Former Biden official blasted for downplaying her role in $650 million unemployment fraud scandal

In her recent LinkedIn article, “Learning from the Massive Fraud Attack 5 Yrs Ago,” Suzi LeVine—former Commissioner of Washington State’s Employment Security Department (ESD) and former Biden administration official—attempts to rewrite her history of failure that allowed Nigerian scammers to defraud a billion dollars from Washington State’s unemployment department during the pandemic.

Though she presented herself as a decisive leader navigating an unprecedented crisis, the truth, backed by state audits and news reports, paints a starkly different picture. The 2020 unemployment fraud scandal wasn’t just a product of external forces—it was worsened by internal mismanagement, ignored warnings, and delayed responses under LeVine’s watch.

During Suzi LeVine’s tenure from July 2018 to February 2021, Washington’s ESD became the primary victim of one of the largest unemployment fraud operations in US history. A Nigerian cybercriminal group known as Scattered Canary used stolen identities to file tens of thousands of fraudulent unemployment claims during the COVID-19 pandemic.

Washington was one of the first states to implement enhanced unemployment benefits under the CARES Act, including the $600/week federal supplement. Combined with the state's high maximum weekly benefit (up to $790), Washington became a particularly lucrative target. Initial estimates of the damage ran as high as $1 billion, though revised figures later placed the loss between $550 million and $650 million. By June 2020, only around $333 million to $357 million had been recovered.

LeVine insists the agency was never hacked and shifts blame to external data breaches, like Equifax. While it’s true that identity theft enabled the fraud, this narrative obscures the ESD’s internal failures. A Washington State audit explicitly found “inadequate controls” at ESD and cited a critical software flaw that allowed claims to be paid before fraud checks were completed—a flaw that persisted for nearly a year. Even 59 ESD employees’ identities were used to submit fraudulent claims. The problem wasn’t just outsiders—it was gross mismanagement on the inside.

In her article, LeVine glosses over the human cost of her agency’s actions. As ESD scrambled to recover from the fraud, legitimate claimants were left waiting weeks or even months for badly needed benefits. In May 2020, the agency froze payments entirely to stop further fraud, creating enormous financial hardship during a public health emergency. Thousands of struggling Washingtonians were effectively punished for ESD’s failures.

LeVine touts a drop in fraudulent claims from 15 percent to 0.02 percent within two months as proof of her swift leadership. This statistic, lacking context, masks the fact that fraud surged under her watch precisely because the agency was unprepared. The floodgates opened when ESD, under pressure from Governor Inslee and with LeVine’s approval, bypassed the standard one-week waiting period for claims, eliminating a crucial layer of fraud prevention. While countermeasures were eventually introduced, the initial damage was already done, and massive.

In her article, LeVine claims the state recovered more than $420 million—a figure she uses to frame the outcome as a success. This number inflates the actual recovery, which, The Seattle Times and state audits show, stood closer to $357 million, with little additional recovery after June 2020. Her claim misleads the public by exaggerating the effectiveness of the agency's response and minimizing the real fiscal damage.

After presiding over a record-breaking fraud scandal, LeVine was appointed to a high-ranking position in the Biden administration as interim Assistant Secretary of the Employment and Training Administration. Critics rightfully called this a political reward rather than a merit-based advancement, pointing to her background as a Democratic fundraiser and major donor to Governor Jay Inslee. The appearance of political favoritism only deepened public frustration over the lack of accountability. She left the position shortly after being appointed.

A December 2020 audit cataloged a string of missteps by the agency and noted “significant constraints” that LeVine placed on investigators, which hindered efforts to stem the fraud. Lawmakers, including State Senator Ann Rivers, called for her resignation, citing the disaster as evidence of failed leadership. On platforms like X, public outrage erupted over the state's inability to hold anyone accountable for hundreds of millions in lost taxpayer money.

LeVine and her agency failed at one of its most fundamental tasks: safeguarding public funds during a national emergency.

Suzi LeVine’s attempt to reframe the 2020 ESD scandal as a tale of effective crisis management collapses under scrutiny. Her LinkedIn article distorts recovery figures, downplays her agency’s failures, and ignores the suffering of those she was appointed to serve.