>> WE STARTED SEEING A BIG WAVE OF TSEHE ENVELOPES BY THE DOZENS SHOWING UP IN PEOPLE’S MABOILXES. >> THIS IS 22 PIECES OF MAIL I HAVE RECEIVED. >> IN THE FIRST HOUR OF SETTING UP SURVEILLANCE ONHE T ATM, THIS I SUSPECT ARRIVED IN A VEHICLE, WALK OVER TO THE ATM. THEY WOULD SEE HIM PULL OUT A CARD AND PUT IT INTO THE ATM AND HE WOULD TAKE THE CASH. ANOTHER CARD, CASH. HE DID THIS FIVE TIMES AND THEN DE CIDED TO LEAVE. >> THE AMOUNT OF FRAUD WE FOUND WAS ASTRONOMICAL. >> FIRST IT WAS STATE PRISON INMATES, AND THEN JAIL INMATES. IN EL DORADO COUNTY, LITERALLY LFHA OF THE INMATES IN THE JAIL REWE COLLECTING UNEMPLOYMENT BENEFITS. >> EVERY TIME I TRIED TO REAPPLY, IT SAID YOU CAN’T. NOW I GET INTO THE PHONE CALLS THAT NEVEROR WKS. >> WE ARE RECEIVING MORE CALLS THAN WE CAANN SWER AND ARE UNABLE TO ASSIST YOU AT THIS TIME. >> THERE IS NO SUGARCOATING THE REALITY. CALIFORNIA DOES NOT HAVE SUFFICIE SNTECURITY MEASURES IN PLACTOE PREVENT THIS LEVEL OF ROT. >> WOULD YOU HEAVNY A IDEA HOW MANY MONEY T PAYERS HAVE LOST? >>O, N THAT IS NOT SOMETHING WE TRACK. >> THE UI FRAUD IS THE MOST SIGNIFICTAN FRAUD OCCURRENCE THAT HAS HAPPENED FOTHR E UNITED STATES. >> IT WAS NOT ABNORMAL TO GET A 000$3 SALE EVERY TWO HOURS. >> DOZENS OF ARREST FOR IDENTITY THEFT AND FRAUD IN BEVERLY HILLS. >> IT IS CRAZY THAT THESE JEWELRY STORES ON RODEO DRIVE ARE HAVING PEOPLE WALK IN WITH STAGGERING AMOUNTS OF CASH AND EDD CARDS TO BUY THINGS. THE WAY THE LEGISLATOR CHANGED THINGS, YOU CANNOT SEEIZ THAT MONEY. >> WHAT IS YOUR UPDATED ESTIMATE OF THE FRAUD THAT WAS PERPETRATED THROUGHOUT THE PANDEMIC? >> OF THE 1$177 BILLION THAT WAS PAID O,UT $20 BILLION IS ESTIMATED TO BE FRAUDULENT. THOSE PICTURES FROM 2004,E W WON THE CHAMPIONSHIP THAT YEAR FOR THE YTHOU FOOTBALL IN THE AREA. I GOT A FEW WHITNEYS ONE FROM MY 13 YEARS COACHING THE.RE I GOT A DIABETIC ULCER ON MY FOOT. I HAD BOTH MY KNEES REPLACED. THENE KE ON THE LEFT LEG BECAME INFECTED DUE TO THE INFECTION IN THE FOOT. SO I STAYED NEARLY A MONTH IN ETH HOSPITAL AND THEN I TRANSFERRED TO A NURSING CARE FACILITY FOR ALMOST A MONTH IN ITSELF JUST TO HEAL. YEAH, IT WAS HARD BECAUSE I MISSED THE LAST THREE GAMES. OF CRSE,OU OUR VARSITY TEAM HAD A GREAT RUN BEATING FOLSOM AND GOING TTOHE LAYOFFS. >> IT IS TOUGH GOING ON DISABILITY, BUT YOU PROBABLY FIGURED THAT IS WHAT IT'S’HERE FOR, RIGHT? >> I ENDED UP RECEIVING FROU CHECKS AND THEN EVERYTHING WAS CUT OFF. ♪ WELL, WE ACTUALLY STARTED GETTING MULTIPLE CALLS