Audit of Detroit's employee benefits program finds fraud - Dallas News | myFOXdfw.com

Audit of Detroit's employee benefits program finds fraud

Posted: Updated:
DETROIT (WJBK) -

A new audit of the city of Detroit's employee benefits program found workers - some still on the job - collecting fraudulent unemployment benefits. Between July of 2011 and March of this year there were 1484 claims processed during the audit. Close to 200 of the claims were likely outright fraud. Another 500 or more were deemed highly questionable.

In some cases the fraud was as blatant as a worker who never missed a day of work claiming to be laid off and collecting benefits.

The probe was ordered by emergency manager Kevyn Orr as Detroit's bankruptcy moves through federal court. Orr says Detroit has debt and future liabilities of $18 billion dollars.

Findings show poor investment returns and bad real estate investments cost the funds more than $140 million dollars. The report also found a lack of oversight on the cities' part.

It has been reported that Kevyn Orr wants to freeze the cities pension system for public workers in light of the findings.

Any criminal wrongdoing found in the report will be turned over to state and federal prosecutors. We're told criminal charges are expected down the road.

  • Local NewsLocal NewsMore>>

  • General Motors profit declines 85% in 2Q

    General Motors profit declines 85% in 2Q

    Thursday, July 24 2014 7:43 AM EDT2014-07-24 11:43:10 GMT
     General Motors says second-quarter profit fell 85 percent as recall costs chopped $1.5 billion from the bottom line.
     General Motors says second-quarter profit fell 85 percent as recall costs chopped $1.5 billion from the bottom line.
  • Porch shooter: I didn't know gun was loaded

    Porch shooter: I didn't know gun was loaded

    Thursday, July 24 2014 12:48 PM EDT2014-07-24 16:48:56 GMT
    A suburban Detroit man who killed an unarmed woman on his porch immediately suggested to police it was an accident and that he didn't know his shotgun was loaded, according to recorded remarks played in court Thursday.
    A suburban Detroit man who killed an unarmed woman on his porch immediately suggested to police it was an accident and that he didn't know his shotgun was loaded, according to recorded remarks played in court Thursday.
  • Rehabilitation grants available for auction homes

    Rehabilitation grants available for auction homes

    Thursday, July 24 2014 12:45 PM EDT2014-07-24 16:45:20 GMT
    Homes eligible for $25,000 in forgivable rehabilitation grants are going on sale in a west side Detroit neighborhood. An online auction by the city's Land Bank Authority begins Thursday for eight houses in the Marygrove area.
    Homes eligible for $25,000 in forgivable rehabilitation grants are going on sale in a west side Detroit neighborhood. An online auction by the city's Land Bank Authority begins Thursday for eight houses in the Marygrove area.
Powered by WorldNow

KDFW FOX 4
400 N. Griffin Street
Dallas, Texas 75202

Main Station Directory:
(214) 720-4444
News Fax:
(214) 720-3263 or (214) 720-3333

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices