RI Reps Want Fraud Probe at Department of Labor

STATE HOUSE—Two Rhode Island legislators want an investigation into potential fraud at the state Department of Labor and Training after a recent report showed a lack of computer security controls meant employees could edit unemployment claims without oversight.

Reps. Patricia Morgan (R-Dist. 26, Coventry, West Warwick) and Blake Filippi (I-Dist. 36, South Kingstown, Charlestown, Westerly, New Shoreham) said in a joint news release that they want Governor Gina Raimondo to launch an investigation and have the matter referred to the state attorney general's office for prosecution "if fraud is found."

The report, released on March 21 by Auditor General Dennis Hoyle, indicated that employees at the agency were able "to modify data within claimant applications without supervisory review or approval."

“It is truly disturbing to know staff were able to edit unemployment claimant information without any oversight,” said Morgan. “Data could have been manipulated to wrongfully award unemployment benefits to someone not legally entitled to them. Hard-working Rhode Islanders cannot afford more wasteful spending. The Governor’s office needs to launch an investigation to review all unemployment claimant information and determine whether or not it was entered correctly."

Filipi said in a statement that benefit systems need to be secure.

"If anyone was improperly paid, or overpaid, the state must recoup these monies. If anyone was improperly paid as a result of fraud, then the Attorney General should prosecute the offenders to the fullest extent of the law. The entire system of state benefits is built on the People’s faith that it is administered properly, and we have a solemn duty to ensure that it is.”

The auditor general's report also showed the state overpaid $200 million to insurance companies during the Medicaid expansion, $1.8 million in unrecorded Division of Motor Vehicle payments piled up in a bank account and a $25 million bond payment was missed due to a communications and clerical error.

The full report can be viewed HERE.