The Maryland operation included more than 47,500 fraudulent claims and was over $ 501 million, according to Hogan.
“The state of Maryland has uncovered a massive, sophisticated criminal company that involves widespread identity theft and coordinated claims for fraudulent unemployment insurance in Maryland,” Hogan said during a press conference.
Hogan added that by “uncovering this illegal system and notifying the federal authorities, the state has helped illuminate the fraudulent criminal activity involved in at least a dozen other states that are” spread “across the country.”
After finding “an unusual increase in unemployment benefits outside the state,”
Hogan said the department immediately notified Maryland U.S. attorney Robert Hur and the U.S. Department of Labor inspector general and “coordinated this ongoing investigation with them.”
CNN asked both offices for a comment.
Hogan emphasized that the State Department of Labor information system had not been breached and that information from Maryland applicants had not been compromised. The department has successfully provided more than 489,000 Maryland applicants with $ 4.3 billion in unemployment benefits, he added, later thanking the department for its successful efforts “to save taxpayers half a billion dollars.”