Michigan

Michigan paid millions in unemployment to people who were incarerated or dead, audit finds

Published

12 months ago

December 27, 2023

Michigan paid millions in unemployment to people who were incarerated or dead, audit finds

The Michigan agency in charge of unemployment benefits doled out hundreds of millions of dollars to people who are potentially ineligible, including some who were in prison or dead, according to the findings of the Office of the Michigan Auditor General.

Even after determining people who filed claims were in prison or dead, the Unemployment Insurance Agency still paid them $1.7 million, the auditor found.

When fraud was identified by the agency’s investigations unit, the agency undercalculated penalties by nearly 50% due to issues with its internal computer system, the auditor found. And while it still can pursue an additional $840 million in fraud penalties, the agency rarely attempted to identify fraudsters, recoup ill-gotten benefits or assess penalties in a few selected transactions reviewed by the auditor.

The findings, released Wednesday, are the latest in a series of reviews by the auditor of the beleaguered agency, which operates under the Department of Labor and Economic Opportunity.

The total findings include:

Between January 2020 and October 2022, the state paid $245 million in payments to people potentially ineligible, including the dead, those in prison, residents of long-term care facilities and those employed by the agency or the labor department.
The agency undercalculated fraud penalities by 49.4% because of issues with an internal data system. The agency could still pursue up to $840 million in additional penalities.
After reviewing a series of 30 cases, the auditor found the agency did not try to identify 70% of fraudsters.
In the same cases, the agency did not attempt to recover 96.7% of related payments or assess fraud penalties.
The agency also did not refer 90% of these selected fraud cases to law enforcement.

Agency says it’s reforming, promises to do better

The agency partially agreed with all of the auditor’s findings. The agency noted many of these issues stem from longstanding problems identified in previous audits, leaders are aware of the problems and working to address them.

“We will continue to work cooperatively with the (auditor), as we have for the last three years on these issues. We appreciate their partnership in reform,” agency Director Julia Dale said in a news release.

“Since the end of the global pandemic, and under new leadership at UIA, we have built an entirely new bureau and overhauled existing systems to fight fraud and provide better service for Michigan workers and businesses, and data proves that these efforts are paying off.”

The release noted that the agency did not think the selected cases reviewed were reflective of all of the agency’s work. It also noted it has recovered more than $90 million through pursuing fraudulent actors.

Problems worsened by flood of pandemic claims

Nearly four years later, the agency is still dealing with the fallout from the pandemic when millions of workers filed for jobless benefits as businesses closed and others took advantage of the more generous benefits, filing fraudulent claims.

More than 5.9 million claims were filed in the pandemic by more than 3.5 million claimants, the agency said.

The agency hired 30 new limited-term employees in October with a $2.6 million grant from the U.S. Department of Labor to expand the agency’s fight against fraud by “pursuing bad actors and recovering federal and state money stolen from taxpayers,” the agency said.

The employees join the agency’s Fraud and Investigations Division team. The majority of their time will be spent reviewing claims filed by imposters — nearly all from May and June 2020 — where no payments were issued.

To clear those cases, staff must manually process the claims to remove them from the UIA’s computer system, the agency said. The agency is replacing its decade-old unemployment benefits system, and a new Deloitte system is expected to be fully operational in 2025.

Meanwhile, still other claimants were told they were eligible for benefits in the pandemic but have received only a portion of the money they’re owed, if anything at all. They are still fighting for benefits they’re owed.

This is the fifth and final state audit of the agency over its performance in the pandemic. The most recent audit, released about a year ago, found the agency improperly granted overpayment waivers to some claimants who were told they were overpaid benefits in the pandemic while not considering others that met the waiver criteria.

The audit estimated the agency may have improperly granted $1.7 billion in overpayment waivers but didn’t consider waivers for claims totaling $280.7 million that met its criteria.

Reach Dave Boucher at dboucher@freepress.com or on X, previously called Twitter, @Dave_Boucher1.

Contact Adrienne Roberts: amroberts@freepress.com.

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Michigan

Michigan DNR issues winter safety reminders amid fluctuating weather

Published

2 hours ago

December 21, 2024

Press Room

Michigan DNR issues winter safety reminders amid fluctuating weather

The Michigan Department of Natural Resources (DNR) urges outdoor enthusiasts to stay safe as fluctuating winter conditions continue across Michigan.

According to a press release issued Friday (Dec. 20), proper preparation and caution are key to avoiding accidents while enjoying activities like snowmobiling, ice fishing, and hiking.

Winter Safety Tips

The DNR recommends dressing in light, adjustable layers to avoid overheating or freezing. Check weather and road conditions, and carry essential equipment like ice picks, ropes, flashlights, and backup gear.

“The right gear is definitely essential to going out,” said DNR conservation officer Brandon Vacek. “I mean, you want to make sure you’re dressed in layers to that you know you can adjust accordingly.”

