State Unemployment Audit Uncovers Fraudulent Payments During the Pandemic

An audit by State Comptroller Tom DiNapoli says problems with the state unemployment insurance system contributed to at least $11 billion dollars in fraudulent payments during the pandemic.

The report says the state labor department's failure to replace its long-troubled system -- and workarounds to compensate for its problems -- weakened oversight.

And DiNapoli says the department refused to provide auditors with data that would have allowed them determine the exact amount of improper payments.

He says the department was warned in 2010 that its unemployment system was out of date.

The report urges the department continut to develop a new system.

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