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Labor Department deploys ‘strike team’ to California over $21B unemployment debt, fraud concerns

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Labor Department deploys ‘strike team’ to California over B unemployment debt, fraud concerns

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The Labor Department deployed a “strike team” to California to address federal findings of improper payments and alleged fraud within the state’s unemployment insurance (UI) program.

California has been found to have a depleted UI trust fund, along with $21 billion in borrowed federal funds to keep the system running, which federal officials say has led state employers to pay higher UI taxes to repay the debt.

In a statement, the department cited an 83-page California State Auditor report that determined the state’s UI system is high-risk in part due to “inadequate fraud prevention and claimant service [in its employment development department (EDD)], as well as a high rate of overturned eligibility decisions in its Unemployment Insurance Program.”

California Gov. Gavin Newsom  (Tayfun Coskun/Getty Images)

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“Financial issues and potential fraud in California’s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs. This ends now,” Labor Secretary Lori Chavez-DeRemer said.

“Immediately, we are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers. I look forward to restoring the California UI program’s integrity and financial health.”

Chavez-DeRemer added that the “strike team” will include Labor Department specialists from both its national and regional offices.

The secretary also wrote a letter to the EDD, citing increasing improper payment rates, insufficient timeliness, data accuracy and quality concerns and questions about participants’ eligibility and the use of taxpayer funds.

California received about $290 billion in COVID relief, part of which helped what the California Post described as “rapidly implementing expanded unemployment benefits.”

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Department of Labor Secretary Lori Chavez-DeRemer is cracking down on reported H-1B abuse. (Chip Somodevilla/Getty Images)

At least one California UI steward was convicted of using her position to file nearly $860,000 in fraudulent UI claims, while some civilians were convicted of creating nonexistent businesses to claim UI.

Before the strike team’s deployment, DOL Inspector General Anthony D’Esposito said he found nearly $1 billion in taxpayer funds “at risk” nationwide due to COVID-related UI fraud.

D’Esposito, a former NYPD officer and ex-congressman from Long Island, said in a statement that an analysis of 6.5 million prepaid debit cards used for COVID UI benefits still had $720 million loaded on them.

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“My office has warned that, absent swift action, U.S. taxpayers risk losing nearly a billion dollars in fraudulently obtained benefits,” D’Esposito said in a statement.

“This is taxpayer money, and it demands immediate attention.”

D’Esposito said fraud is not a victimless crime and that every misspent dollar is one that an actual needy family could use.

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Quality Learning Center in Minnesota was found to be at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste/Fox News)

“When we root out fraud, we protect taxpayers and lower the real cost of living,” he said.

Fox News Digital reached out to Newsom and the state Senate’s top Republican for comment.

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EXCLUSIVE: Senate bill targets Minnesota-style ‘runaway fraud’ to force scammers to repay taxpayers

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Alaska

Over $150K worth of drugs seized from man in Juneau, police say

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Over 0K worth of drugs seized from man in Juneau, police say


JUNEAU, Alaska (KTUU) – An Alaska drug task force seized roughly $162,000 worth of controlled substances during an operation in Juneau Thursday, according to the Juneau Police Department.

Around 3 p.m. Thursday, investigators with the Southeast Alaska Cities Against Drugs (SEACAD) approached 50-year-old Juneau resident Jermiah Pond in the Nugget Mall parking lot while he was sitting in his car, according to JPD.

A probation search of the car revealed a container holding about 7.3 gross grams of a substance that tested presumptively positive for methamphetamine, as well as about 1.21 gross grams of a substance that tested presumptively positive for fentanyl.

As part of the investigation, investigators executed a search warrant at Pond’s residence, during which they found about 46.63 gross grams of ketamine, 293.56 gross grams of fentanyl, 25.84 gross grams of methamphetamine and 25.5 gross grams of MDMA.

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In all, it amounted to just less than a pound of drugs worth $162,500.

Investigators also seized $102,640 in cash and multiple recreational vehicles believed to be associated with the investigation.

Pond was lodged on charges of second-degree misconduct involving a controlled substance, two counts of third-degree misconduct involving a controlled substance, five counts of fourth-degree misconduct involving a substance and an outstanding felony probation warrant.

See a spelling or grammar error? Report it to web@ktuu.com

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Arizona

Warmer temps increase rattlesnake risks: Arizona Game and Fish

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Warmer temps increase rattlesnake risks: Arizona Game and Fish


Officials with the Arizona Game and Fish Department said unseasonably warm temperatures in the state will increase risks for rattlesnake encounters.

