Tag: fraud

Former St. Louis Alderman Sentenced to 16 Months in Prison for Fraud, Lying to the FBI

U.S. District Judge Henry E. Autrey on Tuesday sentenced former St. Louis Alderman Brandon Bosley to 16 months in prison for insurance fraud and lying to the FBI.

Bosley will be on supervised release for three years after his release from prison. Judge Autrey also ordered Bosley to pay restitution of $6,253.90 to the insurance company that he defrauded.

Bosley, 38, was found guilty by a jury in U.S. District Court in St. Louis in January of three felony wire fraud charges and one count of making a false statement to the FBI. Evidence and testimony at trial showed that after an auto accident, Bosley hatched a scheme to defraud an insurance company by falsely inflating the cost of needed repairs and then lied when FBI agents asked him about it.

In September of 2021, Bosley’s 2010 Toyota Prius, which was parked, was hit by another vehicle. The drivers’ insurance company contacted Bosley in February of 2022 and told him that they would pay for the damage. Bosley then asked the auto repair shop owner who had sold him the used Prius for the deeply discounted price of $500 to prepare and submit an inflated repair estimate in exchange for a bribe, evidence and testimony showed. “Mark that (expletive) all the way up,” Bosley told the business owner during the conversation, which was captured on audio and video. Bosley also had discussions with the business owner about buying the car back if it was totaled and then paying the estimated repair costs of $2,000 to $2,200, thus retaining the car while fraudulently netting thousands of dollars, evidence and testimony showed.

After the insurance company balked at a $6,800 repair estimate, Bosley caused a second estimate of $4,333 to be submitted, the trial showed. The insurance company ultimately totaled the car and paid Bosley $7,978.90. At the time, he had $14.93 in his bank account. He lived off the insurance proceeds for about six weeks.

When FBI agents interviewed Bosley in the presence of his lawyer in March of 2023, Bosley repeatedly lied, jurors found during the trial. He falsely stated to agents that he never saw the two fraudulent repair bills that were prepared. He falsely claimed the repair estimates were not inflated and denied asking the business owner to inflate the repair estimates.

Assistant U.S. Attorney Hal Goldsmith wrote in a sentencing memo that “this criminal scheme was instigated, planned, designed, and carried out by Defendant once he was advised by the insurance carrier that there was money to be had for repairs to the damaged Prius automobile. From his very first conversation with the auto repair shop owner, without any idea of the extent of the necessary repairs, Defendant indicated that he wanted the Prius considered a total loss.” Bosley “used his position as an elected official in discussions with representatives of the insurance company, presumably to influence their decision on his claim,” the memo says.  During the sentencing hearing, in requesting a sentence of imprisonment, Goldsmith advised the Court that, “the public is frustrated and fed up with these ticky-tacky fraud and bribery schemes committed by their elected officials,” “the public deserves some sense of justice here, and only a fair and just punishment will achieve that.”  

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FBI Raids 22 Minnesota Child Care Centers and Businesses, Including the Infamous ‘Quality Learing Center,’ as Part of Fraud Investigation Linked to the Somali Community

The FBI, along with federal, state, and local law enforcement, executed 22 search warrants across the Minneapolis-St. Paul metro area in Minnesota early Tuesday morning.

The targets included multiple childcare centers and other businesses, most reportedly tied to the Somali community, as part of the ongoing investigation into social services fraud that has allegedly cost American taxpayers hundreds of millions, if not billions, of dollars.

A Justice Department spokesperson confirmed the operation in a statement to NBC News.

“Today the FBI with federal, state and local law enforcement is involved in court-authorized law enforcement activity as part of an ongoing fraud investigation,” the spokesperson said.

The raids were not related to immigration enforcement, officials stressed repeatedly.

Instead, they focused on alleged fraud in programs such as childcare assistance, Medicaid-funded services including autism support, and pandemic-era initiatives.

One high-profile location hit was the “Quality Learing Center” in Minneapolis, a day care that gained national attention after a viral video by conservative YouTuber Nick Shirley showed no children present despite receiving millions in public funds.

The center was later reported to be closed.

Minnesota has been the center of repeated, large-scale fraud schemes involving federally funded social services.

The Feeding Our Future case alone involved over $250 million in fraudulent claims for meals that were never served.

The Department of Justice charged 47 defendants in that scheme in 2022, with dozens pleading guilty and additional convictions continuing to be secured.

Separate investigations have targeted fake autism services that allegedly defrauded taxpayers of $14 million, with multiple defendants indicted since September and at least one guilty plea.

