Beverly Hills Police Arrest 44 In $2.5M CA Unemployment Scam

BEVERLY HILLS, CA — Forty-four people, primarily from other states, have been arrested in Beverly Hills in less than two weeks for alleged identity theft and California Employment Development Department fraud totaling over $2.5 million, police said Wednesday.

Police learned earlier this month that people were using stolen identities to fraudulently obtain EDD benefits loaded onto debit cards, which can be as high as $20,000, according to the Beverly Hills Police Department. Cardholders can withdraw up to $1,000 a day per card.

"Suspects have traveled primarily out of state to obtain these fraudulent EDD cards in California," police said. The suspects allegedly use the cards "to lease short-term rentals, rent luxury vehicles, dine at restaurants and purchase high-end merchandise."

Police located 129 fraudulent EDD cards, worth over $2.5 million, as well as seven handguns and $289,000 in cash on the suspects.

Multiple agencies, including the Los Angeles Police Department, sheriff's department, California Highway Patrol and U.S. Secret Service, met Wednesday to discuss working together to combat the issue.

"There are millions of tax dollars being spent fraudulently as a result of this trend," Beverly Hills Police Department Chief Dominick Rivetti said in a statement.

"The Beverly Hills Police Department is also working closely with our business community to keep them well informed of this trend in an effort to mitigate these crimes within our city."

Beverly Hills police spokesperson Lt. Max Subin said that the arrest involved individuals, and not a fraud ring.

The investigation began when police learned that people were using stolen identities to obtain EDD benefits loaded onto credit cards issued by state agencies. Each card can have up to $20,000 in unemployment benefits, though Beverly Hills police do not yet know exactly how much the accounts contain.

The announcement comes as dozens of people in California and around the country have reported receiving large numbers of EDD letters addressed to their homes under names they do not recognize. The EDD has issued a warning of potential fraud, and confirmed that it is investigating the claims, according to a report in the Los Angeles Times.

The Beverly Hills Police Department said that it met with local, state, and federal law enforcement agencies to combat the issue, including the LAPD, the LA County Sheriff's Department, California Highway Patrol, the United States Secret Service, the U.S. Postal Inspector's Office, the U.S. Department of Labor, and the IRS.

On Wednesday, Gov. Gavin Newsom said a report is due in a few days from a team appointed to overhaul the agency, and that it will be released once the EDD tells his office what it will do based on these recommendations.

Anyone with information about the crime trend or is receiving unsolicited correspondence from the BHPD is urged to call the Beverly Hills Police Department at 310-285-2125.

— City News Service and Patch staffer Michael Wittner contributed to this report.