Biden Labor Nominee Oversaw Massive Unemployment Fraud in California, Now Nominated to Fix the National Fraud Scandal

Half of the unemployment claims paid out over the course of the pandemic, almost $400 billion, could be fraudulent, according to a report by Axios. That shocking figure makes Joe Biden’s pick to be deputy secretary at the Department of Labor even more irresponsible.

As California’s labor secretary, Julie Su failed to take the steps necessary to protect taxpayers and paid out up to $31 billion in fraudulent unemployment claims. In 2019, Su was warned by a state auditor to stop sending letters with social security numbers printed on them as they had become an easy target for criminals.

ABC 30: “The Employment Development Department continued mailing forms without concealing sensitive information despite being told a year ago to stop the practice, California Auditor Elaine Howle said in a letter to Gov. Gavin Newsom…

“…The surge in unemployment claims since spring, when the COVID-19 outbreak accelerated and more people lost work, ‘has further revealed the dangers of EDD’s practices,’ Howle wrote.”

Su ignored this advice, and her department proceeded to mail nearly 40 million of these letters. This resulted in the most catastrophic fraud in the state’s history. Thieves were rewarded while taxpayers and small businesses, who received tax bills as a result of the fraudsters’ unemployment claims, were punished.

The San Francisco Chronicle published a devastating look inside Su’s department and how it has utterly failed Californians. If she is confirmed, all Americans will be subject to the same failed leadership Su demonstrated in California. 

Bottom Line: The disaster in California should have immediately disqualified Su, but Biden believes her mismanagement earned her a promotion. The person responsible for failing California’s unemployed is the wrong person to offer Americans across the country an explanation and a solution.