The information in this audit report is amazing. Five years ago, Auditor General Eugene DiPasquale raised a red flag after his team reviewed a Department of Labor and Industry investigation and found that, within four years, the administration had received $178 million in funding to update its computer system for unemployment compensation. But this did not happen. The truth is, we don’t know how they spent the money. The system was on the brink of collapse today, DePasquale stands by his office’s findings and says something should have been done ages ago. Look, let’s be clear about this. What we found was 20 years in the making. So the fact that this process only really only started in 2018, it should be as indicated by our audit that started years ago. But even after checking, the system has not changed. The unfortunate thing is that nobody disagrees with our findings. But then they started pointing fingers at each other. DePasquale believes both sides of the aisle should have taken his warning more seriously. Covid and the disaster that happened. Certainly no one could have predicted that. But the idea that we would never have a downturn was unrealistic. While DePasquale now works in the private sector, he believes his audit recommendations still apply periodically. There should always be a systems check. He is happy to see that the new system is finally in place and any new system will have pitfalls. I mean that’s what you learn, just but you should have started earlier that’s the problem. Now, at the time of the review, the computer system for unemployment compensation was 40 years old in 2006. The state hired IBM to update that system, but court records showed that the state paid IBM $170 million in 2013. At that point, The project was four years behind schedule and $60 million over budget. A Carnegie Mellon study showed that little or no work was done. It was even usable. then. In 2013, lawmakers passed Law 34 in an effort to fund and move improvements forward. In 2016, that flow of funding ceased. Call centers were closed and 400 workers and industry employees lost their jobs while they were hoping to reopen those centers, and most of them remained closed.
Pennsylvania postal workers ordered to repay pandemic unemployment assistance benefits ‘fraudulently obtained’
Updated: 6:49 AM EST Jan 9, 2023
Two Pennsylvania postal workers will have to repay pandemic unemployment aid payments that were obtained fraudulently, according to the US Attorney’s Office for the Eastern District of Pennsylvania. Jacqueline Romero announced that the workers would have to pay back hundreds of thousands of dollars. Jair Chance, 27, of Philadelphia, accepted a consent order in the amount of $100,399. Robert Day, 42, of Center Valley, Lehigh County, accepted a consent judgment in the amount of $110,610. Officials said the reimbursement would resolve allegations that the two violated the False Claims Act by improperly seeking pandemic unemployment assistance. He and Day made materially false and fraudulent statements to the Pennsylvania Department of Labor and Industry for PUA benefits, which are intended for individuals who do not qualify for regular unemployment compensation or extended unemployment benefits. The United States Attorney’s Office said that for most or all of the time they were receiving PUA benefits.” Multiple agencies were involved in the investigations.” There is no excuse for any individual who fraudulently obtains funds intended to help victims of the COVID-19 pandemic,” Romero said in the release. “The alleged fraud in this case is particularly egregious because it was committed by a federal employee. The United States Attorney’s Office stands ready to investigate and bring to justice anyone who abuses emergency assistance in this way.” Last year, WGAL investigated Pennsylvania’s unemployment system, problems with fraud, and other persistent problems. We aired a half-hour special showing what We found it. You can see it here.
Two Pennsylvania postal workers will have to repay pandemic unemployment aid payments that were obtained fraudulently, according to the US Attorney’s Office for the Eastern District of Pennsylvania.
Video linked above: Millions Wasted, Warning Signs Missed – Pennsylvania’s Troubled Unemployment System.
Last week, US Attorney General Jacqueline Romero announced that the workers would have to pay back hundreds of thousands of dollars.
- Jair Chance, 27, of Philadelphia, accepted a consent order in the amount of $100,399.
- Robert Day, 42, of Center Valley, Lehigh County, accepted a consent order in the amount of $110,610.
Officials said the reimbursement would resolve allegations that the two violated the False Claims Act by improperly seeking pandemic unemployment assistance.
The United States alleges that Chance and Day provided materially false and fraudulent statements to the Pennsylvania Department of Labor and Industry for PUA benefits, which are intended for individuals who do not qualify for regular unemployment compensation or extended unemployment benefits. In fact, both were fully operational. time for the United States Postal Service for most or all of the time they were receiving PUA benefits.”
Multiple agencies were involved in the investigations.
“There is no excuse for any individual who fraudulently obtains funds intended to help victims of the COVID-19 pandemic,” Romero said in the statement. “The alleged fraud in this case is particularly egregious because it was committed by a federal employee. The United States Attorney’s Office stands ready to investigate and bring to justice anyone who abuses emergency assistance in this way.”
Last year, WGAL investigated Pennsylvania’s unemployment system, fraud problems and other ongoing issues. We’ve aired a half-hour special showing what we’ve found. You can watch that here.