LANSING – An advocate for those falsely accused by the state of defrauding the Michigan Unemployment Insurance Agency was named the agency’s new director on Monday.

Steve Gray, a law professor and attorney, headed a clinic at U-M that provided legal assistance to those falsely accused of fraud by a state computer system run amok. He also worked on a task force that crafted legislation over the last two years aimed at preventing a recurrence of the false fraud scandal.

The University of Michigan Law School Unemployment Insurance Clinic, which Gray founded and headed, uses student representation in unemployment insurance cases to train over 150 first-year law students per year.

“It’s an honor to have someone with such intense dedication and understanding of Michigan’s unemployment system stepping up to lead the Unemployment Insurance Agency,” said Stephanie Beckhorn, acting director of the Department of Talent and Economic Development.

“I look forward to his ongoing commitment and expertise in serving Michigan employers and residents seeking assistance on their journey back toward employment.”

Gray starts the new job June 3.

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He succeeds Michelle Beebe, who was appointed in 2017 under the administration of former Gov. Rick Snyder.

“Layoffs and closures are often a challenging time for those affected by the unexpected turn in tide,” Gray said. “As director of the Unemployment Insurance Agency, I am committed to continual growth and improvement in the approach and policy that protects and serves both Michigan employees and their employers so they can easily and effectively navigate these waters.”

The state has acknowledged that at least 20,000 Michigan residents — and possibly as many as 40,000 — were wrongly accused of fraud by a $47-million state computer system that the state operated without human supervision and with an error rate as high as 93%.

Those wrongly accused of fraud through robo-adjudications by the Michigan Integrated Data Automated System (MiDAS) were subjected to highest-in-the-nation quadruple penalties and many were subjected to aggressive collection techniques such as wage garnishment and seizure of income tax refunds.

Several lawsuits are pending in state and federal courts.

Ron Bieber, president of the Michigan AFL-CIO, praised the administration of Gov. Gretchen Whitmer for Gray's appointment.

“Steve Gray has been a steadfast advocate for the rights of working men and women in this state," Bieber said.

"We appreciated the knowledge and expertise Steve brought in helping to craft legislation in the aftermath of the UIA robo-fraud disaster."

Gray is also a faculty expert affiliate with the University of Michigan Poverty Solutions initiative, associate faculty with the African Studies Center, and served as the general manager of the Michigan Unemployment Insurance Project, a nonprofit organization he established to assist law students providing representation to jobless workers who are denied unemployment insurance.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4. Read more on Michigan politics and sign up for our elections newsletter.