AND REPORTS OF PEOPLE SAYING, HEY, I GOT EDD MAI SHOWING UP TO MY ADDRESS. >> MAILBOXES ACROSS SACRAMENTO HAVE BEEN STUFFED WITH LETTERS FROM THE EDD. >> IT HAS BEEN SINCE NOVEMBER. >> I THINK IT WAS A NEW WAY. >> FRAUD GOING ON. >> THE THIEVERY WILL NEVER GO AWAY. >> $11.4 BILLION IN FRAUD. ♪ >> PRETTY SURE THE FRAUD WAS AT LEAST $1 BILLION. >>AST $1 BILLION. THIS IS WHITE-COLLAR CRIME. IT’S EASY MONEY .>> IEC REIVED OFFICIALOT NICE FROM THE DISABILITY DEPARTMENT SANGYI THAT THEY NEEDED SOME INFORMATION BECAUSE MY DISABILI ITYNSURANCE CLAIM IS BEING LOOKED AT AND I THOUGHT NO, I DID NOT FILE A DISABILITY CLAIM. I’M STILL EMPLOYED. >> IT APPEARS I HAVE APPLIED FOR DISABILITY INSURANCE, BUT IT LISTS MYSELF AS THE EMPLOYER. >> IT HAS A DATE THAT IS SUPPOSLYED WORKED -- THE LAST DAY WORKED WAS OCTOBER 19 OR SOMETHING. I WORK FOR A CDITRE UNION AND WE DON’T WORK ON THE WEEKENDS UNLESS TREHE IS SPECIAL CIRCUMSTANCES. >> WE ARE LEARNING ABOUT A NEW TYPE OF FRAUD INVOLVING CALIFOIARN’S EMPLOYMENT DEVELOPMENT DEPARTMENT. >> IT IS HITTING EVERYONE FROM LEGITIMATE CLAIMANTS TO DOCTORS. THEY ARE TARGETING DISABILITY BENEFITS. >>AM SE TACTICS, NEW PROBLEM. >> WHY WOULD THEY CONTACT ME? >> THESE LETTERS REGARDING DISABILITY INSURANCE. >> I HAVE GOTTEN THE FIRST LETTER AND TURNED AROUND TEEHR DAYS LATER AND HAVE GONE THE LETTER THAT IS EXACTLY THE SAME. THE ONLY DIFFERENCE IS IN THE CASE NUMBE.RS >> ONE OF THE THINGS I HEARD RECENTLY, SOMEBODY SENT ME A COPY OF A LETTER THIS PERSON RECEIVED, SOMEBODY OPENED AN ACCOUNT IN THEIR NAME. SHE DOES NOT NEED EDD, DID NOT APPLY FOR IT. >> I GOT CONTACTED BY PEOPLE I KNOW SAYG,IN HEY, I GOT THIS IN MY MAILBOX A WNDE NEVER APPLIED FOR THIS. I REACHED OUT TO EDD AND THEY HAD DONE TIRHE OWN PRESS RELEASE. I JUST THINK IT WAS A NEW WAVE. THE THIEVERY WILL NEVEGOR AWAY, THEY WILL JUST TRY TO CHANGE IT UP. >> ONE ASSEMBLY MEERMB SAYS DOCTORS IDENTITIES ARE BEING STOLENS AWELL. HE SAYS THEY ARE BEING USED TO VERIFY ACCOUNTS OF DISABILITY PAYMENTS TO BE SENT TO SCAM ARTISTS. >> I AM NOT CONVINCED THAT THE EDD CAN REALLY MAKE THE DISTINCTION BETWEEN THOSE THAT ARE TRYI TNGO SCAM THE SYSTEM AND LEGITIMATE INDIVUALSID WITH DISABILITIES WHO NEED THEIR PAYMENTS. >> THANK YOUOR F CALLING THE DISABILITY INSURANCE PROGRAM. >> AOT LF PEOPLE, A LOT OF DOCTORS THAT HAD IT AND FOLKS APPLIED WITH THAT -- THIS IS WHITE-COLLAR CRIME. IT IS MUCH SAFER THAN DEALING DRUGS, ROBBING A BANK, OR BREAKING INTO SOMEONE’S