Posts tagged fraud
Documents in JPMorgan settlement reveal how every large bank in U.S. has committed mortgage fraud
Published by TheRealNews
Bill Black: Justice Dept.’s failure to understand pervasive schemes of fraud in financial industry obstructs meaningful prosecution of banks
Reports of Obamacare fraud emerge in Tennessee
NASHVILLE — Scam artists have seemingly found a friend in Obamacare.
Reports are emerging that shysters are using Tennessee residents’ relative lack of knowledge about the new health care law to defraud them.
Scam artists, for example, are making calls claiming they need Social Security numbers to sign people up for a new Obamacare insurance card, according to a statement from the Tennessee Department of Commerce and Insurance.
“We’ve been made aware of one scam, in particular,” said TDCI spokeswoman Kate Abernathy.
“One of our navigator agencies let us know that there was an individual calling people saying that he or she could have walked him through the application process for $100 for a navigator certified application counselor service, but that information is completely incorrect. That is a free service that is supposed to remain free.”
The federal government, along with the National Association of Insurance Commissioners, began sending out advisories against possible fraud related to Obamacare many months ago, Abernathy said.
“There are scammers out there who are calling around and saying ‘All right we need your Medicare number. We need to update your profile.’ A Medicare beneficiary can hand over that information without thinking about it — and they’ve just given a criminal their Social Security number,” Abernathy said.
As previously reported, TDCI implemented registration requirements and criminal background checks on people who serve as Obamacare navigators or certified Obamacare application counselors in Tennessee.
Such people are responsible for handling the financial or medical information belonging to other individuals.
Strangely, last month, mainstream media outlets such as the Washington Post seemed to condemn Tennessee and other states for implementing these policies, saying they were getting in the way of progress.
“There is a very palpable concern . . . that anti-Obamacare state government people will find ways to gum up the works,” the Post quoted Leonardo Cuello, director of health reform for the National Health Law Program, as saying.
Despite the ruling, Abernathy said anyone who handles another person’s personal financial or medical information is still subject to the regulations.
Contact Christopher Butler at firstname.lastname@example.org.
Image credit: http://tennessee.watchdog.org
Meet the Disability-Industrial-Complex: Up to 45% on Disability Insurance are Frauds
If the American public knew what was going on in our system, half would be outraged and the other half would apply for benefits.
- Marilyn Zahm, one of the 1,500 disability judges operating in the U.S.
I’ve known about the “disability” scam for many years now, but I had never read a report that details the racket until I checked out the following from CBS’ 60 Minutes. As usual, the real money being made in the whole scheme is not centered around the people collecting the checks, but rather attorneys, doctors and even judges who grease the wheels of the $135 billion “disability-industrial-complex.”
For example, in the economically depressed border area of Kentucky and West Virginia we find 10%-15% of the population on disability, or three times the national average. The regional disability racket is essentially run by attorney Eric Conn, who’s clients for disability enjoy a 100% success rate thanks to Mr. Conn’s relationship with doctors and a local judge named David Daugherty.
Here are just a couple of examples of how Mr. Conn uses his advertising budget:
Senator Tom Coburn explains to CBS’ 60 Minutes that:
Coburn says the report — to be released tomorrow — will show that Conn collected more than $13 million in legal fees from the federal government over the past six years and that he paid five doctors roughly $2 million to regularly sign off on bogus medical forms that had been manufactured and filled out ahead of time by Conn’s staff.
Just another scam from a scam economy. More from 60 minutes:
The hearing involves the Federal Disability Insurance Program, which could become the first government benefits program to run out of money. When it began back in the 1950s it was envisioned as a small program to assist people who were unable to work because of illness or injury.
Today, it serves nearly 12 million people — up 20 percent in the last six years — and has a budget of $135 billion. That’s more than the government spent last year on the Department of Homeland Security, the Justice Department, and the Labor Department combined. It’s been called a “secret welfare system” with it’s own “disability industrial complex,” a system ravaged by waste and fraud. A lot of people want to know what’s going on. Especially Sen. Tom Coburn of Oklahoma.
