America's Next Gold Rush Is Gaining Speed

Record gold prices. Major partners in Nevada and Arizona. Billions in potential resources. The next chapter in America's gold story may already be unfolding - and one U.S. company is at the center of it.

DOGE trumpets unemployment fraud that government already found

MATT SEDENSKY
April 15, 2025

NEW YORK (AP) -- The latest government waste touted by billionaire Elon Musk's cost-cutting Department of Government Efficiency is hundreds of millions of dollars in fraudulent unemployment claims it purportedly uncovered.

One problem: Federal investigators already found what appears to be the same fraud, years earlier and on a far greater scale.

In a post last week on X, the social media site Musk owns, DOGE announced "an initial survey of unemployment insurance claims since 2020" found 24,500 people over the age of 115 had claimed $59 million in benefits; 28,000 people between the ages of 1 and 5 collected $254 million; and 9,700 people with birthdates more than 15 years in the future garnered $69 million from the government.

The tweet drew a predictable party-line reaction of either skepticism or cheers, including from Musk himself, who said what his team found was "so crazy" he re-read it several times before it sank in.

"Another incredible discovery," marveled Labor Secretary Lori Chavez-DeRemer, who repeated DOGE's findings to President Donald Trump in a Cabinet meeting last week.

Chavez-DeRemer's recounting of the alleged fraud, including claims of benefits filed by unborn children, drew laughter in the Cabinet room and a reaction from Trump himself.

"Those numbers are really bad," he said.

But Chavez-DeRemer needn't look further than her own department's Office of the Inspector General to find such fraud had already been reported by the type of federal workers DOGE has demonized.

"They're trying to spin this narrative of, 'Oh, government is inefficient and government is stupid and they're catching these things that the government didn't catch,'" says Michele Evermore, who worked on unemployment issues at the U.S. Department of Labor during the administration of former President Joe Biden. "They're finding fraud that was marked as fraud and saying they found out it was fraud."

The Social Security Act of 1935 enshrined unemployment benefits in federal law but left it to individual states to set up systems to collect unemployment taxes, process applications and mete out support.

Though states have almost complete control over their own unemployment systems, special relief programs -- most notably widely expanded benefits enacted by the first Trump administration at the outset of the COVID pandemic -- inject more direct federal involvement and a flood of new beneficiaries into the system.

In regular times, state unemployment systems perform "very well, not so well and terribly," according to Stephen Wandner, an economist at the National Academy of Social Insurance who authored the book "Unemployment Insurance Reform: Fixing a Broken System." With COVID slamming the economy and creating a flood of new claims that states couldn't handle, Wandner says many more were "quite terrible."

Trump signed the COVID unemployment relief into law on March 27, 2020, and from the very start it became a magnet for fraud. In a memo to state officials about two weeks later, the Department of Labor warned that the expanded benefits had made unemployment programs "a target for fraud with significant numbers of imposter claims being filed with stolen or synthetic identities."

That same memo offered an option for states trying to protect a person whose identity was stolen to fraudulently collect unemployment benefits. To preserve a record of the fraud but keep innocent people from being linked to it, states could create a "pseudo claim," the memo advises.

Those "pseudo claims" led to records of toddlers and centenarians getting checks. The Labor Department's inspector general tallied some 4,895 unemployment claims from people over the age of 100 between March 2020 and April 2022, but another departmental memo explained that the filings stemmed from states changing dates of birth to protect people whose identities were used.

"Many of the claims identified ... were not payments to individuals over 100 years of age, but rather 'pseudo records' of previously identified fraudulent claims," the 2023 memo says.

A Labor Department spokeswoman did not respond to questions about Musk's findings and DOGE gave no details on how it came to find the supposed fraud or whether it duplicates what was already found.

Though DOGE ostensibly looked at longer timeframe than federal investigators previously had, it tallied just $382 million in fake unemployment claims, a tiny fraction of what investigators were already aware.

In 2022, the Labor Department said suspected COVID-era unemployment fraud totaled more than $45 billion. The Government Accountability Office later said it was far worse, likely $100 billion to $135 billion.

"I don't think it's news to anyone," says Amy Traub, an expert on unemployment at the National Employment Law Project. "It's been widely reported. There've been multiple congressional hearings."

If DOGE's newest allegations have an air of familiarity, it's because they echo its prior findings of about Social Security payments to the dead and the unbelievably old. Those were false claims.

That makes DOGE an imperfect messenger even when fraud has occurred, as with unemployment claims.

Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute, is a fiscal conservative who so champions rooting out federal waste she has written 600 articles on the subject. Though she believes unemployment insurance fraud is rife, she has trouble accepting any findings from DOGE, which she says has acted ineffectively and possibly illegally.

