Suspects showed investigators 'how easy it was' to defraud EDD
Beverly Hills police arrest 44 for unemployment funds fraud
BEVERLY HILLS, Calif. —
Dozens of people have been arrested in Southern California on suspicion of defrauding the Employment Development Department out of possibly millions of dollars.
According to the Beverly Hills Police Department, officers began noticing that through pedestrian stops, traffic stops and other calls for service, a pattern was emerging. That pattern was the presence of debit cards from the California EDD.
Each card can be loaded with up to $20,000, leading investigators to estimate the fraud, so far, could end up being upwards of $2.5 million.
More importantly, some of those fraudsters have turned informant, showing investigators just how easy it is to defraud EDD.
"We've had some of those informants actually log onto a computer and show us how easy it is to go on to the website and log on to EDD," said Beverly Hills police Lt. Max Subin. "So yes, they are using names of deceased people, using names of people who are incarcerated, using names of people who have businesses and pretty much they are going into the computer and selecting the card."
Subin said many of those names and the associated personal information were simply purchased online.
Once the cards show up, some of the fraudsters went on spending sprees. Investigators found high-end merchandise, cash and weapons during the arrests. Some were even driving high-end sports cars they had rented.The arrests come in the wake of weeks of incidents KCRA 3 Investigates profiled in which dozens of EDD envelopes showed up in mailboxes in the Sacramento area. While Beverly Hills police cannot say whether this is the same kind of fraud as what people across the Sacramento area have seen, they did find dozens of letters during the arrests.
"The tricky thing for them is they either have to intercept the card and take possession of them, or they have to use some other means," Subin said.
Subin said 80% of the people arrested, roughly 35 of them, were from other states.
https://www.kcra.com/article/suspects-showed-investigators-how-easy-it-was-to-defraud-edd/34063525