HOUSE. >> WE HAVE BEEN CLOSELY MONITORING OUR SYSTEMS OBVIOUSLY AND NOTED THIS ACTIVITY HITTING OUR DFRAU INDICATORS. SO, WE WERE ABLE TO TAKE ACTION PRETTY QUICKLY TO MINIMIZE SOME OF THE IMPACTS. >> FOR DISABILITY INSURANCE -- >> WE WERE HIT WITH A WAVE OF PEOPLE CALLING OUR OFFICE. >> PLEASE WAIT WHILE YOUR CALL IS TRANSFERRED. >> THESE WERE MOTHERS WITH CHILDREN, PEOPLE GETTING DISABILITY. THESE WERE LEGITIMATE CLAIMS AND THEY WERE JUST CUT OFF. THEY WERE IN DESPERATE CIRCUMSTANCE. >> AROUND THE 14TH, I DECIDED I NEEDED TO CALL IN AND FIND OUT WHY I DID NOT GET ANOTHER CHECK. >> THE MAXIMUM NUMBER OF COLORS HAS BEEN REACHED. -- CALLERS HAS BEEN REACHED. >> I GOT LUCKY AND IT TOOK ME FIVE ATTEMPTS AND I GOT THROUGH. SHE TOLD ME WHAT WAS GOING ON. WE QUIT SENDING CHECKS BECAUSE OF FRAUD. YOU’D THINK WHEN THEY STARTED FREEZING CHECKS THEY WOULD HAVE PUT IT ONLINE. SOME KIND OF NOTE, SOME KIND OF BLAST TO YOU -- NOTHING. >> DAEJ VU, ABSOLUTELY. IT SHOULDN’T HAPPEN THAT WAY. THEY HAD THE EXPERIENCE TO GET IT RIGHT THE FIRST TIME. THEY SHOULD HAVE SEEN THIS COMING. IT IS TIME AND TIME AGAIN, TYHE WILL INTEREST RATE THE WEAKEST -- INFILTRATE THE WEAKEST POINT. >> LINES OF PEOPLE OUTSIDE THE OFCES OFFI CALIFORNIA’S EMPLOYMENT DEVELOPMENT DEPARTMENT BUT THIS WAS NOT FOR UNEMPLOYMENT. THESE PEOPLE WERERY TING TO GET THERE DISABILITY PAYMENTS. >> HOW MANY PEOPLE WERE THERE?>> PROBABLY 30, 40. >> THEY SAID WE THINK THERE IS SOME FRAUD GOING ON. I GET THAT THERE HAS BEEN FRAUD, BUT BEFORE THAT, MY BENEFIT WAS THERE. >> DID THEY CUT OFF YROU PAYMENT? >> THEY STOPPED EVERYTHING SINCE NOVEMBER. >> FIRST THING IN ETH MORNING, ALL OF THEM IN THE SAME STATE YOU EAR IN, WITH A DISABILITY? >> YEAH, SOME PEOPLE WORSE. ONE GENTLEMAN I WAS TALKING TO, IT WAS HIS 1H5T TIME DOWN THERE SINCE HE WAS AEBL TO PHYSICALLY GO DNOW THERE BECAUSE HE HAD A SPINAL CORD INJURY AND HAS UP RECEIVING ANYTHING SINCE AUGUST. >> MY PAYMENTS STOPPED. I GOT SURGYER IN SEPTEMBER. I WAS PUT ON AUTOMATIC PAYMENTS. MY PAYMESNT STOPPED ON DECEMBER 9. NO REASON. >> HE T CLAIMS ARE APPARENTLY CAUGHT UP IN YET ANOTHER WAVE OF EDD FRAUD. THIS TIME IT IS AFFECTING DISABILITY CLAIMS. BY JANUARY, EDD SUSPEEDND 345,000 ACCOUNTS. IN AN EMAIL TO KCRA 3, THE DEPAMERTNT SAYS THERE RE 27,000 DR. CREDENTIALS THEY NEEDED TO VERIFY BEFORE UNFREEZING CLAIMS. >> I WORK R FOA HEALTH-CARE COMPANY. WE INVESTITEGA FRAUD WITH PROVIDERS. WE SAY WE HAVE ALL THIS FRAUD GOING ON, WE WILL JUST CAELNC