Further, Vacek said people should travel with a buddy, inform someone of your plans, and ensure your communication devices work in remote areas.

“That goes back to always having, you know, a plan, leaving some information with someone about where you’re going and when you’re set to return,” said Vacek.

Staying hydrated and fueled with snacks is also important, according to the news release, and if you’re feeling unwell, it’s best to stay home.

Ice and Snowmobile Precautions

Ice conditions are unpredictable, so wear a flotation device and keep ice picks accessible, advised Vacek. Furthermore, snowmobilers should ride on the right-hand side of trails, keep speeds safe, and avoid alcohol.

Riders aged 12 to 16 must obtain a Michigan-approved snowmobile safety certificate to operate without a guardian or crossroads.

Last winter, the DNR reported that there were 19 snowmobile fatalities, highlighting the importance of caution.

For more safety tips and trail updates, visit Michigan.gov/RideRight and Michigan.gov/DNR/Education/Safety-Info.

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Michigan

Washington transfer LB Khmori House sets Michigan visit

Published

10 hours ago

December 20, 2024

Press Room

Washington transfer LB Khmori House sets Michigan visit

Michigan is expanding its board at linebacker during the winter transfer portal cycle by hosting the second linebacker target of the week.

Washington rising sophomore LB Khmori House is set to visit Ann Arbor on Sunday according to his agents.

House will join Georgia linebacker Troy Bowles as linebacker visits who have been on campus this week.

Maize & Blue Review can confirm that Bowles was on campus on Thursday.

House appeared in 9 games as a freshman for the Huskies this season, recording 33 total tackles, one forced fumble and an interception.

Stick with Maize & Blue Review for more Transfer Portal coverage.

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Michigan

These 10 small mid-Michigan businesses just received nearly $200K in grants

Published

18 hours ago

December 20, 2024

Press Room

These 10 small mid-Michigan businesses just received nearly 0K in grants

SAGINAW, MI – Officials with the Great Lakes Bay Business Hub have announced the recipients of nearly $200,000 in direct grants to small businesses, and the application for the next round of grants is now open.

“After receiving over 29 competitive applications, ten small businesses have been awarded a total of $194,688.03 in funding,” reads a the Central Michigan University Research Corp. (CMURC) news release.

“This collaborative initiative, involving the Small Business Development Center, regional chambers of commerce, community and economic development organizations, and entrepreneurial service providers, are now accepting applications for the next round of grants, with a deadline of May 13.”

CMURC President and CEO Erin Strang said in a statement, “These grants are more than financial awards – they’re investments in entrepreneurs that drive positive social change, empower communities, and shape a stronger, more resilient future for generations to come.”

“By championing small business growth, we’re building the foundation for lasting regional impact.”

The recipients, representing Bay, Clare, Midland, Isabella and Saginaw counties, are:

Allegiance Home Healthcare Agency
Barney’s Bakehouse Bakery LLC
BreAna Allen Consulting LLC
Clare Family Fitness Inc.
My Angel Adult Foster Care LLC
New Beginnings Learning Center LLC (Sweet Angels Childcare)
Nor’East Outdoors LLC
Solutions Behavioral Health LLC
Tarsha Works Consulting
Unplugged Outfitters LLC

The nearly $200,000 in direct grants to these small businesses will make “significant impacts,” officials said, “with recipients using the funds to purchase equipment, expand operations, and create new jobs, fueling economic development across the region.”

“I am honored to have been selected as a recipient of the Direct to Business Grant opportunity and am grateful for the experience of working with Great Lakes Bay Business Hub, which has provided me with valuable knowledge and resources,” Iesha Johnson, owner of Allegiance Home Healthcare Agency, said in a statement.

“In response to this award, our plan is to create a positive impact in our community by promoting economic growth, creating jobs, providing training, and expanding care services to those in need. I sincerely thank GLBBH for this incredible opportunity.”

The Great Lakes Bay Business Hub (GLBBH) is a resource for business support and workspace solutions across the Great Lakes Bay Region. GLBBH aims to strengthen existing resources and deliver impactful programs and services through partnerships with key regional entities, including CMURC, Michigan Economic Development Corp., Michigan Small Business Development Center, and the Great Lakes Bay Regional Alliance, the release states.

At the county level, Bay County includes the Bay Area Chamber of Commerce and Bay Future; Midland County is represented by the Midland Business Alliance; Isabella County encompasses the Middle Michigan Development Corp. and Mount Pleasant Chamber of Commerce; Saginaw County includes the Saginaw County Chamber of Commerce and Saginaw Future; and Gratiot, Clare, Gladwin and surrounding counties have the ability to participate as well.

Businesses and entrepreneurs across the region are encouraged to apply for the next round of grant funding by May 13. For more information about the grant program and to submit an application, visit workgreatlakesbay.com.

Want more Bay City- and Saginaw-area news? Bookmark the local Bay City and Saginaw news page or sign up for the free “3@3″ daily newsletter for Bay City and Saginaw.

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