Food Stamp Fraud: Beneficiaries Illegally Sell EBT Cards On Craigslist, Social Media Sites

SACRAMENTO (CBS13) – It’s a welfare fraud scheme costing U.S. taxpayers $750 million a year. People are illegally selling their electronic food stamp cards on Craigslist and other social media sites for cash.

CBS13 found two people here in Sacramento, both with the same idea, using Craigslist as free advertising to blatantly and illegally sell their state benefits.

Our hidden cameras were rolling as a woman, who we’ll call Lorie, told our undercover producer about her brilliant idea to game the system for a quick buck.

“Everyone said I was crazy, but I thought they’d say, ‘that’s freaking brilliant man,’ ” she said.

Another man, who we’ll call Joe, rolled up on a skateboard. He showed us his CalFresh card he illegally put up for sale on Craigslist.

“See, right now it still has $116 on it,” he told our undercover producer.

Rather than use that money for food like he’s supposed to, Joe offered to sell us the card for just $60 cash.

Via: CBS Sacramento

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WATCHDOGS: Tally in Illinois grant-fraud probe so far: 13 charged, $16M embezzled

From the city that brought us Barack Obama.

The U.S. attorney’s office in Springfield has been busy the past few years investigating a variety of fraud schemes involving state grants. Thirteen people have been charged so far, six who have pleaded guilty.

Two of them have ties to President Barack Obama. One is the daughter of his controversial former pastor, the Rev. Jeremiah Wright. Another was chief of staff to Obama’s longtime friend Eric E. Whitaker when Whitaker was Illinois’ public health chief.

In all, prosecutors are alleging a total of $16 million in fraud involving state health or commerce department grants and contracts.

Here’s a brief look at each of the criminal cases that have been filed, which prosecutors built with help from the Chicago offices of the U.S. Postal Inspection Service and the Internal Revenue Service, as well as from the Illinois Secretary of State’s Office’s inspector general:

Defendants: Margaret A. Davis and Tonja Cook, of the Chicago chapter of the National Black Nurses Association

Via: Chicago Sun-Times

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Former EPA official charged with stealing nearly $900K

WASHINGTON –  A former high-ranking official with the Environmental Protection Agency was charged Friday with stealing nearly $900,000 from the agency over 13 years.

John C. Beale, a former deputy assistant administrator in the Office of Air and Radiation, is accused of stealing a total of $886,186 between 2000 and April of this year.

A document filed by the Justice Department says Beale stole the money by collecting bonuses and extra salary.

Beale, 64, of Arlington, Va., faces a maximum of 10 years in prison and financial penalties if convicted. He worked at the EPA for at least two decades under several presidents. He was a top deputy to EPA Administrator Gina McCarthy, who headed the Air and Radiation office from 2009 until taking over the agency last month.

An agency spokeswoman said the EPA is coordinating closely with its inspector general and the Justice Department on the complaint

.

Louisiana Sen. David Vitter, the top Republican on the Senate Environment Committee, called the accusations appalling.

"This fraud was occurring for many years at the EPA's critical Air office, and during a period of time that Gina McCarthy was the administrator of the Air office," Vitter said in a statement. "It's clear that further investigations are necessary."

A spokesman for U.S. Attorney Ronald Machen declined to comment.

Via: Fox News Politics

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Woman Uses 50 Identities to Collect Unemployment in 8 States

An Ohio woman used 50 stolen identities to collect unemployment benefits in eight states, according to the inspector general (IG) of the Social Security Administration.

Audrey Costar, 46, wassentenced to four years in federal prison for stealing identities over the internet and collecting $78,674 in fraudulent unemployment benefits.

Using 50 fake identities, Costar collected benefits from Alaska, Arizona, Colorado, Minnesota, Montana, Ohio, Pennsylvania, and Utah between February 2009 and December 2012. She was also on unemployment through her own name at the time.

“Costar used some of the identities to open bank accounts or cash value cards over the Internet to which the unlawful unemployment benefits would be deposited,” the IG said. “After the payments were made, Costar would withdraw the payments using an automated teller machine and used the money for her own benefit.”

“When one state cut [Costar] off, she would move to another and start again,” the Columbus Dispatch reported.

The paper also reported that Costar’s attorney blamed her actions on “fallout from long-term mental-health issues.”

Costar had pleaded guilty to two counts of theft of government funds and two counts of aggravated identity theft in April. At sentencing on Aug. 9, she was also ordered to repay the more than $78,000 in illegal benefits.

Via: WFB

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