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Speaker 1: Michael Castration is not sniff sniff a slice eleven.

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Speaker 2: Cut Mike, My, what big cabals you talk about?

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Speaker 3: We've unleashed the crazy today and and then I am

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Speaker 3: going to move on, but I just can't resist Guba

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Speaker 3: number ninety five sixty seven, Michael, what did it kill

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Speaker 3: you to maintain a little Christmas spirit while you talked

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Speaker 3: about the big wind coming and then a little you know,

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Speaker 3: little music notes and then all caps you could even

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Speaker 3: say it blows.

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Speaker 2: It's a Friday, sure feel like right now?

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Speaker 3: But today I wow, wow, Okay, let's get to the uh.

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Speaker 3: Maybe Bill don't care about this. I care about it,

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Speaker 3: so you have to care about it. At the start

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Speaker 3: of the COVID pandemic back in twenty twenty, just stick

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Speaker 3: with me here for a moment, California had more than

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Speaker 3: one hundred and twenty thousand prisoners incarcerated in state imprisons

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Speaker 3: throughout the state. When in response to the COVID triggered

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Speaker 3: shutdowns and the layoffs, that's when the federal government started

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Speaker 3: pumping just massive amounts of money into the state unemployment

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Speaker 3: compensation programs. So the administration of California Governor Gavin Newsom

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Speaker 3: said hey, there's all this money coming in and well,

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Speaker 3: i'll tell you what he said in a minute. But

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Speaker 3: because somebody that's not using.

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Speaker 2: The appropriate text line said something.

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Speaker 3: You know, once you just stick to something you talk about,

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Speaker 3: let me tell you I know about this. So when

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Speaker 3: the COVID shutdowns started, one of my former employees, who

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Speaker 3: works for one of the big consulting firms, reached out

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Speaker 3: to me and wanted to know if I wanted to

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Speaker 3: join a team that they were putting together to help

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Speaker 3: places major cities, Denver, Los Angeles, Chicago, the setting. Boston

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Speaker 3: was on their list, maybe Miami Dade, There a lot

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Speaker 3: of places, because I honestly don't remember which of the

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Speaker 3: tranches of money that it was, but it was, you know,

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Speaker 3: trillions of dollars coming down the pipe, and they wanted

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Speaker 3: this consulting firm was advising these municipalities, these large municipalities,

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Speaker 3: on how to obtain the money and what they could

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Speaker 3: spend the money on, and then all of the requirements

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Speaker 3: that were in place to handle the money, account for

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Speaker 3: the money, you know, mitigate against fraud, blah blah blah

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Speaker 3: blah blah.

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Speaker 2: So I didn't jump on the team.

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Speaker 3: Instead, I asked questions, because before I commit to something,

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Speaker 3: I want to know what are the parameters, what are

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Speaker 3: the expectations, what's the compensation?

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Speaker 2: All those things.

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Speaker 3: And the one line or the one statement to me

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Speaker 3: that said, oh, I'm not going to get involved with

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Speaker 3: that was something to this effect there are no guidelines.

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Speaker 3: And I responded and said, what do you mean they're

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Speaker 3: no guidelines. Treasury has said there are no guidelines. They

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Speaker 3: are not publishing anything. They're not publishing any notices in

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Speaker 3: the Federal Register where you have to, you know, give

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Speaker 3: notification of certain rules and regulations or even policies that

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Speaker 3: you need to abide by in order to obtain the money.

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Speaker 3: They're just literally, and I'm not using a word literally,

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Speaker 3: you know, incorrectly here, I'm saying it literally.

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Speaker 2: There were no rules.

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Speaker 3: The money was just flowing down the pipeline to these

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Speaker 3: major cities and to the states, including Colorado and Denver

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Speaker 3: to use as a self hit. So back to California,

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Speaker 3: you may start to get the hint. More than one

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Speaker 3: hundred and twenty thousand inmates and all their state prisons

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Speaker 3: across the state. So in response to and in fact,

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Speaker 3: some of the money was for the state's unemployment compensation programs.

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Speaker 3: So the administration of California Governor Gavin Newsom said, in effect,

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Speaker 3: hey let's pay the prisoners in jails because they're unemployed. Now,

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Speaker 3: why would you do that. We'll get in some details

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Speaker 3: in a minute, but why would you even think that?

