Lawyers say thousands of unemployed mistakenly charged with fraud

Posted at 4:40 PM, May 08, 2016
and last updated 2016-05-08 16:41:06-04

LANSING, Mich. (AP) — Some lawyers say a $47 million computer system that came online after the state’s unemployment insurance agency laid off about 400 people in 2012 has mistakenly charged thousands of people with fraud.

A group of state lawmakers is holding legislative hearings this month to see what can be done as court proceedings continue.

Rep. Ed McBroom (R-Vulcan) says he wants legislation on the House floor by the end of the month to address problems at the agency after an audit found issues with attempts to contact those accused.

Agency director Sharon Moffett-Massey says the system was not wrongly charging people with fraud. She says it used the same information as people who review fraud cases.