Audit of Detroit's employee benefits program finds fraud - DC News FOX 5 DC WTTG

Audit of Detroit's employee benefits program finds fraud

Posted: Updated:
DETROIT (WJBK) -

A new audit of the city of Detroit's employee benefits program found workers - some still on the job - collecting fraudulent unemployment benefits. Between July of 2011 and March of this year there were 1484 claims processed during the audit. Close to 200 of the claims were likely outright fraud. Another 500 or more were deemed highly questionable.

In some cases the fraud was as blatant as a worker who never missed a day of work claiming to be laid off and collecting benefits.

The probe was ordered by emergency manager Kevyn Orr as Detroit's bankruptcy moves through federal court. Orr says Detroit has debt and future liabilities of $18 billion dollars.

Findings show poor investment returns and bad real estate investments cost the funds more than $140 million dollars. The report also found a lack of oversight on the cities' part.

It has been reported that Kevyn Orr wants to freeze the cities pension system for public workers in light of the findings.

Any criminal wrongdoing found in the report will be turned over to state and federal prosecutors. We're told criminal charges are expected down the road.

  • Local NewsLocal NewsMore>>

  • Neighbors tie pink ribbons to remember murdered Armada teen

    Neighbors tie pink ribbons to remember murdered Armada teen

    Monday, July 28 2014 5:48 PM EDT2014-07-28 21:48:30 GMT
    The community in Armada Township is pulling together to support the family of murdered 14-year-old April Millsap.
    The community in Armada Township is pulling together to support the family of murdered 14-year-old April Millsap.
  • Power outage numbers across southeast Michigan

    Power outage numbers across southeast Michigan

    Monday, July 28 2014 4:38 PM EDT2014-07-28 20:38:56 GMT
    As of 4 p.m., approximately 126,000 DTE Energy customers are out of power due to the high winds and lightning that hit southeast Michigan Sunday afternoon. DTE has restored power to 60,000 of the customers impacted by the storm.
    As of 4 p.m., approximately 126,000 DTE Energy customers are out of power due to the high winds and lightning that hit southeast Michigan Sunday afternoon. DTE has restored power to 60,000 of the customers impacted by the storm.
  • Let It Rip Weekend Proposal One and the Mongo Brothers

    Let It Rip Weekend Proposal One and the Mongo Brothers

    Let It Rip Weekend Proposal One and the Mongo Brothers

    Monday, July 28 2014 2:46 PM EDT2014-07-28 18:46:07 GMT
    How is Proposal One tied into funding our local schools, police and fire departments, plus should African Americans abandon the Democratic Party and the UAW?
    How is Proposal One tied into funding our local schools, police and fire departments, plus should African Americans abandon the Democratic Party and the UAW?

Powered by WorldNow

WTTG FOX 5 & myfoxdc
5151 Wisconsin Ave. NW
Washington, DC 20016
Main Number: (202) 244-5151
Newsroom: (202) 895-3000
fox5tips@wttg.com

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices