Fraud News Update 11.27.14

Fraud News

Fraud News Update 11.27.14: The Thanksgiving GOBBLE-GOBBLE Edition. In honor of all that we have to be thankful for and the great food we’re fortunate enough to eat, this week’s Fraud Solutions Fraud News Update features these “fowl” stories: Rape By Fraud (I’m not making this up!),Fraud Kills (It’s a weighty issue), Pancake Fraud (A den of crime?), Bum Rush (How to buy a football team on $50), Sister Act (double non-profit fraud?) and Doctor Doctor (Give me the news…).

Read on for more topical information and our insights, observations and unique commentary on the weekly fraud news. Like our content? Feel free to share Fraud News Updates with your network or colleagues.

Rape by Fraud?

When this fraud news story on legislation recently introduced in New Jersey flashed across my desk, I did a bit of a double take. Actually, I had to read the headline twice to make sure I completely understood what the issue was. On second read, I got it immediately. My first thought: it’s about time!

Think NJ’s alone on this one? That they’re really out there introducing “wacky fraud legislation?” A 2010 NBC News piece stated that “most U.S. states don’t have rape by fraud laws…but in recent years, there have been attempts to broaden rape laws in order to deal with this complicated and controversial issue.

And now it seems that more states like NJ are considering introducing similar legislation, or have legislation pending, with this language in it. While some have stalled, it seems to be gaining momentum across the states. See NJ. This will be an interesting piece of legislation to track and see what the outcome turns out to be. I’m sure other states are watching as well.

Fraud Kills

There are tons of jokes about weight. None of them are funny. When it comes to flying machines, overweight planes often don’t get off the ground. As a fisherman, I’ve heard these stories numerous times when it comes to small planes full of fisherman leaving remote fishing trips. Planes that are loaded with too many fisherman, gear, coolers of fish etc., often crash killing everyone aboard. Tragic. In this fraud news story, overweight helicopters are no different.

According to ABC News, “The National Transportation Safety Board investigation showed the helicopter weighed more than 19,000 pounds when pilots tried to take off, while Forest Service guidelines called for a limit of 15,840 pounds.”

Think a small fib on a contract bid concerning what a company’s helicopters weighs isn’t a big deal?

People think of fraud as a “victimless crime.” Well, in this case, there were NINE victims (brave individuals on their way to fight a wildfire). Fraud kills! Guilty pleas are NO consolation to the families who lost their loved ones and “fat jokes” aren’t funny.

Pancake Fraud

There’s nothing Rooty, Tooty, Fresh ‘N Fruity in this fraud news story about the fraud being served up at these Midwest IHOP franchises.

According to Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, “The defendants turned pancakes houses into crime dens…engaging in a range of crimes ranging from harboring undocumented workers to identity theft to money laundering to insurance fraud.” We’ll add arson and failure to pay taxes to the list since it was proven during the case. Fraud palooza… a true smorgasbord.

The last of 18 suspects sentenced for their role. I wonder if “Smokehouse Combo’s” are served at Club Fed?!

Bum Rush

“To run full speed into somebody and body slam them into a brick wall, chain link fence, or similar immovable object” Urban Dictionary.

In this fraud news story, according to the FBI, “The former owner of the defunct Chicago Rush Arena Football League team was arrested today on federal fraud charges for allegedly concealing certain business interests and assets from creditors and overstating his net worth in connection with his purchase and operation of the indoor football team in 2013.

This alleged fraud could more aptly be titled “How to buy a professional football team with only $50 in your pocket” as that’s what the feds are alleging was the case with the defendant, David Staral, Jr. Appearances are often deceiving and the fact that Staral drove to meetings in a “Porsche” proves the old adage, “you can’t judge a book by it’s cover!”

The reported news stories paint quite a questionable history of lies and deceit for Mr. Staral. A little due diligence by the Arena Football League would have EASILY uncovered this whole mess before it got this far.

If the story’s true, as reported, it looks like the Chicago football franchise got “bum RUSHED.”

Sister Act

We’ve talked about family frauds in the past and this fraud news story sounds like a true “sister act.”

Sisters…women born to the same mother. Many are connected at the hip. These two sisters must have been as both were involved in federally funded charities and both have now been indicted on charges that they defrauded the charities.

If convicted of the charges against them, I’m wondering whether the Bureau of Prisons will let them go to the same institution?! Probably not. Metaphorically speaking, there’s probably some clause in the constitution about the separation of church, state AND sisters!

Doctor Doctor

If Robert Palmer were here singing the song the lyrics might go a little something like this “Patient, Patient, give me the news, I got a bad case of fraudin’ you…

“No pill’s gonna cure your ill” here either as 21 doctors have already “admitted accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates” according to U.S. Attorney Paul J. Fishman.

I guess what “cured their ill” was cash, cold hard cash. So much for doing what’s in the best interest of the patient. Appears that those involved took the “Hypocritical Oath” instead of the one they were supposed to take!

Older fraud story but the conviction train’s still rolling down the tracks….

Fraud News – The Bottom Line

Fraud – empowering people to break the law. It’s a way of life for some and every fraud has a story. At Fraud Solutions, fraud is our world and we’re passionate about prevention. Being proactive is key, so, follow us each week as we cover the fraud beat with added insights, information and unique commentary on stories making the fraud news.

Those are our insights. What are yours?

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