US House Oversight Committee Investigates Widespread Unemployment Insurance Fraud in NY

By Yehudit Garmaise

New York business owners statewide have bemoaned employees filing fraudulent claims through their unemployment insurance.

The fraudulent claims end up being paid for by employers’ payroll taxes.

In November, NY Comptroller Tom DiNapoli estimated that $11 billion had been stolen statewide through unemployment insurance fraud, but a few weeks ago, Roberta Reardon, the New York state Labor Department commissioner, said the total of unemployment insurance fraud was closer to $4 billion.

Not understanding the $7 billion gap between the estimates of the two NY agencies, lhe US House Oversight Committee came looking for answers last week, nystateofpolitics.com reported.

On January 13, US Representative James Comer, the chairman of the House Oversight Committee, sent Reardon a letter asking her to provide all the data and information the NY Labor Department has regarding the State’s unemployment insurance.

Reardon, however, said on “Capitol Tonight” she cannot release her department’s data because it is “protected information.”

Photo Credit: Flikcr