Shipwreckedcrew's Port-O-Call

Shipwreckedcrew's Port-O-Call

COVID Fraud In California Makes The Losses in Minnesota Look Like A Rounding Error

Under Gavin Newsom, $30 billion in fraudulent unemployment compensation claims were made on COVID relief funding -- including a huge amounts paid to the "unemployed" state prison inmates.

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Shipwreckedcrew
Dec 16, 2025
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At the start of the COVID pandemic in 2020, California had more than 120,000 inmates in state prisons throughout the state.

When — in response to COVID-triggered shutdowns and layoffs — the federal government began pumping massive amounts of money into states’ unemployment compensation programs, the Administration of California Governor Gavin Newsom said “Hey, let’s pay prisoners in prisons and jails, they’re unemployed too.”

Well, maybe not quite as glibly as that, but it is a FACT that prison inmates in California prisons and county jails applied for and were paid unemployment compensation by Newsom’s “Employment Development Department” (EDD) which runs the state’s unemployment compensation system.

The fraud losses in Minnesota from the exploitation of COVID-era social welfare programs funded by federal dollars is over $1 billion — the investigation is continuing and new instances of fraudulent behavior are continuing to be uncovered.

But the fraud-losses from just the unemployment insurance scams by individuals throughout California are estimated to exceed $30 BILLION.

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