By: Mark Glennon*
A new, independent audit conducted for the Illinois Auditor General found that Illinois lost to fraud over half of $3.6 billion of federal money that went to the state for it to administer under the Pandemic Unemployment Assistance program (PUA) — $1.9 billion lost to fraud.
The audit calls the level of fraud “unprecedented.”
But you probably don’t know that far more was likely lost, unless you read a Chicago Tribune article that described at least some of how the new audit was limited in scope.
In addition to the PUA program, Illinois paid out another $3.8 billion under a different federal program and which the auditors did not investigate. Also, the scope of the audit ended on June 30, 2021, though federal supplements to unemployment claims continued until September. Finally, the portion of unemployment claims paid by the state, not the federal government, was not included in the audit. The cash flow statement for the year ended June 30, 2021 shows that number to be $15.6 billion.
For those additional payments, the amounts lost to fraud are still unknown, so the grand total is likely far higher than the $1.9 billion uncovered by the audit. The U.S. Department of Labor in March estimated the national total lost to fraud at $163 billion. Illinois’ share, if proportionate to population, would be about $6.5 billion. But other national estimates go as high as $400 billion, which is not unreasonable because that would be about half of what was paid out nationally — consistent with the findings of the Illinois audit. That prompted an entirely appropriate headline from NBC news: “Epic fraud galls state watchdogs.” Illinois’ proportionate share of that would be $16 billion.
The audit details specific ways in which Illinois mismanaged pandemic unemployment claims, but the Pritzker Administration had a different explanation, which should come as no surprise: “The Trump Administration designed a uniquely flawed system.”
It may well be that the federal government shares considerable blame, but the failure by the State of Illinois to put in effective anti-fraud measures has been widely documented and is now confirmed by the audit. Most lawmakers turned a blind eye.
The Illinois media and Republican lawmakers have been hounding the state for months to come fully clean on the scope of the fraud, but the audit is all we have so far.
We may never know the full scope of what has been a historic fiasco, both in Illinois and nationally.
If you are wondering if anybody has been held accountable, please, don’t be silly.
*Mark Glennon is founder of Wirepoints.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
This is one of the biggest heists of all time. Where is the FBI?
They’re busy chasing Trump supporters.
They and Hillary are reworking the Steele Dossier in case Trump should run again.
With everything that’s going around us this verse comes to mind.WLuke 17:26-30 New King James Version 26 And as it was in the days of Noah, so it will be also in the days of the Son of Man: 27 They ate, they drank, they married wives, they were given in marriage, until the day that Noah entered the ark, and the flood came and destroyed them all. 28 Likewise as it was also in the days of Lot: They ate, they drank, they bought, they sold, they planted, they built; 29 but on the day that Lot went out of Sodom it rained… Read more »
I’ve come to think that much (most?) of mankind’s daily strivings beyond simple existence–almost no matter how compelling–ultimately are foolish. We all die, and with few exceptions what lasting impression did we make that were worthy of anyone’s memory except, perhaps, for your grandchildren or great-grandchildren if they have personal memories of you? The rest of mankind will forget you sooner than not. No matter how important anyone thinks they are the other guy seldom even cares whether he crossed your path. Whatever personal strivings you’ve had don’t generally amount to anything unless you were really famous for one reason… Read more »
Your observations seem especially correct when yesterday’s hero becomes tomorrow’s villain as we grow in wisdom or as popular opinions change with the wind. Even enduring ideas from a Mozart or a Jefferson get undercut when the originator is found to have had all-too-human flaws. An article today about Taiwan’s continuing independence brought to mind the principle created by Lincoln when he opposed Southern secession. Could Chinese push for return of Hong Kong or Taiwan be characterized as “preserving the union” of China? Would we refight the Civil War if California secedes? How about when a Mexican majority in the… Read more »
Yes, we all die. And only a few of the people who ever existed were remembered beyond their own grandchildren. And yet, together we built civilization. Do you really believe that anything beyond simple existence is foolish? Should we be content to go back to hunter-gathering societies? Is there nothing of value between historical immortality and simple existence?
