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Labor officials describe task force on unemployment fraud, say PUA overpayments and recoveries need follow‑up
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Summary
The labor department described internal integrity units and a task force working with law‑enforcement partners on pandemic‑era fraud and overpayments; lawmakers pressed for statistics on total PUA receipts, confirmed fraud prosecutions and recovery amounts.
Department of Labor officials told the House Finance Committee on March 26 that they have an internal integrity unit and a task force that includes Commonwealth and federal investigators to pursue fraud in unemployment benefits, including claims tied to pandemic programs such as PUA.
The secretary and staff said multiple criminal cases have been filed recently and that the agency is working with Puerto Rico public‑safety investigators and federal partners to refer and prosecute matters that arise from internal investigations. The department also reported it has requested additional staff for fraud control and is evaluating technology and contractor options to improve detection and recovery.
Key points - Integrity efforts: The department said it maintains an internal administrative integrity unit and a task force with agents from the Department of Public Safety and federal authorities to investigate suspected fraud and overpayments. - PUA and pandemic funds: Lawmakers pressed for the total amount the department received for pandemic‑era PUA programs and for a breakdown of cases already prosecuted for fraud; the committee asked the department to provide those numbers in writing within five days. - Recovery and prevention measures: Officials described work to add staff in fraud‑control units, to pursue administrative and criminal remedies and to evaluate the use of outside contractors on a contingency basis for debt recovery. A legislator suggested contingency fees of around 10 percent as a market reference; department staff said they will consider the approach.
Why it matters: Pandemic‑era benefits generated a wave of improper payments nationwide; local legislators said showing that Puerto Rico has controls and recovery plans is critical to preserving future federal funding and public trust.
Requests and follow‑up: The committee asked the department to supply the total PUA disbursement amount, the known total of identified fraud cases and recovery totals for cases closed to date. Members also asked for a description of steps the department is taking to prevent future improper payments.
Ending: Department officials said they would provide the requested statistics and a description of integrity‑unit capacity within the deadline set by the commission.
