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California inmate charged with unemployment benefits fraud

California inmate charged with unemployment benefits fraud
[CLOSED CAPTIONING SPONSORED BY SLEEP TRAIN MATTRESS CENTERS, YOUR TICKET TO A BETTER NIGHT’S SLEEP!] DEIRDRE: GOOD MORNING. IT’S WEDNESDAY, MARCH 3RD. I’M DEIRDRE FITZPATRICK. TEO: AND I’M TEO TORRES. HERE’S A LOOK AT OUR BIG STORIES TODAY. DEIRDRE: EL DORADO COUNTY OFFICIALLY MOVES TO THE RED SUBSTANTIAL RISK TIER TODAY. THAT MEANS MORE BUSINESSES WILL BE ALLOWED TO REOPEN. THE COUNTY IS ONE OF SEVEN THAT MOVED FROM THE PURPLE TO THE RED TIER YESTERDAY. NAPA AND SAN FRANCISCO COUNTIES ALSO MOVED. STARTING TODAY, RESTAURANTS CAN OPEN FOR INDOOR DINING AT 25% CAPACITY. MOVIE THEATERS CAN ALSO REOPEN AT 25% CAPACITY. GYMS CAN OPEN INDOORS AT 10% CAPACITY. AND MALLS AND RETAILERS CAN INCREASE CAPACITY TO 50%. TEO: THE WILTON RANCHERIA TRIBE WILL BREAK GROUND ON A NEW CASINO RESORT IN ELK GROVE NEXT WEEK. OFFICIALS ANNOUNCED YESTERDAY THAT CONSTRUCTION WILL BEGIN SHORTLY AFTER TUESDAY’S CEREMONY. THE RESORT WILL TAKE THE PLACE OF THE CITY’S ABANDONED GHOST MALL SITE. IT IS SET TO OPEN IN THE SECOND HALF OF 2022. NOW LET’S GO TO KCRA 3 METEOROLOGIST MELANIE HUNTER FOR A LOOK AT OUR FORECAST. MELANIE: THERE HAS BEEN A CLOUD COVER OVERNIGHT IN PLACES LIKE MODESTO KEEPING TEMPERATURES IN THE UPPER 40’S, BUT OTHER SPOTS ARE DROPPING UPPER 30’S THROUGH FAIRFIELD, 50’S THROUGH THE FOOTHILLS, AND 20’S THROUGH THE SIERRA. WE ARE OFF TO ANOTHER CHILLY START, BUT IT WILL BE BEAUTIFUL THIS MORNING WITH A MIXTURE OF SUNSHINE AND CLOUDS. WARMING UP TO THE MID TO UPPER 60’S BY NOON WITH LIGHT WIND. WE WILL WARM UP TO THE UPPER 60’S, LOW 70’S THE DAYTIME HIGHS BEFORE COOLING OFF. TEO: THANK YOU SO MUCH
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California inmate charged with unemployment benefits fraud
A California prisoner is one of two people accused of stealing more than $100,000 in unemployment benefits in the latest allegation related to what authorities say is a multibillion-dollar fraud aided by lax safeguards at a state agency.Alana Powers, 45, an inmate at the Central California Women’s Facility in Chowchilla, was indicted by a federal grand jury last week, along with 51-year-old Jason Vertz of Fresno, federal prosecutors said Wednesday.The indictment was unsealed, and Vertz was arraigned on Tuesday after his arrest, prosecutors said. They said neither has yet listed a defense attorney.Officials say the state has paid at least $11 billion in benefits to people whose identities it has been unable to verify, which they say is likely fraud. Of that, $810 million was tied to ineligible prisoners.The pair is charged with submitting several fraudulent unemployment insurance claims to the state Employment Development Department through a program intended to help people hit hardest by the coronavirus pandemic and economic shutdowns.They applied in the name of Powers and other inmates at the women's prison. Recorded prison telephone calls and emails show she and other inmates gave Vertz names, dates of birth and Social Security numbers of inmates that he used to submit the fake claims, prosecutors said.The applications said that the inmates had worked as maids, cleaners, welders and at other jobs and that they were available to work, “which was not true because they were incarcerated,” prosecutors said.The claims cost the state Employment Development Department and U.S. government more than $103,000, prosecutors said.The benefits were loaded onto debit cards that the state agency mailed to the addresses the pair had provided.Each faces one count of conspiracy to commit mail fraud and two counts of aggravated identity theft, charges that carry a maximum penalty of 20 years in federal prison.The state employment and corrections departments helped the FBI in the investigation, prosecutors said.Two scathing state audits earlier this year documented the employment agency's multiple mistakes that allowed the fraud even as it remains slow to respond to the massive number of claims during the pandemic.

A California prisoner is one of two people accused of stealing more than $100,000 in unemployment benefits in the latest allegation related to what authorities say is a multibillion-dollar fraud aided by lax safeguards at a state agency.

Alana Powers, 45, an inmate at the Central California Women’s Facility in Chowchilla, was indicted by a federal grand jury last week, along with 51-year-old Jason Vertz of Fresno, federal prosecutors said Wednesday.

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The indictment was unsealed, and Vertz was arraigned on Tuesday after his arrest, prosecutors said. They said neither has yet listed a defense attorney.

Officials say the state has paid at least $11 billion in benefits to people whose identities it has been unable to verify, which they say is likely fraud. Of that, $810 million was tied to ineligible prisoners.

The pair is charged with submitting several fraudulent unemployment insurance claims to the state Employment Development Department through a program intended to help people hit hardest by the coronavirus pandemic and economic shutdowns.

They applied in the name of Powers and other inmates at the women's prison. Recorded prison telephone calls and emails show she and other inmates gave Vertz names, dates of birth and Social Security numbers of inmates that he used to submit the fake claims, prosecutors said.

The applications said that the inmates had worked as maids, cleaners, welders and at other jobs and that they were available to work, “which was not true because they were incarcerated,” prosecutors said.

The claims cost the state Employment Development Department and U.S. government more than $103,000, prosecutors said.

The benefits were loaded onto debit cards that the state agency mailed to the addresses the pair had provided.

Each faces one count of conspiracy to commit mail fraud and two counts of aggravated identity theft, charges that carry a maximum penalty of 20 years in federal prison.

The state employment and corrections departments helped the FBI in the investigation, prosecutors said.

Two scathing state audits earlier this year documented the employment agency's multiple mistakes that allowed the fraud even as it remains slow to respond to the massive number of claims during the pandemic.