Unemployment Insurance Fraud Crackdown: 130 Convictions

CALIFORNIA NEWS

Unemployment Insurance Fraud Crackdown: 130 Convictions

On April 12, the California Employment Development Department and Office of Emergency Services reported 1,400 active investigations and 130 criminal convictions to investigate and prosecute criminals who defrauded federal emergency unemployment benefit programs in 2020.

EDD and Fraud Special Counsel McGregor W. Scott recently identified and referred to federal authorities 30 more major fraud cases involving $54 million in benefits – mainly associated with the federal Pandemic Unemployment Assistance program. These 30 investigations involved fraud schemes crossing state or international boundaries, as well as some within California.

“Fraudsters attacked California and every state in the country with unprecedented criminal activity in 2020,” said Scott. “These criminals defrauded taxpayers and stole benefits from workers in need. California responded aggressively with new anti-fraud measures that blocked billions of dollars in fraud attempts. We are now engaged in a monumental effort to uncover these complex fraud schemes and deliver investigations to law enforcement and prosecutors across California.”

From January 2021 to January 2022, the California Task Force on Pandemic Unemployment Assistance Fraud has led to at least 370 arrests, 130 convictions, and 1,400 active investigations.

These cases include a variety of fraud schemes ranging from international crime rings to domestic organized and individual criminal activity. Efforts continue to recover any remaining funds seized during these investigations, including funds held on frozen debit cards pending the investigation or prosecution.

EDD and Scott have also helped boost data sharing agreements with law enforcement partners to expedite investigations. Similarly, EDD established an information-sharing program that helps California agencies to access EDD data more quickly.

Fraud investigations are laborintensive criminal investigations because of the complexity of the schemes and the extensive efforts criminals undertake to conceal their activity.

In response, EDD created law enforcement investigative guides and offers technical assistance to law enforcement partners who are working these cases. EDD set up designated regional contacts for each division of the state and works with any agency that needs assistance with an unemployment insurance fraud case.

Law enforcement has arrested, convicted and imprisoned scores of individuals who defrauded the State—and continues to do so. Examples include: • A 37 month prison sentence in April 2021 in the Central District of California for a fraudster who obtained more than $500,000 in fraudulent unemployment benefits. • Sentencing in April 2021 following an investigation by the U.S. Department of Justice National Unemployment

Insurance Fraud Task Force conducted by US DOL, IRS, USPS, Murrieta PD, and EDD into a suspect who stole identities and obtained $500,000 in unemployment benefits. • Guilty pleas in a federal prosecution of two inmates in Chowchilla in April 2021 following a joint investigation by the FBI, CDCR, the US Attorney, and

EDD into $103,000 in fraud. • A guilty plea in federal court in April 2021 following an investigation by

U.S. Department of Labor, FBI, and

EDD into attempts to file 100 phony claims using stolen identities and 10 payments worth nearly $200,000. • Arrests in April 2021 by federal authorities following an investigation by

Department of Labor, FBI, U.S. Postal

Service, and EDD into 3 people who filed $345,000 in fraudulent benefit applications on behalf of inmates. • Arrests in Placer County in April 2021 in connection with a criminal organization that filed $4.5 million in fraudulent unemployment claims. • Indictments by a grand jury in

California in June 2021 following an investigation by the U.S. Department of Justice and EDD into three people who stole $1.4 million in unemployment benefits. • Two defendants convicted in July 2021 and imprisoned for 5 years for obtaining more than $74,000 in fraudulent unemployment benefits following an investigation by the FBI, the California Department of Corrections and Rehabilitation

Investigative Services Unit, and

EDD. • Guilty pleas in August 2021 in Los

Angeles following an investigation into 200 fraudulent benefit claims totaling $1.6 million. • Charges filed in August 2021 in Sacramento County against suspects linked to more than $500,000 in fraudulent claims. • Criminal sentences against three

Florida residents in November 2021

for fraudulently obtaining unemployment benefits in California. • Criminal sentencing in San Diego in December 2021 of a fraudster sentenced to two years in prison for unemployment benefit fraud. • Guilty pleas in San Diego County in

February 2022 following an investigation by the San Diego District

Attorney into a $1 million theft of unemployment insurance. • A five-year prison sentence in February 2022 following an investigation by the U.S. Attorney, U.S. Department of Labor, Homeland Security, U.S.

