Florida liability estimated at $1.9B in jobless fraud

kmcgrory@miamiherald.comJune 24, 2014 

TALLAHASSEE -- A former employee of the Florida Department of Economic Opportunity who uncovered "systemic" fraud within the agency has won a whistleblower lawsuit against the state, her attorney said Monday.

The whistleblower, 30-year state employee Dianne Parcell, discovered 97 instances in which the agency had inappropriately reported Floridians to collection agencies for alleged unemployment overpayments. Parcell reported the findings to her supervisors, but was told to drop her investigation, she said.

Parcell submitted a whistleblower letter in August 2012, she said. She was placed on administrative leave the following day and later fired.

A subsequent investigation revealed as many as 19,000 Floridians had been wrongly reported to collections agencies, attorney Keisha Rice said.

"These improper referrals can severely and adversely affect someone's credit rat

ing, making it more difficult to buy a house or a car," Rice said.

Rice said one woman who had been improperly reported had already demanded $100,000 from the state. She estimated the overall liability to the state could be as much as $1.9 billion.

Parcel won her case April 3 in Leon County Circuit Court. A jury awarded her more than $50,000 in damages.

Parcell's attorney said she was bringing the case to the media because the 19,000 cases had not yet been resolved -- not to affect the upcoming governor's race.

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