EVERYBODY’S INSURANCE, IT WOULD BE ALL OVER THE PLACE. >> WHILE THERE ARE MULTIPLE OFFICES, THE ONLY ONES IN OUR AREA THAT ALDE WITH DISABITYLI CLAIMS ARE IN SACRAMENTO AND STOCKTON. >> IIST DIFFICULT, YOU KNOW. THERE IS A SENSE OF PDERI THERE. YOU HAVE TO PUT YOUR PDERI ASIDE AND LUCKILY, LIKE I SAID THROUGH E THGOFUNDME ACCOUNT, A LOT OF PEOPLE HELPED US OUT. WE COUNT OUR BLESSINGS ERYVE DAY THAT WE HAVE THE SUPPORT FROM THE CHURCH AND FRIENDS AND FAMILY, THAT INO KW SOME PEOPLE PROBABLY DON’T HAVE. >> IT IS HEARTBREAKING WHEN YOU HEARD MOM WITH A NEWRNBO OR SOMEBODY WHO IS ON DISABILITY WHO CAN’T -- MAYBE IS NOT MOBILE, MAYBE THEY’VE BEEN HURT -- AND THEY ARE HAVING A TOUGH TIME BECAUSE THEY’VE BEEN CUT OFF. NOW THE RENT IS DUE. THEY’VE GOT TO PAY FOR THEIR FOOD. THEY HAVE TO LIVAE LIFE. AND THEY ARE NEARLY DESTITUTE AS A RESULT OF IT. >> CHECK STUBS. THESE ARE THE FOUR CHECK STUBS. SOMEBODY FROM YOUR COMPANY, CHANNEL 3, REACHED OUT TO JIM COOPER’S OFFICE, THE SEASMBLYMAN. HIS STAFF WAS ABLE TO HELP A MOVE THE PROCESS ALONG. >> WE CALL IT INTERVENE. IT SHOULD NOT BE THAT WAY. IT SHOULD GET RECTIFIED IN SEVEN TO 10 DAYS. IT SHOULD NOT TAKE INTERVENTION OF THE LEGISLATURE. >> WE STEPPED IN AND INSISTED IF YOU CAN’T DO THIS FOR OUR PEOPLE, WE WILL. THAT’S EXACTLY WHAT WE DID. EYTH WOULDN’T ACCEPT OUR HELP AT FITRS BUT WE MADE A NUISANCE OF OURSELVES AND EYTH FINALLY GR ANTED AND WE WERE ABLE TO CLEAR THESE INWEEKS. >> I KEPT AN EYE ON THE INTERNET EVERY DATO SY EE IF THEY CUT A CHECK OR NOT. FINALLY TO OUR SURPRISE, THEY CUT A CHECK ON MARCH 2. >> YOU WOULD HEAV THOUGHT HAVING THE DEBACLE, THEY WOULD HAVE HAD THEIR SEA LEGS WITH THAT WHEN THEY DIDN’T. >> I TALKED TO THE MAJORITY LEADER AND SHE HAD SOME CONCERNS ABOUT IT BECAUSE YOU HEARD FROM HER CONSTITUENTS THE SAME THING. THEY ARE HAVING A HARD TIME GETTING THROUGH TO EDD WITH A LOT OF ISSUES. AT SOME POINT WE CANNOT LET THIS REPEAT. THIS IS THE SAME THI,NG JUST DISABILITY INSURANCE. THOSE SAME STOPGAPS SHOU HAVELD BEEN IN PLACE AND REALLY WORKED. IT IS FRUSTRATING. >> THIS IS KCRA 3 NEWS. WE BEGIN WITH BREAKING NEWS. >> THE BREAKING COMING OUT OF ETH CALIFORNIA’S EMBATTLED EMPLOYMENT DEVELOPMENT DEPARTMENT WREHEHE AGENCY’S NEWEST DIRECTOR IS STEPPING DOWN. >> H,EY WE’VE GOT TO CHANGE OUR OPERATION. >> THEDD E DIRECTOR WAS HIRED A LITTLE MORE THAN A YEAR AGO. SHE WAS HIRED TO CLEAN UP THE AGENCYND T AONIGHT SHE IS OUT. >> I DON’T KNOW IF THEY BROUGHT SO PMEROFESSIONALISM