Well, some kinds of fraud


A flawed contract negotiated by state officials provided few protections for taxpayers and little oversight of consultants, resulting in a computer system for unemployment claims that arrived years late, millions of dollars over budget, and riddled with technical problems, according to review of contract documents.

The agreement allowed the contractor, Deloitte Consulting of New York, to miss deadlines and still charge the state some $6 million more than originally planned, according to the documents, obtained by the Globe through a public records request. When the new system finally was rolled out July 1 — two years behind schedule — it erroneously cut hundreds of jobless workers from their benefits, and required thousands of overtime hours by state employees to handle the flood of complaints about the system’s many glitches.

There’s the capitalist system at work. Now think about this:

In the end, Goldstein said, Deloitte delivered a system that is paying most claims — about 120,000 a week — and improving the state’s ability to root out fraud. The new system has detected $6.6 million in overpayments incurred by claimants dating back to 2005, although the state, by law, can’t recover such overpayments after a year, according to the Labor Department.

Some fraud is just more important than others–fraud by the poor will not be tolerated (of course, you should remember that just because the system says there have been overpayments doesn’t mean there are).

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