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Fraud Overwhelms Pandemic-Related Unemployment Programs

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Web pages used to show information for collecting unemployment insurance in Virginia, right, and reporting fraud and identity theft in Pennsylvania, are displayed on the respective state web pages, Friday, Feb. 26, 2021, in Zelienople, Pa. Massive fraud in the nation's unemployment system is raising alarms even as President Joe Biden and Congress prepare to pour hundreds of billions more into expanded benefits for those left jobless by the coronavirus pandemic. (AP Photo/Keith Srakocic)

COLUMBUS, Ohio (AP) — With the floodgates set to open on another round of unemployment aid, states are being hammered with a new wave of fraud as they scramble to update security systems and block scammers who already have siphoned billions of dollars from pandemic-related jobless programs.

The fraud is fleecing taxpayers, delaying legitimate payments and turning thousands of Americans into unwitting identity theft victims. Many states have failed to adequately safeguard their systems, and a review by The Associated Press finds that some will not even publicly acknowledge the extent of the problem.

The massive sham springs from prior identity theft from banks, credit rating agencies, health care systems and retailers. Fraud perpetrators, sometimes in China, Nigeria or Russia, buy stolen personal identifying information on the dark web and use it to flood state unemployment systems with bogus claims.

The U.S. Justice Department is investigating unemployment fraud by “transnational criminal organizations, sophisticated domestic actors, and individuals across the United States,” said Joshua Stueve, a spokesman for the department’s criminal division.

The Labor Department inspector general’s office estimates that more than $63 billion has been paid out improperly through fraud or errors — roughly 10% of the total amount paid under coronavirus pandemic-related unemployment programs since March.

“We’re all learning that there is an epidemic of fraud,” said U.S. Rep. Kevin Brady of Texas, the ranking Republican on the House’s powerful Ways and Means Committee. Brady said the $63 billion estimate “is larger than the entire budget of the Department of Homeland Security.”

“These are frightening levels of fraud,” he said.

California has been the biggest target, with an estimated $11 billion in fraudulent payments and an additional $19 billion in suspect accounts. Colorado has paid out nearly as much to scammers — an estimated $6.5 billion — as it has to people who filed legitimate unemployment claims.

Other estimates, according to AP reporting across the states, range from several hundred thousand dollars in smaller states such as Alaska and Wyoming to hundreds of millions in more populous states such as Massachusetts and Ohio.

The nationwide fraud has fed on twin vulnerabilities: a flood of jobless benefit applications since the pandemic began that has overwhelmed state unemployment agencies and antiquated benefit systems that are easy prey for crafty and persistent criminals.

In Ohio, weekly first-time unemployment claims have ranged from 17,000 to more than 40,000 during the pandemic. But since late last month, those claims have topped more than 140,000 some weeks, with many of them believed to be fraudulent. The state has paid at least $330 million in fraudulent pandemic unemployment benefit claims.

Trying to catch so many bogus claims delays payouts to Ohioans who are legitimately in need of help. In the Columbus suburb of Upper Arlington, Cynthia Sbertoli was receiving $228 a week after she was laid off in March from her job with a nonprofit that runs high school student exchange programs.

Her benefits were put on hold in January after she informed the state that someone had tried to use her identity in a scam to claim benefits. She thought the problem was resolved but has yet to see a renewal of her benefit checks, which she and her husband use to help pay for a son’s vision and auditory therapy.

“It’s just not a good way to take care of people,” said Sbertoli, 49.

In Indiana, Kentucky and Maryland, officials have said that for certain weeks in the new year at least two-thirds of the claims they received were classified as suspicious due to problems verifying identities. It’s not the first brush with serious fraud for Maryland. In July, officials said they’d discovered a massive criminal enterprise that had stolen more than $500 million in unemployment benefits.

Among states that have been hardest hit are those participating in the Pandemic Unemployment Assistance program adopted by Congress last year. It has been a lifeline for out-of-work freelancers and gig workers who normally don’t qualify for unemployment insurance, but it’s also been a boon for criminals who use stolen identities to make claims. Nearly 800,000 of the 1.4 million claims Ohio has received through this program have been tagged for potential fraud.

Scams have been so widespread that the U.S. Department of Justice is setting aside money to hire more prosecutors. In New York alone, the Department of Labor says it has referred “hundreds of thousands of fraud cases” to federal prosecutors. The state says it has blocked $5.5 billion in fraudulent claims, while New Jersey says it’s prevented $2.5 billion from flowing into the hands of criminals.

Despite those efforts, a government watchdog agency says not enough states are taking the necessary steps to prevent fraud.

In its memo this past week, the U.S. Department of Labor’s Office of Inspector General said that by the end of last year, 22 of the 54 state and territorial workforce agencies were still not following its repeated recommendation to join a data exchange run by the National Association of State Workforce Agencies.

