Audit of Detroit's employee benefits program finds fraud - New York News

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>>

  • Superstorm Sandy

    Grimm criticizes storm recovery program

    Grimm criticizes storm recovery program

    Wednesday, August 27 2014 9:06 PM EDT2014-08-28 01:06:30 GMT
    When Superstorm Sandy destroyed Maureen Childs' Staten Island home, she turned to New York City's Build it Back program for help. She says what she got back was heartache. At a news conference Wednesday, Rep. Michael Grimm, who represents Staten Island and part of Brooklyn, highlighted what he called failures in a program designed to help victims of Sandy get back on their feet.
    When Superstorm Sandy destroyed Maureen Childs' Staten Island home, she turned to New York City's Build it Back program for help. She says what she got back was heartache. At a news conference Wednesday, Rep. Michael Grimm, who represents Staten Island and part of Brooklyn, highlighted what he called failures in a program designed to help victims of Sandy get back on their feet.
  • GIRLTALK #takeover

    Angela Simmons reaches out

    Angela Simmons reaches out

    Wednesday, August 27 2014 7:09 PM EDT2014-08-27 23:09:20 GMT
    The Boys and Girls Club of Newark seems like the last place you'd expect to find the daughter of hip hop royalty. But when it comes to inspiring young girls, Angela Simmons, daughter of Rev. Run of Run DMC, believes in the old adage "each one, teach one." While it may seem like she had a silver spoon in her mouth, she knows the importance of giving back.
    The Boys and Girls Club of Newark seems like the last place you'd expect to find the daughter of hip hop royalty. But when it comes to inspiring young girls, Angela Simmons, daughter of Rev. Run of Run DMC, believes in the old adage "each one, teach one." While it may seem like she had a silver spoon in her mouth, she knows the importance of giving back.
  • NYSE rings bell for pediatric cancer awareness

    NYSE rings bell for pediatric cancer awareness

    Wednesday, August 27 2014 7:00 PM EDT2014-08-27 23:00:54 GMT
    On Wednesday, the world famous New York Stock Exchange closing bell rang in honor of pediatric cancer awareness. The Loccisano family says their beloved Frankie heard the bell all the way up in heaven. Frankie's grandmother says she is convinced of it. Camille Loccisano, Frankie's mother, is the executive director of Frankie's Mission, a nonprofit pediatric cancer foundation named in her son's honor.
    On Wednesday, the world famous New York Stock Exchange closing bell rang in honor of pediatric cancer awareness. The Loccisano family says their beloved Frankie heard the bell all the way up in heaven. Frankie's grandmother says she is convinced of it. Camille Loccisano, Frankie's mother, is the executive director of Frankie's Mission, a nonprofit pediatric cancer foundation named in her son's honor.
  • Local NewsLocal NewsMore>>

  • Family's home hit hard by storms for second time

    Family's home hit hard by storms for second time

    Wednesday, August 27 2014 8:51 PM EDT2014-08-28 00:51:07 GMT
    For Ericka Page, first came the flood, then the gas line break and Tuesday, the massive tree limb that broke off with part of it landing on her house.
    For Ericka Page, first came the flood, then the gas line break and Tuesday, the massive tree limb that broke off with part of it landing on her house.
  • Ronald Ilitch arrested with drugs, prostitute

    Ronald Ilitch arrested with drugs, prostitute

    Wednesday, August 27 2014 8:24 PM EDT2014-08-28 00:24:27 GMT
    Ronald Ilitch was arrested for possession of drugs after being found with a prostitute Wednesday afternoon, according to Detroit Police Department sources.
    Ronald Ilitch was arrested for possession of drugs after being found with a prostitute Wednesday afternoon, according to Detroit Police Department sources.
  • Student sues Monroe schools for sexual harassment, bullying by teacher

    Student sues Monroe schools for sexual harassment, bullying by teacher

    Wednesday, August 27 2014 8:06 PM EDT2014-08-28 00:06:20 GMT
    A lawsuit from a Monroe honor student alleges sexual harassment, retaliation and bullying from a teacher and says the school district did nothing about it.
    A lawsuit from a Monroe honor student alleges sexual harassment, retaliation and bullying from a teacher and says the school district did nothing about it.
Powered by WorldNow
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