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Speaker 3: Because on every dollar that you dispensate, that you allocate,

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Speaker 3: that you give away, part of that dollar you get

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Speaker 3: to keep because you have overhead, you have administrative costs,

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Speaker 3: you have everything that you can possibly imagine. You've got

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Speaker 3: all the bureaucrats that you've got to pay you and

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Speaker 3: because are no rules, you could even siphon some of

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Speaker 3: that money off to cover some of your operating expenses

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Speaker 3: on some other programs that have nothing to do with

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Speaker 3: unemployment compensation. So if you're thinking, maybe you're not after

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Speaker 3: the last hour, if you're beginning to think when Newsom says, hey,

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Speaker 3: let's pay the prisoners in jails because they're unemployed too,

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Speaker 3: now you may understand why somebody that is steeped in

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Speaker 3: how to rip off taxpayers, like most governors are, you

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Speaker 3: may get where this is headed. It is a fact

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Speaker 3: that prison inmates in California prisons in county jails applied

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Speaker 3: for and were paid unemployment compensation by Newsom's Employment Development Department.

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Speaker 2: The eded NO not ed ed D.

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Speaker 3: It's even worse than erectile dysfunction. It's ed it's E trouble,

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Speaker 3: trouble double D, E double D. That's the group in

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Speaker 3: California that runs their state unemployment compensation system. Now, to

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Speaker 3: compare and contrast a little bit, the fraud losses in

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Speaker 3: Minnesota from the exploitation of the covid era social welfare

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Speaker 3: programs funded by you and I across the entire country

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Speaker 3: because it's federal money. We know that that Somali fraud,

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Speaker 3: if I could dares call it, that is well over

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Speaker 3: a billion dollars, and that investigation is ongoing and they're

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Speaker 3: finding new instances of fraudulent behavior that are continuing to

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Speaker 3: be uncovered. But the fraud losses from just the unemployment

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Speaker 3: insurance scams by individuals throughout the entire state of California,

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Speaker 3: it's probably going to exceed thirty billion dollars.

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Speaker 2: Huh, Where is the cabal? Where is? This?

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Speaker 3: Is ABC World News Tonight. David Muir our lead story tonight,

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Speaker 3: is California spent thirty billion dollars, most of who was

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Speaker 3: a fraudulent on inmates. You see, they practiced journalism malpractice

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Speaker 3: by both Old Mission and co Mission. Now, when the

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Speaker 3: COVID pandemic first began back in March of twenty twenty,

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Speaker 3: the economic shutdown policies put in placed by Newsom, like

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Speaker 3: most states, were some including Colorado, were some of the

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Speaker 3: most draconian imposts anywhere in the country. He had this

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Speaker 3: initial stay at home order that he entered on March nineteen,

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Speaker 3: twenty twenty. From April through May of twenty twenty, those

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Speaker 3: policies kept California largely shut down through the statewide stay

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Speaker 3: at home order and the closure of all non essential businesses.

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Speaker 3: I'm not even going to go down that rabbit of

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Speaker 3: what'sn't essential or non essential business because that's a whole

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Speaker 3: pile of bull crap that I don't want to get

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Speaker 3: messed up in right now. And then the state began

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Speaker 3: a phased reopening of just some what they considered to

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Speaker 3: be lower risk sectors in mid May, but those still

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Speaker 3: had to comply with very strict health guidelines.

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Speaker 2: So all that, all that minutia.

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Speaker 3: Shaped California's economic landscape during the early months of the pandemic.

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Speaker 2: Now, what's the governor to do?

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Speaker 3: What would a governor do when his policies send a

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Speaker 3: huge number of workers home for an indefinite period of

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Speaker 3: time and then the businesses that employed them are forced

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Speaker 3: to shut their doors.

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Speaker 2: Well, you look around, you look over.

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Speaker 3: There, and there's just like bags and bags of money

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Speaker 3: laying around. So you say to yourself, hmm, I think

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Speaker 3: I'll pay them air quotes here unemployment compensation because that's

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Speaker 3: what the programs for, right, So you forced them into unemployment,

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Speaker 3: and now including prisoners, you say, well, I think I'll

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Speaker 3: just pay them unemployment funds for unemployment compensation comes from

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Speaker 3: a tax that's levied on employers payrolls. In twenty nineteen,

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Speaker 3: just before COVID, California's eded collected five point six billion

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Speaker 3: dollars in unemployment tax and they paid out five point

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Speaker 3: one billion in compensation to people who were eligible who'd

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Speaker 3: lost their jobs. So you know that leads you the

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Speaker 3: delta between five point six and five point one billion,

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Speaker 3: you know, about half a billion dollars. So that's probably

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Speaker 3: where their overhead, administrative costs, everything else. Five hundred million

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Speaker 3: dollars in twenty twenty, remember two twenty nineteen, it was

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Speaker 3: five point six billion paid in taxes five point one

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Speaker 3: billion paid in unemployment compensation. Just a year later, in

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Speaker 3: twenty twenty, California's same ed paid out thirty three and

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Speaker 3: a half billion in unemployment compensation by the end of June.

