Fraud likely in jobless claims by Detroit city workers, report says
Source: Detroit Free Press
A new audit of the City of Detroit’s employee benefits programs found significant likelihood of fraud in unemployment benefits, including what appeared to be active human resources workers collecting fraudulent unemployment benefits for themselves.
Of 1,484 unemployment claims processed during the review period covered by the audit, 13% or 192 were “likely fraudulent” and another 36% or 536 were found “highly questionable,” according to a joint report released Thursday by the city’s auditor and inspector general.
The report which also covers the city’s pension funds and health care benefits, recommended that individuals suspected of fraud be prosecuted.
In June, emergency manager Kevyn Orr ordered the investigation into possible waste, abuse, fraud or corruption in the city’s employee benefits programs. His office released the joint report. Orr is leading the city through a restructuring and historic municipal bankruptcy, which was filed July 18. Orr said the city has debt and future liabilities of about $18 billion.
Read more: http://www.freep.com/article/20130926/NEWS01/309260148/Kevyn-Orr-Detroit-employee-benefits-pension
When it's Kevyn Orr who wants to see the report, consider the source.
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