Ohio Inspector General Investigation Finds Ohio Department of Job and Family Services’ Contract Employee Improperly Released Over Three Million Dollars in Public Unemployment[...]

In 2020, because of the COVID-19 pandemic and the increased unemployment of millions of Americans, Congress passed various programs to address the crisis, including the Pandemic Unemployment Assistance (PUA) program. The PUA program expanded and loosened eligibility unemployment requirements for recipients. Consequently, the Ohio Department of Job and Family Services (ODJFS), the agency responsible for distributing PUA benefits in Ohio, received an unprecedented number of unemployment compensation claims. This increase in claims necessitated ODJFS to hire intermittent and temporary contracted workers to process the claims. In fiscal year 2021, ODJFS disbursed approximately $7.6 billion in pandemic unemployment benefits and later, ODJFS identified millions of dollars of the disbursals as fraudulent. To address the rampant fraud connected to the PUA program, an investigative group was established that consisted of the Office of the Ohio Inspector General, Ohio State Highway Patrol, United States Department of Labor - Office of Inspector General, and ODJFS.

On June 15, 2023, ODJFS referred an allegation of wrongdoing to the Office of the Ohio Inspector General involving former subcontracted Randstad employee, Customer Service Representative (CSR) Ericka Holland. The referral alleged that Holland improperly accessed and authorized payments on Pandemic Unemployment Assistance claims resulting in the improper release of PUA funds to ineligible claimants.

Investigators determined that Holland took actions outside the scope of her training and authority in 393 PUA claims. Specifically, investigators found that Holland improperly voided fraud alerts on PUA claims; cleared identity verification, program eligibility and other issues on PUA claims; and increased the reported income amounts for claimants resulting in $3,247,402 in benefits being paid to ineligible claimants.

In addition, investigators discovered that Holland submitted her own claim for PUA benefits for which she was not eligible because she was employed during the same period she reported being unemployed on her PUA claim. Further, investigators found that Holland had filed a false Form 1099-Misc to inflate her reported income to fraudulently increase her PUA benefit payments. Investigators determined Holland improperly received $56,780 in PUA benefits.

The Office of the Inspector General is referring this report of investigation to the Hamilton County Prosecuting Attorney and the Ohio Auditor of State for consideration.

Ohio Inspector General Report of Investigation file number 2023-CA00010 is now available.