Postal Service, FBI, Social Security

Administration and EDD into $4.3 million in stolen unemployment insurance benefits. • Criminal charges filed in Sacramento in January 2022 following an investigation by EDD and the Sacramento

County District Attorney into multiple suspects stealing $2.75 million in unemployment insurance benefits. • Federal indictments in Sacramento in January 2022 following an investigation by EDD and federal authorities into a New Jersey resident who filed 78 fraudulent unemployment insurance claims in California. • A guilty plea in federal court in January 2022 following an investigation by the

U.S. Attorney and EDD into $132,000 in stolen unemployment insurance benefits. • Guilty pleas in San Diego County in

February 2022 following an investigation by the San Diego District

Attorney into a $1 million theft of unemployment insurance. • A five-year prison sentence in February 2022 following an investigation by the U.S. Attorney, U.S. Department of Labor, Homeland Security, U.S.

Postal Service, FBI, Social Security

Administration and EDD into $4.3 million in stolen unemployment insurance benefits. • Eight defendants indicted in Fresno in February 2022 following an investigation by the U.S. Attorney for the

Eastern District, FBI, U.S. Department of Labor, CDCR, and EDD into identity theft and mail fraud and $5 million in unemployment insurance fraud. • A defendant sentenced to 30 months in prison in February 2022 following an investigation by the U.S. Department of Justice into approximately $170,000 in stolen unemployment benefits. • Seventeen people charged in Bakersfield in March 2022 following an investigation by EDD, the Kern

County District Attorney and others into a $394,000 unemployment insurance fraud scheme. • Indictment in March 2022 in Las

Vegas following an investigation by the Department of Labor-Office of Inspector General, U.S. Attorney,

Department of Homeland Security-

Office of Inspector General, Federal

Bureau of Investigation, and EDD into $1.1 million in fraudulent claims.

While arrest, prosecution, and imprisonment remains a major avenue for holding fraudsters accountable, EDD will seek restitution through the judicial system whenever possible. Court-ordered restitution to EDD as a crime victim occurs after a criminal conviction. This can also include funds seized during a criminal investigation and held as evidence.

Other actions California has taken to strengthen its fraud-fighting include: • Stopping $125 billion in attempted fraud by deploying a new identity verification system, ID.me, in 2020 and partnering with Thomson Reuters to help detect and prevent UI and PUA fraud. • Setting up the 1099-G call center to help victims of identity theft deal with any tax related questions—work that answered 24,000 calls. Fraud can be reported by selecting Form 1099G in

Ask EDD or calling 1-866-401-2849. • No longer printing Social Security numbers on mailed documents to reduce the risk of identity theft. • Working with Bank of America to issue chip-enabled debit cards that enhance security and to strengthen fraud-prevention strategies. • Working with the California Office of

Emergency Services Fraud Task Force on over a thousand active investigations, arrests, and prosecutions across

California.

With identity theft remaining a pervasive threat nationwide and globally, EDD has continued to issue consumer scam alerts that warn about cell phone and email phishing schemes designed to steal personal information. Californians who receive suspicious cell phone or email phishing communications can report those scam attempts to the Federal Trade Commission (FTC). Phishing emails can be forwarded to the FTC’s Anti-Phishing Working Group at reportphishing@apwg. org and phishing text messages can be forwarded to the FTC at 7726. n •••

EDD posts information to help prevent fraud at https://edd.ca.gov/en/about_edd/fraud

CREATIVE ENCOUNTERS

April 15 through May 14 The Santa Cruz Art League presents Creative Encounters: Moze & Jaime Sánchez, featuring two emerging artists from Santa Cruz and Watsonville. This exhibition is core to the Art League’s commitment to support artists at all career levels and to highlight the work of local BIPOC creatives.