Tom Coburn: Go read the statute. If there’s any job in the economy you can perform, you are not eligible for disability. That’s pretty clear. So, where’d all those disabled people come from?
The Social Security Administration, which runs the disability program says the explosive surge is due to aging baby boomers and the lingering effects of a bad economy. But Sen. Tom Coburn of Oklahoma, the ranking Republican on the Senate Subcommittee for Investigations — who’s also a physician — says it’s more complicated than that. Last year, his staff randomly selected hundreds of disability files and found that 25 percent of them should never have been approved — another 20 percent, he said, were highly questionable.
Sen. Coburn says disability payments are now propping up the economy in some of the poorest regions in the country. Which is why he sent his investigators to the border area of Kentucky and West Virginia.
More than a quarter of a million people in this area are on disability — 10 to 15 percent of the population — about three times the national average. Jennifer Griffith and Sarah Carver processed disability claims at the Social Security regional office in Huntington, West Virginia.
Full article and link to segment here.
Follow Mike on Twitter!
Image credit: http://libertyblitzkrieg.com
Posted by Judy Morris
Don’t Get Sucker Pumped At Gas Pump Skim Scan – Pay Cash at the Pump
Gas pump skimmers are getting craftier. A new scam out of Oklahoma that netted thieves $400,000 before they were caught is a reminder of why it’s usually best to pay with credit versus debit cards when filling up the tank.
The U.S. Attorney’s office in Muskogee, Okla. says two men indicted this month for skimming would rent a vehicle, check into a local hotel and place skimming devices on gas pumps at Murphy’s filling stations located in the parking lots of Wal-Mart retail stores. The fraud devices included a card skimmer and a fake PIN pad overlay designed to capture PINs from customers who paid at the pump with a debit card.
According to their indictment (PDF), defedants Kevin Konstantinov and Elvin Alisuretove would leave the skimming devices in place for between one and two months. Then they’d collect the skimmers and use the stolen data to create counterfeit cards, visiting multiple ATMs throughout the region and withdrawing large amounts of cash. Investigators say some of the card data stolen in the scheme showed up in fraudulent transactions in Eastern Europe and Russia.
As the Oklahoma case shows, gas pump skimmers have moved from analog, clunky things to the level of workmanship and attention to detail that is normally only seen in ATM skimmers. Investigators in Oklahoma told a local news station that the skimmer technology used in this case was way more sophisticated than anything they’ve seen previously.
Increasingly, pump skimmer scammers are turning to bluetooth-enabled devices that connect directly to the pump’s power source. These skimmers can run indefinitely, and allow thieves to retrieve stolen card data wirelessly while waiting in their car at the pump.
Read the rest at Krebs on Security, here.
New House Bill Wipes Mortgage Fraud Clean For Banksters
The House Financial Services Committee (HFSC), headed by chair Jeb Hensarling, has approved proposed bill entitled, “Protecting American Taxpayers and Homeowners Act” (PATH) that is being sold to the American public as a way “to create a sustainable housing finance system.”
Hensarling explained : “Our plan helps taxpayers and homeowners. It gives power and control back to consumers. Under the current broken system, unaccountable Washington elites have more of a say over who gets a mortgage than your local bank. The current system is a government monopoly run by the same types of Washington bureaucrats who run the IRS. America can do better. Americans deserve better.”
Buried in PATH is the creation of the National Mortgage Data Repository (NMDR) which is the brainchild of the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB).
The NMDR would be “the first comprehensive repository of detailed mortgage loan information. The database will primarily be used to support the agencies’ policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.”
Richard Corday, director of the CFPB asserts that “in order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data. This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work.”
The NMDB would be utilized in conjunction with agencies to:
• Monitor the relative health of mortgage markets and consumers.
• Provide new insight on consumer decision making.
• Monitor new and emerging products in the mortgage market.
• View both first and second lien mortgages for a given borrower.
• Understand the impact of consumers’ debt burden.
The problem that justifies the NMDB is the Mortgage Electronic Registration Systems (MERS) that is a database that was incorporated in 1995 and privately held.
