The state of Louisiana inadvertently sent $405-million dollars to over 97,000 people who were not eligible for unemployment benefits.
An audit of the Louisiana Workforce Commission found the discrepancy which reported the lost money was paid to fraudulent or incorrect filers between January and September of last year.
According to WWL-TV it was the first surge in unemployment claims that overloaded the LWC and left records checking that allowed the ineligible filers to continue to receive claims for unemployment payments.
The matter was further mishandled as rules were relaxed on employer’s filing deadlines.
Ultimately the pandemic was also blamed for a rise in fraudulent reporting, according to the LWC.
The agency is now working to put an end to any fraudulent reporting activity and to recover the money already sent out.
The LWC says they are willing to work with people who mistakenly were sent extra funds by means of setting a repayment plan agreement, or money can be taken from a filer’s paycheck until the amount is completely returned.