You Crazy Right Wingers Are Such A Hoot!

     From The Examiner of Independence, MO:

U.S. District Court Judge Brian C. Wimes sentenced Charles Daniel Koss, 63, of Independence to seven years in federal prison and ordered Koss to pay $212,987 in restitution to the Social Security Administration and the Department of the Treasury. ...

Koss began receiving Social Security disability payments in 1987 for myoneural disorder and hypertension. In 1994, according to court documents, Koss began operating Embassy Mortgage, a real estate business, with his wife in Blue Springs. Koss was working as a loan officer and office manager for the business.

According to the indictment, when Koss learned that he would have to repay the government, he created a false negotiable instrument – which he called a “Registered Private Money Order” – purporting to draw on a bogus trust account held by the U.S. Treasury. He allegedly utilized the false negotiable instrument as payment for his debt and mailed it to the Social Security Administration.

Koss subscribed to what is known as the redemption theory, the indictment says, which claims that a “Birthright Trust” is created with the U.S. Treasury when parents of a newborn child pledge the child’s birth certificate to the government. Redemption theory involves bogus claims that when the U.S. government abandoned the gold standard in 1933, it pledged its citizens as collateral so it could borrow money. The movement also asserts that common citizens can gain access to funds in secret accounts using obscure procedures and regulations.

According to the indictment, adherents of the redemption theory sometimes call themselves “sovereign citizens.” The sovereign citizen movement is a loosely organized collection of groups and individuals who have adopted anarchist ideology. Its adherents claim that virtually all existing government in the United States is illegitimate and they seek to “restore” an idealized, minimalist government that never actually existed.

Man Found Guilty In Shooting Outside SSA Headquarters

     From the Baltimore Sun:

A Baltimore County man was convicted Wednesday in the nonfatal shooting of an employee outside the Social Security Administration in Woodlawn in 2011.

Gary Stokes, 23, was found guilty by a Baltimore County jury in the shooting that caused the Social Security complex on Security Boulevard to go on lockdown for more than an hour.

Police said Stokes robbed Obie Blackmon of his cellphone and then shot him in the arm as he was taking an afternoon walk in woods near the campus.

Former Lawmaker Pleads Guilty To Social Security Fraud

     From CNS:

Raymond E. Salva, a former Democratic member of the Missouri House of Representatives, has pleaded guilty to illegally taking $58,816 in federal disability payments while he was working as a state legislator earning $30,000 a year, according to the Office of the Inspector General of the Social Security Administration. ...

In May 2003, about five months after he started working as a state representative, the SSA conducted a review to find out whether Salva was still eligible for disability payments. “As part of that review, Salva completed a form in which he affirmed that he was not able to return to work and that he had not done any work since being disabled,” reads a press release from the SSA’s Office of the Inspector General (OIG). ...

An Original Type Of Fraud

     From Inside NOVA, which, I think, stands for Northern Virginia:

A former Woodbridge woman was sentenced Friday to one day in prison, plus three years of supervised release, for committing Social Security fraud by helping her husband claim he was dead. ...

According to documents on file at U.S. District Court in Alexandria, Rios’ husband, Luis Melecio Rios Guizado, was wanted on charges of taking indecent liberties with a minor in Prince William County in 2007 when he fled to Peru, his native country.

Rios visited Guizado there and her gave her a false Peruvian death certificate, claiming he had died, “in order to have the charges filed against him in Prince William County dropped,” according to a news release from the Social Security Administration. ...

According to court documents, Rios presented the fake death certificate in Prince William General District Court in May 2007, in order to quash her husband’s outstanding warrant. She then presented the fraudulent document to the Social Security Administration in June 2007, so she could collect survivors’ benefits for herself and her five children, court documents state.

Authorities say that Rios and her children collected $127,000 in Social Security benefits between June 2007 and May 2011.

Problems With MySocialSecurity

     From the testimony of Theresa Gruber, Assistant Deputy Commissioner for Operations, Social Security Administration to the Senate Special Committee on Aging:

In May 2013, we added key measures to combat fraud through our on line MySocialSecurity portal. For example, we have added unique and stringent fraud protection tools to our online registration and authentication technology. Because of these changes, we have seen a significant drop in the volume of successful MySocialSecurity registrations - indicating we may be preventing some fraudulent accounts from being established. We also established an executive-level workgroup tasked to identify additional fraud deterrent measures to explore and implement, including items recommended by OIG. We will be implementing several of these real-time fraud prevention measures by the end of the year. In August 2013, we will eliminate the ability change payment information via the internet for users who have a block in place.