The Trump administration has estimated total fraud losses in Minnesota social services programs at up to $19 billion.

The raids come just months after President Donald Trump declared a “war on fraud” and appointed Vice President JD Vance to lead a dedicated task force to root out waste in federal programs.

Vance commented on the raids in a post on X.

“The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding,” Vance wrote.

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Louisiana Democrat Mayor Indicted on Medicaid Fraud Charges

A Louisiana Democrat Mayor was indicted on Medicaid fraud charges.

Winnsboro Mayor Alice Wallace was indicted for Medicaid fraud in a $75,00 benefits scheme.

Wallace said she will be “vindicated” in a lengthy social media post.

“The devil is trying to embarrass and discredit leadership to possess power again through those who know nothing,,that way they can run it!!” Wallace wrote in a Facebook post.

The Shreveport Times reported:

Winnsboro Mayor Alice Wallace said that she will be “vindicated” of Medicaid fraud charges in a Facebook post following her arrest April 21 by Louisiana Attorney General Liz Murrill with the town’s mayor’s election three weeks away.

Wallace is charged with six counts of government benefits fraud in what Murrill described as a Medicaid fraud scheme in which the mayor is accused of illegally securing $75,000 in benefits from 2021 through 2026.

Wallace declined to comment when reached by USA Today Network by phone April 22, but an April 21 post on her Facebook page said, “They just energized Team Wallace…”

“It’s election time; what else you got! I’m still standing!!” the post said.

Per the Louisiana Attorney General’s office:

LBI found that Wallace fraudulently received Medicaid benefits for herself and a dependent between 2021 and 2026. Wallace did not report to LDH a change in household income, failed to disclose her marital status, and intentionally misrepresented the availability of health insurance provided through her employers.

Agents found that Wallace failed to notify LDH that she was employed from 2021 through 2022, where she received a salary and was offered health coverage insurance. From 2022 through 2026, Wallace was employed by the Town of Winnsboro, Louisiana, as the elected Mayor, and did not report to LDH that employment, income, or availability of medical health coverage as required.

LBI’s investigation revealed that Wallace and her dependent continuously utilized Medicaid program benefits from 2021 through 2026, while she received a salary that would have made her ineligible to receive benefits from the State of Louisiana and the LDH programs. The LDH Medicaid Fraud Division found that Wallace fraudulently received benefits for a combined loss of claims of approximately $75,000.00.

LBI obtained an arrest warrant for Alice Wallace through the 19th Judicial District Court of Louisiana, in that she intentionally committed:

6 Counts – LA.R.S. 14:70.9 – Government Benefits Fraud

Wallace was arrested for knowingly concealing and failing to disclose material facts affecting her and her dependents’ continued eligibility to receive benefits from the Louisiana Department of Health Medicaid program. Those six counts pertain to the years of 2021 through 2026, in which Wallace was known to be employed, received an income, failed to disclose that income as required, and continued to receive benefits.

“Our Louisiana Bureau of Investigation has arrested Winnsboro Mayor Alice Wallace for 6 counts of Medicaid fraud in a $75,000 benefits scheme,” Louisiana Attorney General Liz Murrill said.

“It doesn’t matter who you are—if you defraud the hardworking taxpayers of Louisiana, you’re going to jail,” she said.

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Ilhan Omar Given May 5th Deadline to Produce Documents on Massive Feeding Our Future Fraud Scandal After Refusing to Appear at Minnesota House Hearing

The Minnesota House Fraud Prevention and State Oversight Committee has given Rep. Ilhan Omar a firm May 5th deadline to turn over all records and communications related to her possible involvement in the infamous Feeding Our Future scandal.

The demand follows Omar’s refusal to appear at a scheduled committee hearing earlier this week, despite being formally invited.

Committee Chair Rep. Kristin Robbins, a Republican, confirmed the congresswoman “ghosted” the panel and failed to respond to multiple outreach attempts.

“The fact that she ghosted us — she would not even respond to multiple inquiries to a state legislature where she used to serve,” Robbins said, according to a report from NewsNation. “I think it shows disdain for Minnesota taxpayers that she’s unwilling to even answer these questions.”

In a formal letter sent to Omar on April 22, Chair Robbins is now requiring:

  • All written and electronic communications between Omar’s office and the convicted owners/operators of Safari Restaurant in Minneapolis (a key Feeding Our Future site where Omar held multiple campaign events).
  • Communications with more than a dozen individuals who have already been convicted in the massive fraud case.
  • Records related to Omar’s sponsorship of the MEALS Act — the 2020 federal legislation that dramatically loosened eligibility rules for child nutrition programs during COVID, which prosecutors say directly enabled the fraud.

