SEATTLE — Attorney General Bob Ferguson announced today Metropolitan Commercial Bank will pay $10 million to Washington state as part of his innovative fraud recovery program to return unemployment funds stolen during the COVID pandemic. This initiative has so far brought in more than $52 million from banks across the U.S. that accepted stolen unemployment funds.
Metropolitan’s resolution reflects the second phase of the office’s investigation, which will seek out non-bank financial technology, “fintech,” companies that the criminals used to hold and help transfer stolen funds in violation of the Consumer Protection Act.
Ferguson asserts that in 2020, Metropolitan, as the sponsoring bank for the fintech company MovoCash Inc., accepted more than $15 million from criminals who stole from the state unemployment fund. They used stolen identities to get the funds then used Movo accounts to transfer funds through the bank. Ferguson asserts that Metropolitan received the transfers of stolen money without ensuring that proper anti-fraud, anti-money laundering and customer identification screens were in place.
Ferguson is the only state attorney general to pursue this first-of-its-kind consumer protection investigation against fintech companies, and their sponsoring financial institutions, in his continuing effort to recover stolen pandemic unemployment funds. Previously, during the first phase of the investigation, Ferguson was also the first and remains one of the only state attorneys general to exercise state asset forfeiture powers and recover stolen taxpayer dollars. During this first phase, Ferguson recovered $42 million from 26 financial institutions.
“More than four years ago, criminals targeted our state unemployment fund, and my office has not stopped working to recover what they stole,” Ferguson said. “Washington has been a national leader on this effort. We were the first state to use forfeiture laws to recover stolen dollars that were frozen in accounts. Now we’re the first to resolve an investigation into a fintech company that the criminals used to move the money. There is still more work ahead.”
Metropolitan served as the issuing bank for third-party prepaid or debit card programs, called digital banking programs, offered by fintech companies. To gain access to the U.S. financial network, some unregulated fintech companies essentially lease the bank identification numbers of regulated financial institutions to provide digital banking services to their customers.
In early 2020, criminals used a digital banking program marketed by Movo to steal more than $15 million in unemployment benefits paid by the state’s Employment Security Department. Between April and July 2020, Metropolitan accepted more than 3,700 fraudulent money transfers of Washington state unemployment benefit funds through Movo. After financial regulators informed Metropolitan about the illegal scheme, it froze and returned $5.5 million back to the state.
Ferguson subsequently recovered more than $732,000 from Metropolitan’s accounts using his forfeiture power. Ferguson then investigated Metropolitan for violations of the state Consumer Protection Act related to Movo’s program, and the bank cooperated with the investigation.
To avoid a lawsuit, Metropolitan will pay $9 million more to the Employment Security Department as restitution that will go back into the state unemployment trust and federal treasury. The bank will also pay $1 million to the Attorney General’s Office to cover investigation costs and fund future consumer protection activities.
The resolution requires Metropolitan to maintain policies that prevent money laundering of unemployment benefits paid in the name of Washingtonians through third-party digital banking fintechs.
The Attorney General’s Office will also continue to assist in federal investigations seeking to recover stolen funds.
Overall, Washington state agencies recovered a total of more than $432.6 million in stolen funds so far. The Employment Security Department estimates that during the pandemic, fraudulent claims accounted for $647 million, or 3%, of the overall $21.7 billion it paid in unemployment benefits paid to workers. State recoveries so far have returned more than two-thirds of the stolen funds.
This leaves approximately $214.4 million lost to fraud so far, which amounts to 1% of the total benefits paid to workers. Consequently, in Washington state, 99% of the unemployment benefits went, as intended, to support workers.
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.
Washington among the first states targeted
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 government accountability report. 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 this first forfeiture phase of the investigation. Essentially, the Attorney General recovered stolen money in accounts at banks and other financial institutions that criminals were unable to withdraw.
According to Employment Security 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 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.
Searching for accounts with red flags
During the first phase of its investigation, 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 and taxpayers.
Special Assistant Attorney General Jeff Sprung is leading this effort, along with Assistant Attorneys General Spencer Coates, Kendall Scott Cowles, Erica Franklin, John Nelson, Todd Sipe, Jonathan Tebbs and Martha Rodriguez-Lopez; paralegals Kellie Tappan, Victoria Johnson, Kristina Wooster, Jeanine Lantz and Michele Sanchez; and investigator Greg Coleman.