     Some things to note here. At the moment, putting a block on one's online MySocialSecurity "portal" doesn't prevent some stranger from using one's online MySocialSecurity "portal" to divert your Social Security benefits to a bank account they control. Are you kidding me? What does a "block" mean if it doesn't block this? Why is Social Security even pretending that a "block" is of some use when they know it is worthless and they don't have a plan to change this situation for at least another couple of months? Second, now that Social Security has implemented new fraud prevention measures, they've seen a significant drop in online registrations. This indicates one of two things: either fraudulent registrations were a significant part of all registrations or a significant number of those who want to establish an account for genuine reasons are being thwarted by the new security measures. Either way, this isn't good news.

Threatening To Rape Little Girls Isn't Cool

     From WOOD-TV:

A Battle Creek man may spend up to five years in prison after threatening to "rape little girls" in a message to the Social Security Administration. 

In December 2012, Timothy Burgess sent a message via the Internet to the Social Security Administration office in Maryland, according to the U.S. Attorney's Office. 

In the message, he said he wanted more money. He threatened to rape and implied he may murder "little girls" if his demands were not met.

Problems With Debit Cards

     From the Center for Public Integrity:

A government initiative aimed at saving money by eliminating paper checks is hurting some recipients of federal benefits while earning the bank that operates the program millions in fees charged to consumers.

The U.S. Treasury Department has been urging people who collect Social Security and other benefits to switch to direct deposit rather than rely on mailed checks, to save millions of dollars a year in administrative costs.

But beneficiaries without bank accounts — and even some who do have accounts — are being pressured into using prepaid debit cards offered by Comerica Bank, an effort that is shifting costs to elderly people, veterans and other vulnerable consumers. ...

Between October 2011 and the end of August 2012, the Social Security inspector general received more than 18,000 reports of unauthorized changes or suspected attempts to make unauthorized changes to payments. Treasury says it put new procedures in place in January 2012 to reduce fraud. Yet early this year, the Social Security inspector general’s office said it was still receiving more than 50 such reports a day.

It's Time To Stop Allowing Any New Online Accounts

     From the Braintree  Patriot Ledger:

When the form letter from Social Security arrived, Lillian Broide almost didn’t give it a close reading. She has been receiving lots of official forms and letters lately, after going through several hospital stays and rehab programs.

“I did open it and found out there is a fraud going on that is tagging seniors,” Broide said when she called recently.

The letter on May 22 was confirming that she had recently opened an online Social Security account. It said she did not have to do anything unless this was not correct and told her to contact Social Security immediately if she had not in fact opened an online account.

“I had never gone online with my Social Security,” she said. She called right away and was shocked to discover that someone had opened an online account using her Social Security number. A few days later, she also found out someone had changed the bank account where her monthly Social Security check was to be deposited.

     What is it going to take to wake up Social Security management? This sort of fraud is exploding. It's irresponsible to allow this to continue. Stop allowing new online accounts until there's a fix! What are you waiting for?

Hearing On Protecting Seniors From Online Fraud

     The Senate Special Committee on Aging has scheduled a hearing for June 19 on "Social Security Payments Go Paperless: Protecting Seniors from Fraud and Confusion."

     This hearing stands to be far more useful than the House Social Security Subcommittee's upcoming annual hearing on disability work incentives. It's clear. Work incentives just don't work. However, something has to be done and something will be done to protect Social Security benefits from online fraud.

Get Over It Guys!

     The National Review really wants to prove that fraud is rampant at Social Security. They offer as proof the bizarre case of Charles Fisher. After Fisher died of natural causes his mentally ill daughter decided to put him on ice, not a freezer but ice, so she could keep getting his Social Security checks. At some point she decided to cut off her deceased father's hands since it would make it harder to identify him once she disposed of his remains in a more permanent way. The ice didn't work too well. Fisher's body was decaying. The police eventually came around the house since friends and neighbors wondered what happened to Fisher.The fraud was revealed.

