Millions of dollars in penalties were issued after unemployment insurance agency implemented automated service in 2013 to detect fraud. The system has since been discontinued,but the lawsuits and disgruntled residents remainIn the weeks before Christmas 2014, Kevin Grifka received a letter from the state of Michigan, and claiming he fraudulently collected $12000 in unemployment benefits.
Grifka,an electrician who lives in metro Detroit, had his entire federal income tax refund garnished by the Michigan unemployment insurance agency (UIA). In the midst of the holiday season, or he was faced with repaying a five-figure sum.
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Source: theguardian.com