Ferguson one of the only state AGs to use forfeiture laws to recoup stolen funds
SEATTLE — Attorney General Bob Ferguson announced today that an innovative fraud recovery initiative netted a total of $42 million in stolen funds from 26 financial institutions.
The announcement marks the end of Ferguson’s first phase to retrieve money from banks and other financial institutions where scammers still had remaining funds. While multiple states suffered substantial losses, Ferguson was the first and remains one of the only state attorneys general who exercised state asset forfeiture powers to recover these taxpayer dollars. As a result, Washington has recovered a total of more than $420 million in stolen funds. The Attorney General’s Office will continue to assist in federal investigations to recover stolen funds, as well as investigate any liability of banks and financial technology companies for Washington’s losses.
“Our innovative use of the law to recover stolen funds led the nation,” Ferguson said. “We delivered results for taxpayers and unemployed Washingtonians.”
Beginning in April 2020, Washington's unemployment insurance program was one of the first to suffer an unprecedented and massive nationwide attack of imposter fraud.
Sophisticated fraud rings used identity data harvested from data breaches to steal billions of dollars from 53 government programs that received federal pandemic unemployment benefits, according to a recent government accountability report. While the exact extent of the fraud is still unknown, the same report estimated losses to fraud nationally to be as much as $135 billion.
Soon after the thefts, Ferguson initiated an investigation searching for bank accounts where scammers did not withdraw all their stolen funds and launched a legal effort to reclaim these funds for the state. To date, financial institutions across the country cooperated with the investigation. Essentially, the Attorney General recovered stolen money in accounts at banks and other financial institutions that criminals were unable to withdraw.
Washington state’s Employment Security Department estimates that during the COVID-19 pandemic, fraudulent claims accounted for $647 million, or 3%, of the overall $21.7 billion in unemployment benefits paid to workers. The state has recovered $423.6 million so far – more than two-thirds of the stolen funds. The Attorney General’s innovative use of forfeiture laws brought in 10% of that total.
This leaves approximately $223.4 million lost to fraud so far, which amounts to 1% of the total $21.7 billion in benefits. Consequently, 99% of the unemployment benefits went, as intended, to support workers during the pandemic.
Other states experienced much larger losses to fraud, like California at $18.7 billion. Arizona lost $4.4 billion and Virginia lost $1.6 billion to fraud, and both have similar-sized populations to Washington state.
According to department data, it caught the fraud within the first two weeks and decided to pause benefit payments, which prevented payment on more than 100,000 fraudulent claims. Its finance team then collected and analyzed fraud data and determined that 95% of fraudulent payments went to 75 banks. From there, the department specified that it contacted each bank and attempted to recover funds. This effort included sharing fraud data with the banks and reaching resolutions on the amounts available to return.
“We're thankful for our partnership with the Attorney General," said Commissioner Cami Feek, "It’s wonderful to see our collaboration and hard work paying off. Fraud recovery has been a long road; however, our collective efforts have made us a leader in fraud recovery nationally and a resource for advice and guidance for other states.”
Searching for accounts with red flags
The Attorney General’s Office used the department’s data and subpoenaed more than 35 banks across the country to identify accounts with balances of $1,000 or more that bore red flags or indicators of fraud.
Red flags included:
Accounts that received unemployment benefit payments from multiple states;
Accounts that received deposits of unemployment benefits to multiple people; or
A mismatch between the personal information of the account holder and the person who supposedly applied for the benefits deposited in the account.
Ferguson filed cases to recover stolen funds remaining in accounts at 26 different financial institutions. In part because of these forfeiture litigation efforts and the assistance provided to the department, Washington was more successful than other states in mitigating, and securing recoveries of, unemployment fraud losses — helping to preserve funds for the benefit of unemployed workers.
The funds recovered by the Attorney General’s forfeiture initiative go back into the state unemployment trust fund and to the federal treasury.
Special Assistant Attorney General Jeff Sprung in the Complex Litigation Division is leading this effort, along with Assistant Attorneys General Martha Rodriguez Lopez, Spencer Coates, Kendall Scott Cowles, Erica Franklin, John Nelson, Lia Pernell and Nick Quijas, paralegals Sara Cearley and Kellie Tappan, legal assistant Victoria Johnson and investigator Greg Coleman.--WAAG press release
In other state news:
AG prosecutors seek to prevent release of Pierce County sex offender.
