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, which is paid for by employers’ payroll taxes.

In November, NY Comptroller Tom DiNapoli estimated that $11 billion had been stolen statewide through unemployment insurance fraud. Still, 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, last week, the US House Oversight Committee came looking for answers, nystateofpolitics.com reported.

On Jan. 13, US Rep. James Comer, the chairman of the House Oversight Committee, sent Reardon a letter that asked 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” that she cannot release her department’s data because it is “protected information.”

photo credit: Flikcr