Tag: fraud

Feds bust fraud ring accused of stealing $47M in COVID, small business loans

For the second week in a row, the Department of Homeland Security carried out a dramatic, early-morning raid in Los Angeles targeting transnational organized crime rings. This week’s bust netted fourteen arrests from an Armenian fraud ring that investigators say stole $30 million in COVID relief and Small Business loans meant to help taxpaying Americans.

“If you are taking money from the government that doesn’t belong to you, your door could be the next one that we’re hitting,” said U.S. Attorney for California’s Central District, Bill Essayli.

Fox News was exclusively embedded with DHS in the multi-agency sting that included the IRS and the Small Business Administration.

Thirteen of the suspects are Armenian-born but have become naturalized. At least one of the suspects faces deportation.

“This is the police. We have a warrant. Come out with your hands up!” one officer’s voice echoed on a loudspeaker attached to an armored vehicle with agents inside. The special unit inside the armored vehicle first cut the chain on a gated driveway and then demanded one of the targeted suspects come out of his L.A.-area home in a sunrise bust.

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Trump agency uncovers ‘one of the largest’ food stamp fraud, bribery schemes

A U.S. Department of Agriculture (USDA) employee and five others are under arrest as of Friday morning, after allegedly misappropriating tens of millions of dollars in taxpayer food stamp funds.

“At [the] USDA, we are hyper-focused… on rooting out that waste, fraud and abuse, and… yesterday was, if not the largest, one of [the] largest stings,” Secretary of Agriculture Brooke Rollins said Friday on “Mornings with Maria.”

“This is a new day, and President Trump promised, as he was traveling across the country over the last few years,” she continued, “that it would not be the government that we know.”

With the assistance of the FBI and U.S. attorney’s office, six individuals have been criminally charged with a bribe and fraud scheme that generated more than $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps.

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Trump’s chief of staff is caught in sinister impersonation plot exposing America’s most powerful players… until fatal slip reveals truth

Donald Trump‘s top advisor has fallen victim to a sinister scheme by hackers who infiltrated her phone and used artificial intelligence to impersonate her voice.

The nefarious plot involved stolen data from the personal cellphone of White House chief of staff Susie Wiles that was then used to call some of American’s most powerful people. 

Over the course of several weeks, high profile senators, governors and American business executives have received voicemails or messages from an unknown number claiming to be Wiles, Wall Street Journal reported. 

The hackers came undone when they made the fatal mistake of asking questions that the president’s closest aide would already know the answer to. 

Wiles – who has been nicknamed ‘Ice Maiden’ – has been contacting associates urging them to disregard any unusual messages or calls from unknown numbers purporting to be her.

In a terrifying twist, some of the phone calls used a voice that mimicked Wiles. Authorities suspect the impersonator used artificial intelligence to replicate it.

The FBI is now investigating the unusual situation, but do not believe that a foreign nation is behind it, sources told the publication.

‘The FBI takes all threats against the president, his staff, and our cybersecurity with the utmost seriousness,’ FBI Director Kash Patel said in a statement. 

‘Safeguarding our administration officials’ ability to securely communicate to accomplish the president’s mission is a top priority.’ 

Authorities are reportedly scrambling to figure out what the goal of the plot is.

In at least one case the impersonator asked for a cash transfer, while in another they asked a lawmaker for a list of people who the president could consider pardoning.

But many of the texts which came through appeared to be legitimate and fooled some of Wiles’ contacts. There are allegedly no suggestions that any sensitive information was handed over.

Some of her associates became suspicious when the impersonator began asking questions – sometimes about Trump – that Wiles as his closest advisor would have known the answers to.

Others said some messages were sent with poor grammar, and in a more formal manner than Wiles generally communicates. 

These messages were not sent from Wiles’ phone number.

Her personal cellphone contacts list was reportedly hacked, giving the impersonator access to a long list of numbers she has amassed over the years as one of Washington’s most formidable political players.