BACK TO IT. I HOPE THEY DID BUT I DON’T HAVE A LOT OF CONFIDENCE. TIME WILL TELL. ♪ >> FOR THE RECORD, I'’ DIRECTOR OF THE DEPARTMENT OF -- WE BEGIN WITH BREAKING NEWS. >> THE BREAKING NEWS COMING OUT OF CALIFORNIA’S EMBATTLED EDD, WHERE THE AGENCY’S NEWEST DIRECTOR IS STEPPING DOWN. >> I CAME TO BE WITH THE PADERTMENT IN JANUARY. AND I RELYAL APPRECIATE THE FRUSTRATIONS PEOPLE HAVE HAD. >> THIS WAS A SURPRISE. THAT DEPARTMENT NEEDS STABILITY. >> IT REALLY DOES. THEDD E DIRECTR WAS HIRED A LITTLE MORE THAN A YEAR AGO. SHE WAIRSHED TO CLEAN UP THE AGENCY AND TONIGHT, SHE IS OUT. >> THIS SIMPLY SAYS TO ME THAT IT’S CHAOTIC. THAT JUST CHANGING THE PERSON AT ETH TOP DOES NOT NECESSARILY CHANGE ALL OF THE INNER WORKINGS, THE GUTS OF THE BUREAUCRACY. >> THE GOVERNOR HAS ALREADY ANNOUNCED A REPLACEMENT, WHO IS CURRENTLY A CHIEF DEPUTY DIRECTOR WITNHI EDD. >> I HAVE GREAT RESPECT FOR NANCY WHO IS NOW THE DIRECTOR. I THINK SHE’S IN IT FOR THE RIGHT REASONS AND WAS TO CONTINUE FIXING THE SYSTE M. >> GOOD AFTERNOON, EVERYONE. WE ARE GOING TO START BUDGET SUOMBCMITTEE 4 IN ROOM 444. OUR FITRS ITEM WILL PROVIDE AN UPDATE ON EDD, AS WELL AS AN OVERVIEW ON THE BUETDG CHANGE PROPOSALS TO IMPROVE OPERATIONS AND ADDRESS FRAUD AT THE DEPARTMENT. >> WE TALKED TO THE DISTRICT ATTORNEY. SHE’S A LITTLE MEOR HOPEFUL. [LAUGHR]TE SHE'’ OPTIMISTIC. >> OUR PANELISTS FOR THIS ITEM INCLUDE OUR NEW DIRECTOR. >> SHE SAYS SHE’S HAD INTERACTIONS WITH THE NEW DIRECTOR, THAT SHE FEELS LIKE THEY ARE LISTENING. IS THAT SOMETHING YOU GUYS ARE FINDING? >> YEAH, SHE’S A ODGO PERSON, BUT LOOK WHAT HAPPENED OVER THE YEARS. IS IT HER FAULT? NO, BUT YOU HAVE THAT LEGACY OF PRIOR DIRECTORS AND FOLKS THAT WERE THERE AND STILL THERE THAT DID NOT DO THEIR JOB. SO, YH, HOPEFUL THINGS WILL CHANGE BUT IT STILL TAKES TIME. IT HAS TO COME FROM THE TOP DOWN. >>HE CONTRACTS ASSIST US IN PAYING CLAIMANTS TIMELY WLEHI PREVENTING SCAMMERS FROM INFILTRATING OUR SYSTEMS. >> YOU NEED SOME CHANGES THROUGUTHO EDD, NOT JUST THE TOP LEVEL. TATHE END OF ETH DAY, THOSE FOLKS IN THE TRENCHES GET IT DONE AND YOU HAVE TO MAKE SURE THEY ARE DOING TIRHE JOB AND BEING HELD ACCOUNTABLE. THE WAIT TIMES WERE RIDICULOUS. PEOPLE WERE GETTING HUNG UP ON. THAT IS BASIC CUSTOMER SERVI.CE >> MY HOPE IS THAT THEY WILL HAVE LEARNED THEIR LESSON AND LLWI HEED WHAT THE AUDITOR HAS MADE SO CLEAR OVER AND OVER AGAIN. I HOPE THEY LEARNED THE LESSON THAT THEIR BUREAUCRACY IS THERE TO SERVE PEOPLE AND NOT