Originally from upstate New York, Moze has been in Santa Cruz for almost 2 years. Glass is central to his life, both in his day job in high tech and in his artistic practice.

His artwork invites viewers to look at glass beyond its functional qualities and explore its visual beauty and interaction with other media such as lighting. Moze is a co-founder of the Black Kings of Santa Cruz.

Artist and muralist Jaime Sánchez was born and raised in Watsonville. He served as a sergeant in the United States Marine Corps and received an undergraduate degree in visual and public art from CSU-Monterey Bay.

With an art practice of 22 years, his work can be seen in several murals in the Pajaro Valley region and online. His approach is exploratory and freestyle in method and his style is characterized as abstract free form: patterns, shapes, symmetry, contrast, color, balance, and sometimes violent rhythm.

RED CROSS UPDATE

The American Red Cross continues to experience a severe blood shortage and donors of all blood types — especially type O and those giving platelets — are urged. The Red Cross needs at least 1,000 blood donations daily for optimum patient care. Capitola

April 23: 9 a.m. - 2 p.m., Mid-County Senior Center, 829 Bay Avenue

Santa Cruz

April 20: 10 a.m. - 4 p.m., The Church of Jesus Christ of Latter-day Saints, 220 Elk Street

April 26: 10 a.m. - 4 p.m., The Church of Jesus Christ of Latter-day Saints, 220 Elk Street Watsonville

April 28: 9 a.m. - 2 p.m., Community Health Trust of Pajaro Valley, 85 Nielson Street

HOUSING FOR HEALTH PARTNERSHIP MEMBERS SOUGHT

The former Homeless Action Partnership, Santa Cruz County’s federally-designated continuum of care, has been renamed the Housing for Health Partnership — H4HP for short — and three of the 15 seats on the policy board are open to community members. One seat is reserved for someone with lived experience with homelessness.

The new name aligns with the Housing for Health Division, which works under Santa Cruz County’s Human Services Agency and serves as the lead partnership agency.

The Policy Board, responsible for high-level planning, decision-making and system oversight, delegates operational responsibilities to operational committees and working groups.

The 15 board members represent constituencies with significant experience or resources to address homelessness.

Partner members include UCSC Assistant Dean of Students Mariah Lyons, Central California Alliance for Health CEO Stephanie Sonnenshine, and Community Foundation of Santa Cruz CEO Susan True. To apply to be a member or learn more, visit www.housingforhealthpartnership.org.

SUPPORT FOR MOTHERS OF SURVIVORS

Survivors Healing Center is offering online women’s support

Have a virtual or live event you want to promote? Send your information to info@cyber-times.com by April 22

groups and mothers of survivors of childhood sexual abuse support group. The goals are to empower through a healing process and prevent sexual abuse of children and youth.

You are not alone. You are not to blame. More info: (831) 423-7601 or www.survivorshealingcenter.org

CAREER MONTH AT CABRILLO

In April, Cabrillo College will host virtual and in-person career fairs featuring local employers. Students from Cabrillo and job seekers from the general public are invited to attend. Each career fair is 90 minutes. Dates and times:

April 20: STEM 3:30-5 p.m. (Virtual)

April 28: Health & Public Service, 5:00-6:30 p.m. (Virtual) For questions, contact Courtney Cogan cocogan@cabrillo.edu or Desha Staley-Raatior destaley@cabrillo.edu.

UC MASTER GARDENERS SPRING PLANT SALE

April 18-May 1 The UC Master Gardeners of Monterey and Santa Cruz Counties are holding their annual Spring Plant Sale from April 18 through May 1. Place your order online mbmg.ucanr.edu and schedule a pick-up appointment at the greenhouse in Salinas.