The breach comes after a series of embarrassing data leaks during Trump’s second term.

In one instance, the editor-in-chief of The Atlantic, Jeffrey Goldberg, was accidentally included in a Signal group chat where Secretary of Defense Pete Hegseth discussed planned military strikes in Yemen. 

Trump’s former national security adviser, Mike Waltz, took responsibility for the error and was reassigned to a different role. 

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Education Department Finds $90 Million in Improper Student Aid Payments

The Department of Education has uncovered nearly $90 million in federal student aid that was disbursed to people who were not eligible, including thousands of deceased individuals, it said on May 28.

The agency released the findings on May 28 as part of a broader effort to restore oversight tools and reduce fraud in federal student aid programs. Officials said the improper payments occurred over the past three years and were tied in part to lapses in verification systems that had been paused.

“From start to finish—filling out the [Free Application for Federal Student Aid] form to loan repayment—the American taxpayer underwrites federal student aid programs,” Education Secretary Linda McMahon said in a statement. “We are committed to protecting and responsibly investing their hard-earned dollars.”

According to the department, more than $30 million of the improper payments went to recipients who were listed as deceased. A cross-check with the Social Security Death Index flagged the error. Officials said they have strengthened real-time data-sharing with the Social Security Administration to help prevent similar mistakes in the future.

Other cases involved identity fraud and immigration-related ineligibility. In March, the department resumed flagging suspicious Free Application for Federal Student Aid applications using data models designed to catch inconsistencies or signs of identity misuse. A recent review found that nearly $40 million in Direct Loans and $6 million in Pell Grants had been issued to people who did not qualify.

Officials said individuals granted immigration parole status—temporary permission to remain in the country—are not immediately eligible for aid. To better identify these cases, the department said it has received updated data from the Department of Homeland Security.

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Fannie Mae Partners With Palantir For AI Mortgage Fraud Effort As Trump Works To Take Housing Giants Public

Fannie Mae, the quasi-government financial firm overseen by the Federal Housing Finance Agency (FHFA), announced a partnership with defense tech company Palantir to detect mortgage fraud using the firm’s proprietary technology, which includes some elements of artificial intelligence (just in case they didn’t have all of your info…)

Under the agreement, new mortgage applications would be run through Palantir’s technology suite to uncover fraud before they reach Fannie Mae, according to the housing giant’s president and CEO, Priscilla Almodovar, who added that the tech will allow the organization “to see patterns quicker.”

“We’re going to be able to identify fraud more proactively, as opposed to reactively,” she said during a Wednesday press conference in Washington D.C. “We’re going to be able to understand the fraud and stop it in its tracks. And I think over time, this really becomes a deterrent for bad actors, because we’re creating friction in the system when they do bad things.”

She recalled an exercise where Palantir’s technology was given four actual loan packages to assess, which scoured “reams of paper” and identified instances of fraud within 10 seconds – something that would take a human roughly two months.

FHFA Director Bill Pulte – who’s also chairman of the Fannie Mae board, said that the financial crimes division that monitors both Fannie and Freddie Mac “is only able to root out crime that it gets made aware of,” while Palantir’s red-flag approach would tip off investigators to conduct probes they would otherwise not have known to launch.

Fannie Mae has roughly $4.3 trillion in assets – making it a huge target for fraud.

“Why defraud America when you can go somewhere else that won’t buy or implement actual technology that works?” said Palantir CEO and co-founder Alex Carp, who added that the technology’s approach is a ‘forward-looking’ one in which “unique patterns of fraud that heretofore have not been detected” are highlighted “while simultaneously making sure the data is not being used in a way that customers would not want.”

“That is a transformational difference between how these things were done in the past or could be done [versus] how they can be done now,” Karp continued, according to Fedscoop.

Pulte suggested on Wednesday that this could be the first of many industry collaborations with Palantir.