TO PROTECT THEMSELVES. >> WE ISSUED REPORTS IN JANUARY OF 2021 AND FOLLOW-UP WHIT E,DD THEY HAVE TO REPORT TO US. THEY HAVE MADE SOME PROGRESS, NOT AS MUCH AS WE WOULD HAVE HOPED. >> MANY OF THE REFORMS IN BUDGET REQUESTS BEFORE YOU TODAY COMES FROM THE WELL THOUGHT OUT REMMCOENDATIONS FROM THE STATE AUDITOR ANDHE T EDD STRIKE TEAM. WE HAVE MET EVERY DEADLINE SET BY THE AUDITOR IN 1OF7 THE 21 RECOMMENDATIONS THAT ARE COMPLETE. THE REMAINING RECOMMENDATIONS ARE WELL UNDERWAY. >> THE FRAUD UNIT DID IDENTIFY AND TRYING TO CENTRALIZE SOME OF THOSE FRAUD MITIGATI EONFFORTS. THEY HAVE CREATED THAT UNIT BUT NOT FULLY STAFFEDT I YET. >> WHAT IS THE STATUSF O EDD’S FRAUD UNIT THAT WAS TO BE FULLY STAFFED AS OF NOVEMBER 2021? DO WE HAVE ANY UPDATE ON THAT? >> I BELVEIE IT IS FULLY STAFFED, ACTUALLY. MAYBE ONE OF MY COLLEAGUES -- >> THAT IS CORRECT. I’M ACTING CHIEF DEPUTY OF THE OPERATINS. THE FRAUD UNIT TTHA WAS RECOMMENDED BY THE CALIFORNIA STATE AUDITOR IS NOW CURRENTLY FULLY STAFFED AND OPERATIONAL. >> CAN ISK A WHAT DOES FULLY STAFFED MEAN? HOW MANY DO WE HAVE? >> I CAN ANSWER THAT. DED DEPUTY DIRECTOR OF THE EMPLMEOYNT INSURANCE BRANCH. WE STAFFED A COMPLETE SECTION WITHIN THE PROGRAM. THAT INCLUDES A SECTION MANAGER, OTW MANAGERS,WO T SPECIFIC UNITS AND FOUR TO SIX WITHIN THOSE SPECIFIC UNITS. IT ENCOMPASSES APPROXIMATELY 12 INDIVIDUALS. >> THEY HA AVE DENOZ OFFICERS TO COVER THE ENTIRE STATE. THE FOLKS THAT HAVE DONE THE MOST IN THIS EDD FRAUD HAS BEEN LOCAL LAW ENFORCEMENT. THEY HAVE DONE MOST OF THE INVESTIGATIONS AND SEARCH WARRANTS. >> THEY’VE GOT A TOUGH JOB. 12 PEOPLE? OK. IUS J WONDERED, THAT OPENS A PAORNDA’S BOX FOR A BUNCH OF QUESTIONS. THIS IS TNO THE PLACE FOR ME TO ASK THEM. >> BRAND-NEW MERCEDES-BENZ, LAPTOP COMPUTERS, EXPENSIVE SHOES. CRIMINALS BOUGHT THOSE ITEMS USGIN MONEY THEY GOT FROM FRAUDULENT CLAIMS APPROVED BY CALIFORNIA’S DEVELOPMENTED BY DEPARTMENT. OUR KCRA DOCUMENTARY FOUND A STATE LAW CHANGED SEVERAL YEARS AGO MADE IT HARDER FOR PROSECUTORS TO TAKE AND SELL THOSE ITEMS IN ORDER TO GET THE MONEY BACK. >> HOW MANY INVESTIGATIONS HAS EDD OPENED RELATED TO FRAUDULENT CLAIMS? >>DD E CURRENTLY HAS50 8 INVESTIGATIONS, JUST EDD. >> ON MAN FILED AT LEAST 78 FRAUDULENT CLAIMS WITHIN EDD, LOOKING FOR PANDEMIC ASSISTANCE. >> ONE WOMAN IS FACGIN66 1 CHARGES RELATED TO A FRAUD SCHEME THAT COST TAXPAYER ASBOUT $3 MILLION. >> A FORMER WIDE RECEIVER FOR THE NEW ENGLAND PATRIOTS HAS BEEN ORDERED TO PAYBACK CARES