MERS board of directors is filled with vested interest from technocrats such as:
• Freddie Mac
• Wells Fargo
• JP Morgan & Chase Co
• Fannie Mae
• Bank of America
Those financially invested in MERS include:
• Bank of America
• Sun Trust
• Wells Fargo
• Fannie Mae
• Freddie Mac
Hensarling took a ski-trip last April and met with powerful members of the financial Elite who have also made campaign contributions to him through the SuperPAC Jobs, Economy and Budget (JEB) Fund just before PATH was announced by the HFSC.
The “weekend getaway” was attended by:
• A representative from the American Securitization Forum (ASF)
• Len Wolfson, lobbyist for the Mortgage Bankers Association (MBA)
• And other members of the retail industry and finance corporations
Those who have contributed to the JEB Fund around the time of the ski-trip weekend are:
• Capital One
• Credit Suisse
• US Bank
• National Association of Federal Credit Unions
• Koch Industries
• Cash America International
• CheckSmart Financial
• Regions Financial
• JP Morgan & Chase Co
Considering the implications of PATH for the banksters, it may be that those technocrats who contributed to the JEB Fund would be the first to take advantage of the bill should it pass through to become a law.
Supporting PATH, the American Bankers Association (ABA) released a statement saying: “We commend Chairman Hensarling for this thoughtful measure to begin the essential work of reforming our nation’s housing finance system and protecting taxpayers, which includes reforming Fannie Mae and Freddie Mac and refocusing the Federal Housing Administration.”
The ABA went on to say: “We strongly support provisions of the Chairman’s bill that would delay implementation of pending mortgage rules, including Qualified Mortgage, and provide some important and needed changes to that rule. More time is needed to ensure that banks can comply with these complex new rules to avoid unintended effects on credit availability. Clarifications to the rules are also necessary, both those still to be proposed by regulators and others included in this legislation.”
The NMDR would wipe the slate clean with regard to the mortgage fraud that has become apparent with cases being filed in courts all across the nation. Homeowners and attorneys have realized that with the use of MERS, the banks have been able to robosign their way into mortgage debt that was foreclosable.
However, MERS has proven to be a bit of a thorn for the banksters when it comes to proving they hold title to the property they are in the process of seizing. In fact, it appears that the financial Elite did not consider the clogging of the courts and losing their right to foreclose on home based on the lack of evidence that they hold title of the property because of MERS.
Instead, the technocrats have devised a way to take the homes from ALL homeowners regardless of whether or not they have previously won during foreclosure litigation, are in the process of litigation and would file a complaint with the courts at a future date.
One of the outcomes of PATH would be the right of the technocrats to stop current legal standing of the homeowners in court with regard to foreclosure litigation.
Without this provision, the homeowner cannot sue to stop the foreclosure, nor can new complaints be filed with the courts.
But one of the biggest advantages of PATH would be for the technocrats to reopen foreclosure litigation that was ruled on in favor of the homeowner.
Just as with criminal law, the right of protection from being retried for a “crime” is protected under Jeopardy clause.
The civil version of the Jeopardy clause works much the same of the criminal counterpart. Jeopardy can terminate “in four instances: after acquittal; after dismissal; after a mistrial; and on appeal after conviction.”
What this means for PATH and the NMDR is that a homeowner who previously won a suit against the bank and kept their home, would now be under threat of having the case reopened under the new evidence argument.
The bank could simply open a new case in light of PATH that would empower them bring this law in as evidence (should the law be passed). This would also allow the banks to circumvent the Ex Post Facto clause .
By using PATH as the reason to bring old litigation to new light, this scheme would serve to give the banks a way to acquire those properties anyway.
It is a three-fold win for the technocrats thanks to Henserling and the HFSC.
• Future foreclosure litigation is halted because of lack of legal standing for the homeowner
• Current foreclosure litigation would be halted because of lack of legal standing for the homeowner
• Past litigation could be reopened and tried in court for the purpose of taking the property from the homeowner and possibly suing for damages and interests incurred by the original suit
About the author:
Legalized Bribery — Interview with Ex-Lobbyist Jack Abramoff
Published by breakingtheset
Abby Martin talks with former lobbyist Jack Abramoff about DC’s culture of cronyism, revolving door politics, lobbying, and how to get money out of politics.
