Californian reportedly gained UI benefits using Feinstein’s identity

OAKLAND, California – A former employee of a California unemployment agency allegedly used the identity of Senator Dianne Feinstein to fraudulently claim $ 21,000 in unemployment insurance benefits this year, according to a newly unsealed federal criminal complaint.

The allegation is another black eye for California’s unemployment insurance system, which has been beset by a drumbeat of fraud complaints – including a criminal ring allegedly securing payments for inmates – so even as unemployed Californians complain that they cannot access the necessary services.

Federal prosecutors believe that a former employee of the state’s employment development department, Andrea Gervais, used Feinstein’s name in a scheme to extort unemployment money from the agency where she previously worked. The complaint said that the name of a US senator had been used; a source with direct knowledge of the investigation confirmed that it was Feinstein.

Investigators began investigating Gervais after a bank employee discovered an unemployment claim of $ 21,000 on behalf of Feinstein, according to the complaint. Prosecutors alleged that Gervais filed dozens of claims worth more than $ 2.1 million, successfully receiving about $ 216,000 out of a dozen claims.

With huge sums of unemployment assistance flowing through EDD amid a pandemic-induced recession, fraud has become a constant threat. Earlier this year, local prosecutors revealed that prison and prison inmates may have fraudulently obtained hundreds of millions of people from the state.

This fall, federal officials arrested a rapper for allegedly obtaining $ 1.2 million in fraudulent claims from the California unemployment agency. He bragged about defrauding the government on a video clip titled “EDD” – the name of the state agency – where he flashed debit cards and official state envelopes.

Two more cases emerged on Thursday. Prosecutors have accused a San Diego woman of conspiring to steal hundreds of thousands of dollars in aid from a boyfriend serving a 94-year sentence for murder; in another case, they accused two prison inmates of conspiring to submit fraudulent unemployment claims.

Although these defendants allegedly have easy access to cash, many Californians have struggled to obtain unemployment benefits thanks to the state’s decrepit system even as the coronavirus pandemic has deprived many residents of income.

The combination of suspected fraud and widespread difficulty accessing benefits has increased political pressure on California elected officials – especially Gov. Gavin Newsom, who suffered a series of missteps this fall and the frustration of some residents tired of the related closures. to the pandemic.

Lawmakers on both sides criticized the employment development department, saying they were inundated with complaints from frustrated voters. Local prosecutors who uncovered the alleged jail plan begged Newsom to play a more assertive role.

Newsom convened an EDD task force earlier this year that prompted the agency to undertake a two-week “reset” at the urgent request of the task force. The report also urged the agency to strengthen its identity verification process. Agency director Sharon Hilliard is resigning at the end of this month.