That system is designed to check Social Security numbers used in claims to see if they are being used in multiple states, or are linked to dead people or other scam methods. The office said it had found $5.4 billion in fraudulent payments from March through October.

The biggest chunk of that, $3.5 billion, came through claims that used the same Social Security numbers in multiple states. One number was used on claims in 40 states. Twenty-nine of the states paid those claims, totaling more than $220,000.

“The Department needs to take immediate action and increase its efforts to ensure (states) implement effective controls to mitigate fraud in these high risk areas,” the inspector general warned Labor officials.

The people whose identities are used to claim improper benefits often don’t find out until they receive their tax statements.

Andrew Heidtke received a letter in September from the Wisconsin Department of Workforce Development notifying him that unemployment claims he never applied for were being processed.

“I had no idea what was happening,” said Heidtke, who works as an administrative assistant for an engineering lobbying organization. “I kind of just thought it was spam at first.”

Another victim was 99-year-old Harry Hollingsworth of Strongsville, Ohio. The retired elevator car factory worker received a form in late January showing he had received $3,156 in benefits. Hollingsworth died recently, and his son, Jim Hollingsworth, said the bogus claim created a big hassle.

“It looks like the state, they dropped the ball on this completely,” he said.

In its own survey of state governments, the AP found that many are not publicly disclosing the level of fraud. Some officials expressed concern that providing any information, no matter how general, could provide criminals an opening to exploit their systems further.

President Joe Biden’s administration is pledging to cut down on unemployment fraud even as it tries to extend benefits through September. As part of previous legislation, the administration is sending states $200 million to fight it.

That would be welcome in Virginia, where House Minority Leader Todd Gilbert, a Republican, said the Legislature’s watchdog agency should investigate how the state allowed $40 million in bogus payments through prison inmate-related scams.

“How many desperate people, laid off through no fault of their own, could have been helped with that money?” he asked. “It’s maddening.”

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Brazilian Breakfast Bliss: Sodie Doces Shines in Janira Garcia’s Latest FNN Foodie Review

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ORLANDO, Fla. (FNN) – In this week’s flavorful edition of FNN Good News & Reviews Show, Orlando’s own Social Lite, Janira Garcia, put the spotlight on one of International Drive’s sweetest hidden gems—Sodie Doces Brazilian Cake Shop. Known for its authentic Brazilian confections and cozy atmosphere, Sodie Doces offered a full-sensory experience that had Janira—and her viewers—completely captivated.

A Brazilian Breakfast to Remember

Janira kicked off her Sunday morning foodie adventure with her signature blend of charisma and curiosity, inviting viewers to discover the traditional tastes of Brazil right in the heart of Orlando. The spotlight dish? A crispy golden Coxinha—Brazil’s beloved deep-fried, teardrop-shaped snack filled with juicy seasoned chicken. “Crispy on the outside, tender and flavorful on the inside—it’s the real deal,” Janira remarked as she took a bite.

She followed it up with a slice of Sodie Doces’ heavenly Morango Cake, a beautifully layered dessert filled with rich dulce de leche and topped with fresh strawberries. The flavors delivered the perfect balance of sweetness and indulgence.

Adding to the breakfast bliss was a house-made flaky pastry that practically melted on contact, and the grand finale—a steaming cup of bold Brazilian coffee that stole the show. “It’s a full Brazilian breakfast moment,” Janira said, smiling between sips, visibly impressed by the depth and aroma of the brew.

A Hidden Gem for Locals and Tourists Alike

Located along the iconic International Drive, Sodie Doces has been quietly charming customers with its authentic offerings. Thanks to Janira Garcia’s coverage, this cake shop is quickly rising from hidden gem to foodie hotspot.

Whether you’re a local looking to spice up your Sunday morning or a visitor seeking a unique culinary experience, Sodie Doces is now a must-visit on Orlando’s food map.

Catch more exclusive food finds, sweet surprises, and delicious journeys every week with Social Lite Janira Garcia on the FNN Good News & Reviews Show, airing on Florida National News.


Janira Garcia
FNN Goodnews & Reviews Show
news@FloridaNationalNews.com

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El Coqui Ninja Restaurant – Orlando’s Hidden Gem Delivers Bold Flavor and Cultural Fusion

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Source: El Coqui Ninja Restaurant.
ORLANDO, Fla. (FNN) – FNN Good News & Reviews reporter Mimi Mala is on a mission to uncover Orlando’s best-kept culinary secrets. During her search, she stumbled upon a vibrant fusion eatery tucked away in the heart of the Milk District—El Coqui Ninja Restaurant.


This hidden gem is redefining Orlando’s food scene with a mouthwatering mix of Puerto Rican and Chinese cuisines that not only satisfies your cravings but also celebrates rich cultural traditions.