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Speaker 3: How did they do that? One of the first COVID

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Speaker 3: era federal spending programs that was put in place by

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Speaker 3: Congress was the mass even fusion of cash to the

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Speaker 3: state unemployment insurance funds, since unemployment insurance taxes had obviously

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Speaker 3: been reduced dramatically by the layoffs. If nobody's working, there's

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Speaker 3: no employment, there are no salaries from which to collect

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Speaker 3: unemployment tax. So with the workers laid off, the revenue

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Speaker 3: from the tax on the payroads started to decline precipitously,

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Speaker 3: and at the same time, unemployment claims were skyrocketing and

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Speaker 3: the state compensation funds were quickly becoming insolvent, including California.

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Speaker 3: So between March and July twenty twenty, the federal government

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Speaker 3: paid an additional six hundred dollars per claimant unemployed person

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Speaker 3: per eligible unemployed person to be paid on top of

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Speaker 3: the regular benefits paid by California to that unemployed worker.

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Speaker 3: This was referred to as quote the Federal Pandemic Unemployment

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Speaker 3: Compensation the FPUC.

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Speaker 2: Well, I could, I could.

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Speaker 3: Name that acronym in a minute, the Federal Pandemic Unemployment Compensation,

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Speaker 3: and California got fifty billion dollars in twenty twenty a.

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Speaker 2: Loan in those FPUC funds.

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Speaker 3: Now, normally, while terminated workers in California can't apply for

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Speaker 3: benefits immediately, there is a one week waiting period before

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Speaker 3: the worker actually begins to receive the money. But when

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Speaker 3: COVID hit, Lowsom eliminated that one week period, and so

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Speaker 3: if you got terminated, you began receiving the money almost

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Speaker 3: immediately after applying. You walked in or you went online,

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Speaker 3: you applied for it, and boom, you got a you know,

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Speaker 3: you got a debit card. You got to you gotta

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Speaker 3: check somehow, or money shut up in your checking account.

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Speaker 3: And in Congress, because they're just as stupid as these governors,

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Speaker 3: they fully funded the Pandemic Unemployment Assistant Program that extended

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Speaker 3: those same unemployment benefits to self employed people, to gig

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Speaker 3: workers in like an Uber driver or a door dash driver,

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Speaker 3: and to others that are not normally eligible for unemployment

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Speaker 3: compensation because they don't have an employer that pays into

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Speaker 3: the system, and all of that gets funded entirely with

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Speaker 3: federal money from you and me. Now, finally, congress fully,

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Speaker 3: I shouldn't say finally that way, I should say finally

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Speaker 3: congress fully funded the pandemic Emergency Unemployment Compensation program that

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Speaker 3: extended unemployment benefits two additional weeks of benefits after their

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Speaker 3: regular unemployment in their UI benefits were exhausted. All fully

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Speaker 3: federal states didn't have to do anything. It was just

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Speaker 3: manna from heaven. Between the CARES Act thirteen additional weeks,

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Speaker 3: then you had the Continued Assistance Act that added eleven

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Speaker 3: additional weeks. And then of course the wonderful American Rescue

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Speaker 3: Planned that was the one I couldn't think of earlier.

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Speaker 3: That was the one that the team that the consulting

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Speaker 3: firm wanted me to work on. That added twenty six

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Speaker 3: additional weeks and an all through fifty three weeks, so

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Speaker 3: you had continued coverage for unemployment benefits was extended nearly

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Speaker 3: eighteen months, all the way to September fourth of twenty

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Speaker 3: twenty one, after COVID began, and the funding for every

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Speaker 3: one of those time extensions for benefits was provided, Congress

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Speaker 3: authorized it, you and I paid for it.

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Speaker 2: What'd that do well?

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Speaker 3: That left all these programs in the states just drowning

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Speaker 3: in money to hand out the applicants for unemployment insurance.

