Virginia’s employment agency has ‘isolated’ some 4,200 claims that may have been compromised, official says
The Virginia Employment Commission is working with law enforcement to uncover a far-reaching fraud case in which about 4,200 unemployment insurance claims might have been compromised, the agency reported this week.
The VEC, however, offered no specifics about the financial crimes, including how much money was at stake or the time frame in which the fraud occurred, and said in a release it would not provide any additional information.
VEC Commissioner Carrie Roth said the agency “acted swiftly” to prevent further illegal activity.
“We are committed to resolving this issue and are working with law enforcement to pursue those responsible for these actions,” she said in the release. “We have already been able to recoup some of the funds that have been identified and are working to return payments to customers.”
The agency has “isolated” the 4,200 claims to prevent further activity on those and others, according to the release. No other information was provided.
VEC spokesperson Joyce Fogg did not immediately respond to additional inquiries Thursday from The Virginian-Pilot.
The commission has been plagued by problems as of late.
It was at the center of a class-action lawsuit last year alleging that tens of thousands of Virginians were “failed completely” by the state’s unemployment system throughout the COVID-19 pandemic.
A judge issued an order directing the agency to improve communication and accelerate claim processing, among other changes. After seeing signs of progress, the judge closed the case earlier this year.
Roth previously told The Pilot the pandemic had presented many challenges and said the agency “worked diligently” to address backlogged cases and improve customer service.
But some individuals and groups, including the Legal Aid Justice Center, are concerned the agency’s problems haven’t been fully fixed.
A bill signed into law this year directed the commission to develop a resiliency plan to help prepare for another potential crisis.
Katie King, katie.king@virginiamedia.com
