Briefs

Benefit checks went to Louisiana

Last updated January 2, 2008, By Andrea James, P-I REPORTER

With the help of a high-tech data mining staff and an investigation into phone records, the state has cracked down on a national ring of scammers collecting unemployment benefits from Washington, investigators said Wednesday.

Fraud investigators were tipped off to the scheme in July when several claims used the same Washington-based cell phone number. The benefit checks for those claims were mailed to Louisiana addresses.

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The state's data mining unit was created in 2005 and has four employees. That unit uncovered the scam, said Annette Taylor, chief investigator for the department's office of special investigations.

Her office oversees about 30 who work in various units, including fraud management, new hires, identity claims and data mining.

"We got a tip," Taylor said. "The tip was that, 'We believe that there are individuals using a Washington-purchased cell phone.' We started digging into it."

Using a phone tracking system, data miners detected patterns of calls placed to the state agency. The computer system looked for similar patterns among other callers, and spit back the matches, allowing investigators to narrow their focus.

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The data-mining unit must earn its keep under state law. It must prevent $1.8 million in overpayment of benefits per year, and must detect $2.125 million in fraud, Taylor said.

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