“There’s a lot of things that are going on with title insurance, with mortgage insurance, with mortgages in general, in terms of AI,” said Pulte. “And so I think we have really scratched the surface with Palantir on mortgage fraud, but I wouldn’t be surprised to see us … enter into [other] partnerships with Palantir. We’re also talking with [Musk’s] xAI about some different AI stuff.”

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American Backlash: Why the Letitia James Mortgage Fraud Investigation Resonates with Americans

“We’re going to definitely sue him. We’re going to be a real pain in the ass. He’s going to know my name personally,” Letitia James said during her 2018 campaign for New York attorney general.

James campaigned openly on her intention to target President Donald Trump, describing him as an “illegitimate president” and an “embarrassment,” while pledging to pursue all legal avenues to scrutinize his finances and real estate transactions. After being elected, she said, “I look forward to seeing him in court when I assume my new position.”

Upon taking office in 2019, James promptly followed through, filing a lawsuit that ultimately led to a $454 million civil judgment against Trump and his organization for allegedly “overvaluing assets” on mortgage applications – despite industry-standard disclaimers advising lenders to conduct their own valuations.

But despite all of James’ efforts to harm him politically, Donald Trump won the presidency in a landslide in 2024. What happened?

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Feds bust Chinese-Canadian fraud ring operating in 37 states targeting seniors

Multiple Chinese nationals have been indicted for their role in orchestrating an elaborate transnational fraud and money laundering scheme targeting elderly U.S. and Canadian citizens.

Sixteen people were indicted overall, living in the states of California, Georgia, Hawaii, Maryland, New York, Rhode Island, Tennessee and Texas. Two are Canadian citizens; three are Canadian residents, according to U.S. Immigration and Customs Enforcement.

The indictment was unsealed in the U.S. District Court of Rhode Island in a case stemming from an ICE investigation that identified 300 victims in at least 37 states who lost a combined initial more than $5 million. Investigators also identified a bank account through which they believe approximately $16 million in additional suspected fraudulent funds were laundered.

The bust comes after the greatest number of Chinese and Canadian illegal border crossers were reported under the Biden administration, The Center Square exclusively reported.

According to the charging documents, the Chinese nationals sent pop-up messages to seniors’ computers purporting to be a well-known technology company claiming the victims’ financial accounts had been compromised, their computers had been hacked, or they were the focus of a criminal investigation. The messages instructed them to call a “live agent” who said their financial assets were at risk or could be garnished and they could help protect them. The seniors were then connected with other fraudsters who claimed to be their financial institution representatives or from government agencies, including the Federal Trade Commission and Federal Reserve Bank.

The fraudster then instructed the seniors to transfer their money through wire or cryptocurrency to accounts they claimed were managed by federal agencies. They also instructed them to withdraw their funds in cash and purchase gold bars and give the cash or gold bars to a purported government courier who would come to their home to transfer it to a secure government location, according to the charges.

Key indictments include Chinese nationals in New York including Nanjun Song, 27, who was illegally living in Brooklyn on an overstayed B2 visa. He was charged with conspiracy to commit wire fraud and conspiracy to commit money laundering and arrested by ICE Homeland Security Investigations Las Vegas agents. He remains in federal custody in Rhode Island.

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DOGE Has Found $14 Billion in Medicaid Fraud, Waste, and Abuse, Dr. Mehmet Oz Says

Dr. Mehmet Oz, Centers for Medicare and Medicaid Services (CMS) administrator, said his agency and the Department of Government Efficiency (DOGE) have identified at least $14 billion in fraud, waste, and abuse.

“There’s about $14 billion we’ve identified with DOGE, of folks who are duly enrolled wrongly in multiple states for Medicaid,” Oz told Fox News’s “Sunday Morning Futures.”

As an example, Oz said: “You live in New Jersey, but you move to Pennsylvania, and which state gets your Medicaid? Turns out both states collect money from the federal government.”

