Truly amazing news to come from the Department of Justice, Central District this week. A former EDD representative, who had resigned in 2002 after admitting to fraudulently authorizing and paying disability benefits through EDD (for which she served 37 months in federal prision!), plead guilty to assisting claimants falsify that they were self-employed independent contractors to obtain unemployment insurance benefits. 

She even instructed some of these "claimants" to falsely state that they lived in CA, inflated the amounts of income reported, and admitted to filing a dozen or more of these claims a DAY. These claimants in turn would pay her a fee, often from the monies then received through EDD.

In total, EDD and the US Treasury had losses of $1,633,487, as admitted by Gabriela Llerenas. It is amazing how some can take advantage of programs available in an emergency for their own financial gain. Kudos to the CA Justice Department for securing this guilty plea!