RICHMOND, Va. — The Virginia Employment Commission announced this week that a criminal investigation was underway after the agency identified approximately 4,200 unemployment insurance claims that “may have been compromised.”
The agency issued a brief news release Wednesday about the discovery that indicated some money had been misallocated.
VEC said it had “isolated” the impacted claims to prevent “further activity" and had already been able to “recoup” some funds. The agency is working on returning those payments to customers.
Joyce Fogg, an agency spokesperson, said in an email VEC could not further define exactly how the claims were “compromised.”
"We are committed to resolving this issue and are working with law enforcement to pursue those responsible for these actions,” VEC Commissioner Carrie Roth said in a statement.
Since the start of the pandemic, the agency has struggled with making timely payments and decisions in complex cases and responding to customers' inquiries. It has faced identity theft and other fraud issues, as well as troubles related to a long-delayed transition to a new IT system.
Other agencies around the country faced similar challenges amid the pandemic-related surge in applications. But Virginia's response by some measures was exceptionally poor. Gov. Glenn Youngkin made improving the agency a key campaign pledge.