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Speaker 3: And the last thing that a politician wants to do

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Speaker 3: is have money sitting up on a shelf. It's like

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Speaker 3: you look up and it's not the ouf on the shelf,

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Speaker 3: it's the bag of money on the shelf, and you

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Speaker 3: think to yourself, Oh, I could be buying votes with that.

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Speaker 3: I got to get that out the door, you would think,

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Speaker 3: But you would be wrong that these state governments would

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Speaker 3: understand the importance of trying to be a good steward

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Speaker 3: of the money that you and I paid in through

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Speaker 3: our income taxes and from our federal borrowing. That they

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Speaker 3: might want to safeguard that, that they might want to

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Speaker 3: put some rules and regulations in place. But like I said, no,

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Speaker 3: we're not going to put any rules and regulations in place.

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Speaker 3: It's just going to be bag fulls of money. And

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Speaker 3: certainly not the Gavin administration. They didn't care. Do you

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Speaker 3: think that they could even say fiduciary responsibility? Do you

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Speaker 3: think Gavin Newsom can even spell fiduciary, I sincerely doubt it.

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Speaker 3: So they began to use the excuse that the expansion

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Speaker 3: of eligibility, Oh, it's overwhelming our system. So Newsom's ed

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Speaker 3: EDD was unable to implement. Actually, I think I should

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Speaker 3: say this. Instead, they decided not to implement fraud detection

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Speaker 3: mechanisms at the same scale as the new level of claims.

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Speaker 3: In other words, their fraud detection system became overwhelmed, and

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Speaker 3: rather than try to befit up to the new level

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Speaker 3: of money flowing through the system, they just let it

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Speaker 3: overwhelm their fraud detection system and just don't worry about that,

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Speaker 3: just let it go. So, rather than allow any delay

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Speaker 3: to perform even a rudimentary screening effort such as you know,

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Speaker 3: just simply cross referencing the claimants against other state databases

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Speaker 3: to find out whether, hey, they're collecting in Colorado and California,

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Speaker 3: which would obviously disclose ineligibility in California, their EDED simply

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Speaker 3: approved the claims and process the payments. Just push the

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Speaker 3: money out the door. Now, I remember having a conversation

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Speaker 3: with the consulting firm at the time that what that's

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Speaker 3: what we're trying to help these places do which is

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Speaker 3: why I washed my hands.

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Speaker 2: I wanted nothing to do with it.

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Speaker 3: NBC I found one report NBC News December of twenty twenty.

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Speaker 3: They swerved into a little actual journalism. NBC News reported

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Speaker 3: in December of twenty twenty that tens of thousands of

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Speaker 3: prison and jail inmates, including convicted serial killers and member

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Speaker 3: Scott Peterson, the cop you know it was convicted of

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Speaker 3: killing his wife or something, they've carried out what prosecutors

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Speaker 3: described tuesday as possible league the largest fraud scheme in

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Speaker 3: California history. And then the report goes on to tell

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Speaker 3: you just how bad it was.

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Speaker 2: Bernie made Off got nothing on You've governed, No, he doesn't.

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Speaker 3: We're talking about this fraud in California over the COVID money.

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Speaker 3: And the reason this is important is because the federal

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Speaker 3: government has become so and I know this is shocking

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Speaker 3: news to you, has become so inept, so incompetent, so big,

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Speaker 3: so monstrous that it is unmanageable, and things like this

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Speaker 3: add up.

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Speaker 2: I mean, you know, thirty billion.

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Speaker 3: Here, a billion up in Minnesota or more, and pretty

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Speaker 3: soon you're talking about real money and what's most infuriating

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Speaker 3: to me is while I'm very fortunate in my life,

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Speaker 3: I mean I'm not as fortunate, not as fortunate as

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Speaker 3: someone like Dragon. But you know, I make I make

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Speaker 3: a good living, and you know I've done pretty well

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Speaker 3: and don't have any debts, and you know, I'm pretty good.

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Speaker 3: But when I pay my freaking income tax and I

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Speaker 3: see how much is going to this kind of bull

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Speaker 3: crap and realize that, oh, taxes really don't have to

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Speaker 3: be that high if we would just operate efficiently and

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Speaker 3: operate like a real business, I get really ticked off.

