No new unemployment benefit payments are expected to hit the banks or mailboxes next week because of several suspected fraudulent claims during this week's processing of the latest batch of claims, according to the Guam Department of Labor.
The department attempts to batch payments for cleared unemployment claims each Tuesday, "but there was too much suspicious activity from the batch meant for July 28."
Labor is working to ensure the most recent batch of cleared claims, through July 8, is added to next week’s batch.
A new release date will be announced shortly.
Most of the flagged fraudulent claims were traced from off-island, Labor Director David Dell'Isola said on The Ray Gibson Show on the radio Thursday morning.
"It's gonna slow it down and we might have to run a new batch on Tuesday and miss a week just because of the fraud that seemed to slip through even with the counter-measures, the nine countermeasures, that we have in place," Dell'Isola said on the radio.
Hours later, Labor issued a statement that provided more information about the paused batch of payments.
The Office of the Inspector General has projected about $26 billion in fraud across the nation, Dell'Isola said.
"As much as possible, we are doubling our efforts to make sure our batches are as clean as possible and the money is getting out to our people and not to criminals," he said.
As of Thursday, the number of initial claims filed reached 36,825.
But the total number of Guam workers who have been laid off, furloughed or got work hour cuts as a direct result of the COVID-19 pandemic was 35,187, based on the reporting of 2,000 Guam employers.
Rules are clear
"This is a federal program. Rules are clear and concrete. People must understand that we don’t have the ability to make judgments. Either you qualify according to federal rules or you don’t. We have no latitude for judgments. I also need to ensure we run one of the cleanest programs in the nation,” Dell’Isola said in a statement.
Additional fraud filters have been added to the unemployment aid program software to help Guam to continue to combat fraud.
3 appeals so far
Guam Labor is standing up the appeals division and overpayment division for PUA, on top of the focus on catching fraud.
On the radio show, Dell'Isola said there's only about three appeals he's aware of to date.
For individuals that chose direct deposit but input account information incorrectly, the system will no longer allow them to update the wrong information, Labor said.
The system will also revert applicants that initially input wrong direct deposit information back to paper checks.
“This is not a Department of Labor issue or a Department of Administration decision. This is something that’s coming from the banking industry,” Dell’Isola said. “It is important that all claimants correctly input all information details including banking information, mailing addresses and residential addresses in the right places.”