If Omar fails to comply, the committee has signaled it will explore further legislative and congressional options, though state lawmakers have limited direct enforcement power over a member of Congress.

The Feeding Our Future case involved the theft of more than $250 million in federal child nutrition funds meant for meals during the COVID-19 pandemic.

Prosecutors have described it as one of the largest fraud schemes in American history.

Much of the money went to luxury cars, jewelry, real estate, and even overseas accounts, primarily funneled through Minnesota-based nonprofit organizations tied to the local Somali community.

Safari Restaurant was identified as a major “meal site” that submitted millions in fraudulent claims. Omar has long had public ties to the restaurant, including holding campaign events there and appearing there to promote related programs.

The Minnesota House committee has repeatedly accused Omar of helping enable the fraud through her sponsorship of the MEALS Act, which removed key guardrails on reimbursements for meal providers.

“She created the conditions that allowed all these bad actors to come in and bill for thousands of meals a day,” Robbins said. “One little tiny restaurant serving 5,000 meals a day, seven days a week — it was incomprehensible numbers.”

Omar has not publicly responded to the committee’s deadline or her refusal to appear at the hearing.

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MN lawmaker takes action to get answers on Omar’s alleged fraud ties after she skips key hearing: ‘Ghosted us’

A Minnesota Republican lawmaker is demanding answers from Rep. Ilhan Omar, D-Minn., after the Democrat failed to appear at a state hearing examining her potential connections to the sprawling pandemic-era fraud scandal.

State Rep. Kristin Robbins, chair of the House Fraud Prevention and State Agency Oversight Committee, sent a formal letter to Omar on April 22 criticizing her absence from a scheduled committee hearing she was invited to and requesting extensive documentation related to the “Feeding Our Future” investigation that has gained national attention in recent months. 

“Minnesotans and the Members of the House Fraud Prevention & State Oversight Committee were disappointed that you failed to appear before our committee to answer questions,” Robbins wrote in the letter, obtained by Fox News Digital, referring to Omar’s no-show at a hearing focused on the MEALS Act, a federal COVID-19 relief measure passed in 2020 and sponsored by Omar.

Despite Omar’s absence, Robbins said the committee still expects answers and is now formally requesting records from the congresswoman’s office in addition to several questions outlined in the letter.

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Billionaire entrepreneur Justin Sun sues Trump family’s crypto firm

Billionaire entrepreneur Justin Sun has sued the cryptocurrency platform co-founded by US President Donald Trump and his sons, accusing the company of fraud.
Mr Sun, a 35-year-old Chinese-born crypto mogul, filed a lawsuit on Wednesday, US time, accusing World Liberty Financial of blocking him from selling his tokens after they became tradeable last year.

In the filing, Mr Sun claimed to have purchased $45 million worth of WLFI, an electronic currency launched by World Liberty Financial – founded by Donald, Donald Jr. and Eric Trump – in October 2024.

To thank him for the investment, which came at a time when WLFI was generating little initial interest, World Liberty Financial appointed him as an adviser and awarded him an additional one billion WLFI tokens, the lawsuit states.

Sales to investors subsequently accelerated, and in March 2025, World Liberty Financial announced that it had sold $550 million worth of the digital currency.

WLFI became tradeable on September 1, 2025.

Its value has since plummeted from 46 cents per unit to its current price of eight cents.

Mr Sun, the founder of another cryptocurrency platform TRON, claims his WLFI assets were unilaterally frozen by World Liberty Financial and he has been unable to resell any of them to date. He alleges platform executives even threatened to destroy his holdings if he attempted to take legal action.

“I have always been — and remain — an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly. This lawsuit does not change how I feel about President Trump or the Trump Administration,” he wrote in a post on social media.

“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values. They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by “burning” them — all without any proper justification.”

Mr Sun is demanding the unfreezing of his assets as well as compensatory damages for the harm he has suffered.

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‘How do you put a hospice in a burrito stand?’ Watch Congress get stunned by new revelations about astronomical California fraud

The U.S. Congress is being stunned by unnerving revelations about the extent of hospice fraud in California, with alarming testimony indicating phony hospice centers purportedly located in a burrito stand as well as a tire shop.