     This sad case demonstrates that people, particularly mentally ill people, can do some very weird things. I don't think it proves anything of consequence about Social Security. Of course, there's some degree of fraud at Social Security. Tens of millions of people receive benefits. How could there be no fraud involved? There's no proof of rampant fraud at Social Security.
     The right wing needs to get over its obsession with Social Security. They've used the same arguments against Social Security for more than 75 years and they've gotten nowhere.  The American people love Social Security. There's nothing the right wing can do to make it go away.

$300,000 Fraud Alleged

     From KDKA in Pittsburgh:

Chauncey Clinton, 65, of Ross Township was indicted Tuesday by a federal grand jury on charges he cashed his late mother’s social security checks for nearly four decades.

Clara Clinton died in May, 1973, and Clinton allegedly began cashing her checks the very next month. ...

Clinton allegedly received more than $300,000 he was not entitled to through the social security scam involving his late mother.

Online Crooks Going After Online Accounts

     From WPTV:

A new kind of Social Security scam has left local beneficiaries wondering where their money is.

Pills and bills eat up Patricia Bell's monthly Social Security check.
"Without Social Security, we'd have nothing," said Bell, 71, of Okeechobee.
When she got a letter in the mail saying she had created an online account on Social Security's website, she called her son.
"Right then, I stopped, I said, I didn't do this," said Bell.
But someone had, stealing her personal information, including her Social Security number.
"I have no idea how they did that, " said Bell.
A crook used Social Security's new online system to change her direct deposit information.
They redirected her $1,200 check to themselves. ...

Nationwide, 36,000 have fallen victim since May of 2011. 

     This will only get bigger and bigger. Social Security management needs to face the facts. The online accounts are way too susceptible to fraud. This is probably becoming a cottage industry in places like China or Nigeria. I believe that all you need is access to credit reports and that's not that difficult. Identify an older person using the credit reports, use the information from the older person's credit report to open an account Social Security account in the person's name, divert one month's benefits to a bank account you control and withdraw the money using an ATM. If you're overseas, what's your risk?

Doctor Sentenced For Fraud

     From the Associated Press:

A clinical psychologist in San Diego is going to federal prison for a scheme that allowed patients to falsely collect disability benefits and to avoid taking English tests for U.S. citizenship.

The U.S. attorney's office says Roberto J. Velasquez was sentenced Wednesday to 21 months in prison and ordered to repay more than $1.5 million to the Social Security Administration.

Prosecutors say Velasquez charged dozens of patients $200 each to falsely certify that they were disabled. He made up patient histories and fabricated test results.

Velasquez acknowledged falsifying two types of disability forms - one for some patients to obtain Social Security benefits and another that allowed some 50 immigrants to avoid taking the English language and civics portions of citizenship exams.

Videos To Prove That Social Security Disability Fraud Exists -- But The Question Is How Much?

     From KMOV in St. Louis:

People who fake disabilities to get paid are part of an exploding entitlement program.

Here in St. Louis, the fakers contribute to the backlog, which forces people with real disabilities to wait up to two years to get approved.

In fact, the downtown St. Louis Social Security Administration office has the longest wait time for a disability ruling appeal in the country.

So the SSA is increasing efforts to bust the phonies. ...

Meanwhile the St. Louis CDI unit, of Cooperative Disability Investigations unit, is busting people like one man who applied for disability claiming constant pain, problems with sitting, standing and walking.

But he was caught on video walking his dogs, carrying an amplifier and guitar, and helping to push a woman into a truck.

Another man applied for disability claiming severe back and shoulder pain.

But later he was caught on video at football practice where he’s seen stretching, and throwing around the pigskin.

Online the SSA posts these videos and others showing the fraud.

People who applied for disability, like a man spotted wrestling in the ring, or a man who uses a cane inside the Social Security office lobby, but then seems fine when he’s loading furniture in a dumpster, or sweeping leaves off his roof.

     Those who actually adjudicate these claims or who represent these claimants know that fraud is a tiny part of the Social Security disability programs but those who want to believe otherwise will never listen.