TACOMA — Attorney General Bob Ferguson filed a petition today urging a Pierce County Superior Court judge to civilly commit a sex offender to McNeil Island, preventing his release into the community.
Marlon S. Mount, 44, was convicted in Pierce County of second-degree child rape in 1995, and second-degree assault and unlawful imprisonment in 2001. He was later convicted in Mason County of third-degree child rape in 2018. Mount is in prison and due for release on Sept. 30. The Attorney General’s Office petitioned to have him committed, alleging that he is mentally ill and dangerous.--WAAG press release
Washington Community Economic Revitalization Board invests $6.75 million in Benton, Kittitas, Klickitat and Whitman counties.
State funds will leverage more than $1 billion in private and local resources expected to create and retain 210 high-wage jobs.
OLYMPIA, WA – The Washington State Community Economic Revitalization Board (CERB) today approved $6.6 million in low-interest loans and $150,000 in grants for economic development and public infrastructure improvements intended to spur business growth and job creation in Benton, Kittitas, Klickitat and Whitman counties.---WA COMMERCE DEPT. Press release
WDFW invites public comment on rule making to offer incentives for chronic wasting disease testing.
SPOKANE – The Washington Department of Fish and Wildlife (WDFW) invites the public to attend a virtual hearing and submit input on a proposed rule change that would allow WDFW to offer an incentive to hunters who have their harvested deer and elk tested for chronic wasting disease (CWD).---WDFW PRESS RELEASE
Public comment period for black bear timber damage permit rule proposal extended.
OLYMPIA – The Washington Department of Fish and Wildlife (WDFW) has extended a public comment period about the Department’s proposed rule change to revise how WDFW issues black bear timber damage depredation permits. The public now has until Friday, Oct. 27 to submit comments.--WDFW PRESS RELEASE
Secretary of State Steve Hobbs encourages Washingtonians to participate in National Voter Registration.
OLYMPIA — For National Voter Registration Day, the Office of the Secretary of State will host a voter registration station at Gonzaga University Tuesday, Sept. 19, from 9:30 to 11:30 a.m. Students will be able to sign up as new voters or update their registrations at the registration table in the rotunda of the John J. Hemmingson Center, 702 East Desmet Avenue, Spokane.--SEC OF STATE DATED 9/18/23
2) NEWS FROM OUR CONGRESSIONAL DELEGATION
KILMER, TIMMONS SPEARHEAD BIPARTISAN “FIX CONGRESS CAUCUS”
WASHINGTON, D.C. – Today, U.S. Representatives and Co-Chairs of the Fix Congress Caucus Derek Kilmer (WA-06) and William Timmons (SC-04) launched the Fix Congress Caucus, a bipartisan group of lawmakers committed to making Congress more effective, efficient, and transparent for the American people.--PRESS RELEASE DATED 9/21/23
KILMER NAMED WINNER OF AWARD FOR INNOVATION AND MODERNIZATION IN CONGRESS.
WASHINGTON, D.C. – Last week, U.S. Representative Derek Kilmer (WA-06) received the Democracy Award for Innovation and Modernization at the Congressional Management Foundation’s (CMF) annual awards ceremony. The Democracy Award is CMF’s award recognizing non-legislative achievement and performance in congressional offices. The Innovation and Modernization category honors offices for their outstanding achievements in innovation and modernization of their office services, practices, and the institution of Congress around them.--September 18, 2023, PRESS RELEASE
Washington Rail Systems to Receive $76.8M in Infrastructure Upgrades Thanks to Cantwell-Championed Program
Palouse River & Coulee City Railroad - a vital corridor for WA-grown wheat - gets $72.8 million to help safely transport bigger, faster rail cars; Tacoma Rail gets $4.095 million to swap two diesel cars with electric cars & reduce dangerous emissions--Cantwell press release dated 09.20.23
09.16.23
Cantwell Celebrates Grand Opening of Hilltop Tacoma Link Extension Line
New transit line connects Downtown, Dome, Stadium, & Hilltop with fast & reliable service; Cantwell delivers remarks at grand opening: “Tacoma & the Hilltop neighborhood is on the rise”--PRESS RELEASE
September 20, 2023
Senator Murray Presses VA Officials About Mental Health Care Wait Times, Outreach to Veterans Experiencing Homelessness at Veterans Committee Hearing on Mental Health and Suicide Prevention--PRESS RELEASE
September 19, 2023
Senator Murray Remarks on House CR Proposal, Senate Funding Minibus, Preventing Shutdown.
