More Fraud Exposed in Detroit

DETROIT, MI – The Michigan Attorney General’s Office has been investigating unemploymentunemployment benefits that were paid out to city employee’s that were not deserving of them.  The total so far that they say was paid out improperly is $400,000 to 33 current or former Detroit city workers.

18 current city employee’s are charged after it is alleged that they lied about their employment status to the state.  Detroit Inspector General James Heath announced the charges in a news release.

The Michigan Attorney General’s Office alleges that some full-time city workers collected unemployment benefits after they told the state’s Unemployment Insurance Agency they were laid off. Detroit reimburses the state on a dollar-for-dollar basis for payments to laid-off Detroit workers. The charges cover fraud dating back to 2008.

It is no secret that record keeping in the City of Detroit has been dismal at best.  This can be attributed to outdated policies and antiquated computer equipment and software.

The city’s inspector general, James Heath, is recommending that active workers charged in the investigation be fired and banned from working for the city in the future.

Mayor Mike Duggan’s office does not want this investigation to reflect on all of the city employee’s who work very hard every day under some extreme conditions.

The state was alerted to the fraud by a tipster.


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