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Biden’s Swampy Pick To Run Unemployment Lost Millions Of Dollars In Pandemic Aid To Nigerian Fraudsters
https://thefederalist.com ^ | FEBRUARY 1, 2021 | By Jordan Davidson

Posted on 02/01/2021 10:31:01 AM PST by Red Badger

President Joe Biden’s pick to lead his administration’s response to the economic damage caused by government shutdowns amid the COVID-19 pandemic previously lost $600 million of Washington state’s aid dollars to foreign fraudsters in a hasty unemployment program rollout.

Earlier this week, reports indicated that former head of the Washington state Employment Security Department (ESD) Suzi LeVine would begin an interim leadership position in the Labor Department’s Employment and Training Administration program on Monday, overseeing the implementation of the federal unemployment benefits included in Biden’s $1.9 trillion COVID-19 relief proposal. While some have said that new leadership could help remove some of the “chronic delays” in the pandemic payments, others have questioned LeVine’s capabilities to properly and carefully handle the process, considering her rollout track record.

Just last year, LeVine’s department in Washington state lost hundreds of millions of dollars to a long-known Nigerian scammer group called “Scattered Canary.” According to the U.S. Secret Service, Washington was the “primary state targeted” by the “well-organized Nigerian fraud ring exploiting the COVID-19 crisis to commit large-scale fraud against state unemployment insurance programs.” The group, which historically targeted other American aid funds such as for students, Social Security, and disaster relief, used information from other breaches in Washington to create bogus joblessness claims and hike up the system’s number of claims.

Under LeVine, ESD, overwhelmed with a sudden and “unusual” surge in state requests for financial help despite the falling national number, quickly pushed through the payouts for the claims, intentionally and knowingly skipping the identity verification processes that usually occurs during an unemployment payout “waiting week.” As a result, LeVine later reluctantly admitted the fraud and temporarily suspended all benefit payments for a couple of days, completely cutting off legitimate claimants as the department and law enforcement began the financial cleanup and attempted recovery from the bogus claims.

Months after the fraud was first discovered, audit one of the state’s five-audit evaluation found that the ESD under LeVine’s leadership was responsible for a software liability that allowed the Nigerian scammers to defraud the state of at least $600 million. The state eventually recovered $357 million of the total number but suffered a net loss of at least $243 million. This loss comes just one month after LeVine announced that fraudsters siphoned $1.6 million off the state.

State Auditor Pat McCarthy later scolded LeVine for interfering with fraud investigations, stating that the commissioner imposed “significant constraints” on the auditing process, “including attempts at limiting interviews with key ESD employees and delaying access to important documents.” McCarthy eventually threatened to report “management interference” if LeVine did not cooperate.

Some critics wanted LeVine fired after she tried to prevent the audit of ESD’s gross negligence that caused the state to lose money, but Democratic Gov. Jay Inslee and other left-wing state legislators ignored their cries, taking LeVine’s side, a demonstration of her growing rapport with the Democratic Party. Despite her failures in properly delivering on Washington’s pandemic aid, Biden tapped the former ambassador to Switzerland during former President Barack Obama’s tenure in office for his large and contentious COVID-19 relief package, granting her an annual budget of about $9 billion. LeVine, a so-called “major player in the Democratic Party,” also reportedly donated hundreds of thousands of dollars to Biden’s 2020 campaign and other “Democratic causes” and served as a deputy national finance chair for the Democratic National Committee with her husband in 2017.


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Government
KEYWORDS:

1 posted on 02/01/2021 10:31:01 AM PST by Red Badger
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To: Red Badger

And, there are still hundreds from last spring who have not had their claims processed because of a “backlog”. A backlog, they say, remains even after the National Guard was brought in to process claims.

Yup. Sh*t floats.


2 posted on 02/01/2021 10:36:00 AM PST by llevrok (I'm old enough to remember when the quarantine was to be 3 weeks)
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To: Red Badger

“lost”


3 posted on 02/01/2021 10:39:43 AM PST by BradyLS (DO NOT FEED THE BEARS!)
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To: llevrok

They blame niger-ians, isn’t that raciss?

I dont believe that for a second, but I do believe that money will eventually end up in the coffers of the dnc, if it hasnt already


4 posted on 02/01/2021 10:40:21 AM PST by algore
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To: Red Badger

I feel like, traditionally, the two parties differed in rather small ways. The Democrats might want to spend $10B more on problem X this year, and the Republicans would rather spend $10B less this year on problem X. One could see either side, and one could shrug and say “This position makes more sense to me than that position.”

But Biden’s cabinet just seems full of freaks. It’s not about policy differences. These people are just complete losers.


5 posted on 02/01/2021 10:42:08 AM PST by ClearCase_guy (I'm sorry the Q thing didn't work out. We were wrong about that.)
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To: Red Badger

It was such a nightmare that legal residents couldn’t get on the state website but apparently hackers could and siphoned off $600 million.

I guess it could’ve been worse, like California giving away billions to convicts to pad their commissary credits.


6 posted on 02/01/2021 10:42:45 AM PST by shotgun
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To: Red Badger

sending checks out of state might have been the first clue,
but no


7 posted on 02/01/2021 10:42:56 AM PST by ßuddaßudd ((>> M A G A << "What the hell kind of country is this if I can only hate a man if he's white?")
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To: Red Badger

In actuality, the money probably went to ANTFA.


8 posted on 02/01/2021 10:43:15 AM PST by right way right (May we remain sober over mere men, for God really is our only true hope. )
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To: llevrok
Can you believe how screwed up our state has become?
Have you driven up Ensign Road towards St. Peter's hospital lately? Completely lined with crappy motorhomes and broken down cars. Plus that mudhole campground near the Ensign Rd/Martin Way intersection. Our state capitol is a disgrace and I wish I had stayed in Alaska.
9 posted on 02/01/2021 10:48:38 AM PST by dainbramaged (Windage and Elevation)
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To: Red Badger

Don’t tell me he fell for the Nigerian Prince scam.


10 posted on 02/01/2021 10:53:55 AM PST by Don Corleone
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To: Don Corleone

She.....................


11 posted on 02/01/2021 11:03:29 AM PST by Red Badger (TREASON is the REASON for the SLEAZIN'.................................)
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To: dainbramaged

Yeah. And the camp at Sleater-Kinney at I5. Complete with complimentary “off street” parking!!

Meanwhile. I was resting comfortably in my room at the Red Lion/Governor Hotel last night when... :-)


12 posted on 02/01/2021 11:03:51 AM PST by llevrok (I'm old enough to remember when the quarantine was to be 3 weeks)
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To: right way right
In actuality, the money probably went to ANTFA.

Many think much of that money found it's way to DNC coffers. Which is sort of the same as antifa now that I think of it

13 posted on 02/01/2021 11:07:05 AM PST by llevrok (I'm old enough to remember when the quarantine was to be 3 weeks)
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To: ßuddaßudd

No more checks. Debit cards! Wheee!


14 posted on 02/01/2021 12:11:15 PM PST by Shady (WHO MURDERED ASHLI BABBITT? )
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