What they’re saying:

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In a statement released on Feb. 27, the agency said while rattlesnakes are most active in desert areas from March through October, they “may appear earlier in the year as warming temperatures bring them out of winter hibernation.”

“During the spring, it’s common for rattlesnakes to be out during daylight hours,” read a portion of the statement. “As the days become increasingly hot, rattlesnakes tend to move around more at night.”

What you can do:

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Officials said there are things people can do to keep themselves safe, including:

  • Step back and let a rattlesnake move away if you see one on a trail
  • Be mindful of where you place your feet and hands, because rattlesnakes can easily blend in with their surroundings
  • Carry a flashlight at night, especially on warmer nights when rattlesnakes can be most active
  • Clean up yard debris and reduce standing water near homes, in order to avoid attracting rattlesnakes
  • Stay on marked trails, as rattlesnakes encounters are more likely to occur when a person leaves a marked trail

Game and Fish officials said people should do the following if someone was bitten by a rattlesnake:

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  • Remain calm
  • Reassure the victim
  • Call 911 and seek medical attention without delay
  • Remove all jewelry and watches from the affected area
  • Immobilize the extremity, and keep it below the heart
  • Decrease total body activity, as feasible

The Source: Information for this article was gathered from a statement released by the Arizona Department of Game and Fish.

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California

‘Not a done deal’: California vows ‘vigorous’ review of Paramount-Warner Bros takeover

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‘Not a done deal’: California vows ‘vigorous’ review of Paramount-Warner Bros takeover


Rob Bonta, California’s attorney general, said his office will investigate a possible merger between Paramount Skydance and Warner Bros Discovery, hours after Netflix backed away from a planned takeover.

“Paramount/Warner Bros is not a done deal,” Bonta said in a post on X. “These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”

Any acquisition of Warner Bros would require approval from regulators in the United States and Europe, including the US justice department’s antitrust division. The deal Paramount struck for Warner is valued at nearly $111bn.

The merger poses a risk for California’s economy. Paramount’s bid is likely to raise concerns about job cuts in the state, which also dogged Netflix’s bid. Paramount sees $6bn in cost “synergies” in the deal, which typically means massive layoffs, reducing the number of suppliers, squeezing existing contractors for better terms after the two companies merge or other reductions.

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The chief executive of Paramount, David Ellison, said his company was pleased the Warner Bros board had “unanimously affirmed the superior value of our offer”, which he said delivered “WBD shareholders superior value, certainty and speed to closing”. Ellison is the son of Oracle co-founder Larry Ellison, a close ally of Donald Trump.

On Friday, Warner Bros Discovery reportedly agreed to be acquired by Paramount Skydance. Reuters and Deadline reported that the deal was announced in a global town hall by the company. Paramount and Warner Bros did not immediately confirm the deal to the Guardian.

A merger between the two media giants is also facing backlash from several lawmakers. Senator Elizabeth Warren, a key voice against growing monopolies, echoed Bonta’s concerns after Netflix walked away from the deal on Thursday, and noted that Netflix CEO Ted Sarandos was seen at the White House shortly before the company said it would bow out of the deal.

“A Paramount Skydance-Warner Bros merger is an antitrust disaster threatening higher prices and fewer choices for American families,” Warren said in a statement. “What did Trump officials tell the Netflix CEO today at the White House? A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want.”

The senator added: “With the cloud of corruption looming over Trump’s Department of Justice, it’ll be up to the American people to speak up and state attorneys general to enforce the law.”

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On Friday, Bonta responded to concerns about the merger posted by actor Mark Ruffalo.

“Please let’s circle up all the State AG’s and talk about how this is going to kill completion in the industry and drive down wages, and product quality for consumers,” Ruffalo posted.

“There are lots of agents in Hollywood who can tell you how past mergers and consolidations have hurt their clients and business. There is lots of talent that can tell you the same.”

Bonta reposted the actor’s comments, responding that he is in “conversation with my AG colleagues about Paramount/Warner Bros”.

The California department of justice did not immediately respond to a request for comment from the Guardian.

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The Writers Guild of America, the union representing thousands of television and film writers along with other media workers, has said a Paramount takeover of Warner Bros would hurt jobs.

Warner Bros canceled $2bn in content after merging with Discovery in 2022, and Paramount’s recent merger with Skydance led to 1,000 layoffs, the union said in written testimony to the US Senate.



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