Garden-ready summer vegetables include greens, lettuces, onions, peppers, squash and heirloom and hard-to-find varieties of tomatoes. The spring collection features several types of basils and culinary varieties of popular kitchen herbs for summer recipes and teas.

Drought-tolerant and water-wise plants, such as California natives and succulents, will be available in our online store, along with annual and perennial pollinator plants to add biodiversity and attract beneficial insects to your garden.

All funds benefit the all-volunteer UC Master Gardener program, which offers a gardening help line, events and seasonal classes designed to educate our local home gardening community with research-based, sustainable landscape practices.

UC MASTER GARDENERS CLASSES Container Gardening

Wednesday, April 27 – 5-6 p.m., Online Class

Home gardeners with small spaces, balconies or large yards can enjoy growing plants in a variety of vessels.

In this online class, UC Master Gardeners Sue Procter and Anastatia Foster will cover con-tainer types and sizes, potting soils and amendments, light and water requirements, pruning and integrated pest management techniques to support a thriving container garden. Free; donations accepted. To register, visit mbmg.ucanr.edu

Container Garden Basics & Beyond

Saturday, April 30, 10 a.m.-Noon, Watsonville Demonstration Garden

In this in-person class, UC Master Gardeners Sue Procter and Anastatia Foster explore container types and sizes, potting soils and amendments, light and water requirements, pruning and integrated pest management techniques to support a thriving container garden.

Whether you are growing food or ornamental plants, singular specimens, mass plantings or trees, this class will cover the keys to keep your potted plants flourishing.

This class also addresses plant size, color and texture combinations within a container planting.

Have you ever found a pot you would love to plant but could not because there was no drainage hole? A hole drilling demo will show thow easily a drainage hole can be added to almost any pot. Cost: $30. Class limit 30. Register at mbmg.ucanr.edu

CZU FIRE WORKSHOPS

Nonprofit United Policyholders is offering free workshops in April for people affected by the 2020 and 2021 California wildfires.

Survivor to Survivor Forums: Tues, April 19, 7 p.m. Connect with trained volunteers with experience navigating recovery after wildfire. Register: www.uphelp.org/events

Post-Wildfire Rebuild Financing: Wed., April 27, 4 p.m. This webinar will cover rebuild financing, loan and mortgage decisions, fund control/contractor payments and quality control best practices. Register: www.uphelp.org/apr27

BEYOND THE GRAVE

Friday and Saturday, April 22-23 6-7 p.m., Saturdays 1-2 p.m., Evergreen Cemetery, 261 Evergreen St., Santa Cruz The Santa Cruz Museum of Art & History announces its popular Beyond the Grave series, ticketed performances at the historic Evergreen Cemetery returns.

This year, the MAH teamed up with local concert producer Indexical to present Madi McGain, Mikhail Johnson, Departure Duo, Angel Dominguez, and Aja Bond, the same program on both weekends.

The artists were invited to create a new program that highlights the cemetery as a place of connection to the past, and a vibrant source of new life in the present.

McGain explores the idea of Evergreen Cemetery as a silent place, with minimal sonic accompaniment. Departure Duo will perform Evil’s Peak by composer Johnson, exploring the equalizing force of death in the context of the colonization of Jamaica and integration of church and state.

Dominguez, a Santa Cruz poet of Mayan descent, reads from their new book Desgraciado, in which they communicate through letters with a Spanish conquistador who tried to eradicate the Yucatan language — while building a memorial/monument to their grandfather out of stone. Bond closes with a meditation on dirt, decomposition, and ways in which the bodies of the living return to the earth to nourish new life.

If weather is inclement, performances will be rescheduled to Sunday April 17 or 24; ticket holders will be contacted. Tickets are: General, $20, MAH member, $12, at www. santacruzmah.org/btg

ARTICHOKE FESTIVAL RETURNS

Artichoke Festival 2022 has announced a star-studded lineup of talented chefs for its popular Chef Demo series at the 62nd annual festival Saturday and Sunday, June 11 (10 a.m.–6 p.m.) and 12 (10 a.m.–5 p.m.) at the Monterey County Fair & Event Center in Monterey. This year’s theme is “The Heart of the Harvest.”