Maybe you are just going through a bad spell, hope it gets better.
Well, there is no doubt that I am getting older, much nearer the end than even the end of a normal life span. So, yes, that takes its psyhological toll. But, the good side is that I still look forward to doing things that interest me, visiting new places and enjoying the company of friends of all ages. Still, one starts to ponder life’s purposes as was a line in a movie of the mid-60’s, “What’s It All About, Alfie?” As I think back I wonder what, if any, impact I’ve had on almost literally anyone beyond my own immediate… Read more »
All of life on earth is a constant battle and the moment you stop fighting is when you die. The bacteria must infect, the mammal must eat, the mushroom must spore. Give up and you die. Right now, conservatives are battling an existential threat: violent leftists. You must continuing fighting, and battling, and pushing back on the transgender insanity. Do you want your grandchildren to live in a fundamentally unhappy world where people poison, mutilate and sterilize themselves to become a different gender? Do you want to live in a world where Moloch is praised and the founding fathers are… Read more »
I can attest that aging does make one think more philosophically than in younger years (except for the goofy college years!). We can only keep trying to leave our society a place where our children and grandchildren can thrive. Unfortunately, we no longer agree on what that means and how to go about it. My belief is that too many have become enamored of their shiny new ideas that don’t work very well in practice, and are too willing to shove aside the values that civilization worked very hard to achieve. It takes a great amount of hubris to believe… Read more »
A recent qui tam lawsuit settlement brought by two former employee “whisltblowers” on behalf of The State resulted in a $2.5million settlement .
The whisleblowers will receive 15%-25% of that settlement.
False Claims Act cases may be brought by individuals on behalf of governments which decline to act to protect taxpayer funds.
Imagine the whistleblowers’ share of the millions of fraudulently obtained payments which might be recovered…tempting.
At least filing suit on behalf of The State would force it to produce discovery of records of its work product, systems and processes.
I DO like this idea and in my former life as an attorney considered the idea of a such an action against those who created taxpayer liability for negligent investment of public pension funds or under-contribution or approval of unreasonable actuarial assumptions. I could not elicit any enthusiasm from my own law firm that represented numerous government entities! Getting into a federal court would be a significant plus. I’m not sure what statute-of-limitation issues might be encountered. Generally, statutes of limitation do not run “against the sovereign” and many otherwise actionable acts or omissions likely occurred many years ago. There’s… Read more »
Below is a link to story about certain defendants.
Details of that case would yield clues to methods of racketeering most likely used in Illinois cases.
Identifying a group of recipients who operated in conspiracy together might yield information about either possible collusion within the government agency issuing payments, or else “who knew what, and when, or why not”?
https://www.msn.com/en-us/news/crime/bk-gang-rapped-about-24m-covid-unemployment-scam-feds-say/ar-AAU07xv
If fraudulent recipients
were prosecuted, at least taxpaying public would finally get a look behind the curtain at IDES policies and procedures (assuming the defense attorney was in it to win it).
Your original idea is brilliant and should be pursued. If it is too late to litigate your theory on prior Illinois malfeasance, another such bus comes along daily.
And, in a similar vein, what about taxpayer objection lawsuits against taxing bodies for property taxes improperly taken or spent? (May not be lucrative, but can make them stop doing the bad thing).
Money raised for litigation such as this would be exponentially more effective than contributions to any particular human’s political campaign.
