ODJFS investigates PUA fraud, offers more details into investigation

OHIO — The Ohio Department of Jobs and Family Services (ODJFS) is reviewing hundreds of thousands of potentially fraudulent claims to the state for Pandemic Unemployment Assistance (PUA) funds, and fears tens, or even hundreds of millions of tax payer dollars have been already paid to fraudulent actors.

At a news conference Tuesday, ODJFS detailed the fraudulent activity News Center 7 first inquired about last week, when Miami Valley residents reported their payments from the state had been frozen and listed as pending/fraudulent.

> Coronavirus: ODJFS investigating fraud within PUA program, thousands affected

ODFJS said the criminal activity appears to have happened when thieves, using the identify of real citizens, applied for PUA money using fraudulent bank accounts and routing numbers.

Based on the losses other states have seen from similar activity, ODFJS assistant director Bruce Madson said the state had to quickly stop the flow of cash to avoid even more extensive losses.

“These are not small operators, these are large scale fraudsters who can drain a lot of public dollars very quickly, so that necessitated a rapid response in order to try to sift through this before too many additional dollars went out the door,” Madson said, noting it will likely be a few weeks before ODFJS knows exactly how much money was already paid to fraudulent accounts.

ODFJS leaders said they have isolated around 276,000 accounts that may potentially include fraudulent activity, but admitted the losses could be in the tens, to, perhaps even hundreds, of millions of dollars – all taxpayer money.

The department has set up a process to verify real accounts, with the hope of restoring payments to those who legitimately qualify for the money, within two to three weeks of those citizens contacting ODFJS.

However, ODFJS director Kimberly Hall admits, this has added a layer of confusion and call volume to an already overwhelmed state unemployment system.

“I have to manage expectations for the public at this point in time,” Hall said. We’re talking about a sizeable number (of accounts) that have to be sifted through and worked through up against our already challenged capacity.”

Anyone who has seen their payments frozen or thinks they might be affected should call (833) 604-0774 or email PUA-Technical-Services@jfs.ohio.gov.

Cox Media Group