Update: Open government group seeks legislative probe of failure to report jobless insurance theft case

The request gained support from the state Senate Republican Caucus on Friday.

WHYY first reported the case, which until that time had not been publicly disclosed. The individual at the Delaware Department of Labor linked to the crime took his own life.

“Although official reports, published in 2024 by the Office of the Auditor of Accounts and the Department of Finance, included a “Disclaimer of Opinion,” from a third party accounting firm to describe problems about inadequate financial controls, it is especially disconcerting that the reports failed to disclose the embezzlement, a DelCOG release stated.

The State Auditor’s report said records at the division were unaduditable, but did not reference the embezzlement case. A former State Auditor said the fund remains vulnerable to future thefts.

The release continued, “Notwithstanding the Disclaimer of Opinion, not only does failure to disclose the embezzlement of state funds in a timely manner severely damage the public’s perception that our state government is working in the Public Interest, but it also has, the appearance of impropriety by state officials.  the appearance of possible state-office collusion, the appearance of a possible cover-up.” 

Withholding the disclosure of embezzled state funds severely damages transparency, accountability, and confidence in our State Government and, in that regard, is a breach of the Public Trust.  Additionally troubling is that the embezzled funds consisted of contributions not only by Delaware employers, but also by the federal government.

DelCOG urged the Delaware General Assembly to “take ownership of the embezzlement problem and investigate the causes, motivations, and political influences – if any – that prevented the act of embezzlement from officially being reported to the Governor, the General Assembly, State Officials, and the public, as mandated by the Delaware Code.”

Republican Senators offered their support and issued the following:

“Our caucus recently met with DOL’s and Division of Unemployment Insurance’s administrative team to discuss what happened. Outside consultants have been brought in to analyze the deficiencies in the agency’s systems that led to this happening. While we appreciate the department’s openness and willingness to meet, we believe, as elected leaders, that we must perform a separate inquiry to both rectify the issue and reestablish trust between the Department and the public we serve.”