Judge halts collections against Mich. jobless claimants in fraud foulup
A federal judge in Detroit on Wednesday ordered the state to stop trying to collect money from unemployment insurance claimants accused of fraud during a two-year period when the state has admitted making false fraud accusations against more than 20,000 Michigan residents.
In a preliminary injunction that was agreed to by the state defendants, U.S. District Judge Robert Cleland ordered the state to "suspend all collection activity against unemployment insurance agency claimants who have been subject to fraud (re)determinations ,,, beginning Oct. 1, 2013 to Aug. 7, 2015," unless each collection activity is first individually reviewed and notice is given to the claimant.
David Blanchard, an Ann Arbor attorney representing several plaintiffs in the case, said the order will "stop the bleeding," and prevent the state from seizing more income tax refunds from former unemployment insurance claimants who are about to file their 2016 income tax returns.
"Finally, the attorney general and state leadership are recognizing how badly this was messed up," Blanchard said.
Read more: http://www.freep.com/story/news/local/michigan/2017/01/11/michigan-unemployment-insurance-fraud-charges/96469150/