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>>

  • VP Joe Biden speaks in Detroit on Labor Day

    VP Joe Biden speaks in Detroit on Labor Day

    Monday, September 1 2014 1:18 PM EDT2014-09-01 17:18:46 GMT
    This is the second time vice president Joe Biden has been in Detroit on Labor Day in the past three years.
    This is the second time vice president Joe Biden has been in Detroit on Labor Day in the past three years.
  • RECALL: Kraft American Singles Cheese Slices

    RECALL: Kraft American Singles Cheese Slices

    Monday, September 1 2014 8:05 AM EDT2014-09-01 12:05:15 GMT
    Kraft voluntarily recalled 7,691 cases of its American Singles cheese product Friday because an ingredient was stored improperly by a supplier.
    Kraft voluntarily recalled 7,691 cases of its American Singles cheese product Friday because an ingredient was stored improperly by a supplier.
  • Minimum wage hike launches this Labor Day

    Minimum wage hike launches this Labor Day

    Monday, September 1 2014 7:30 AM EDT2014-09-01 11:30:54 GMT
    Minimum wage workers across metro Detroit and the rest of the state are getting a small raise this Labor Day.
    Minimum wage workers across metro Detroit and the rest of the state are getting a small raise this Labor Day.
Powered by WorldNow
Untitled

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 | New Terms of Service What's new | Ad Choices