Louisiana Residents Accused Of Stealing $1M In CA COVID Funds

Los Angeles CA

21 July, 2021

2:02 PM

Description

CALIFORNIA — Ten Louisiana residents are being accused of scamming California's pandemic unemployment programs out of more than $1 million, according to a statement from Louisiana Attorney General Jeff Landry. More than 100 fraudulent claims from Louisiana residents were filed with California's Employment Development Department, according to the Louisiana Bureau of Investigation. Eight Louisiana residents — six of which have been arrested — are being accused of charges such as criminal conspiracy, money laundering, illegal transmission of monetary funds and government benefits fraud. Five of the accused also reportedly received $60,000 from the Louisiana Workforce Commission, Landry's office said. Two other people were arrested in connection with similar offenses, officials said. Cole Morden, 24 of Denham Springs, was charged with government benefits fraud and collected more than $800 while he was incarcerated at the Livingston Parish Sherriff's Office Correctional Facility, officials said. Dana Ganaway, 51 of Morgan City, reportedly confessed to submitting false unemployment insurance claims while she was still working — she received $8,000 in benefits, officials said. "With the unemployment system being as overwhelmed and insecure as it has been, it is no surprise that bad actors are coming out of the woodworks to take advantage of it," Landry said in a statement. "So my office will continue investigating false claims and doing what we legally can to bring criminals to justice." California's pandemic-wearied unemployment agency became a major target for fraudulent relief claims as coronavirus raged around the state for more than a year and a half. With scams coming from within and outside of the state, the agency enlisted U.S. Attorney McGregor W. Scott on Tuesday to investigate unemployment benefits fraud cases. "State unemployment systems last year were under attack by sophisticated international and domestic organized fraud schemes," Scott said in a statement. "We look forward to working with EDD, Cal OES, and local, state, and federal prosecutors to identify, investigate and prosecute those who stole benefits that rightly belonged in the pockets of Californians in need." Scott previously served as U.S. attorney for the Eastern District of California. He reportedly launched an investigation into unemployment fraud in November. The state has since identified more than $11 billion in fraudulent claims and an additional $19 billion in suspicious claims being investigated, the Los Angeles Times reported. "The California Department of Justice was instrumental in uncovering last year's unemployment fraud scheme; and from the beginning, we worked in strong partnership with then-U.S. Attorney Scott to put a stop to this illegal activity," said California Attorney General Rob Bonta. "We look forward to continuing that partnership as we work alongside our federal, state, and local partners to hold accountable those who perpetrated fraud against California families in their time of need."