"When DOGE says impossibly old dead people are collecting unemployment in huge numbers, I become skeptical," Reidl says. "DOGE does not have a good track record in that area."

Traub said the burst of pandemic-era unemployment fraud led states to implement new security measures. She questioned why Musk's team was trumpeting old fraud as if it's new.

"Business leaders and economists are warning about a national recession, so it's natural to think about unemployment," says Traub. "It's an attack on the image of a critically important program and perhaps an attempt to undermine public support on unemployment insurance when it couldn't be more important."

___

Matt Sedensky can be reached at msedensky@ap.org and https://x.com/sedensky.

Continue Reading...

Popular

Trump Warns Supreme Court Tariff Ruling Could 'Literally Destroy' The US: 'We'll Be Struggling For Years'

President Donald Trump warned that the U.S. economy would face significant challenges if the Supreme Court rules against the majority of the tariffs imposed this year.

Cathie Wood, Tom Lee Align On These 10 Stock Picks: Some Might Surprise You

A new ETF from Tom Lee shares 10 stocks in common with Cathie Wood's Ark Funds. A look at the stocks both well-known financial figures like.

The 7 Red Flags Wall Street Won't Talk About - Ad

All 7 historic crash signals are flashing red. Once the public notices, it's too late. Our free Bellwether Signal explains how to protect wealth - and why gold and silver have been the refuge in every crisis. Don't let your retirement go over a cliff.

Billionaire Makes $72 Million On Trilogy Metals Stock—Here's What Else He's Holding

Billionaire hedge fund manager John Paulson has scored extraordinary gains with Trilogy Metals—he's also holding gold miners.

See Why Market Patterns Can Be Misleading - Ad

Crashes always give early warning - just not on CNBC. Our free Bellwether Signal report exposes the 7 indicators that preceded every collapse since 1929. All are red today. Protecting retirement may mean shifting to gold & silver, not more stocks.

Mark Cuban Shares His Top Strategies for Protecting Wealth After Hitting Millionaire Status

Mark Cuban once disclosed his strategies for preserving wealth after becoming a millionaire. These insights could be beneficial for anyone aiming to secure their financial future.

Nebius Vs. Palantir: The AI Infrastructure War At 100x Sales

Wall Street's AI mania has sparked a battle between Nebius (NBIS) and Palantir (PLTR) as investors question where the true value of AI lies.

The Best Case for Gold, Ever - Ad

With gold at record highs and Wall Street calling $6,600 next, a Trump-led "Mar-a-Lago Accord" could drive a historic revaluation. One pick with huge upside and lower risk is revealed in a free briefing - plus 3 actions to take before a 40% selloff.

Warren Buffett's Berkshire Hathaway Bets Big On Consumer Brands Amid Economic Shifts

Warren Buffett and his successor Greg Abel have been directing Berkshire Hathaway towards consumer-centric investments throughout 2025.

A Worldwide Gold Lockdown Is Now Underway - Ad

Gold is being stockpiled worldwide - banks, nations, billionaires. This isn't "just gold." A detailed plan could impact savings, investments and even mortgages. The free broadcast breaks it down and shows what to do before it's too late.

OpenAI's ChatGPT To Allow Erotica For Adults: Not 'Moral Police Of The World,' Sam Altman Says

OpenAI will begin allowing erotica and adult-themed content on ChatGPT, marking a major shift in the company's content policy.

Silver Nears $50 Amid Inventory Crisis, Outpacing Gold

Silver prices closed last week at multi-year highs, coming within reach of their 2011 peak of $49.95 per ounce.

VanEck and Kinross Both Have Their Eyes on This U.S. Gold Play - Ad

When a global fund manager and a $12B miner target the same domestic project, investors notice. Strategic deals and breakthrough drill results are fueling a surge of interest in this U.S. name.

Trump Pushes Israel To Stop 'Bombing' Gaza As Hamas Agrees To Free Hostages: 'Right Now, It's Far Too Dangerous To Do That'

President Donald Trump welcomed Hamas's response to his proposed Gaza ceasefire plan on Friday, immediately calling on Israel to halt military operations in the enclave

On October 16, a powerful new law signed by President Trump will trigger a radical shift in America's money system... - Ad

When a small group of private companies - not the Fed - will perform a major mint of a new kind of money. And those who act before this new system fully kicks in could see gains as high as 40X by 2032. But those who fail to prepare will be blindsided by this sea change to the U.S. dollar.

Trump vows to reach a 'fantastic deal' with China after future meeting with Xi

WASHINGTON (AP) — said Monday that the U.S. commands “great respect” from Beijing and that he will reach a “fantastic deal” with Chinese President Xi Jinping when .

Eli Lilly's Oral Weight Loss Drug Shows Superiority Over Two Approved Drugs

Orforglipron meets key endpoints in Phase 3 trials, showing A1C reduction, weight loss, and cardiovascular benefits for type 2 diabetes.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as October 23rd.