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Speaker 3: And then I find and I forget what prompted me

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Speaker 3: to even think about this consulting firm yesterday. But then

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Speaker 3: when I dig in and I find this NBC News

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Speaker 3: story to help support my contention, as lawyers like to do,

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Speaker 3: if I do follow on and realize, well, yeah, and

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Speaker 3: what are we doing? Once again, where's the accountability? So

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Speaker 3: back to the story. Now, Remember this NBC News report

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Speaker 3: is not a local affiliate. This is the NBC News website.

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Speaker 3: This is from December of twenty twenty, and it started

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Speaker 3: out talking about how tens of thousands of prison and

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Speaker 3: jail inmates, including convicted serial killers have carried out what

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Speaker 3: prosecutors described Tusay as possibly the largest fraud scheme in

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Speaker 3: California history, up to a billion dollars according to the

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Speaker 3: DA in Sacramento County, and she said, quote, the fraud

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Speaker 3: is honestly staggering. Between March and August, the DA said

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Speaker 3: that inmates housed in every single California prison and in

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Speaker 3: jails across the state filed thirty five thousand claims totally

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Speaker 3: one hundred and forty million dollars in benefits. Sometimes they

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Speaker 3: write those benefits were paid directly to inmates inside the jail.

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Speaker 3: In other cases, the money was sent to relatives and

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Speaker 3: friends outside the prisons in jails. It and I'm just joking,

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Speaker 3: but it makes you think to yourself, why am I honest?

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Speaker 3: Why do I try to, you know, play by the rules?

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Speaker 3: Why did I they're playing by the rules because there

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Speaker 3: were no rules and no rules. And Gavin Newsom looks

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Speaker 3: at it, just like Jared Poults looked at you know,

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Speaker 3: building the damn hospital down at the Convention Center. Just

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Speaker 3: looks at it and builds it and you know, never

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Speaker 3: is used. I don't think a single patient went through

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Speaker 3: that hospital at the convention Center, and then the fraud

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Speaker 3: that I just described to you, just like having a baby,

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Speaker 3: continue for another nine months. Both the inmates themselves as

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Speaker 3: well as the all of their accomplices working with them

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Speaker 3: on the outside, access the online application system for unemployment compensation.

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Speaker 3: So using both their own social Security numbers and their birthdays,

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Speaker 3: as well as social Security numbers and birthdays of anybody

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Speaker 3: else they could get their They got the payments via

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Speaker 3: the prepaid debit cards, and they got mailed to whatever

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Speaker 3: address the prisoner listed on the application.

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Speaker 2: So you're sitting in you.

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Speaker 3: Know, some jail in Sacramento, and you've got a brother

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Speaker 3: in you know, in downtown Denver, somewhere in Rhino. So

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Speaker 3: use his address and he gets a debit card. Man,

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Speaker 3: he's just he's collected money like crazy. But there were

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Speaker 3: even instances where the investigators found that physical checks were

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Speaker 3: mailed to the prisons, and prison officials allowed those checks

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Speaker 3: to be deposited into the prisoner's commissary accounts. Nothing nothing

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Speaker 3: more complicated than cross referencing applicant names against the names

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Speaker 3: and social security numbers of just you know, let's let's

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Speaker 3: do a database check here. Let's cross reference the names

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Speaker 3: of all the applicants against all people who are currently incocerated.

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Speaker 3: That that would have instantly revealed and probably more likely

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Speaker 3: than not stop the fraud more than a billion dollars

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Speaker 3: paid to prison inmates. So Minnesota, huh, you're just you're pikers.

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Speaker 3: Compared to California, And if you're curious, thirty five states,

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Speaker 3: at least according to the California Auditor, thirty five states

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Speaker 3: do cross match unemployment applications against state prison rosters. Twenty

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Speaker 3: eight of those thirty five states go one step further

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Speaker 3: and they cross match an applicant against county and local

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Speaker 3: jail registers. Why because those facilities house individuals who have

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Speaker 3: demonstrated an inclination toward breaking the law, and they got

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Speaker 3: a lot of time on their hands, they got nothing

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Speaker 3: else to do, and of course taxpayers provide them with computers,

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Speaker 3: and or they sneaked cell phones in, or somehow they've

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Speaker 3: got access to the interwebs. Now maddening, These state prisoners

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Speaker 3: were only one aspect of this employment fraud nuisances administration

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00:23:18,040 --> 00:23:20,800
Speaker 3: failed to show even a bare minimum level of competence.