Former Assistant Attorney General Lia Pernell and paralegal Sara Cearley also worked on the case but have since left the Attorney General’s Office.
IN OTHER STATE NEWS HEADLINES:
From homelessness to hope: How CJK Community Homes is transforming lives through financial literacy./WA COMMERCE DEPT.
Samples indicate recent contamination is no longer spreading to groundwater at Pasco Landfill/DOE
WDFW approves seven days of coastal razor clam digs starting Dec. 28; more digs planned for early 2025/WDFW
Department of Health issues notice of intent to issue civil fines on licenses of Acute Care Hospitals/DOH
UTC recommends $3,389,000 penalty to DTG Enterprises for operating without a required certificate./UTC
NEWS FROM OUR CONGRESSIONAL DELEGATION:
U.S. Department of Commerce Invests $4.1 Million for Wastewater Infrastructure Improvements Needed to Support Job Creation in Neah Bay, Washington./From a press release issued 12/23/24
Murray, Cantwell Announce Nearly $40 Million for Climate Resilience in WA – including Disaster Relief Hubs in Okanogan County, Air Pollution Reduction in Yakima Valley/from a press release issued 12/23/24
ICYMI: Senator Murray, Rep. Larsen Secure Key Win for WA Tribes in 2024 Water Resources Development Act—Making it Easier for Tribes to Get Federal Funding for Critical Environmental Restoration Projects/press release issued 12/23/24
WORLD, NATION, BUSINESS
WORLD NEWS:
Fifth Committee Approves $3.72 Billion Budget for 2025, Formula for Determining Member States’ Financial Contributions to United Nations, Concluding Main Part of Session./UN PRESS RELEASE
https://press.un.org/en/2024/gaab4487.doc.htm
General Assembly Adopts Landmark Resolutions, Holds Several Emergency Special Meetings, as Delegates Focus on Crises in Gaza, Sudan during First Trimester of Annual Session
‘Our Future Is in Our Hands,’ Assembly President Says Upon Historic Pact’s Adoption, Secretary-General Urges Using Resources for Opportunity, Hope, Not Death, Destruction./UN PRESS RELEASE
https://press.un.org/en/2024/ga12672.doc.htm
Expressing Alarm Over Israeli Air Strikes in Yemen, Which Affected UN Personnel, Secretary-General Urges All Parties to Respect International Law/ UN PRESS RELEASE
https://press.un.org/en/2024/sgsm22507.doc.htm
Explanation of Vote Following the Adoption of a UN Security Council Resolution Renewing the Mandate of AUSSOM/USUN
Medal of Honor Monday: The Civil War Crew of USS Agawam/DOD
NATION:
President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices in the Semiconductor Sector--WH
Justice Department Issues Final Rule Addressing Threat Posed by Foreign Adversaries’ Access to Americans’ Sensitive Personal Data/DOJ
HUD Releases January 2024 Point-In-Time Count Report
The Annual Homelessness Assessment Report: Part 1 data highlights progress and challenges in Addressing Homelessness Across the Nation/HUD
https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_327
FDA Proposes Rule to Require Standardized Testing Methods for Detecting and Identifying Asbestos in Talc-Containing Cosmetic Products/FDA
DHS Strengthens H-1B Program, Allowing U.S. Employers to More Quickly Fill Critical Jobs/DHS
BUSINESS:
Court Authorizes Service of John Doe Summons for IRS to Seek Identities of U.S. Taxpayers Who Participated in the “Gig Economy” Via a Digital Platform/DOJ
2025 Economic Preview: A Year of Productivity-Driven Growth
The U.S. Chamber’s Chief Economist outlines how productivity will drive growth in 2025 and create new opportunities for American workers and businesses./US CHAMBER OF COMMERCE DATED 12/19/24
https://www.uschamber.com/economy/2025-economic-preview-a-year-of-productivity-driven-growth
U.S. Department of the Treasury Releases Final Regulations Implementing Bipartisan Tax Reporting Requirements for Brokers of Digital Assets/US TREASURY
https://home.treasury.gov/news/press-releases/jy2762
Due to evolving legal landscape & changes in the framework of administrative law, Federal Reserve Board will soon seek public comment on significant changes to improve transparency of bank stress tests & reduce volatility of resulting capital requirements/THE FED
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20241223a.htm
Biden-Harris Administration Finalizes Protections for the Pactola Reservoir—Rapid Creek Watershed/USDA
IN FOCUS & LOCAL MEETINGS
IN FOCUS: Biden-Harris Administration Finalizes Protections for the Pactola Reservoir—Rapid Creek Watershed.
