Department of Employment Security faces questions about fraud recoveries

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – The director of the Illinois Department of Employment Security says his agency has changed its processes in an effort to prevent millions of dollars in potential losses due to fraud.

A financial audit of IDES for the year ending June 30, 2024 found $266 million returned through unclaimed debit cards and other amounts funded during the COVID-19 pandemic, but claimants were later found to be ineligible for benefits.

State Rep. Natalie Manley, D-Joliet, questioned IDES Director Ray Marchiori about the debit cards during a Legislative Audit Commission hearing on Tuesday.

“We have actively changed those processes working on our integrity efforts and focused on working with our sister agency DoIT, putting in safeguards around ID validation, verification, working with our financial institutions,” Marchiori said.

State Rep. Amy Elik, R-Alton, asked if the $266 million involved from fraudulent claims.

“Yes, those are recoveries from most likely fraud, ID theft,” Marchiori said.

Marchiori said IDES has collected nearly $713 million in overpayments since 2021 and prevented $358 million in further attempts at fraud.

When asked $713 million “out of how much,” IDES Chief Financial Officer Brett Cox could not say.

“I don’t have that number offhand, but we do provide different reports to the feds where we’d be able to get that for you,” Cox said.

State Sen. Chapin Rose, R-Mahomet, said he remembered the number being in the billions.

Also Tuesday, for the first time in more than ten years, the Legislative Audit Commission approved a deputy auditor general for the Illinois Office of the Auditor General.

Courtney Dzierwa has worked in the auditor general’s office since 2003.

Sen. Rose said new Auditor General Christopher Meister has done the people of Illinois a great service by nominating Dzierwa as deputy auditor general.

“I think everyone in this room knows Courtney. She is impeccable in her qualifications for this position,” Rose said.

Dzierwa thanked the commission after they approved her nomination by a unanimous vote of 9-0.

“I wholeheartedly believe in the OAG’s mission, the accountability and transparency we’re responsible for, and I will not let you down,” Dzierwa said.

Rose said he thinks the commission “landed the plane in a fantastic place for the taxpayers.”

The Illinois Auditor General office’s budget is $43.3 million from state taxpayer funds.

Also at Tuesday’s meeting, Rose and other commission members recognized recently retired Auditor General Frank Mautino, who served in the role since 2016.

Mautino previously served in the Illinois House from 1991 to 2015. Before leaving the legislature, Mautino was deputy majority leader under then-Illinois House Speaker Michael Madigan.

Greg Bishop contributed to this story.