Fraud

Update: How SAO will audit Washington’s Employment Security Department in light of major unemployment fraud

Update, January 12, 2021: Some of the audits related to the state Employment Security Department have new timeframes.

The accountability audit now will include examining fraudulent claims through the end of December 2020. It is scheduled to be issued in the first quarter of 2021.

The federal government is allowing a three-month extension for federal and financial reporting to grant recipients who have received some form of COVID-19 funding. The State has decided to use this extension. Subsequently, our federal audit will now be issued in May 2021.

Information from the Washington State Auditor about the state’s unemployment and Self-Employment Assistance Program (SEAP) fraud

Criminals, suspected to be part of an international crime ring, have targeted the state's Employment Security Department and are filing fraudulent unemployment claims using the names and personal information of real people to steal public money.

Governments and private businesses across the state have seen a big increase in fraudulent claims, many even filed in the names of current employees.

Here are a few questions and answers regarding this fraud.

Loss of funds at economic development association underscores need for audits

The Camas-Washougal Economic Development Association resisted audits for years, lost public funds and lacked even basic financial documentation since its inception, the Office of the Washington State Auditor found in two reports issued today.

“Public funds need oversight and they need regular audits. Unfortunately, this is an example of the danger to tax dollars and public trust when accountability is shortchanged,” said State Auditor Pat McCarthy. “I hope it serves as a reminder of the importance of transparency and independent auditing, regardless of circumstance.”

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