WASHINGTON — Secretary of the Interior Deb Haaland has signed Public Land Order 7956, finalizing protections for the Pactola Reservoir–Rapid Creek Watershed on the Black Hills National Forest from the potential effects of mineral exploration and development. This order follows a request from the U.S. Forest Service to close 20,510 acres of National Forest System land to sale or exchange and mineral entry and leasing, for a 20-year period, subject to valid existing rights. Non-federal lands and minerals are not subject to the withdrawal.
This action responds to requests from Tribes and the local community to protect important cultural and natural resources in Pennington County, South Dakota as well as the municipal water supplies for Rapid City and Ellsworth Air Force Base. With 14 miles of shoreline and depths of 150 feet, Pactola Reservoir is the largest and deepest reservoir in the Black Hills National Forest.
"The Pactola Reservoir-Rapid Creek Watershed is a treasured landscape, valued for its clean air and water, abundant recreation and ecological benefits, and sacred to multiple Tribes who call the area home,” said Secretary of the Interior Deb Haaland. “I’m proud to take action today to withdraw this area for the next 20 years, to help protect clean drinking water and ensure this special place is protected for future generations.”
“We’re grateful to Secretary Haaland for her decision to withdraw these lands to protect their many invaluable resources,” said Agriculture Secretary Tom Vilsack. “The Pactola Reservoir–Rapid Creek Watershed provides so many benefits to the people and communities we serve, from clean water to world-class recreation, from livestock grazing to the spaces our Tribal communities consider sacred, this withdrawal will safeguard this space for decades.”
The scenic Pactola Reservoir–Rapid Creek Watershed is home to world class fishing and hunting opportunities, cross-country skiing, and a broad range of year-round activities like hiking, camping and boating. Local ranchers also rely on the Pactola for summer grazing.
The area is considered a sacred landscape and traditional spiritual homeland by the Oceti Sakowin, Cheyenne, Arapaho, Arikara, Hidatsa, Mandan and Crow Tribes. The Black Hills, including the lands of the withdrawn area, contain sites sacred to these Tribes as well as areas they consider traditional cultural properties, important landscapes and areas where the Tribes pick medicine, hold spiritual ceremonies, and gather sacred foods.
The withdrawal is made pursuant to the Federal Land Policy and Management Act, which authorizes the Secretary of the Interior to withdraw federal lands aggregating 5,000 acres or more for a maximum of 20 years, subject to renewal. Only Congress can legislate a permanent withdrawal of this type.
The U.S. Forest Service initiated the proposal in March 2023, when the Bureau of Land Management published the application for withdrawal, opening a 90-day public comment period and noticing public meetings. The Forest Service and BLM also conducted two Tribal consultations in 2023.
CLALLAM COUNTY MEETINGS:
Clallam County work session for 12.30.24
https://www.clallamcountywa.gov/AgendaCenter/ViewFile/Agenda/_12302024-1382
Clallam County Commission meeting for 12.31.24
https://www.clallamcountywa.gov/AgendaCenter/ViewFile/Agenda/_12312024-1383
JEFFERSON COUNTY MEETINGS: NO MEETINGS this week
Weekly devotional
Matthew 11:28 (New International Version)
“Come to me, all you who are weary and burdened, and I will give you rest.
Weekly Bible Lesson:
What Is the Church?
