OFFICE OF INSPECTOR GENERALPress Releases
U.S. Department of Labor Office of Inspector General Returns Over $512M in Fraudulent Unemployment Claims to U.S. Treasury
Second major recovery from Maryland brings total fraudulent CARES Act funds returned to over $1 billion
June 16, 2026
FOR IMMEDIATE RELEASE
U.S. Department of Labor, Office of Inspector General
WASHINGTON, D.C. — The U.S. Department of Labor (DOL) and its Office of Inspector General (OIG) today announced the successful return of approximately $512,138,478.40 in recovered fraudulent CARES Act funds. This marks the second major recovery from the Maryland Division of Unemployment Insurance, totaling over $1 billion in the state’s returned funds.
“Today’s return of hard-earned American taxpayer dollars represents more than a financial recovery—it reinforces our commitment to protecting American workers and the programs they depend on,” said Acting Secretary of Labor Keith Sonderling. “This result was made possible through close coordination with the Department’s Office of Inspector General. Together, we are restoring trust and integrity in these programs and putting money back where it belongs—in the pockets of hardworking Americans.”
These recoveries are the direct result of the Maryland Labor Department’s continued efforts to strengthen program integrity and combat fraud. Working with a financial institution, Maryland was able to identify and freeze the suspicious funds that were flagged by the Department and its OIG.
“This is accountability in action—half a billion dollars in stolen taxpayer funds—identified, frozen, and returned to the Treasury. Through continued collaboration with the Department and Acting Secretary Sonderling, we were able to produce real, measurable results for the American people," said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. "This recovery represents a major victory for the American taxpayer and is a clear demonstration of our commitment to clawing back every stolen dollar."
Due to coordinated recovery efforts and unprecedented collaboration between the DOL and OIG, the funds were transmitted to the U.S. Treasury.
For additional information on DOL OIG, please visit oig.dol.gov. If you suspect wrongdoing involving DOL programs or operations, contact the DOL-OIG Hotline at (800) 347-3756 or oig.dol.gov/hotlinecontact.htm.
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