Fraud…The American Way?
With no end in sight to this COVID-19 pandemic, scammers are committing fraud offenses against the hardworking blue collar class in various ways. The Federal Trade Commission reports that as of the second quarter of 2020, there has been 387,561 fraud reports, with a total loss of $416.3 million dollars, and with $200 dollars being the median loss.
The cases are mind boggling, too. In recent headlines, government officials and state employees are the culprits taking advantage of the system.
Tennessee state senator Katrina Robinson was charged with theft and embezzlement that involved government programs and wire fraud. While serving as senator and the director of The Healthcare Institute, the Healthcare Institute received more than $2.2 million dollars in federal grants, according to the U.S. Attorney Office.
Robinson allotted herself $600,000 of institutional funds, which is more than is allowed by law. She also used the Healthcare Institute funds for her personal benefit and the needs of immediate family members. She purchased a new jeep for her daughter, a trip to Jamaica and beauty products. Then, she used funds to finalize her divorce and remodel her home.
Mary Beyer Halsey, former CEO of Maryland’s Cecil Bank, pleaded guilty to three charges with one of them being conspiracy to commit bank fraud. Halsey engaged in a quid pro quo deal with a man named Daniel Whitehurst who worked in real estate.
In exchange for the $650,000 line of credit, Whitehurst acted as a front man to buy a piece of property for Halsey in which they quoted the value of the property at half the appraisal price by comparing said property to unsuitable properties to justify the sale of the property at that reduced price.
Gregory A Carswell, mayor of Waynesboro in Georgia, was arrested on July 27 and charged with two counts of identity theft fraud and theft by deception. Carswell denies that he had any involvement in wrongdoing.
“At this point we are not sure of all the particulars but I’m not guilty and we will fight this,” he posted to Facebook. “The charges insinuate that the alleged victim(s) identity has been comprised and my identity has been as well. We plan to work with authorities to address these issues and make sure that the persons responsible will be arrested and convicted. My attorney has instructed me to limit the scope of my conversation as this is an ongoing investigation and other questions can be addressed by him.“
However, other occurrences have taken place while Carswell was the mayor, such as him using city funds inappropriately to fund a $2,000 trip to Philadelphia, personal trips in city vehicles and using a city credit card for personal use. In November 2017, Carswell did apologize and state that he would repay the money.
But, one of the worst cases of all occurred within the California Employment Development Department (EDD). The institution that is supposed to be helping the general public make it through this challenging time is rampant with employees committing fraudulent activities that have held up many citizens unemployment claims.
An employee, Pamela Emanuel, was sentenced to six years for trying to fraud the state by filing unemployment insurance claims using other people’s identities. She was ordered to pay $773,733 dollars in restitution.
Emanuel was part of a team of co-conspirators that created an elaborate scheme in which she used her position to gather confidential information and then, gave that information to other members of the group to file insurance claims.
A total of 269 fraudulent claims were filed in the amount of $2.4 million dollars, while overpayment was estimated at $877,199.
“Pamela Emanuel conspired to file fraudulent unemployment insurance claims, diverting vital taxpayer resources away from those in dire need of unemployment benefits. Protecting the integrity of the unemployment insurance program remains one of our highest priorities, and we will continue to work with our law enforcement partners to safeguard the unemployment benefits for those who need it, especially during this critical time,” said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor.
During these tumultuous times people are being faced with life or death decisions on a daily basis just to make the money to pay bills and buy necessities. With no vaccine on the horizon, and the economy on its way to a great depression, there is a segment of people that are out there getting it by any means necessary.
Some are poor people trying to survive because their communities lack the resources. Some are public officials. But, then you have the rich and wealthy simply trying to take advantage of the poor.
Fraud is big business in America. During a time when we should be morally compassionate for each other and feel empathy to the plight of our fellow man and woman, many have opted for good ole’ American Greed.
