Scott Peterson’s attorney says he is a victim, not participant, in inmate EDD fraud
Scott Peterson’s name has been bandied about as the highest-profile inmate taking part in a scam that officials say so far has totaled hundreds of millions of dollars in illegal pandemic-related unemployment payments to inmates and their accomplices across California.
Peterson — the former Modesto resident on San Quentin’s death row after being convicted in 2004 of the murder of his pregnant wife, Laci, and their unborn son, Conner — is reportedly among those in whose names the fraud was perpetrated.
But Peterson’s actual involvement, if any, in a scheme that exploited weaknesses within the state’s Employment Development Department is not clear.
Peterson’s sister-in-law, Janey Peterson, said he has unfairly become the “poster child” for this national story.
“I would categorize it as, the headline is much more of a hook when you put Scott’s name and picture with it,” she said. “There is absolutely no basis for it. It is just such an incomplete picture of what is going on.”
District attorneys from across California announced at a Tuesday news conference their findings so far, which they said involves fraudsters in communities across the state as well as inmates in county jails and state and federal prisons and could reach $1 billion.
District attorneys are working with federal prosecutors and local, state and federal law enforcement in the investigation and have formed an EDD fraud task force.
Fraud exploits pandemic relief program
Authorities said the fraud is tied to Pandemic Unemployment Assistance, which is part of the federal CARES Act to provide assistance during the pandemic.
The EDD’s website states the program “helps unemployed Californians who are not usually eligible for regular Unemployment Insurance (UI) benefits,” including the self-employed, business owners and independent contractors.
Officials reported Tuesday that more than 35,000 claims have been filed on behalf of state prison inmates from March through August with payments totaling $140 million for 20,150 of the claims.
The claims include 158 filed under the names of 133 of the state’s more than 700 death row inmates. That is where Peterson enters the story. A claim was made using his name.
San Mateo County District Attorney Steve Wagstaffe told The Modesto Bee on Wednesday that all authorities know now is Peterson’s and other death row inmates’ names were used and not whether they participated in the fraud.
“That is to be determined ... how many actually (took part) or got their names on the list by being the victim of identity theft,” said Wagstaffe, who is a member of the task force. He said this information came from a briefing of task force members by Sacramento County District Attorney Anne Marie Schubert, the task force chairwoman.
Scammers could be using inmates’ identity
Shelly Orio, spokeswoman for the Sacramento County DA’s office, said she couldn’t comment about the actual cases because they remain under investigation. But she said there are several ways the inmates’ names could have been used.
“The most obvious and direct mode of operation would be for an inmate to make the fraudulent claim himself or herself and have the payment sent to a friend or relative,” she said in an email. “However, that is only one of several ways the scheme might be accomplished.”
Orio said scammers outside the prison or jail system might have gained access to the identifying information on the inmates on the list.
“In addition, people inside the prison or our jail facilities could also be unlawfully obtaining identifying information of other inmates from within (on paperwork/discovery/reports), or forcing other inmates to provide their identifying information by way of threats,” she said.
Peterson’s attorney, Pat Harris, said in a text message his client will be cleared as the investigation of the bogus claims progresses.
“As they (authorities) admit in their press conference, Scott may well be a victim with his name being used,” Harris wrote. “Scott did not participate in any attempt to get fraudulent benefits, and we are confident the investigation will show that.”
Stanislaus DA looking at potential fraud
Janey Peterson said her family is not collecting unemployment benefits on Peterson’s behalf. She has not had the opportunity to talk to him since this story broke Tuesday.
“I haven’t talked to Scott in the last week or so, so I can’t speak to the unemployment issue,” she said. “But I do know that he did not kill his wife and unborn son. An unemployment check pales in comparison to the compensation he’ll be due when we solve this crime.”
Janey Peterson has assisted in his appeal to the California Supreme Court, which led to his death sentence being overturned in August, though prosecutors could again seek the death penalty.
He also has a chance for a new trial because a juror didn’t disclose she was the victim of crime while pregnant and got a restraining order against the perpetrator. The California Supreme Court has sent the matter back to the lower court to determine if prejudicial misconduct occurred.
Stanislaus County District Attorney Birgit Fladager said via email that her office, which is part of the statewide task force, currently has a few cases to review. She said inmates are not involved, and the dollar amounts are to be determined.
“We are in the early stages of the process,” she said. “There is no doubt it is occurring in our county. We have just begun to receive and look into suspected instances of this type of fraudulent activity. No charges have been filed yet.”
This story was originally published November 26, 2020 at 5:00 AM.
