The departments seek to preserve federal funds associated with alleged fraudulent insurance claims.
The Department of Labor and the Office of the Inspector General have announced their intention to review pandemic-era insurance claims. As some accounts have fallen dormant, they would ordinarily be transferred to state unclaimed property agencies, which would affect the federal agency’s ability to review or recover the funds.
The department issued letters requesting that financial institutions freeze funds in the accounts of prepaid debit cards associated with unemployment insurance claims. Institutions are requested to do this through December 31st, 2026, to give federal agencies time to verify the validity of the claims. Officials asked that financial institutions preserve identified accounts and coordinate with federal investigators to keep funds recoverable as the investigation continues.
“Our office has already issued alert memoranda sounding the alarm, and the time for excuses is over. Every dollar lost through delay or inaction is taxpayer money handed directly to fraudsters. We will pursue every avenue to recover these funds, and we will not allow bureaucrats or criminals to run out the clock,” said Inspector General Anthony D’Esposito.
As the Lord Leads, Pray with Us…
- For Inspector General D’Esposito to seek God’s wisdom as he oversees the recovery of fraudulently claimed funds.
- For Acting Secretary Keith Sonderling as he coordinates the review of potential fraud and the financial institutions that have received the funds.
- For the president and adminsitration officials as they seek to recover fraudulently obtained pandemic-era funds.
Sources: Department of Labor
