Category Archives: Fraud

November 17, 2021

California AIDS Office Workers Stole $2.7 Million While No One Was Watching

A state agency being defrauded of $2.7 million in taxpayer funds should be enough to motivate the State of California to reform its billing and payment policies so corrupt bureaucrats have less power.

“Do we know what this is?”

That’s what Marisa Ramos, acting chief of the California Office of AIDS, replied when staff pointed to about $1 million of billings from a company no one had heard of.

It turns out the company, Web Tech Solutions, was invented by staffer Schenelle Flores to help bilk the office of $2.7 million of taxpayer funds to pay for her trips to Disneyland, concerts and sporting events, according to a report by The Sacramento Bee

The California Department of Public Health recently released new details about the fraud following a lawsuit by The Sacramento Bee seeking the release of records.

Flores oversaw fiscal operations for the HIV Prevention Branch of the California Office of AIDS when she used contractor for the office, MLB Distributors, to bankroll her trips by billing the state for the cost, The Bee reported.

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November 2, 2021

See who’s stealing billions of Covid-19 relief funds

Whether it’s helping businesses, supporting hospitals and schools, or paying the unemployed, a record amount of money is being spent on Covid-19-related assistance in the U.S. But for every taxpayer dollars that’s sent to someone who needs it, an unknown amount of money is lost to waste and fraud. Today, we look at some of the biggest cons so far – and who’s looking for all the crooks.

Texas businessman Dinesh Sah is one of the biggest known Covid scamsters so far. He’s sentenced to 11 years in prison for fabricating documents applying for nearly $25 million for nonexistent businesses and workers. He spent the taxpayer money on homes and luxury cars.

Sharyl: What was your first clue that there was going to be an element, a large element, of fraud possible?

Mike Ware: As soon as we started to hear what the numbers were in terms of how much money was going to be allocated to these programs.

Mike Ware is the Inspector General of the Small Business Administration, which is in charge of administering Covid-19 relief for businesses. With Ware’s help, we’re taking a deep dive into all the fraud that’s come with it.

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October 29, 2021

DOJ: Seven Companies Hired Illegal Aliens in Million-Dollar Fraud Scheme

This week, the Department of Justice (DOJ) announced guilty pleas among 12 individuals across seven construction companies in Marion County that were involved in an illegal hiring and fraud scheme which is now the largest criminal Internal Revenue Service (IRS) operation in the region’s history.

Seven construction companies have been found to have hired illegal aliens in a multimillion-dollar fraud scheme against the government. All seven of the companies did business in Marion County, South Carolina.

They used unlicensed check cashing companies in order for the illegal aliens to cash their checks. They were paid well below what normal construction workers were paid. Those companies issued fake worker compensation certificates.

The DOJ says that 12 executives have pleaded guilty and all could receive sentences of up to five and a half years in prison. On top of that, each one can be fined $253000 dollars.

Their scheme hurt eligible workers, millions in pay, and the local government tax revenues in the tens of millions of dollars.

On top of that, they defrauded the IRS of tax revenues that they should have paid.

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October 9, 2021

AZ State Senator Wendy Rogers: 92 Legislators Call For Audits In All 50 States And Decertification

“If results from these measures prove an inaccurate election was held, as has been shown in Arizona, and is being shown in many other states; then it is clear that certification of many electors was improperly rendered in January 2021 of the November 2020 United States presidential election.”

Arizona Republican state Sen. Wendy Rogers says 92 state legislatures have signed a letter calling for a nationwide audit and decertification of the 2020 election.

The full letter states:

Letter From State Legislators To The American People Reference The 2020 Election

To the citizens of the United States of America,

We the undersigned state legislators of the United States are vested with the plenary power by our US Constitution (Article 2 Section 1 Clause 2) to oversee the election of the president of the United States.

It has come to our attention from an audit of 2.1 million ballots in Arizona complemented by an in-depth canvass of votes in Arizona, as well as through multiple different data reviews of voting by independent experts; that our representative republic suffered a corrupted 2020 election.

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October 7, 2021

18 Former NBA Players Charged in $4M Health Care Fraud Plot

A group of 18 former NBA players have been accused and charged of defrauding the league’s health and wellness benefit program out of roughly $4 million, according to a court indictment.

The charges were revealed on Thursday as most of the league’s teams get set to begin their second preseason game.

