Detroit employees, others illegally get unemployment perks

Downtown DetroitCity of Detroit employees committed fraud by giving unemployment benefits to themselves and up to 700 others who were ineligible, according to an auditor general’s report that recommends a criminal investigation.

The review found that nearly half of the benefit claims processed during the investigation were highly questionable. Of those, 192 were “likely fraudulent.”

The city received a tip in January 2012 from a Human Resources employee who “expressed concerns about some of the human resources staff collecting unemployment while being employed full time.”

Among those likely illegally receiving unemployment benefits are current workers, laid off part-time employees and even contractors

Steve Neavling

Steve Neavling lives and works in Detroit as an investigative journalist. His stories have uncovered corruption, led to arrests and reforms and prompted FBI investigations.