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Hampton business owner says former employees are fraudulently collecting unemployment benefits

While other unemployment applicants wait on claim reviews, Stephanie Meadows said the Virginia Employment Commission failed to verify claims of three ex-employees.

HAMPTON, Va. — Some Hampton Roads business say former employees are fraudulently receiving unemployment benefits, even after they report that fraud to the Virginia Employment Commission.

Stephanie Meadows, a Hampton business owner, said she was notified that three of her former employees were receiving benefits. 

She said one of the claimants hadn't worked for her since 2018, but wrongfully indicated loss of work in 2020 as the reason for benefits. 

Meadows said another former employee quit before the COVID-19 pandemic, but then claimed she lost her job during the pandemic. Meadows also provided VEC with texts from a third employee indicating that she decided to quit her job, but then that employee also listed a pandemic-related loss of work as her reason for benefits.

"They’re not verifying. Why am I finding out people are getting unemployment and then I get a letter later on? That should never happen," Meadows said.

The Virginia Employment Commission recommends business owners report unemployment fraud online

Meadows said she first reported fraud in September, providing tax forms, paystubs and documents. 

She said she hasn’t heard anything back, and her former employees are still receiving benefits in March.

"There are people out here who are in desperate need of unemployment that are really impacted by the COVID-19 virus, and then you have these other people who are taking advantage of [the system]," Meadows said.

Per VEC policy, alleged fraud must be investigated by a VEC fraud investigator and the VEC said many times, the person who reports fraud won’t receive any other contact or information about the claim.

“It’s ridiculous, absolutely ridiculous, and I want to know what they’re going to do about it.” Meadows said. “How are they justifying these people that haven’t worked, versus these people that actually have medical needs or are out [of work] due to COVID-19.”

Meadows said the VEC must improve its screening and verification process.

New U.S. unemployment claims reached a four-month low last week. About 712,000 Americans filed initial claims. 

However, that's still higher than the peak of jobless claims during the Great Recession in 2009.

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