Confirmed demo chefs: Sascha Lyon (executive chef, Montrio in Monterey), Kevin Fisher (executive sous chef, Sea Root at The Hyatt Regency Monterey Hotel & Spa); Luis Osorio (executive chef, Rio Grill in Carmel; Ivan Guadarrama (culinary team at Tarpy’s in Monterey); Tony Baker (proprietor Baker’s Bacon) and Hondo Hernandez (Showoff California Craft BBQ, Salinas).

Judy Burditt, manager of the California Artichoke Advisory Board, and Pat Hopper, who previously served in that role, will host the “Judy & Pat Show” at 10:30 a.m. Sunday on the ABCs of artichokes. Here’s the demo schedule so far:

Saturday, June 11: 10:30 a.m., chef Hondo Hernandez, Showoff California Craft BBQ, Salinas; noon , chef Kevin Fisher, Sea Root, Hyatt Regency Monterey Hotel & Spa; 1:30 p.m., chef Ivan Guadarrama, Tarpy’s, Monterey; 3 p.m., chef Luis Osorio, Rio Grill, Carmel.

Sunday, June 12: 10:30 a.m. — Judy & Pat Show, Artichoke ABCs; noon — chef Tony Baker, Baker’s Bacon, Marina; 1:30 p.m., chef Sascha Lyon, Montrio, Monterey.

Tickets are on sale through 4 p.m. June 12 at www. artichokefestival.org/tickets. Tickets cost $15 general admission; $10 for seniors and military (senior 62-plus or military personnel with ID); $5 for children 6-12; and $30 for an early bird family pack good for two adults and two children for one day. A processing fee will be added. Refunds are not available.

By purchasing a ticket, the guest acknowledges they are responsible for their own health and safety. All guests will be required to comply with current CDC, California Department of Public Health and Monterey County public health guidelines regarding COVID-19 vaccination, preentry negative tests, and social distancing. Clear bag policy will be in place, with clear bags available for sale on the website store or at admissions gates.

SATURDAY SHAKESPEARE

The Saturday Shakespeare Club begins its five-week spring examination with one of the playwright’s so-called problem plays, “All’s Well That Ends Well,” on April 23. All sessions will start at 10 a.m. via Zoom.

The first hour regularly features a speaker, followed in the second hour by a reading of a portion of the play aloud by selected group members. Each of the four lecture sessions covers a little over one act each of the five-act play.

The first speaker, as is tradition, will be Michael Warren, UC Santa Cruz emeritus professor and dramaturg for Santa Cruz Shakespeare, sharing his extensive insights.

April 30: Mike Ryan, artistic director of Santa Cruz Shakespeare. His knowledge about staging and acting in the plays adds another valuable perspective to inform the group.

May 7: UCLA Professor of Literature Claire McEachen, who has written several books on Shakespeare, including “The Cambridge Companion to Shakespeare.”

May 14: Christian Schofield, an English instructor in England, will offer in a You Tube lecture that explores the role of Helena in the play. He provides what he calls “powerful and fun video resources on Shakespeare’s greatest plays.”

May 21: DVD screening of the play, not yet selected.

The Saturday Shakespeare Club welcomes new members, and those wishing to view the Zoom sessions must do so via the Club’s mailing list by going to the website: saturdayshakespeare@gmail.com.

All sessions are free but a voluntary donation of at least $2 a session is suggested to be sent in support of Santa Cruz Shakespeare, 501 Upper Park Road, Santa Cruz, or go to its website and donate by credit card at: https://www.santacruzshakespeare.org/donate/. Those who send a check should indicate the gift is on behalf of the Saturday Shakespeare Club.