WASHINGTON — The Trump administration deployed a federal strike team to New York on Monday as part of a crackdown on fraudsters who took nearly $1 billion in unemployment benefits during the COVID-19 pandemic, The Post has learned.
The Department of Labor Office of Inspector General, which first unearthed the stunning fraud total, is participating in the joint strike force headed to the Empire State, where up to $2 million per day is being bilked by fraudsters instead of going toward unemployment insurance, according to administration officials.
“New York is stealing from the American people every single day — draining their hard-earned tax dollars through rampant unemployment insurance fraud and improper payments,” said Inspector General Anthony D’Esposito.
“In partnership with Acting Secretary Keith Sonderling, we are taking a tough-on-crime approach to dismantle this fraud, hunt down every stolen dollar, and prosecute those responsible,” D’Esposito added.
“Backed by the full strength of President Trump and Vice President Vance’s Fraud Task Force and our coordinated OIG and Departmental efforts, our joint federal Strike Team will deliver the swift justice that hard working Americans deserve,” said the inspector general. “Accountability is not an option.”
Sonderling — in addition to members of Congress — had already sent letters highlighting the fraud to New York Democratic Gov. Kathy Hochul as well as other states’ governors. In past statements, Hochul’s team has dismissed claims of rampant fraud occurring in state programs.
DOL officials pointed to New York having one of the highest improper payment and fraud rates of any state at 23% and 15%, respectively.
The Empire State recorded more than $750 million in improper unemployment insurance payments and $507 million in fraudulent payments in 2025, the officials noted, but just 25% of the fraudulently received funds have been recovered by New York State.
Sens. Bill Cassidy (R-La.) and Tim Scott (R-SC) have been running a parallel investigation of New York unemployment fraud, in addition to scams targeting the taxpayer-funded programs in California and Massachusetts.
“The most famous failure of New York’s unemployment insurance fraud prevention during that time is a former Congressman … was somehow able to claim $24,000 in unemployment insurance benefits while being employed,” they wrote in a letter to Hochul on June 11, referencing lying former Long Island GOP Rep. George Santos.
A Hochul rep said in a statement previously that the New York State “Department of Labor takes fraud very seriously and has implemented several updates since the pandemic to fight fraud and abuse.”
“We continue to work with our law enforcement partners to pursue criminals and hold perpetrators accountable while ensuring workers receive the benefits to which they are entitled under law efficiently,” the rep added.
Last month, DOL OIG announced that $9 million had been recovered from New Jersey after being taken by COVID relief scammers.
Reps for the governor’s office did not immediately respond to a request for comment.
