Washington Gov. Jay Inslee looks on as Suzi LeVine (right), the state’s Employment Security Department commissioner, talks to reporters in 2019. (AP Photo/Ted S. Warren)

Washington Gov. Jay Inslee looks on as Suzi LeVine (right), the state’s Employment Security Department commissioner, talks to reporters in 2019. (AP Photo/Ted S. Warren)

State auditor to probe causes of massive jobless claims fraud

Auditors want to know how criminals used stolen IDs to collect up to $650 million in benefits

OLYMPIA — Washington’s embattled Employment Security Department will be the subject of two new investigations into how criminals using stolen identities managed to file claims and collect hundreds of millions of dollars in jobless benefits from the state.

State Auditor Pat McCarthy said Wednesday her office will review factors that led to those improper payments and delayed payouts to thousands of actual jobless residents. A second audit will focus on potential weaknesses in the computer systems that support the unemployment program.

McCarthy said in a statement she chose these areas to “provide the public and state leaders with a greater understanding of how needed benefits were stolen and delayed.”

Suzi LeVine, commissioner of the Employment Security Department, welcomed the reviews.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

“We believe that the key learnings from this audit will help not just ESD, but all of state government,” she said in a prepared statement. “Our goal in this unprecedented crisis has been and continues to be getting benefits out to eligible Washingtonians as quickly as possible.”

Gov. Jay Inslee echoed the sentiment when asked about it an afternoon press conference.

“It sounds like a good idea to have an audit in these circumstances,” he said, adding that it may uncover issues “to help this situation.”

Since early May, tens of thousands of fraudulent claims have been filed by impostors using stolen identities.

Hundreds of public school employees in Snohomish County are among those caught up in the elaborate scam that’s overwhelmed the state unemployment agency tasked with quickly providing money to people whose jobs disappeared or were curtailed overnight because of the COVID-19 pandemic.

LeVine said last week the final amount paid out fraudulently may be as much as $650 million. The state has recovered $333 million. She also has said her agency has not had a security breach and no data has been taken from it.

A West African fraud ring using identities stolen in prior data breaches, such as the massive 2017 Equifax breach, is believed to be behind the fraud, which has targeted nearly a dozen states, experts say.

Inslee said the agency is working simultaneously to “root out the crime” while accelerating action on unpaid claims. Although the agency has beefed up staff to deal with both challenges, more people may be hired, he said.

“It is so terribly frustrating to people right now who have not received resolution of their claims while they are out of work,” Inslee said. “If the audit can help us identify any additional work to be done, we’ll look forward to that.”

At Wednesday’s news conference, Inslee also renewed his call for President Donald Trump to invoke the Defense Production Act to beef up production and distribution of personal protective equipment for states. The president has done this for ventilators and testing supplies.

Inslee said the president also needs to replenish the Strategic National Stockpile, which is one of three critical sources of PPE for the state. The others are direct purchases by the state from domestic and foreign suppliers, and private donations.

Washington has received 4 million items from the federal stockpile while acquiring 80 million on its own with 200 million more on order, he said.

He voiced frustration with what he characterized as “a lack of commitment and enthusiasm” on the part of the president to requests for help with PPE supplies from governors of many states.

Inslee released a letter he sent Wednesday to Vice President Mike Pence on this subject. In it, the governor says states are forced to compete with one another for PPE and the situation will become more dire as demand for equipment increases as each begins to reopen.

The lack of a coordinated federal response to ensure PPE for every person who needs it is akin to fighting a war in which each state is responsible for procuring its own weapons and body armor, he told the vice president.

”While the challenges we are facing are significant, they are far from insurmountable,” he wrote Pence.

The Associated Press contributed to this report.

Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com. Twitter: @dospueblos.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Everett Historic Theater owner Curtis Shriner inside the theater on Tuesday, May 13, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Historic Everett Theatre sale on horizon, future uncertain

With expected new ownership, events for July and August will be canceled. The schedule for the fall and beyond is unclear.

Contributed photo from Snohomish County Public Works
Snohomish County Public Works contractor crews have begun their summer 2016 paving work on 13 miles of roadway, primarily in the Monroe and Stanwood areas. This photo is an example of paving work from a previous summer. A new layer of asphalt is put down over the old.
Snohomish County plans to resurface about 76 miles of roads this summer

EVERETT – As part of its annual road maintenance and preservation program,… Continue reading

City of Everett Engineer Tom Hood, left, and City of Everett Engineer and Project Manager Dan Enrico, right, talks about the current Edgewater Bridge demolition on Friday, May 9, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
How do you get rid of a bridge? Everett engineers can explain.

Workers began dismantling the old Edgewater Bridge on May 2. The process could take one to two months, city engineers said.

Smoke from the Bolt Creek fire silhouettes a mountain ridge and trees just outside of Index on Sept. 12, 2022. (Olivia Vanni / The Herald)
County will host two wildfire-preparedness meetings in May

Meetings will allow community members to learn wildfire mitigation strategies and connect with a variety of local and state agencies.

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Vehicles travel along Mukilteo Speedway on Sunday, April 21, 2024, in Mukilteo, Washington. (Ryan Berry / The Herald)
Mukilteo cameras go live to curb speeding on Speedway

Starting Friday, an automated traffic camera system will cover four blocks of Mukilteo Speedway. A 30-day warning period is in place.

Carli Brockman lets her daughter Carli, 2, help push her ballot into the ballot drop box on the Snohomish County Campus on Tuesday, Nov. 5, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Here’s who filed for the primary election in Snohomish County

Positions with three or more candidates will go to voters Aug. 5 to determine final contenders for the Nov. 4 general election.

Members of Washington State patrol salute the casket of slain trooper Chris Gadd during a memorial cremony on Tuesday, March 12, 2024, at Angel of the Winds Arena in Everett, Washington. (Ryan Berry / The Herald)
Opening statements begin in trial of man charged in crash of WSP trooper

Deputy prosecutor described to jurors what began as a routine patrol for Christopher Gadd — “until it wasn’t.”

Aaron Weinstock uses an x-ray machine toy inside the Imagine Children Museum on Tuesday, Dec. 3, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Imagine Children’s Museum $250k grant reinstated following federal court order

The federal grant supports a program that brings free science lessons to children throughout rural Snohomish County.

Edmonds Mayor Mike Rosen goes through an informational slideshow about the current budget situation in Edmonds during a roundtable event at the Edmonds Waterfront Center on Monday, April 7, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds mulls November property tax levy lid lift

The city is considering options to address its fiscal crisis, including a potential levy higher than originally budgeted.

A person walks up 20th Street Southeast to look at the damage that closed the road on Wednesday, Nov. 20, 2024 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
WA delegation urges Trump to reconsider request for bomb cyclone aid

The Washington state congressional delegation urged President Donald Trump on… Continue reading

One injured, several pets died in Marysville house fire Thursday evening

One woman was transported to the hospital with burns and smoke inhalation. The cause remains under investigation.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.