As the Associated Press reports:

Federal prosecutors planned a news conference to describe the case that was brought in Manhattan federal court. It wasn’t immediately clear whether all those charged had been arrested.

The list of former players included Jamario Moon, Glen Davis and Sebastian Telfair.

According to the indictment, the ex-players engaged in a widespread scheme to defraud the plan by submitting false and fraudulent claims to get reimbursed for medical and dental expenses that were never actually incurred.

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September 18, 2021

Rapper ‘Mo’ Fayne Sentenced to 17 Years in Prison for Misuse of PPP Loans

Rapper Maurice “Mo” Fayne was sentenced Wednesday to 17 years in prison for crimes including the misuse of millions of dollars in Paycheck Protection Program (PPP) loans.

Fayne, who appeared as Arkansas Mo on a season of VH1 reality show Love & Hip-Hop: Atlanta, must also pay $4,465,866 in restitution for his role in a federal bank fraud that saw him squander his ill-gotten gains on a lavish lifestyle.

The loan funding was supposed to be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the PPP rules.

Fayne, who lives in Dacula, Ga., was arrested in May 2020 on charges of making false statements on his application for the PPP funding as well as bank fraud and conspiracy and wire fraud related to a Ponzi scheme, as Breitbart News reported.

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September 15, 2021

Two Healthcare Insiders at Aegis Living Blow Whistle on Alleged Elder Abuse and Medical Fraud (Video)

Project Veritas

May 20, 2021

NYC Suspects Busted in Multi-Million-Dollar COVID Welfare Scam After Posing with Money Stacks on Social Media

Unemployment fraud now ranks as the 4th biggest federal COVID expenditure.

A group of scammers in New York City allegedly ripped off millions from the state’s super-charged pandemic welfare system. They were busted after (rather foolishly) posting pictures of themselves with massive money stacks on social media and now face prosecution.

“A group of young men is accused of ripping off $2 million in COVID-19 relief funds by stealing personal information from people in the assistance program, funneling their money to personal bank accounts, and withdrawing the cash at banks in Brooklyn and Queens,” Fox Business reports. “The scams began last June and continued through April.” 

The scammers’ target was the state’s unemployment benefits system. During the pandemic, the government greatly increased benefit payouts and hastily expanded eligibility to new categories of workers. In its rush to get taxpayer money out the door, the government created a target-rich system flush with cash and light on verification. 

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March 23, 2021

Pandemic unemployment benefits fraud could top $200B, firm says

Lawmakers have committed a total of $486B in funding for unemployment benefits, according to the nonpartisan Committee for a Responsible Federal Budget

A significant portion of unemployment benefits to Americans struggling during the coronavirus pandemic may be getting stolen by fraudsters, according to new data.

ID.me, a computer security firm which verifies worker identities across 19 states, roughly 75% of the national population, finds that more than $200 billion in federal assistance for unemployed Americans may have been pocketed through fraud. The finding is more than triple the official government estimate of $63 billion, based on the 10% pre-pandemic fraud rate.

The firm notes that roughly 20% of the fraud is linked to breached personal data, up to 10% is through social engineering, and 2.5% are linked to face matching, where a criminal tries to use a mask, video, or image of the victim. Up to 30% of claims under the Pandemic Unemployment Assistance program, which provides benefits to Americans who are self-employed and contractors, are fraudulent, according to ID.me.

A spokesperson for ID.me did not immediately return FOX Business’ request for comment.

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March 8, 2021

CEO Sentenced to Prison in $150 Million Health Care Fraud, Opioid Distribution, and Money Laundering Scheme

Proceeds of the fraud were used to fund private jet flights, courtside tickets to the NBA Finals, and purchase of luxury automobiles, jewelry and real estate.

The chief executive officer of a Michigan and Ohio-based group of pain clinics and other medical providers was sentenced today to 15 years in prison for developing and approving a corporate policy to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids.

Mashiyat Rashid, 40, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio. In addition to the prison sentence, Rashid was also ordered to pay over $51 million in restitution to Medicare, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.

Rashid pleaded guilty in 2018 to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. Twenty-one other defendants, including 12 physicians, have been convicted thus far, including four physicians who were convicted after a one-month trial in 2020. Rashid is the second defendant to be sentenced.

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