UNIQUE AMBIANCE THAT TELLS A STORY

From the moment I walked in, I was welcomed by colorful décor and whimsical props that instantly set the tone for a playful yet cultural dining experience. The interior is filled with character—each detail clearly thought out to reflect the dual heritage of the restaurant. It’s the perfect backdrop for foodies and Instagrammers alike.

Source: El Coqui Ninja Restaurant, Facebook

A FLAVOR-FORWARD MENU THAT WOWS

Let’s talk about the food, because that’s where El Coqui Ninja truly shines. I started with the Crab Rangoon, and let me just say—these are the best I’ve ever had. Unlike most places that serve mostly cream cheese, El Coqui Ninja’s version is packed with real, tender crab meat, delivering a rich flavor in every crispy bite.

Next, I dove into the Rellenos De Carne Molida Y Queso—a Puerto Rican classic made with seasoned ground beef, cheese, and mashed potato. Each bite offered a comforting balance of savory and creamy, transporting me straight to the island.

Of course, I couldn’t pass up the Mofongo, another staple of Puerto Rican cuisine, and I’m so glad I tried their egg rolls—because who doesn’t love egg rolls? These were crisp, golden, and stuffed to perfection, easily some of the best in town.

SIGNATURE COCKTAILS AND STANDOUT SERVICE

To round out the experience, I ordered a Chuchaso, their signature Blackberry Raspberry Sake Mojito. Let me tell you—it was refreshing, fruity, and dangerously smooth. A must-try from their full-service bar.

What truly made the experience exceptional was our server, Gustavo. His warm personality, attentiveness, and deep knowledge of the menu elevated our visit. From dish recommendations to drink pairings, Gustavo was the cherry on top.

A MUST-VISIT DESTINATION FOR FOOD LOVERS

El Coqui Ninja Restaurant isn’t just a place to eat—it’s a destination. The combination of bold flavors, artistic ambiance, and heartfelt service make it a standout in Orlando’s crowded food landscape. Whether you’re a local or visiting, this hidden gem deserves a spot on your culinary bucket list.

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Mimi Mala
FNN GoodNews & Reviews
News@FloridaNationalNews.com

 

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David Siegel, Founder of Westgate Resorts, Dies at 89; Queen of Versailles’ Jackie Siegel Mourns

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ORLANDO, Fla. (FNN)David Siegel, the visionary founder of Westgate Resorts, passed away at the age of 89, as confirmed by the company. Siegel, who established the timeshare resort company in 1982, led its growth from a single location in Orlando, Florida, to an internationally recognized brand. With properties spanning Miami Beach, Arizona, Virginia, Utah, and many other locations, Siegel’s leadership has forever shaped the hospitality industry.

In a heartfelt statement, Jim Gissy, the CEO of Westgate Resorts, shared his admiration for David Siegel’s exceptional work ethic and dedication to the company:
“David worked tirelessly to create a company that will continue to honor its family roots. His vision and passion helped build a company with the resources and ambition to bring joy to those whose lives we touch through our hospitality.”

David Siegel’s Impact on Westgate Resorts and the Hospitality Industry

Under Siegel’s leadership, Westgate Resorts became one of the largest privately-owned vacation ownership companies in the world. His foresight and strategic development expanded the company into high-demand destinations such as Las Vegas, Park City, Utah, and Orlando, offering luxurious timeshare experiences to countless guests. The company’s portfolio today includes over 30 resorts nationwide and a global presence that has transformed the vacation ownership market.

But beyond business success, Siegel and his wife, Jacqueline “Jackie” Siegel, made their mark as passionate philanthropists. After their daughter, Victoria Siegel, tragically died from a drug overdose in June 2015, the Siegels established the Victoria’s Voice Foundation. This charitable organization is committed to preventing substance abuse and raising awareness about the growing crisis of drug overdose deaths in the United States.

Photo by Florida National News / J Willie David, III

One significant legislative achievement in their fight for awareness was the passing of SB 66, “Victoria’s Law,” which designated June 6 as “Revive Awareness Day”. The bill, signed into law by Governor Ron DeSantis, was named after Victoria Siegel and seeks to educate the public on the dangers of substance abuse.

A Celebration of Life and Tribute to David Siegel

Westgate Resorts has announced plans to hold a celebration of life to honor David Siegel’s enduring contributions to the company, his family, and his community. This event will serve as a tribute to a man whose impact reaches far beyond business and has influenced the lives of many across the nation.

Florida National News extends its deepest condolences to Jacqueline Siegel, their family, friends, and the many lives David Siegel touched. His legacy in the hospitality industry, alongside his philanthropic efforts, will continue to inspire future generations.

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J Willie David, III
News@FloridaNationalNews.com

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