WASHINGTON (TNND) \u2014 The Department of Labor is launching an investigation into California’s Employment Development Department (EDD) based on allegations that billions of dollars in unemployment benefits were fraudulently distributed.<\/p>\n
In a letter sent to EDD, The Labor Department shared with state officials that it would soon be deploying a \u201cstrike team\u201d to the state, the New York Post <\/a>reported.<\/p>\n \u201cImmediately, we are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers,\u201d Chavez-DeRemer told the New York Post. \u201cI look forward to restoring the California [Unemployment Insurance] program\u2019s integrity and financial health.\u201d<\/p>\n The investigation in California comes amid heightened scrutiny in the Golden Gate State as conservative commentators like Nick Shirley<\/a> and Benny Johnson have posted videos alleging rampant fraud in the state administration of various government funded programs and voter rolls. Earlier this month, the Small Business Administration said it found billions <\/a>of dollars of fraud in California.<\/p>\n \u201cFinancial issues and potential fraud in California\u2019s unemployment insurance program will be fully examined,\u201d Labor Secretary Lori Chavez-DeRemer told The Post in a statement. <\/p>\n \u201cThe previous administration turned a blind eye toward failing Labor programs: This ends now.\u201d<\/p>\n