The U.S. Department of Labor reported that an estimated $14 billion were overspent in unemployment benefits in fiscal 2011.
The federal government and states like Indiana, one of the worst offenders, are now trying to recoup the lost money and prevent future overpayment.
According to the Census Bureau, the distributed benefits did help 3.2 million Americans in need in 2010. However, there are three types of people who have received overpaid funds: people actively searching for jobs, those who were fired or quit their job, and those who have returned to work but are continuing to claim unemployment.
Overpayment is typically an administrative error made by the government, the employer, or the employee. It can also be a combination of all parties.
Scams also contributed to overpayment with claims involving prison inmates, illegal immigrants, and deceased citizens. During fiscal 2011, there were 2,700 convictions of fraud related to unemployment insurance. Punishment typically consists of probation, community service, or an added penalty to the payback amount.
Ryan Greminger, 39, of Richmond, Indiana admits that he collected unemployment benefits while serving a two-year prison sentence for a drug-related crime. Prior to his conviction, he was laid off from a factory in 2007. He was encouraged to keep filing claims from a fellow inmate.
"It's not like some big scheme I thought of," Greminger said. "I paid this guy $50 each time to have his girlfriend — a woman I had never met — file my unemployment claims."
Greminger explained that he needed the money to provide for his fiancé and their four kids. He is now out of jail and working to repay over $14,000 to the state.
"I accept responsibility for what I did. It was wrong. It was a mistake," he said. "I'm paying for it now."
Vice President Joe Biden is now leading the charge against wasted federal spending through the Campaign to Cut Waste initiative.
The Labor Department predicts that only half of the overpayments can be recovered. Gay Gilbert, an administrator in the Labor Department’s Office of Unemployment Insurances said that only a fourth of the “recoverable” funds have actually been retrieved.
“We believe our improper payment rate has very slightly started to tick down," Gilbert said.
When the federal government discovered overpayment, a letter is sent to the worker instructing them to return the funds. In some states, workers are allowed to prove if they are in financial distress to waive the payments. Otherwise, claimants can be taken to court if they do not pay back what they owe.
Repayments can be processed by being withdrawn from garnishing wags, being deducted from federal income taxes or payment plans.
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This Week’s Celebrity Instagrams (10/15-10/21)
31 photos Launch gallery
1. Just a NY girl with BIG dreams....
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2. HAPPY CHILDREN=QUALITY PARENTING. We don't always see eye to eye on everything and that's normal. We're human beings. But we come together and do it right for what's important, the kids. We are not enemies, we are parents. And we are parents 1st. S/O to @monyettashaw for making Mason's bday memorable. S/O to @itscrystalsmith at home taking care of our other lil' Prince. ❤️❤️❤️ THIS IS WHAT CO-PARENTING LOOKS LIKE. #Blessed #Happy #AboveTheDrama #BiggerThanUs
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3. So happy to finally be able to share with you all that I’m the new Global Brand Ambassador for @Revlon! Follow my day on RevlonSnaps. Yay! Choose Love, Everybody! #RevlonXCiara #chooselove #ad
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4. Glam on point!!!@makeupbymotoko & @shaylinjoneshair #easybreezy @lifetimetv #beachesmovie #january2017 😘
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5. ✨True love ✨📸: @jessiemarrerophotography
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7. Today was not easy..but by the grace of God we all got through it. Words cannot express our gratitude for all of your Prayers, Positive thoughts and Support for us throughout the years. Tommy will be missed but most certainly never forgotten...And PLEASE don't ask "Where's Martin?.." he was there too...just not in this picture. Lol! God bless you all.. #LoveConquersAll #MartinShow
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9. West coast get ready for #RockyHorror. I will be live tweeting again. #letsdothetimewarpagain
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10. #THEKEYS pre order yours now ... Available everywhere #NOV22 #WeTheBest 🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑
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11. We about to ROCK at #KCABlackBall!! All for our life-changing effort to end 🌎 AIDS.
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12. Today's #SNAPJACK is brought to you by @yazzthegreatest 😂😂😂💋💋💋
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13. Damn girl you kinda old to be headed to the Go Go. You coming in at the age they leaving. LMAO
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14. Daddy daycare B-Boxin with @acewellstucker @shopraisingace
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15. #FBF Naviyd & URV "LIL MONSTERS"
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16. HAPPY BIRTHDAY TO ONE OF THE BIGGEST LEGENDS IN OUR HIPHOP HISTORY! @snoopdogg CONTINUED BLESSING AND LOVE FAMILY!!!!! REAL OG!
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17. Thank you for a beautiful night VSU! Let's do it again! #HOMECOMING
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18. Had a great time this morning with my familia Erica, Griff & Truth!!
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19. Check out my interview on @essence facebook live. #inmyownwords #nycpromo #day2
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20. #She💋 #tbt #TheCoveAtTheAtlantis #DawgPawsAndAll
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21. Bae #retailtherapy
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22. Why me and @coryhardrict got the same pose... and notee... new mouth #naked
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23. When my husband is my personal 'hype-man'! it kills me every time! 💜😂 #WHATNOW #lostfiles📷
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24. Diggy Simmons
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25. Hand full of @jacquieaiche 💙💎💍 @esnail_la 💅🏾
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26. SuperSoulers! You can watch my interview with Carl Lentz live from my Facebook page, tomorrow at 11a ET| 8a PT. #SuperSoulSunday
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27. 💋 .. When the friendship is easy like Sunday morning. ☀️
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28. Sunday mornings are the best........... hugs and cuddles with my angel
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29. #huggar16 #hellohuggars
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30. My gym is everywhere!.. #RnBMoney #TheGeneral 📸: @twelvepastseven
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31. Nothing I would rather be doing... Rocko setting up our movie, Romelō working on a puzzle & Laiyah singing and sharing all she's learning at school... I'm so grateful for the joy they've brought into my life ... Praying for peace , joy & love in the home of EVERY family ♥️ #HeadScarfPJSunday LOL 😂
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