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Speaker 3: Has been known since January twenty twenty one, when the

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Speaker 3: California State Auditor published a report on multiple levels of ineptitude, wasting,

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Speaker 3: fraud in the edd's handling of COVID era funding. They

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Speaker 3: put out an executive summary which resulted in more than

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Speaker 3: ten billion dollars in claims that they've determined to be fraudulent.

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Speaker 3: They allowed claimants to collect benefits even though they were

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Speaker 3: using suspicious addresses. In one case, seventeen hundred claims from

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Speaker 3: one single address. The staff made at least a billion

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Speaker 3: dollars in payments to claimants despite the staff having concerns

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Speaker 3: about the legitimacy of their identities, and they just let

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00:24:06,240 --> 00:24:10,720
Speaker 3: it go through. The Employment Division was unprepared to guard

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Speaker 3: against inmate frouduse. It didn't cross match all the incoming

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Speaker 3: claims against the incarceration data paid out roughly eight hundred

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Speaker 3: and ten million dollars in benefits to more than forty

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Speaker 3: five thousand claimants who were in jail. That seventeen hundred

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Speaker 3: claims from one address one billion dollars to forty five

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Speaker 3: thousand inmates out of a prison population of one hundred

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Speaker 3: and twenty thousand.

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Speaker 2: Yeah, Minnesota, you got some catching up to do.

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Speaker 1: Good morning, Michael and Dragon since excels electrical engineers can't

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Speaker 1: figure out how to keep power lines from arcing when

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Speaker 1: they touch each other, they had to offer it up

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00:24:50,400 --> 00:24:54,119
Speaker 1: to kids six to twelve years old to see if

360
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Speaker 1: they can come up with creative ideas and then maybe

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Speaker 1: offer a generous one hundred dollars college scholarship to the

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Speaker 1: top five answers.

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Speaker 3: Or do you like some I don't know whether Apple

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00:25:06,720 --> 00:25:12,080
Speaker 3: still does this, but they would pay bounties for bug detectors.

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Speaker 3: People out there that you know, are working on an

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Speaker 3: operating system in OS and they and they find a

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Speaker 3: bug and it's a serious bug. You know, Apple, Microsoft, Google,

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Speaker 3: others would would pay bounties for those things. So open

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Speaker 3: it up to your point, open it up. And I

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Speaker 3: hate say this about engineers, but I thought engineers could

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Speaker 3: fix anything. I thought engineers were a lot smarter than

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Speaker 3: lawyers and could just fix anything. Apparently not that will

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Speaker 3: allow them up.

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Speaker 2: Dragon Michael Brown at iHeartMedia dot com. Michael Brown at

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Speaker 2: iHeartMedia dot com.

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Speaker 3: That'll get the engineers off, pissed off. But why are

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Speaker 3: we worried about California anyway? Because it's California. Well, except

378
00:26:01,520 --> 00:26:04,840
Speaker 3: the problem is its federal money it's not like California

379
00:26:04,920 --> 00:26:10,720
Speaker 3: tax revenues were being impacted. Again, back to NBC, As

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Speaker 3: part of its temporary COVID nineteen procedures, the EDED instructed

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Speaker 3: the staff to automatically backdate new claims to the date

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00:26:18,200 --> 00:26:21,359
Speaker 3: the claimant said they became unemployed. In other words, staff

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00:26:21,400 --> 00:26:24,199
Speaker 3: were told to enter an effective date for a claim

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Speaker 3: that could be weeks before the date the claimant actually filed,

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Speaker 3: allowing that individual to be paid benefits for those weeks

386
00:26:32,440 --> 00:26:35,440
Speaker 3: before anybody Nobody was looking. But in just case somebody

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Speaker 3: was looking, they might catch up with them.

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Speaker 2: NBC.

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Speaker 3: The Department Labor provided guidance instructing states to backdate pandemic

390
00:26:43,880 --> 00:26:47,360
Speaker 3: related claims to the week in which claimants first became unemployed.