There are other areas, he said, that constitute abuse of the federal health care system. He said some people who are eligible to get a job or seek education are receiving Medicaid. Oz echoed statements made by GOP lawmakers, including House Speaker Mike Johnson (R-La.) and Majority Leader Steve Scalise (R-La.)., who in recent days said that able-bodied individuals and illegal immigrants have received Medicaid benefits.

Oz urged that Medicaid be cleaned up so that it can provide services to individuals such as people with disabilities and others, suggesting that Republicans keep a work requirement to be eligible for the program.

“I think there’s a moral hazard if we don’t, because you’ve got people who are not working who could work, who should work, and it’s better for them and better for the country if they do,” he said, referring to Republicans’ having added work requirements to the One Big Beautiful Bill Act that passed in the House of Representatives on May 22.

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FBI arrests two Pakistani men for operation of massive immigration fraud scheme in Texas

The FBI has arrested two men from Pakistan living in Texas who are accused of operating an immigration scheme that sold fraudulent visa applications.

Abdul Hadi Murshi and Muhammad Salman Nasir, originally from Pakistan, have been accused of submitting fraudulent applications for visas and for adjustments of status to unlawfully enter and remain in the country. Both men were arrested in Texas and face multiple federal charges, including conspiracy to defraud the United States, visa fraud, money laundering conspiracy, and conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. The pair were also charged with unlawfully obtaining and attempting to obtain United States citizenship.

“Major arrests out of [Dallas],” FBI Director Kash Patel posted on X. “Abdul Hadi Murshid and Muhammad Salman Nasir — two individuals out of Texas who allegedly oversaw and operated a criminal enterprise circumventing American immigration laws by selling fraudulent visa applications. Well done to our FBI teams and partners in the investigation.”

The indictment alleges the defendants exploited the EB-2, EB-3, and H-1B visa programs by placing classified ads in newspapers for jobs that did not exist. These ads were used to falsely satisfy Department of Labor requirements that employers must first offer positions to US citizens before sponsoring foreign workers. Once the fraudulent labor certifications were secured, the defendants allegedly submitted petitions to US Citizenship and Immigration Services (USCIS) along with green card applications for the visa seekers.

To create the illusion that the positions were real, the defendants accepted payments from the visa seekers, then returned a portion as purported wages.

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Ours Is A System Of Fraud, Swindles, And Corruption

But all bubbles pop, and there are no tricks left to fund both the greed of the few and the needs of the many.

Every society / economy is a distribution mechanism that distributes:

1. Gains

2. Losses

3. Risk

4. The costs of securing the sources of gains.

As a general rule, markets / economies don’t really care who ends up with the losses, and this is why markets / economies are fundamentally pathological structures: the single-minded focus is to maximize gains and minimize costs and losses by distributing them to others by any means available.

As a general rule, societies have to manage the distribution in a slightly less pathological manner to keep the status quo from being overthrown by those forced to bear the costs and losses. As Mao famously observed, “political power grows out of the barrel of a gun,” and so the sociopaths sluicing the gains into their own pockets and dumping the costs and losses on the economically / politically powerless without regard for social stability find the way of the Tao is reversal as those getting the crumbs eventually have nothing left to lose.

In other words, markets / economies are embedded in a social structure, not the other way round. And the social structure has to balance the distribution fairly enough to keep the majority from concluding they have nothing left to lose by throwing their lot into overthrowing the status quo.

We can gussy this structure up with a lot of theorizing and references to Plato, Marx and Machiavelli and hundreds of other players in the longstanding drama, but these are the fundamental forces in play: do the sociopaths have enough political and financial power to channel most of the gains to themselves and dump the costs and losses on others, or is the system capable of enforcing some limits on the sociopaths?

I submit that the United States is in the firm grip of the single-minded few focused solely on maximizing their gains and distributing costs and losses to others by any means available. The social and political restraints that placed modest limits on the aggregation of power and wealth into the hands of the few have crumbled, and this structural collapse has been hidden behind flimsy billboards hyping the latest in distractions: AI, tariffs, stablecoins, Rich Mom fashions, etc.

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