June 28th podcast by Lew Rockwell
Ron Paul on Snowden, the Federal Reserve, the Gold Market, Homeschooling and Economics
Ron Paul is interviewed by Lew Rockwell, listen here.
Ron Paul and Lew Rockwell discuss today’s important topics, including Edward Snowden, the IRS, the gold and bond markets along with the current and future economics, homeschooling and the sad loss of life due to suicides by our veterans.
I would encourage all to set aside 18 ~ 20 minutes and listen in.
“Bank of America stealing thousands of homes, and lying to the government about it.” (?)
B of A allegedly abused the HAMP program which was created to help homeowners approaching foreclosure. The bank allegedly threw out the paperwork of applicants who had fulfilled their end of the loan modification bargain, making the homeowner restart the modification process. Many people it is alleged fell into foreclosure who didn’t need to be there simply because the bank couldn’t get it’s act together. In many cases, as the attached article reports, it was worse than just incompetence.
Remember, Bank of America got bailed out by the taxpayers. The bank managed its books far worse than many of the homeowners facing foreclosure. Still mercy was in short supply at the bank.
Putting aside whether programs such as HAMP should have ever happened, and the fact that the housing crash was basically created by a too loose Fed, this is yet another example of a connected bank with all the right friends doing whatever it wanted while the average person with no political clout was left to swing in the breeze.
Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.
Even a fiat currency and the casino game of fractional reserve standards are not enough to cover the never ending greed. Banks use your deposited money plus imaginary reserve policy funds to make bad bets, and lose. But who really lost? The banks get bailed out by Washington D.C. criminals, you get foreclosed on and then you are responsible for the cost of the bailout.
Part 1 of 4. To view complete please follow the link provided above. Bernie Madoff and other smaller fish got constant mainstream media coverage while the big ponzi scheme rolls along with white glove treatment, as it seems only the Wall Street thieves approved by D.C. are officially too big to fail.
Your thoughts appreciated below.
A former manager for one of the biggest US defense contractors says he was removed from his job after accusing his higher-ups of defrauding the government.
Cornelius Hosch, the one-time head of counter-IED intelligence for BAE Systems Information Solutions’ eastern Afghanistan office, sued his former employer in federal court on Tuesday.
Hosch, a US Army veteran with nearly 20 years of experience in the military, says his problems with BAE began after he alerted his supervisor to what he considered fraud in December 2011, just days after he started his employment with the company.
During his tenure with BAE, Hosch says the company overcharged the US government for services they were contracted to do.
“BAE was hiring certain personnel to complete logistical and administrative tasks but BAE was using these personnel to bill the government for more lucrative labor,” he alleges in the complaint, discovered by Courthouse News.
“By falsely and purposefully miscategorizing the work performed, BAE charged the government for more work than was actually performed or which was contractually permitted,” he claims.
After voicing his concerns with his supervisor, Hosch says he was harassed by higher-ups within the company. He claims to have spoken up against in February 2012, and was warned against voicing his concerns again.
“‘You better not talk to me again about labor category fraud and time card fraud because I am using guys at my HQ to do my admin and help Mr. Tutt with ghostwriting of FRAGO’s,” Hosch claims his former supervisor, Dan Weber, told him. Courthouse News suggests that “FRAGO” is shorthand defense-speak for “fragmentary orders.”
“Weber also threatened Hosch by saying that if he ‘kept it up’ then he would ‘end up like Tony,’ an employee whose contract was not extended after the first year because Tony would ‘question things’ that did not ‘look or sound right,’” the complaint continues.
Hosch says he reported Weber’s behavior and the allegations of fraud to his employer’s ethics department, and was removed from his job shortly after. He says BAE retaliated against him in violation of the False Claims Act and is seeking compensatory damages and special damages for mental and emotional distress and harm to his reputation.