13 Los Angeles County Workers Charged with Stealing $437K in Unemployment Benefits During Pandemic

LOS ANGELES, CALIFORNIA — Thirteen Los Angeles County government employees are facing felony grand theft charges after investigators uncovered a widespread unemployment fraud scheme totaling more than $437,000 in stolen benefits during the COVID-19 pandemic.

According to prosecutors, the employees—spanning multiple county departments—falsified income records to collect pandemic-related unemployment assistance while continuing to receive their regular county salaries.

Fraud Spanned Multiple County Agencies

The scheme reportedly stretched across seven different county departments between 2020 and 2023, including the Department of Public Social Services, Department of Health Services, and even the Los Angeles County Sheriff’s Department.

Officials said each of the 13 suspects claimed to be earning less than $600 per week — the minimum threshold to qualify for state unemployment assistance — while in reality, they were still drawing full paychecks from their government jobs.

The fraud was uncovered during a routine audit conducted by the California Employment Development Department (EDD) in collaboration with the Los Angeles County District Attorney’s Office.

“This case represents an egregious abuse of public trust,” an EDD spokesperson said. “These individuals exploited a system designed to help struggling Californians during an unprecedented crisis.”

Pandemic Relief Funds Targeted Again

This case adds to the growing list of COVID-19-related benefit fraud investigations across the country, where billions in unemployment relief funds were misused or stolen during the pandemic’s economic shutdowns.

Authorities say the defendants in this case collectively filed dozens of falsified claims using fabricated income statements, routing unemployment deposits into personal accounts while concealing the extra income from oversight systems.

Officials have not released the full list of names, but confirmed that several employees have been placed on administrative leave pending the outcome of the criminal proceedings.

Possible Prison Time If Convicted

All thirteen employees face felony grand theft charges, carrying potential penalties of up to three years in state prison and full restitution of the stolen funds.

Prosecutors emphasized that the alleged theft not only defrauded taxpayers but also undermined resources meant for families truly in need during the pandemic.

“Every dollar stolen from the unemployment system was a dollar taken from Californians trying to keep a roof over their heads,” said an official from the Los Angeles County District Attorney’s Office.

EDD Tightens Oversight Measures

In response to repeated cases of internal fraud, the EDD says it has implemented enhanced monitoring systems and cross-department verification protocols to detect discrepancies in income reporting.

The department also confirmed that it will pursue recovery of the stolen funds through restitution and potential civil penalties in addition to criminal prosecution.

The defendants are expected to appear in court later this month.

What are your thoughts on this growing wave of public employee fraud? Should penalties be harsher for government workers caught abusing relief funds? Share your views and follow more national updates at SaludaStandard-Sentinel.com.