A total of 70 District employees have resigned or been fired in an ongoing investigation into unemployment fraud that has flagged nearly 200 former or current city workers who cost D.C. taxpayers at least $800,000, according to the latest city figures.
Of the total, 64 have been fired for deliberately collecting unemployment insurance while on the job, according to the findings of an ongoing investigation by the Department of Employment Services. Three of those fired had not yet received their official termination notice, according to a city official who spoke on the condition of anonymity. The remaining six employees resigned, the official said.
When asked about the firings, mayoral spokesman Pedro Ribeiro said the “investigation continues.”
“If we find people defrauding the District government, we are going to go after them,” Ribeiro said. “If you took part in any fraud in the District government, let this serve as your notice.”
Those fired were among the 92 District employees who were suspended as the result of an internal investigation announced by the department and Mayor Vincent Gray in February. Seven of those employees have returned back to work after either being cleared of any wrongdoing, repaying the city for the money withdrawn or after serving a suspension, according to the city source.
Those who returned to work were either cleared entirely or there was not enough evidence to suggest the fraud was intentional. For example, if an employee belatedly informed the unemployment office of a new job, that would result in unemployment checks briefly being issued after that person started their job with the District.
In addition to the 92 suspensions, the employment services department in February also identified 40 former employees who were taking advantage of the District’s unemployment insurance system. Since then, city officials have notified 100 more employees that they have “discovered that they’ve been receiving [unemployment insurance] payments while currently employed by the District government,” said employment services spokesman David Thompson.
Most of the unemployment checks were cashed during the previous mayoral administration, and city officials have said they are searching the records as far back as possible to hold current and former employees accountable.
The cases of those who are fired are turned over to the city Office of the Inspector General, which then refers the files to the Office of the Attorney General for civil prosecution. Attorney General Irvin Nathan said he has so far received 30 cases and expects to begin filing lawsuits in the next few weeks.
The inspector general is also referring cases to the U.S. Attorney’s Office for criminal prosecution.
