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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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U.S. Hispanic Chamber of Commerce Brings 47th Annual National Conference to Fort Worth Sept. 14-16

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FORT WORTH, Texas (FNN NEWS) — The United States Hispanic Chamber of Commerce will bring its 47th Annual National Conference to Fort Worth, Texas, Sept. 14-16, 2026, convening Hispanic business leaders, corporate executives, policymakers and entrepreneurs from across the country.

The three-day conference will be held at the Fort Worth Convention Center and is expected to serve as a major national platform for business development, networking, economic opportunity and deal-making.

Nearly five decades after its launch, the USHCC National Conference has grown into what the organization describes as the nation’s largest gathering of Hispanic business decision-makers.

The selection of Fort Worth highlights the North Texas city’s growing position as a center for business, entrepreneurship and culture while providing a national stage for Hispanic-owned businesses and their economic impact.

Fort Worth Selected to Host 2026 National Conference

USHCC announced Fort Worth as the 2026 host following its 46th Annual National Conference in Atlanta.

“We are thrilled to bring the USHCC National Conference to Fort Worth in 2026,” said Jackie Puente, vice president of external affairs at Comcast and chairwoman of the United States Hispanic Chamber of Commerce. “This city showcases the innovation, diversity, and economic impact of Hispanic-owned businesses nationwide. At Comcast, we are proud to support the USHCC’s mission of opening doors and creating opportunities for our community to thrive.”

Fort Worth business leaders also welcomed the opportunity to host the national gathering.

“Fort Worth is proud to host the USHCC National Conference in 2026,” said Ericka Garza, president and CEO of the Fort Worth Hispanic Chamber of Commerce. “This event highlights our city’s vibrant culture and the impact of Hispanic-owned businesses in driving economic growth.”

Connecting Hispanic Businesses With Opportunities

Connection building will be a major focus of the 2026 conference, with programming designed to bring business owners directly together with corporate executives, policymakers, industry leaders and potential partners.

Through curated networking opportunities and informal gatherings, participants will have opportunities to establish relationships that could lead to collaborations, contracts, partnerships and long-term business growth.

The conference also provides companies and organizations seeking to expand their engagement with Hispanic-owned businesses an opportunity to connect with entrepreneurs and business leaders from markets across the United States.

National Leaders Take the Main Stage

The conference’s main-stage sessions will feature influential leaders and nationally recognized voices discussing major issues affecting business, entrepreneurship and economic advancement.

Sessions are expected to provide perspectives on economic trends, public policy, market opportunities and emerging challenges facing businesses.

The discussions are designed to help entrepreneurs and executives better understand changing markets and position their organizations for future opportunities.

Breakout Sessions Focus on Business Growth

Attendees will also have access to industry-focused breakout sessions featuring subject-matter experts addressing specific business challenges and opportunities.

The interactive sessions are designed to provide participants with practical strategies, tools and information they can apply to their companies and organizations.

Topics and speakers for the 2026 conference are expected to be announced as the event approaches.

Hispanic Businesses Take Center Stage in Fort Worth

The conference comes as Hispanic-owned businesses continue to play an increasingly important role in entrepreneurship, job creation and economic development across the United States.

For Fort Worth, hosting the national conference provides an opportunity to showcase the city’s business community while connecting local entrepreneurs with corporate and government decision-makers from across the country.

47th Annual USHCC National Conference
Dates: Sept. 14-16, 2026
Location: Fort Worth Convention Center
City: Fort Worth, Texas

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Historic Casements to Debut Mateo Blanco’s ‘Rockefeller Flag’ During The American Legacy Exhibition

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ORMOND BEACH, Fla. (FNN NEWS) — The Casements, the historic Ormond Beach residence where industrialist John D. Rockefeller spent the final years of his life, will host “The American Legacy,” a new exhibition by American artist Mateo Blanco opening Saturday, Aug. 1.

The exhibition brings together painting and photography to explore themes of American history, material, memory, innovation and the ideas that continue to shape the nation’s identity during its Semiquincentennial.

Public Premiere of Rockefeller Flag

The centerpiece of the exhibition is the public debut of “Rockefeller Flag,” a new oil-on-canvas painting created exclusively for The Casements.

Rather than depicting Rockefeller himself, the work examines the relationship between industry, history and artistic tradition. Executed entirely in black oil paint on canvas, Rockefeller Flag draws its conceptual inspiration from petroleum—the natural resource that transformed American industry and helped redefine the modern world.

Blanco notes that petroleum also returns to its artistic origins through oil paint, the medium that has shaped Western painting for more than five centuries, creating an intersection between industrial innovation and artistic expression.

Installed inside Rockefeller’s historic residence, the painting encourages visitors to reflect not only on one of America’s most influential business leaders but also on the broader themes of vision, enterprise, stewardship and the legacy each generation leaves behind.

“For many people, The Casements represents the final chapter of John D. Rockefeller’s life,” Blanco said. “For me, it represents the beginning of another conversation—one about legacy. Every generation inherits ideas, opportunities and responsibilities created by those who came before. What ultimately defines us is what we choose to build with that inheritance.”