With some of the fraud found, they should be able to recover the excess payments. So, are they doing that or do they intend? Find a current address, send a letter giving the amount owed along with how to pay. Provide a hearing date for individuals who object or don’t pay-back. Welfare state crud where effective work isn’t acknowledged or required has to be brought to everybody’s attention, and fought as hard as it takes until it ends. There are many ethical people who reject what stems from low expectations and standards. More people have to realize how uncivilized behavior standards affect their own well-being… Read more »
The IRS will file a lien or lock down your bank account with no questions asked. I don’t know if its authority has ever been questioned but I expect there is a statutory basis for this that few have the resources to challenge. Besides, many owe the money and are eager to settle. I expect a state, municipality, or public agency could not easily do this due to the “impairment of contract” clause in the Federal Constitution. Likely, too, the abusers used fictitious names or are uncollectible. One could probably cut off or reduce public benefits, but loud cries of… Read more »
This sort of abuse, along with the other sorts of abuse to which we’ve become accustomed, is a substantial contributor to the current economic situation. Perhaps a “trigger” would be a better word because we have been slouching toward inflation for many years and seeming to delay its onset through “remedial” can-kicks. Perhaps what the politicians were waiting for was an excuse. The COVID pandemic has provided a universal excuse for every deferred economic indignity together with all the others. “We value your business” the voice on hold tells us as people work from home and connections are mysteriously dropped… Read more »
The assumption here is, that all this fraud money went to some undeserving Illinois residents and thus would be spent in Illinois, to stimulate the economy.This could be completely false, I am certain that some went to Nigeria and overseas.
this link to audit report: https://www.scribd.com/document/578629690/Full-Auditor-General-Report#from_embed segment from report page 21: (emphasis added) ” A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,… Read more »
Enough! Just move out of Illinois.
It’s really no surprise. Illinois employers hire anybody, hire friends, friends of friends, relatives, or employ someone if they owe somebody, you know, a good old Illinois quid pro quo. Whatever reason actual qualifications to do the job are not important. It’s the family business, the Illinois pension family business and we pay for all the incompetence.
1.9 billion in Illinois alone. Can you imagine how much was lost nationwide. I am still missing stimulus payment #2. From 2020. The IRS is looking for it. It was issued on a debit card from Atlanta and mailed to me. This “Putin” inflation has been caused primarily by the US treasury printing and carelessly issuing so much worthless money.
Illinois does about as good a job investigating fraud in its’ public aid-n-benefit programs as it does in investigating its (many) crooked politicians. Often, as is the case with Medicaid waiver programs, that’s because public employee unions have so much say over how our taxes are spent. Public employee unions influence what happens to people who defraud Medicaid – all to often little or nothing – because Springfield has to negotiate how rules are (or rather, aren’t) enforced with the unions during contract negotiations. It will surprise no-one to learn that SEIU has insured that not only will 10’s of… Read more »
Notice how JB points to other states when things go bad like this, like “California had fraud too!” He sounds like a child telling his parents not to worry about his failing grade because other kids failed too.
However, when things go good, he makes it sound like a unique phenomenon. Like when IL received recent credit upgrades, JB made it sound like he did something special. Except other poorly run states like NJ and CT also received upgrades. And none of those states implemented any policy changes that would warrant an upgrade. But JB took credit anyway.
Illinois political class total mismanagement, as per the usual. On almost all key fronts, Illinois political management is always among the worst in the nation. Why? Illinois political class treats us non-public union taxpayers as saps. Of course. Why not? Join the political class (and many public unions), and become a millionaire with pension and retirement medical benefits worth millions. All you need to do is funnel massive amounts of taxes from nonpublic union taxpayers, to Illinois public unions. Done. Competence does not matter. Not only is this outrageous, its a national security issue cause many of the fraudsters were… Read more »
It is a national security issue because Illinois’ BS is absolutely intentional. You are funding it.
Yes, it is a HUGE national security, along with all the other failures in America’s COVID response. Think about it. COVID was not a bio attack, but it might as well have been because the impact was the same. That should have triggered a series of prepared responses of all sorts. Among those should have been an emergency plan for getting direct economic relief out fast. But there was no plan. On unemployment compensation like everything else, we had chaos because no system or planning was in place.
Even better: PUA payments could have been avoided entirely if the country were not forced to lock down over coronavirus.