I Think This Problem Is Just Going To Get Worse And Worse

     From a TV station that wants to be known as "6 South Florida":

As Maria Elena Ruiz was getting ready to pay her father's medical bills for the month, she realized there was a big problem.

"There was no money!" she said.

Federico Ruiz's monthly Social Security check should have been deposited directly into his bank account. But it looks like a payday came for a crook instead.

"Somebody just went on the Internet, and it just got paid," Maria Elena Ruiz remarked.

With some key pieces of the senior citizen's personal information and a few clicks on ssa.gov, the thief was able to create an online account. It redirected Mr. Ruiz's benefits to a bank account controlled by the thief. ...

According to the agency’s inspector general, there have been just over 600 such allegations made nationwide between February and April 29.

     Social Security has to do something about this. It's just irresponsible to leave this gap. It's hundreds of cases now but it may be tens of thousands in a few months.

Online Fraud Attempt

     From KSDK:

The Social Security Administration says complaints of fraud linked to online social security accounts are isolated. 

NewsChannel 5 broke the story Monday that people had gotten letters about an online account they hadn't signed up for. 

Late Tuesday afternoon, the St. Louis Circuit Attorney's Office reached out to victims via Facebook, offering ways to protect themselves. 

The Social Security Administration sent a statement Tuesday saying its representatives have assisted customers to address their concerns about the issue. 

A viewer who got one of those letters told us Monday that between 20 and 40 people took their letters to the SSA office in Fenton Monday morning. Someone used their social security numbers to go online and try to steal their social security checks. 

Second Mistrial In Social Security Guard Stabbing Case

     From the Chatham, VA Star-Tribune:

A Gretna man accused of stabbing a Social Security office guard remains in custody after a second jury trial ended in a mistrial Thursday.

Byron Clements, 50, was charged with one count of aggravated malicious wounding for allegedly stabbing Jason Alsbaugh several times at the Social Security Administration office in Danville in February 2011. ... 

Twelve jurors remained deadlocked after nearly six hours of deliberation following a two-day trial in Pittsylvania County Circuit Court. ...

Defense attorney Glenn Berger said psychiatric specialists say Clements, who has a history of schizophrenia, should be found not guilty by reason of insanity.

Why Did Social Security Want Missouri Conceal-Carry Records?

     From KBLA in Missouri:

The Missouri Department of Revenue is looking for a new Director.

Brian Long resigned Monday after weeks of controversy surrounding the scanning of documents for driver’s license and conceal-carry weapons applicants. The pressure increased last week when it was discovered that the agency compiled the entire list of the state’s 163-thousand CCW holders for the Missouri Highway Patrol.

The Patrol then provided it to the Social Security Administration for an investigation it was conducting. ..

Long had only been on the job for about three months. He earlier defended the DOR’s policy, saying the scanning of documents was necessary to combat fraud, and that no one’s information was being given to the federal government.

     Update: KY3 (what does this TV station have against giving its actual call letters?) reports that Social Security's Inspector General, Patrick O'Carroll, has apologized to a Missouri Congressman for "errors [his office] made in reporting aspects of what happened regarding the handling of Missourians' private information." I still don't have any idea why Social Security wanted the Missouri conceal-carry records. I don't think you have to be an NRA member to find this request a head-scatcher.

Big Employee Fraud Case In Alabama

     The Associated Press reports that Manuel Chaney III, who had worked at Social Security's Bessemer, AL field office, has been sentenced to 70 months in prison for an identity theft scheme. Chaney had used information obtained from his employment to identify people who had recently died. It's not clear from the article exactly what he did thereafter. He may have filed survivor claims on those accounts or he may have kept the decedents in payment status while diverting the payments to accounts he controlled. In any case, the fraud amounted to $325,000.

Representative Payee Embezzles From 23 In New Hampshire

     From the Concord, NH Monitor:

A Weare woman has been sentenced to 13 months in federal prison for embezzling more than $52,000 in Social Security and veterans benefits.

Heidi Lacerte stole the funds from 23 people while she was employed at the Office of Public Guardian, a nonprofit that serves hundreds of legally incapacitated people across the state, according to a release from the U.S. attorney’s office. According to court documents, the 48-year-old woman embezzled funds that had been paid to her office and placed in an account where they could be used for clients’ medical and financial needs.