Exclusive | Labor Dept. deploys strike team to NY as unemployment fraud hits nearly $2M per day: officials

WASHINGTON — The Trump administration deployed a federal strike team to New York on Monday as part of a crackdown on fraudsters who took nearly $1 billion in unemployment benefits during the COVID-19 pandemic, The Post has learned.The Department of Labor Office of Inspector General, which first unearthed the stunning fraud total, is participating in the joint strike force headed to the Empire State, where up to $2 million per day is being bilked by fraudsters instead of going toward unemployment insurance, according to administration officials.“New York is stealing from the American people every single day — draining their hard-earned tax dollars through rampant unemployment insurance fraud and improper payments,” said Inspector General Anthony D’Esposito.“In partnership with Acting Secretary Keith Sonderling, we are taking a tough-on-crime approach to dismantle this fraud, hunt down every stolen dollar, and prosecute those responsible,” D’Esposito added.“Backed by the full strength of President Trump and Vice President Vance’s Fraud Task Force and our coordinated OIG and Departmental efforts, our joint federal Strike Team will deliver the swift justice that hard working Americans deserve,” said the inspector general.“Accountability is not an option.”Sonderling — in addition to members of Congress — had already sent letters highlighting the fraud to New York Democratic Gov.

Kathy Hochul as well as other states’ governors.In past statements, Hochul’s team has dismissed claims of rampant fraud occurring in state programs.DOL officials pointed to New York having one of the highest improper payment and fraud rates of any state at 23% and 15%, respectively.The Empire State recorded more than $750 million in improper unemployment insurance payments and $507 million in fraudulent payments in 2025, the officials noted, but just 25% of the fraudulently received funds have been recovered by New York State.Sens.

Bill Cassidy (R-La.) and Tim ...