Fighting Fraud follow-up: What's next?

PROVIDENCE, R.I. (WPRI) - Now that four fraud investigators from the Rhode Island Department of Labor and Training have been suspended following a Target 12 investigation, we find out what happens next. Who's investigating fraud now?

We followed the state's four "fraud and overpayment" investigators. Their job takes them on the road investigating phony unemployment and disability claims. Their daily itineraries, obtained by Target 12, tell their supervisors where they are and when.

But often we found them miles from where they claimed to be, at home or doing personal business. In all, with 21 days of surveillance, Target 12 found these workers at home or on errands for a total of 34 hours.

"No one who is on the clock should have time to be at home," said Director Sandra Powell, Department of Labor and Training.

Sandra Powell said her department's already launched an internal probe and the state police have an investigation underway into possible criminal charges. But the job itself, Powell said, is important.

"Throughout the years, the level of dollars that they've been able to recoup has been pretty good," she said.

Department officials say it's hard to put a figure on how much the investigators have recovered. But last year, the unit flagged $700,000 in what they call "unemployment overpayment." That led to 324 cases handled by these fraud and overpayment investigators.

Tim White: "In this bad economy, shouldn't they be overwhelmed with unemployment cases?

Director Sandra Powell, Department of Labor and Training: "Whether more people might be trying to collect and work, I could only speculate, so I couldn't say because of the economy they would have more cases as a result."

Once an investigator gets a case, it's their job to root out fraud. If they find someone has claimed more than $5,000 in phony claims, they hand the case over to the state police for prosecution. We checked out those numbers.

In 2006, the unit gave 70 cases to state police detectives. In 2007, 54. And in 2008, a three-year low; 45 cases were forwarded to the state police.

Tim White: "Could they have recouped more dollars, so to speak?"

Director Sandra Powell, Department of Labor and Training: "And that's one of the things that we certainly will add to our investigation."

With all four investigators now suspended with pay, a spokesperson tells Target 12 pending cases are being reviewed and will be handed over to the state police. But the field work these investigators were assigned to handle is on hold until this thing is sorted out.