Museum Exhibition Highlights

The exhibition also features paintings previously exhibited at The Butler Institute of American Art alongside a curated selection of photographs celebrating the American landscape, its people and the cultural narratives that have shaped the nation across generations.

Together, the works represent one of Blanco’s most comprehensive museum presentations to date, combining painting and photography in a reflection on the American experience.

According to exhibition organizers, The American Legacy is intended as a cultural reflection rather than a political statement, highlighting creativity, craftsmanship, imagination, innovation and the enduring ability of individuals to transform ideas and materials into lasting contributions.

By returning petroleum to the language of oil painting, Blanco creates a dialogue between one of America’s defining industrial achievements and one of the oldest artistic traditions in history.

About Mateo Blanco

Mateo Blanco is an American multidisciplinary artist whose work explores material transformation, cultural memory and the evolving narrative of American identity. Working across painting, photography, sculpture and mixed media, Blanco examines how everyday materials become symbols of history, belonging and collective memory.

His work has been exhibited by museums and cultural institutions throughout the United States, including The Butler Institute of American Art, the Orlando Museum of Art, the Boca Raton Museum of Art, the Museum of Art – DeLand, the Armory Art Center, the Cornell Art Museum and the Brick Store Museum.

His artwork is included in the permanent collections of several American museums, reflecting continued institutional recognition of his contributions to contemporary American art.

Blanco is represented by Rosenbaum Contemporary, with gallery locations in Palm Beach, Boca Raton and Hollywood, Florida.

Exhibition Information

The American Legacy: Featuring the Public Premiere of Rockefeller Flag

Opening Reception
Saturday, Aug. 1, 2026

3–7 p.m.

Location
The Casements

25 Riverside Drive

Ormond Beach, FL 32176

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Essence Magazine Co-Founder Jonathan Blount Dies at 84, Leaving Enduring Legacy in Civil Rights and Black Media

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ORLANDO, Fla. (FNN NEWS) — Jonathan Sebastian Blount Dunn Morse, a visionary entrepreneur, one of the four founders of Essence magazine, pioneering civil rights activist, Black business leader, publisher, and community advocate, died peacefully Monday, July 20, 2026, at his Orlando home surrounded by family after a courageous battle with prostate cancer that later spread to his bones and liver. He was 84.

For more than seven decades, Morse dedicated his life to advancing civil rights, expanding opportunities for Black-owned businesses, strengthening independent Black media, and empowering communities through economic opportunity, education, and public service.

His life’s work stretched from the front lines of the Civil Rights Movement in North Carolina to the boardrooms of Wall Street and, ultimately, to the neighborhoods of Central Florida, where he remained a tireless advocate until his final days.

Jonathan Morse at a Glance

1930s–1940s

  • Born in Monroe, North Carolina.
  • Adopted and raised by Carrie Blount.

1950s

  • Civil Rights activist under Robert F. Williams.
  • Survived an attempted lynching while challenging segregation.

Late 1960s

  • Conceived the vision that became Essence magazine.

1970

  • Co-founded Essence magazine.
  • Became its first President and Chairman of the Board.

1970s–1990s

  • Helped raise more than $1 million in Wall Street investment capital.
  • Founded additional Black publications.
  • Consulted nationally with Black-owned businesses.

2000s–2026

  • Relocated to Orlando.
  • Founded the African American Art and Heritage Museum.
  • Led Operation Clean Sweep.
  • Mentored Caribbean American Passport News Magazine and celebrated its evolution into CAP Village.

July 20, 2026

  • Passed away at age 84.

A Vision That Changed Black Media

Morse is best known as one of the four founders of Essence magazine, the publication that forever changed how Black women were represented in American media.

While history remembers him as a co-founder, Morse often smiled and described himself as the magazine’s “ideational and conceptual founder,” explaining that the original vision for a fashion and lifestyle publication devoted specifically to Black women was his.

That vision became Essence, now one of the world’s most influential media brands serving Black women.

Known affectionately by many as “The Father of Essence,” Morse served as the publication’s first President and Chairman of the Board, helping transform an ambitious idea into a nationally recognized institution.

Under his leadership, the founders became among the first Black-owned businesses to raise more than $1 million on Wall Street, an unprecedented accomplishment during an era when Black entrepreneurs faced enormous barriers to investment capital.

Although philosophical differences over preserving majority Black ownership eventually led Morse and fellow founder Cecil Hollingsworth to leave the company, he remained proud of the publication’s continued success.

Years later, fellow founder Clarence O. Smith publicly acknowledged that Morse had been right in advocating for Essence to remain Black-owned.

A Freedom Fighter Before He Was a Publisher

Long before changing American media, Jonathan Morse was risking his life for civil rights.

Growing up in Monroe, North Carolina, he came under the mentorship of legendary civil rights leader Robert F. Williams, whom Morse affectionately called “Uncle Rob.”

Together with other young activists, Morse helped defend Monroe’s Black neighborhoods from Ku Klux Klan violence while challenging segregation.

At only 14 years old, he nearly lost his life after participating in an effort to integrate a segregated county swimming pool, surviving an encounter with a lynch mob.

