New Audit Reveals At Least $47 Million In Unemployment Benefit Fraud, On Roy Cooper’s Watch

This week, a pair of new audits from the North Carolina Office of State Auditor (OSA) revealed that there was over $47 million in unemployment benefit overpayment fraud, and late first-time unemployment benefits.  

“Government waste comes in many forms, and in this case, it’s occurring through unemployment insurance. Not only was there a higher rate of improper unemployment benefits, but there was also more than $47 million in fraud overpayments made during the scope of our audit,” said State Auditor Boliek. “The North Carolina State Auditor’s Office will continue to serve as our state's fiscal watchdog, assessing programs and sounding the public alarm to push for improvement. Ignoring problems for years and missing basic public expectation cannot continue to be tolerated.” 

The audit found that the rate of improper unemployment benefits in North Carolina significantly increased. Here is the key insight from audit about the overpayments: 

Improper unemployment benefit payments are any payments that should not have been made or are made in an incorrect amount, including both underpayments and overpayments. The U.S. Department of Labor holds state programs to a 10% improper payment rate. OSA found that from April 1, 2021, through March 31, 2025, North Carolina had an estimated improper payment rate of 22%, which is four percentage points higher than the 18% rate reported by OSA in 2022. North Carolina’s improper payment rate has routinely exceeded the 10% limit and the national average for the past nine years. 

OSA also evaluated the established overpayments made by DES, which are classified as fraud or non-fraud. Established overpayments made by DES from April 1, 2021, through March 31, 2025, were $168.8 million, with $47.2 million categorized as fraudulent. DES only recovered $12.2 million in fraud overpayments during that time. Fraud recovery has improved in recent years; however, for fiscal year 2022, the worst year from the time period examined, $26.4 million in fraud overpayments were delivered and only $3.8 million was reported as recovered. 

With the explosive fraud investigation in Minnesota and the Vice President’s Fraud Taskforce in action, more government fraud will likely be exposed. State Auditor Dave Boliek has already announced that he is looking into potential fraud issues across North Carolina.  

This fraud largely occurred on former Governor Roy Cooper’s time as Governor and remained unprosecuted during his time as Attorney General. When the top leadership does not see fraud and sound fiscal management as a priority, problems fester.  

North Carolina Republican Party Communications Director Matt Mercer said, “This report shows yet another example of Crooked Roy Cooper's incompetence in government. While North Carolina families suffered through the highest health care costs in the nation under his watch, he let $47 million in our taxpayer money go to those committing fraud.” 

Government integrity is emerging as a key issue nationally and in the North Carolina Senate contest. Given his decades in office this may prove to be a serious liability for Cooper. 

“Under Corrupt Roy Cooper’s watch, North Carolina taxpayers paid out more than $47 million in fraudulent unemployment overpayments. All while Roy Cooper vetoed tax cuts, raised families energy costs by 30% and opposed the Working Families Tax Cuts that saved North Carolina families $5,700 this April. Corrupt Cooper said there was no fraud, waste and abuse of government dollars, makes sense that he was just covering up for his utter incompetence as governor,” said Whately Campaign Spokesman DJ Griffin.