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When he didnt respond, the computer decided that David committed fraud and demanded restitution, a fine and
interest totaling more than $25,000. The first time David even knew that the UIA was accusing him of fraud
was when his wages were garnished to pay his fraud penalty. All told, David had more than $4,800 garnished
from his wages and tax returns and had to work 6-7 days a week for 12 hours a day to pay his bills.
David received help from his union, employer and the University of Michigan Law School Unemployment
Insurance Clinic in trying to fight this unjust fraud accusation. Eventually, an administrative law judge ruled in
Davids favor and he got his money back. After harassing David for years, the UIA didnt even bother to show
up for his hearing.
Davids experience is similar to that of thousands of other laid off workers who have been screwed over by the
Robofraud system and were assessed huge penalties and harassing collection efforts.
House action on HB 4982 is expected later this month. UI advocates and the state AFL-CIO are working with
the bill sponsor and committee members to strengthen the bill.
Privatized Grand Rapids Veterans Home Cited for Short Staffing, Falsifying Records
The state Auditor General has issued a report criticizing the state owned Grand Rapids Home for Veterans for a
variety of deficiencies in treatment of Michigan veterans residing in the home.
After the audit was made public, Jeff Barnes, Governor Snyders appointed director of the Michigan Veteran
Affairs Agency, resigned his position. Barnes had previously served as Snyders campaign manager.
The Snyder administration privatized the staffing of the home several years ago, replacing more than 150 state
workers with a contractual agreement with J2S, a private company. The contract was supposed to provide
quality work at a savings of $4 million, but has been an abysmal failure.
The February performance audit report outlined a number of material conditions which could impair the
ability of management to operate a program in an effective and efficient manner. Sub-standard conditions
identified in the audit include:
43% of resident location checks and 33% of fall alarm checks did not
occur, although records submitted by the home falsely indicated that
the checks occurred 100% and 96% of the time.
The contractor did not meet minimum staffing requirements 81% of the
time, with shortages of staff as high as 22 people on a given day.
The privatized contractor did not develop, execute and monitor
comprehensive care plans, failing to meet timely requirements 25-59%
of the time.
The contractor did not establish adequate control over pharmaceutical
insurance billing, running the risk of losing eligible insurance
reimbursements of $883,700.
The contractor did not track or properly investigate resident complaints, including allegations of
abuse and neglect.
A unique joint meeting of four separate legislative committees are holding a public hearing to discuss the audit.
Committees taking part in the hearing include House Oversight and Ethics, House Military and Veterans Affairs,
Senate Oversight and Senate Veterans, Military Affairs and Homeland Security.