State unemployment departments are Federally funded. The Federal Dept of Labor has refused to fund additional state fraud investigators, or staff to collect the fraudulently obtained money back.
“Deloitte played a significant, controversial role in California’s unemployment system (EDD), securing multiple no-bid contracts during the COVID-19 pandemic. Despite these contracts, the system faced massive fraud, technical failures, and delayed payments, leading to severe criticism” from Gemini AI
Is it a coincidence that Deloitte plays a major role in unemployment fraud, and also in welfare fraud? DELOITTE’s IES Integrated Eligibility System (in 25 states of which CA is the largest) is the basis for most other fraud. The DELOITTE fraud makes other fraud possible.