The word “church” means “a called-out group of people.” It does not mean a building. Saul persecuted “the church” by persecuting “men and women” (Acts 8:1-3). The members make up the church. But not all men and women are the church, only those who are “called-out people.”--TFTW
https://truthfortheworld.org/what-is-the-church
Free bible studies (WBS)
https://www.worldbibleschool.org/
Learn English using the bible as text (WEI)
http://www.worldenglishinstitute.org/
(Join us in worship every Sunday starting at 10:30AM Church of Christ)
1233 E Front St, Port Angeles, WA 98362
Come and See
https://www.comeandseefoundation.org/
THIS WEEKS VIDEOS:
The Gen Z ‘King’ Keeping Georgia Boys Off the Streets
“I hated white people,” says King Randall, founder of the X for Boys in Albany, Georgia. Now, Randall has totally changed his mind and is rejecting victimhood and the mainstream narratives surrounding race in America. After the 2016 election, it seemed to him like the “world was about to end,” but this election season, Randall made waves after Elon Musk shared Randall’s viral video detailing the hate he received from Democrats after posting a video claiming he is voting for Trump. “You may not be worried about politics,” Randall says. “But politics is worried about you.” That is why Randall is on a mission, not to “fix the world” but to “fix Albany, Georgia” — his hometown. Inspired by the book of Genesis, King sees himself as a partner with God in the good work of “making men” out of the boys in his community. He reveals to Glenn what he thinks is “actual white supremacy” and how the Twitter Files exposed how technocrats “effectively control everyone’s minds.” With injustices like slavery and Jim Crow, Randall knows his “ancestors went through hell,” but now it’s his generation's turn to step up, because the civil rights leaders “didn’t train replacements.” The pair discuss faith and the apostle Paul “going gangsta,” before Glenn shares his thoughts that Gen Z just may be the “hero generation.” ---Glenn Beck show
https://www.youtube.com/watch?v=kAI6xX1-yXA
Mark Levin Audio Rewind - 12/27/24
On Friday’s Mark Levin Show, Rich Valdes, host of America At Night, fills in for Mark. New York City has not changed when it comes to the increase of illegal aliens committing severe crimes, making any part of NYC unsafe. The fact that an illegal alien burned a woman to death while raiding the subway train is out of control. The scariest thing is that Mayor Eric Adams and Gov. Kathy Hochul seem to do nothing about this and now are trying to back pedal on making NYC a sanctuary city.
Border Czar Tom Homan expresses his frustration towards those who are against ICE and are against making illegal criminals accountable for the crimes they commit, let alone be in our country Illegally. In addition, President Biden and Kamala Harris have destroyed this country and then you have people like Julian Castro claiming that it is inhumane and immoral to deport illegal aliens. Also, the healthcare industry is coming up with more ways to cheat the responsibility we have to make sure we are healthy mentally and physically active. Instead, the left pushes for more pharma and offer Ozempic or Mounjaro instead of providing healthier options that encourages you to decide for your health not drugs like RFK suggests. This is another plan for the left and big Pharma to keep the American people in a cycle that makes them pay for drugs, making them depend on the government and pharma.--Mark Levin show
https://www.youtube.com/watch?v=iiqBGHYkS3c&t=1189s
Sunday morning worship at the Concord Street Church of Christ on December 22, 2024. David Pharr preached a sermon titled “The Greatest Gift”.
https://www.youtube.com/watch?v=Ekc23zGd51w
Pete Hegseth walks the footsteps of Jesus in original series | Fox Nation
2000 years ago, Jesus Christ walked on earth, fully God and fully man. In “The Life Of Jesus”, host Pete Hegseth and his pastor retrace His steps throughout the Holy Land: where he lived, where he healed, where he died, and where he rose. In Episode 1 "A King is Born", they explore the little town of Bethlehem and into the Judean wilderness. #FoxNation #LifeOfJesus #PeteHegseth #Easter
https://www.youtube.com/watch?v=o--XAa37Kd4
Other News Sources:
Fiend accused of burning woman to death on NYC subway is illegal migrant from Guatemala who sneaked into US after he was deported--NY Post
Rabbi Potasnik to Newsmax: Christians and Jews 'Are Allies'--NEWS MAX
https://www.newsmax.com/newsmax-tv/rabbi-joe-potasnik-hanukkah-christmas/2024/12/28/id/1193148/
Biden signs last-minute ban on gasoline-powered vehicles--WT
https://www.washingtontimes.com/news/2024/dec/26/editorial-biden-signs-last-minute-ban-gasoline-pow/
NIGHT OWL COMICS
https://pjrnightowlcomics.blogspot.com/
The Port Angeles Globe is published weekly by, Peter Ripley
