delay payments to Washingtonians who need the benefits," LeVine said. "But we need to also build in more time for analysis. So going forward, we want to set expectations that we will add an additional one to two days to our processing time."
That delay, which follows a decision last Thursday to temporarily suspend benefit payments for two days, will mean more hardship for people like Thomas Segers of Seattle. The 61-year-old independent contractor, who provided packaging services to retailers, began receiving preliminary unemployment benefits in April, pending verification that he had lost his job.
Segers said he submitted the necessary paperwork by mail in time for the deadline to prove his employment status. However, he was notified this week that his submission was not processed on time, so his claim was denied. Now, he's trying to figure out how to appeal that decision, but can't reach anyone at the state for guidance.
He called the ESD more than 225 times on Thursday morning alone, but never got through.
"I'm sure I'm speaking for a lot of people who have questions, that it's frustrating that nobody is answering," Segers said. "They're inaccessible at the one time, in my viewpoint, they most need to be accessible."
‘I hope to be back at my desk soon’ — Abba Kyari’s last statement to the world
Six days after he went on self-isolation following the confirmation of his COVID-19 status, Abba Kyari, former chief of staff to President Muhammadu Buhari, issued a statement on his health.
There had been rumours about his health condition, with some even saying the president’s right hand had been flown abroad in an emergency.
Some also said he had died but in a statement he personally signed, the deceased said he was looking forward to resuming at his desk.
He had said he was feeling well but would move to Lagos where he had made his own arrangement.
Below is the full statement which he personally signed:
I am writing to let you know that on medical advice, I will transfer to Lagos later today for additional tests and observation. This is a precautionary measure: I feel well, but last week, I tested positive for coronavirus, the pandemic that is sweeping the world. I have followed all the protocols government has announced to self-isolate and quarantine.
I have made my own care arrangements to avoid further burdening the public health system, which faces so many pressures. Like many others that will test also positive, I have not experienced high fever or other symptoms associated with this new virus and have been working from home. I hope to be back at my desk very soon. I have a team of young, professional, knowledgeable and patriotic colleagues, whose dedication has been beyond the call of duty, who continue to work seven days a week, with no time of the day spared. We will continue to serve the President and people of Nigeria, as we have for the past five years.
I want to thank all our fantastic, talented and brave healthcare professionals, working across the country in such a difficult time; all the good Samaritans looking out for the most vulnerable in our communities; the key workers that will keep our country going through this; friends and family and often strangers, who have sent me such warm wishes and displayed such a generosity of spirit.
We should be calm, measured and diligent – be meticulous in your hygiene, especially with cleaning hands, if possible stay at home or keep your distance. Listen to good advice from the proper authorities: pay no heed to quack cures or fake news from social media. President Buhari will do whatever it takes to protect the health and safety of our people and get the country back on its feet as soon as possible.
Like the whole world, we are dealing with a new disease. Our experts are learning more all the time about coronavirus, what it does and how we can combat it. What we do know is that while some may become very sick, many others who contract the virus will not, and may have no symptoms at all. This is a disease that recognises no difference between north and south, men or women, rich or poor. We are all in this together.
Sincerely
Abba Kyari Chief of Staff to President Muhammadu Buhari
So in Nigeria hospitals can be as neat and beautiful as this one, you see we are the people deceiving ourselves just because of Coronavirus they are now bringing money and putting better structures. Covid-19 is a blessing in disguise
But this could have been averted if they were responsive leaders, common suspend foriegn travel they were coming in and moving to affected countries now they are building up isolation centers for see urchins, Rubbish mofos.
Christian preacher, motivational speaker, author and businessman and founder of Christian non-denominational evangelical church known as the Enlightened Christian Gathering has stated that the pandemic virus killing thousands of people around globe is a demonic thing and is targeted to some people.
Prophet Bushiri stated this while preaching to his congregants of Sunday.
They said that they can handle it now it has come with full blown one let's test the ground and see how it will shake the dwellers. Nigeria say hi to coronavirus as it lands in your country
Instead of closing boards and restricting travellers from the affected areas they rather talking bullshits, now let's sit down and watch the game as it unfolds
Ghanaian dancehall artiste, Shatta Wale have declared himself a Nigerian. Shatta Wale Stated this in a series of tweets.
Read Below:-
Congrats to all my naija brothers and celebs on their Adonko deal ..Infact Adonko pls come and sign me cuz am also a nigerian ,my name is shatta Ike chwuku wale ..Thank you
There is now a mass arrest in China over the people that were caught without wearing masks
The detainees are chained and paraded like slaves, this is really inhuman treatment why would the government of China choose to treat their people like this.
Although the death toll from a new coronavirus epidemic in mainland China surged past 1,500 on Saturday, as France reported the first death outside of the Asia-Pacific region.
Chinese Foreign Minister Wang Yi acknowledged that the virus, known as COVID-19, was a significant challenge but defended Beijing's management of the epidemic and lashed out at the "overreaction" of some countries.
The footage below describes what Nigerians in South Africa has turned their lifes into, the guy in the video out of rage stoned his fellow brother to death in South African street while the police and the crowed were busy watching the scene.
Although the actual cause of the the fight was not reveled but the crowed where trying to separate the two contenders apart until the victim felled on the ground after the attacker hit him with a brick stone.
According to a social media user who posted this said that South Africans bring nothing but unruly behaviors and crime into the country.
"If South Africans defend their country the "X" word will be used to silence them, They bring nothing but unruly behaviors and crime into this country, Some of our laws really need to be amended, There's too much freedom in this country for these foreigners!" she said.
Twitter is currently on fire as South Africans woke up this morning to mock, Africa Giant Burna Boy to failing to bag the 2020 Grammy award for Best World Music Album.
Burna Boy lost the Grammy to Beninese singer-songwriter Angelique Kidjo. Angelique Kidjo had dedicated her 2020 grammy award to Burna Boy stating he the next artiste to world will look up to.
South Africans who were happy about that via twitter celebrated and mock the Nigerian star with the trending hashtag #AKAwinanga which mead he did not win.
For those who do not know why Mzansi is celebrating, Burna Boy denounced South Africa during last year’s xenophobic attacks on Nigerian owned businesses.
He also called out AKA and threatened to beat him up next time they meet. This resulted in a Burna Boy vs AKA and Nigeria vs South Africa Twitter war.
All eyes glued on Burna Boy at the just concluded 2020 Grammy Awards but Burna Boy failed to come out victoriously as African music legend, Angelique Kidjo was declared the winner of the Best World Music Album at the 62nd Grammy Awards, a category where Burna Boy was also nominated.
The award which took place on the 26th of January, 2020 was Burna Boy’s first Grammy nomination and Nigerians and his fans all around the world were looking forward witnessing history with the African Giant as the winner.
In her words during her acceptance speech of her 4th Grammy Award she said..
Four years ago on this stage, I was telling you that the new generation of artistes coming from Africa are gonna take you by storm and this is for Burna Boy. Burna Boy is among the young artistes from Africa that is changing the way our continent is perceived and the way African music has been the bedrock of every music.
Crime › Re: Lady Stabs Her Boyfriend To Death In Lagos Over Cheating (Graphic Photos) by Tiwaz2: 9:10pm On Aug 02, 2020