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Speaker 3: According to EDD, it automatically backdated new claims to comply

392
00:26:52,240 --> 00:26:57,800
Speaker 3: with this guidance. EDD asserted that automatically backdating claims reduced

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Speaker 3: the manual workload they would have otherwise being required to

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00:27:01,200 --> 00:27:02,680
Speaker 3: pay claim. In other words, they didn't want to do

395
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Speaker 3: the work. Oh my gosh, I gotta manually enter something. No,

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Speaker 3: I don't get paid to do that. I mean, I

397
00:27:09,920 --> 00:27:12,200
Speaker 3: show up at nine o'clock, but by ten thirty it's

398
00:27:12,280 --> 00:27:14,640
Speaker 3: lunch time. I don't get back till two, and then

399
00:27:14,840 --> 00:27:17,480
Speaker 3: I gotta check my mail and do my Amazon order,

400
00:27:17,480 --> 00:27:19,560
Speaker 3: and by at that time it's four o'clock and I

401
00:27:19,600 --> 00:27:26,320
Speaker 3: gotta go home. I sincerely doubt that the Department of

402
00:27:26,359 --> 00:27:30,919
Speaker 3: Labor Guidance took into consideration the fact that the California

403
00:27:31,160 --> 00:27:34,320
Speaker 3: EDD was accepting in paying on claims without any verification

404
00:27:34,440 --> 00:27:35,520
Speaker 3: process whatsoever.

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Speaker 2: Their decisions just poured more money into the.

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Speaker 3: Pockets of the fraudsters than they would have received based

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Speaker 3: solely on their initial application.

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Speaker 2: So do you get what I just said?

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Speaker 3: They actually got paid more than what was on their

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00:27:53,920 --> 00:27:59,600
Speaker 3: basic initial application. As of late December of twenty twenty,

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00:28:00,040 --> 00:28:03,760
Speaker 3: California's EDD had paid had more than two point two

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00:28:03,800 --> 00:28:07,160
Speaker 3: million claims submitted during the pandemic for which it could

413
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Speaker 3: not confirm the identity of that claims.

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Speaker 2: That's twenty four percent, as a.

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Speaker 3: Full fourth of the nine and a half million dollars claims,

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00:28:15,080 --> 00:28:17,920
Speaker 3: and that's from those filed from the time the Carezact

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00:28:18,000 --> 00:28:23,080
Speaker 3: became law in March. It doesn't know, It simply does

418
00:28:23,119 --> 00:28:27,120
Speaker 3: not know how many legitimate or are legitimate, and how

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00:28:27,119 --> 00:28:31,160
Speaker 3: many are fraudument At least five hundred and thirty four

420
00:28:31,200 --> 00:28:34,439
Speaker 3: thousand of the claims were paid unemployment insurance benefits in

421
00:28:34,640 --> 00:28:39,520
Speaker 3: excess of their traditional dollar threshold for at least flagging

422
00:28:39,560 --> 00:28:44,720
Speaker 3: it and pursuing a criminal investigation of an impostor. Now,

423
00:28:44,880 --> 00:28:47,520
Speaker 3: remember this is a report that was issued in January

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Speaker 3: of twenty twenty one, and we know from examples reported

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00:28:51,680 --> 00:28:55,920
Speaker 3: by NBC that the prison inmates about the prison inmates,

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Speaker 3: that fraudulent claims continue to be paid all.

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Speaker 2: The way and Hill, what do you think happened?

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Speaker 3: Oh, the fans money ran out September four of twenty

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00:29:06,600 --> 00:29:09,840
Speaker 3: twenty one. They simply ran out of money, Otherwise it

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00:29:09,880 --> 00:29:12,840
Speaker 3: would have continued. That's why the ultimate amount of the

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00:29:12,880 --> 00:29:18,000
Speaker 3: fraud is expected and estimated to exceed thirty billion dollars.

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Speaker 3: But the report, the initial report only identifies ten point.

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Speaker 2: Four billion because it only goes up to December of

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Speaker 2: twenty twenty.

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Speaker 3: Governor Newsom's administration has never revisited the auditor's report from

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Speaker 3: twenty twenty one. I can't find any post pandemic comprehensive

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Speaker 3: analysis or an audit by the California government in the

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Speaker 3: Governor's office or the auditor for that matter. I can't

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Speaker 3: find anything. Now, the Biden Justice Department investigated and prosecuted

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Speaker 3: individual fraudulent actors, schemes, the facts of many, and many

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Speaker 3: included fraud through the end of covid Era, but not

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Speaker 3: one single agency at the federal level has taken on

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Speaker 3: a comprehensive analysis of this fraud up through the end

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Speaker 3: of the federal funding on September four of twenty twenty one.

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Speaker 3: Now the statue limitations, yeah, just going to expire no

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Speaker 3: later than September of next year. So Trump Department of

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Speaker 3: Justice step up, Gavin Newsom step down.