Griffo and Buttenschon call for investigation into fraudulent unemployment claims

UTICA, N.Y. – New York State Sen. Joseph Griffo, R-C-Rome, and Assemblywoman Marianne Buttenschon, D-Marcy, today called on the New York State Attorney General and Inspector General to investigate $11 billion in COVID-19 unemployment insurance funds that were paid out incorrectly by the state.

The U.S. House Ways & Means Committee recently reported that fraudulent unemployment claims were used to purchase luxury homes, vehicles and goods.

Sen. Griffo and Assemblywoman Buttenschon previously wrote to state Department of Labor Commissioner Roberta Reardon in November following an audit by the state Comptroller's Office that found failures by the department contributed to the disbursement of the fraudulent claims. The two legislators requested that Commissioner Reardon provide an explanation and a plan for how the state will recoup its loses. An explanation and plan has not been received.

"The amount of fraud we have seen related to COVID-19 unemployment insurance is alarming and, frankly, ridiculous," Griffo said. "There must be accountability, as we have stressed previously. The Attorney General and Inspector General must take action immediately and must do everything within their power to assist with recouping these fraudulent claims. This is funding that could be used to address other issues affecting the state, including enhancing health care, infrastructure and education."

"As we continue to learn from the COVID Pandemic, we must hold those that abused the system during this time accountable," Buttenschon said. "We are simply asking for a plan to do this. So many faced financial challenges, the loss of businesses, and the death of loved ones, while others abused the system."