Labor Department Demands Banks Freeze Nearly $1 Billion in Fraudulent COVID Benefits
The U.S. Department of Labor has instructed banks to freeze nearly $1 billion in unemployment benefits that were fraudulently obtained during the COVID-19 pandemic. This directive affects financial institutions across at least 12 states, including Illinois, California, and New York. The funds, which were distributed via prepaid debit cards, were part of a larger scheme where criminals exploited weaknesses in the system to steal billions from taxpayers. Acting Labor Secretary Keith Sonderling emphasized the department's commitment to recovering these funds and holding fraudsters accountable. The Department of Labor's Office of Inspector General, led by Anthony D'Esposito, has been actively investigating these fraudulent activities, resulting in 1,800 convictions and the recovery of $2.2 billion so far. 