ACT MONEY HE GOT FROMDD E. HE WAS INDICTED A YEAR AGO FOR USE O UNAUTHORIZED DEVICES. >> IN ADDITION TO THOSE CHARGES RELATED TO THE DOWNTOWN SHOOTING, TODAY ADDITNAIO CHARGES WERE CHARGED IN A SEPARATE DOCKET ALLEGING THREE COUNTS OF EDD FRAUD, TOTALING THE AMOUNT OF APPROXITEMALY $45,000, OCCURRING BETWEEN JULY OF 2020 WHILE HE WAS INCARCERATED AND AUGUST OF 2002 AS WELL. >> DO YOU KNOW HOW MANY HAVE BEEN PROSECUTED? >> THERE’S BNEE OVER 200 ARRESTS. I DON’T KNOW HOW MANY HAVE BEEN PROSECUTED -- OH, LOOKS LIKE ABOUT 20 OR SO. >> TO GET THINGS DONE, IT TAKES AN ACT OF CONGRESS TO CHANGE THINGS. IT IS A CONSTANT BATTLE EVERY DAY, AND IT SHOUL’N'T BE THAT WAY. THERE’S NO REASON FOR IT TO BE THAT WAY. GO OUT AND BE TRUTHFUL AND TELL THE PUBLIC WHAT WERE A DOING AND HOW WE PLAN ON FINIXG THIS. SO, WHEN AN ARRT ES MADE, AN INVESTIGATOR DISCOVE ARS BANK ACCOUNT WITH POTENTIALLY FRAUDULENT FUNDS, WHAT HAPPENS TO THOSE FUNDS? >> WE ARE WORKING ON THAT CURRENTLY. WE ARE TALKING ABOUT RESTITUTION TO EDD, WHICH USUALLY DOES NOT OCCUR UNTIL AFTER ETH PERSON SERVES THEIR TIME IN PRISON. BUT, WE DO HAVE A WORKING GROUP WE ARE WORKING WITH ON FIGURING OUT HOW TO COLLECT THOSE FUNDS. >> CALIFORNIA’S ASSET FORFEIRETU LAW IS VERY NARROW. IT IS REALLY DIRECTED ONLY A DRUG DEALERS AT THIS POINT IN TIME. BUT IF THE CASH THAT IS DISCOVERED, IF THE CAR IS BEING DRIVEN, IF THAT CONNECTION CAN BE MADE AND IT CAN BE ESTABLISHED IN THE COURT OF LAW THAT THEY ARE FRUITS OF A CRIME OR EVIDENCE OF A CRIME -- >> TREHE WAS ONE PERSON IN PARTICULAR THAT WAS SHOWING ALL KINDS OF VIDEO AND PICTURES OF THEM HAVIN SGTACKS OF CASH ON HIS CAR AND BRAGGING ABOUT HOW HE IS FURNISHING HIS HOUSE WITH A WNE REFRIGERATOR AND BUYING HIS MOM A MERCEDES. >> WE HAVE BEEN COORDINATING WITH THE D.A. TO CONVEY THE MESSAGE TO SEIZE THAT STUFF, PROVE IT I AN COURT, AND WHEN YOU GET THE CONVICTION AND THERE AIS SENTENCE, HAVE THE JUDGE ORDER IT AS RESTITUONTI TO GO BACK TO EDDS A THE VICTIM OF A CRIME. >> WE MIGHT GET A JUDGE TO ORDER $2 MILLION IN RESTITUTION THAT SWA STOLEN, BUT THE ABILITY TO RECOVER THAT IS MINUSCULE. AS OPPEDOS IF YOU ARE ABLE TO SEIZE THE ASSETS THEY USED THE MONEY FOR -- CARS, TRUCKS, HOMES -- THEN, THAT MONEY CAN BE USED TO PAY OFF THAT RESTITUTION. >> IF YAN FUNDS -- HAVE ANY FUNDS ENBE RECOVERED TO DATE? >> Y,ES I BELIEVE THERE HAS BEEN SOME COLLECTED TO DATE. ORDERED BYHE T COURT, I AM NOT SURE IF COLLECTED YET. AGAIN, IT USUAYLL OCCURS, AS YOU