Sheila Clark, president and CEO of the California Hospice and Palliative Care Association, told lawmakers Tuesday: “How do you put a hospice in a burrito stand in California? How do you put a hospice in a tire store in California? That all had to be vetted through licensure and certification and accreditation.”

“You’d be amazed at how many hospices – the door you can walk up to in California and there is nobody there. There is five months worth of mail that you can see stacked up from CMS and nobody’s there. And that passed a survey. How did that happen?”

The House Ways and Means Committee was so struck by Clark’s disclosure, it shared her testimony on social media, noting: “You heard that right. In Gavin Newsom’s California, a burrito stand masquerading as a hospice care facility was getting accredited and receiving taxpayer dollars.”

While Clark did not name any specific burrito stand, Politics on X explained: “This example illustrates broader federal and state probes into California hospice fraud involving overbilling Medicare, shell companies, identity theft, and improper enrollments, with one recent scheme alone allegedly defrauding Medi-Cal of $267 million.”

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Southern Poverty Law Center indicted on federal fraud charges related to past use of paid informants

The Southern Poverty Law Center has been indicted on federal fraud charges related to its past use of paid informants to infiltrate extremist groups, acting Attorney General Todd Blanche said Tuesday.

The civil rights group faces charges including wire fraud, bank fraud and conspiracy to commit money laundering in the case brought by the Justice Department in Alabama, where the organization is based.

The indictment came shortly after SPLC revealed the existence of a criminal investigation into its program to pay informants to infiltrate extremist groups and gather information on their activities. The group said the program was used to monitor threats of violence and the information was often shared with local and federal law enforcement.

SPLC CEO Bryan Fair said the organization “will vigorously defend ourselves, our staff, and our work.”

Blanche said the SPLC paid at least $3 million between 2014 and 2023 to people affiliated with the Ku Klux Klan, the United Klans of America, the National Socialist Party of America and other extremist groups.

“The SPLC was not dismantling these groups. It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” Blanche said.

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Indicted Democrat Sheila Cherfilus-McCormick to resign from Congress amid expulsion threat

Rep. Sheila Cherfilus-McCormick, D-Fla., announced Tuesday she is resigning from the House of Representatives after Republicans vowed to force a vote to expel her from the chamber.

“Rather than play these political games, I choose to step away so I can devote my time to fighting for my neighbors in Florida’s 20th District,” she wrote on social media Tuesday afternoon. “I hereby resign from the 119th Congress, effective immediately.”

“This fight is far from over,” Cherfilus-McCormick, who was indicted by a grand jury last year for allegedly stealing COVID-19 emergency funds, added in her statement. 

She is facing 53 years in prison as part of a separate criminal indictment.

Cherfilus-McCormick’s abrupt announcement came after Rep. Greg Steube, R-Fla., pledged to file a motion to expel her, teeing up a vote later this week. It takes two-thirds of the House to remove a lawmaker, but a growing number of Democrats have voiced support for the expulsion effort.

It also came just minutes prior to a House Ethics Committee hearing that was slated to recommend sanctions against her for committing a bevy of violations involving financial misconduct. 

House Ethics Chairman Michael Guest, R-Miss., announced the panel lost jurisdiction with Cherfilus-Mccormick’s eleventh-hour decision to quit Congress. 

The committee panel found “clear and convincing evidence” in March that the Florida Democrat misused federal disaster relief money that was improperly paid to her family’s healthcare company, among other misconduct. 

Cherfilus-McCormick has denied any wrongdoing and repeatedly rebuffed speculation she would resign if confronted with an expulsion vote. 

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Georgia Election Workers Charged for Years-Long Healthcare Fraud Scheme

Two Georgia elections workers and other Middle Georgia women have been charged for their role in a healthcare fraud scheme.

Tarshea Fudge-Riley, elections supervisor for Macon County and Lamonica Lakes, election clerk and deputy election registrar allegedly participated in a years-long scheme to commit healthcare fraud.

The women allegedly submitted fraudulent insurance claims for mental health therapy sessions that never even happened.

“Federal prosecutors believe Fudge-Riley, who is the Chief Macon County BOE Supervisor, and Lakes, an elections clerk at the Macon County BOE, as well as Childs, were paid by James Ellis to knowingly create fake therapy session notes that were submitted to health insurance providers for “pre-payment review,”” WGXA reported.

And these are the people we are supposed to trust with elections.

Fudge-Riley and Lakes reportedly still work in the elections office.

The women received millions of dollars after submitting fraudulent claims.

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