Kevin O'Leary Says Gen Z Is 'Rewriting The Playbook' Of Money And Love, The Shark Is Telling His Students To Do This By The Third Date

Gen Z is changing the rules of money & relationships. They're open to co-buying homes, pooling resources & discussing finances earlier. Kevin O'Leary urges couples to talk about credit & goals by the 3rd date, saying it strengthens partnerships. Co-buying is gaining traction as a way to overcome the affordability hurdle. However, it requires planning to avoid risks. Gen Z also values financial responsibility & is willing to share ownership to get into the housing market.

Judge temporarily blocks the Trump administration from firing workers during the government shutdown

SAN FRANCISCO (AP) — President Donald Trump’s administration for now must stop firing workers during , a federal judge ordered on Wednesday.

Gold's Rally Is Rewriting America's Financial Story - Ad

As inflation lingers and governments wobble, gold keeps breaking records - and U.S. supply is suddenly back in focus. One domestic gold play is riding this trend on multiple fronts.

What's Behind The Sharp 39% After-Hours Rally In Telomir Pharmaceuticals?

Telomir's stock jumped nearly 39% in after-hours trading following news that its lead compound, Telomir-1, showed potential in reversing cancer-related DNA changes in aggressive prostate cancer models.

Trump Says He Wasn't Happy India Was Buying Russian Oil And Now Modi Has Agreed To Stop Doing It: 'Big Step'

President Donald Trump has said that Indian Prime Minister Narendra Modi has agreed to halt his country's purchase of Russian crude oil, a move that could have a significant impact on Moscow's ongoing war in Ukraine.

The 7 Red Flags Wall Street Won't Talk About - Ad

All 7 historic crash signals are flashing red. Once the public notices, it's too late. Our free Bellwether Signal explains how to protect wealth - and why gold and silver have been the refuge in every crisis. Don't let your retirement go over a cliff.

Patrick Zalupski's group closes on its purchase of the Tampa Bay Rays

NEW YORK (AP) — A group led by Florida-based real estate developer Patrick Zalupski closed on its purchase of the Tampa Bay Rays on Tuesday, finalizing the sale of the team from former owner Stuart Sternberg.

What's Going On With Archer Aviation Stock Wednesday?

Shares of Archer Aviation Inc. (NASDAQ: ACHR) are rising Wednesday after the air mobility company confirmed it won a bid for a portfolio of patents.

America's Next Gold Rush Is Gaining Speed - Ad

Record gold prices. Major partners in Nevada and Arizona. Billions in potential resources. The next chapter in America's gold story may already be unfolding - and one U.S. company is at the center of it.

The 7 Red Flags Wall Street Won't Talk About - Ad

All 7 historic crash signals are flashing red. Once the public notices, it's too late. Our free Bellwether Signal explains how to protect wealth - and why gold and silver have been the refuge in every crisis. Don't let your retirement go over a cliff.

China outlines more controls on exports of rare earths and technology

HONG KONG (AP) — China outlined new curbs on exports of rare earths and related technologies on Thursday, extending controls over use of the elements critical for many products ahead of a meeting later this month between President Donald Trump and Chinese leader Xi Jinping.

News organizations, including Hegseth's former employer Fox, reject new Pentagon reporting rules

Fox News, the former employer of Defense Secretary Pete Hegseth, has joined a near-unanimous outpouring of news organizations rejecting new rules for journalists based in the Pentagon.

See Why Market Patterns Can Be Misleading - Ad

Crashes always give early warning - just not on CNBC. Our free Bellwether Signal report exposes the 7 indicators that preceded every collapse since 1929. All are red today. Protecting retirement may mean shifting to gold & silver, not more stocks.

Putin Stands up for Trump's Nobel Peace Prize Bid: 'Credibility Has Largely Been Lost'

Russian President Vladimir Putin has come forward in support of President Donald Trump's candidacy for the Nobel Peace Prize.

Domino's Growth Outlook Intact Despite Softer Q4 Trends, Analysts Say

Domino's Pizza Inc. (NYSE: DPZ) exceeded expectations and maintained 2025 guidance. TD Cowen and BTIG maintain Buy ratings.

The Best Case for Gold, Ever - Ad

With gold at record highs and Wall Street calling $6,600 next, a Trump-led "Mar-a-Lago Accord" could drive a historic revaluation. One pick with huge upside and lower risk is revealed in a free briefing - plus 3 actions to take before a 40% selloff.

Broadcom's Big AI Move In Japan Could Slash Data Center Power Use By Half

Broadcom and NTT collaborate to develop advanced optical chips by 2026 to reduce energy demands of AI data centers.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service