Audit of Detroit's employee benefits program finds fraud - Fox 2 News Headlines

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>>

  • New DTE app lets users check their energy use

    New DTE app lets users check their energy use

    Friday, August 1 2014 7:59 PM EDT2014-08-01 23:59:24 GMT
    Joel Miller, a senior strategist with DTE Energy, gave us some insight -- on DTE insight. The new, free smart phone app helps customers see their energy use hour by hour -- or minute by minute."By studying your data and by looking around your home you can discover what things are using energy," Miller said. Then, you make choices -- replace appliances or physically turn off whatever's not needed -- or is wasting energy, and save money on your energy bill in the process."I think for a lot of u...
    Joel Miller, a senior strategist with DTE Energy, gave us some insight -- on DTE insight. The new, free smart phone app helps customers see their energy use hour by hour -- or minute by minute."By studying your data and by looking around your home you can discover what things are using energy," Miller said. Then, you make choices -- replace appliances or physically turn off whatever's not needed -- or is wasting energy, and save money on your energy bill in the process."I think for a lot of u...
  • Backyard Bliss: The Brown family's backyard

    Backyard Bliss: The Brown family's backyard

    Friday, August 1 2014 7:07 PM EDT2014-08-01 23:07:48 GMT
    Living is easy in the summertime, and some of the very best times are often found right in our own backyard.
    Living is easy in the summertime, and some of the very best times are often found right in our own backyard.
  • Immigration issue hits home in Farmington Hills

    Immigration issue hits home in Farmington Hills

    Friday, August 1 2014 7:04 PM EDT2014-08-01 23:04:59 GMT
    Illegal immigration is an issue that seems to have much of the country at odds, spurring protests from coast to coast and even requests for immigration reform. Now, that concern is really coming to a local level with talk of illegal immigrants headed to places like Vassar, Bay City - and now Farmington Hills.The illegal immigrant children will be headed to Farmington Hills in the next couple weeks, likely before the end of the month. Wellspring Lutheran Services will provide their shelter, fo...
    Illegal immigration is an issue that seems to have much of the country at odds, spurring protests from coast to coast and even requests for immigration reform. Now, that concern is really coming to a local level with talk of illegal immigrants headed to places like Vassar, Bay City - and now Farmington Hills.The illegal immigrant children will be headed to Farmington Hills in the next couple weeks, likely before the end of the month. Wellspring Lutheran Services will provide their shelter, fo...
Powered by WorldNow

WJBK-TV | Fox 2
16550 West Nine Mile Rd.
Southfield, MI 48075

Main Station: (248) 557-2000
Newsroom: (248) 552-5103

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