More than six decades later, in 2022, the North Carolina African American Heritage Commission honored Morse and his fellow activists with a historical marker recognizing their courage and sacrifice.

Building Black Business

Following his years with Essence, Morse continued creating opportunities for Black entrepreneurs.

He launched several publishing ventures, including:

  • In Advance
  • Eagle and Swan
  • Élan

He later became one of the nation’s most respected consultants to Black-owned businesses and advertising firms.

Among the accomplishments he valued most was helping secure what was then the largest contract ever awarded to a Black advertising agency—a $10 million U.S. Census Bureau contract.

Economic empowerment remained one of his life’s defining passions.

His favorite Frederick Douglass quotation became his guiding philosophy:

“Power concedes nothing without demand.”

Transforming Orlando

When Morse made Orlando his home, he quickly became one of Central Florida’s most recognizable community advocates.

Among his many accomplishments, he:

  • Founded the African American Art and Heritage Museum.
  • Organized Operation Clean Sweep.
  • Served as President of the Parramore Business Association.
  • Created a community tool library.
  • Coordinated free paint and home improvement supplies.
  • Helped secure the first corporate funding for Orlando’s SALT hygiene program.
  • Successfully challenged diversity issues within public broadcasting.
  • Helped relocate Orlando’s Martin Luther King Jr. Parade onto Orange Avenue’s Main Street.

Whether attending City Council meetings, neighborhood forums, NAACP events, or nonprofit gatherings, Jonathan Morse became known as someone who consistently showed up—not for recognition, but to serve.

A Champion of Independent Black Journalism

Journalism remained one of Jonathan Morse’s greatest passions.

He became a trusted mentor and advisor to Caribbean American Passport News Magazine, working closely with founders Sam and Guenet Roberts as the publication expanded throughout Central Florida and the Caribbean diaspora.

He later celebrated its transformation into CAP Village, where he proudly participated in filming portions of his own documentary.

Morse believed independent Black media preserved history, amplified underrepresented voices, and held institutions accountable.

He encouraged young journalists to pursue difficult stories, ask challenging questions, and never underestimate the value of community journalism.

Family First

Despite a remarkable public career, Jonathan Morse considered family his greatest achievement.

He rarely missed a grandchild’s recital, athletic event, school performance, Easter program, or talent show.

Opening night at the Central Florida Fair became a cherished annual tradition shared with his family.

To Morse, family extended far beyond blood relatives.

Many who knew him referred to him as a brother whose friendship, wisdom, and generosity changed their lives forever.

Courage Through Every Challenge

Later in life, Morse publicly shared his diagnosis of bipolar disorder, hoping his openness would encourage others to seek treatment without fear or shame.

During his battle with cancer, he again chose transparency, believing honesty could inspire hope and reduce stigma for others facing serious illness.

His willingness to discuss deeply personal challenges reflected the same courage that defined his life’s work.

Finding His Roots

Born in Monroe, North Carolina, Morse was adopted at birth by Carrie Blount.

After her passing, he began searching for his biological family through an appeal published in Jet magazine.

That search ultimately reunited him with his birth parents and siblings, completing a deeply personal chapter that remained among the most meaningful experiences of his life.

Comments and Reflections

Family Statement

“Jonathan believed every generation has a responsibility to leave the world better than it found it. We will forever cherish his love, wisdom, humor, and unwavering commitment to family, community, and justice.”

Florida National News

“Jonathan Morse leaves behind more than an extraordinary résumé. He leaves stronger institutions, empowered communities, inspired journalists, successful entrepreneurs, and generations of leaders who benefited from his mentorship. His impact will continue to be felt wherever courageous journalism and community leadership thrive.”

Community Reflection

“Jonathan never measured success by titles or recognition. He measured it by how many people he helped, how many doors he opened, and whether the next generation had greater opportunities than his own.”

Why Jonathan Morse Still Matters

Jonathan Morse’s vision remains remarkably relevant today.

Long before diversity became a corporate priority, he insisted Black voices deserved their own media platforms.

Long before conversations about media ownership became commonplace, he warned of the importance of preserving Black ownership of Black institutions.

Long before community journalism faced unprecedented economic pressures, he championed independent local news organizations as essential pillars of democracy.

His ideas continue to shape conversations about journalism, entrepreneurship, civil rights, economic opportunity, and community empowerment.

Life and Legacy

Jonathan Sebastian Blount Dunn Morse helped shape modern Black America.

He stood against segregation as a teenager.

He helped create one of America’s most influential Black-owned media companies.

He championed Black entrepreneurship.

He strengthened independent journalism.

He revitalized Orlando neighborhoods.

He mentored generations of journalists, civic leaders, entrepreneurs, and community advocates.

His influence extended from Monroe to Manhattan, from Wall Street to Washington, and from Central Florida to communities across the nation.

His legacy is measured not only by the organizations he helped build, but by the countless lives he inspired.

As Jonathan Morse often demonstrated, history is not written only by those who hold public office or corporate titles—it is written by those with the courage to imagine a better future and the determination to build it.

Rest in Peace and Power, Jonathan Sebastian Blount Dunn Morse.

Thank you for believing that ordinary people, united by courage, conviction, and compassion, truly can change the world.

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