“Thank you. As you all know, I’ve been working with Senator Collins from the start of the year to make sure we have an open, bipartisan appropriations process.
“And just last week, 91 Senators voted to proceed to our first funding package, and every bill in that package passed our Committee unanimously this past summer. press release
3) WORLD, NATIONAL & BUSINESS
Climate Funds for Fragile States, Action to Reach Net Zero, Not Mere Promises, Only Way to Build Low-Carbon Future, Speakers Stress on Day Three of General Debate
Building resilience and tackling the adverse impact of climate change should be an urgent priority for all, world leaders stressed today, as the General Assembly high-level debate concluded the third day of its deliberations, with speakers emphasizing that no meaningful climate action or development can take place in conditions of financial distress.--UN PRESS RELEASE
Concluding Security Council Open Debate, Speakers Stress Dialogue, Diplomacy Based on Charter Principles Needed for Peaceful Resolution to War in Ukraine
As the Security Council concluded its high-level open debate on effective multilateralism and the maintenance of peace and security of Ukraine, speakers underscored the need for dialogue, diplomacy and a just peace among Member States, stressing the need to uphold the principles of the Charter of the United Nations, in efforts to bring a peaceful resolution to the war in Ukraine. ---UN PRESS RELEASE
Remarks by Ambassador Linda Thomas-Greenfield at a Ministerial-Level Meeting on UNRWA--USUN
Remarks by Ambassador Linda Thomas-Greenfield at the Annual Ministerial Meeting of the Least Developed Countries--USUN
Secretary Antony J. Blinken Video Remarks at the Special Competitive Studies Project (SCSP)’s Global Emerging Tech Summit--US STATE DEPT.
NATIONAL:
Biden Meets With Ukraine President, as U.S. Sends $325M Arms Package.
The U.S. today announced it will send an additional security assistance package for Ukraine valued at up to $325 million as Ukrainian President Volodymyr Zelenskyy concluded his second visit to Washington since Russia launched its unprovoked invasion. --Sept. 21, 2023, DOD PRESS RELEASE
Nurse Practitioner Convicted of $200M Health Care Fraud Scheme.
A federal jury in Miami convicted a Florida nurse practitioner yesterday for her role in a scheme to defraud Medicare by submitting more than $200 million in false and fraudulent claims for expensive genetic testing and medical equipment that the Medicare beneficiaries did not need.--DOJ
U.S. Department of Education’s Office for Civil Rights Announces Resolution of Disability Harassment Investigation of Allegheny Valley School District in Pennsylvania--DEPT. of EDUCATION
Adult Obesity Prevalence Remains High; Support for Prevention and Treatment Needed.
New population data from 2022 show 22 states have an adult obesity prevalence at or above 35%, compared to 19 states in 2021, according to data from the Centers for Disease Control and Prevention (CDC).--CDC PRESS RELEASE
HUD and VA Award $16 Million to Aid Homeless Veterans in Securing Permanent Housing
WASHINGTON - Today, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) awarded $16.1 million in HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers to 71 Public Housing Agencies (PHAs) across the country. This award will help homeless Veterans and their families find and sustain permanent housing. Please see the list of awardees --HUD PRESS RELEASE
BUSINESS:
Former CFO of Russian Natural Gas Company Sentenced to More Than Seven Years in Prison for Tax Crimes.
Mark Anthony Gyetvay of Naples, Florida, was sentenced today to 86 months in prison for a scheme to hide millions of dollars of income in undisclosed Swiss bank accounts and submitting a false filing with the IRS. --DOJ
Generative AI, Productivity, the Labor Market, and Choice Behavior
Governor Lisa D. Cook
At the National Bureau of Economic Research Economics of Artificial Intelligence Conference, Fall 2023, Toronto, Canada--THE FED
Brief Remarks on the Economy and Monetary Policy
Governor Michelle W. Bowman
At Independent Community Bankers of Colorado, Golden Jubilee, Vail, Colorado--THE FED
USDA Invests Nearly a Half Billion Dollars in the Food for Progress and McGovern Dole Programs to Strengthen Global Food Security Using US Commodities--USDA
Tracking Budget Talks: What a Shutdown Would Mean for Businesses, Economy.---US CHAMBER OF COMMERCE