KNOW, AFTER A PRISON SENTENCE. WE MAY NOT SEE THAT FOR A WHILE. >> SOMODEBY ASKED ME WHO MUCH ARE WE GOING TO RECOVER? PENNIES ON THE DOLLAR IS MY GUESS, BUT THE MONEY STILL HAS TO BE PAID BACK TO THE FEDERAL GOVERNMENT. >> IN A FACEBOOK LIVE SEGMENT WITH EASY MONEY PRODUCER, JIM COOPER SAYS IN THE WAKE OF THE DOCUMENTARY, HE WILL DO SO METHING TO FIX THAT. >> WE’VE HAD DISCUSSIONS AT LENGTH ABOUT THIS ISSUE, AND BECAUSE YOUR STORY, I'’ INTRODUCING A BILL ON JANUARY 3 THAT ALLOWS LAW-ENFORCENTME TO SEIZE THESE ASSETS FROM THESE INDIVIDUALS. SOMEBODY INVOLVED IN ASSET FORFEITURE WITH THE SHERIFF'S DEPARTMENT, IT DOES WORK. IT’S NARROWLY CRAFTED TO DEAL WITH FOLKS DURING THE PANDEMIC. SOEME FOLKS GOT SEVERAL HUNDRED THOUSAND DOLLARS IN GOODS AND PURCHASES. WE WANT TO BRING THAT MONEY BACK TO THE PUBLIC AND P IUTT BACK IN THE STATE COFFERS. THE MONEY IS STOLEN. THERE IS A BILL ISTH YEAR, THE TAXPAYER RECOVERY ACT, WHICH WILL ALLOW FOR SOME OF THOSE FUNDS TO BE RECOVERED TOUHRGH ASSET FOR OVERTURE. >> WHY DO YOU NOT THINK IT WILL PASS? >> I HAVE BEEN HERE EIGHT YEARS. ANY BILL THAT HOLDS PEOPLE ACCOUNTABLE, ESPIAECLLY IN THE CRIMINAL JUSTICE SYSTEM, IS NOT GOING TO GET OUT. >> WE ARE HAVING A PUBLIC SAFETY COMMITE.TE >> DO YOU THINK IT WILL MAKE IT OUT OF PUBLIC SAFETY? >> WE HAVE THE FOLLOWING SIX ITEMS THAT ARE ON CONSENT. ITEM NUMBER T,WO A.B.637, DISABILITY INSURANCE FRAUD. >> YEAH, IT DOES NOT GET OUT. >> THOSE OF US THAT HAVE BEEN ELECTED THAT ARE SUPPOSED TO BE SERVED BY THE EDD, WE HAVE FORCEDHETO T TRY, AT LEAST TO DO A BETTER J,OB AND MAYBE WE ARE COMING OUT OF THE DARK AGES OFHE T EDD, MAYBE INTO THE MIDDLE AGES OFHE T EDD. I DON’T KNOW. >> CALL THE ROLL. >> ON THE CONSENT CALENRDA -- >> AYE. >> THE FACT THAT W MEE A NUISANCE OF OURSELVES ON BEHALF OF OUR CONSTITUENTS BROUGHT THEM TO THEIR SENSES, SHOT A LITTLE FEAR INTO THEM, AND MAYBE IT CAUSED THEM TO MOVE. I SURE HOPE SO FOR THE SAKE OF OUR PEOPLE. >> AYE. >> BUY YOU A STEAK DINNER, BOTH YOU GUYS. >> ALL RIGHT .>> AYE. >> THE CONSENT CALENR DAIS ADOPD.TE FIRST UP ON THE AGENDA IS ITEM NUMBER, ONE A.B. 2287. ♪ [APPLAUSE] >> WE ARE GOING TO GO AFTER THE CRIMINALS WHO STOLE BILLIONS OF RELIEF MONEY MEANT FOR SMALL BUSINESSES. I’M ANNOUNCING THE JUSTICE DEPARTMENT WILL SOONAME A N CHIEF PROSECUTOR FOR PANDEMIC FRAUD. [APPLAUS E]♪ [CAPTIONING PERFORMED BY THE NATIONAL CAPTIONING INSTITUTE, WHICH IS RESPONSIBLE FOR ITS CAPTION CONTENT AND ACCURACY. VISIT NCICAP.ORG]