Federal Prosecutors Uncover Nationwide Identity Theft and Benefit Fraud Scheme

0:00 Speaker 1 Fraud in America? Well, it’s happening every day. With us today is, from the Department of Justice, the first assistant United States attorney, John Sarkone, from the Northern District of New York. John Sarkone, you had a great press conference on Friday afternoon, and you’re trying to cut down on fraud going on in our country. Tell us about it.

0:26 Speaker 2 Yes, thank you, John, and thanks for having me on. It’s always a pleasure to be with you and your audience. We had the Assistant Attorney General Colin McDonald came in from Washington, D.C. today to do this press conference with us.

0:42 It is a stunning, stunning revelation of rampant fraud that was taking money away from impoverished people, from people in housing districts, from veterans, from homeless people, and into the tune of $ 13 million. And it spanned California, Georgia, Indiana, Maryland, North Carolina, Tennessee, New York, Texas, Wisconsin, Washington, Michigan, Massachusetts, Florida, and Ohio.

1:13 Speaker 1 And how were they doing it?

1:17 Speaker 2 They were stealing identities of people and applying for benefits under the federal programs, benefit plans. And they planned that they were transporting homeless people to shelters and transporting people from the housing districts and HUD to their doctor’s appointments.

1:44 And they weren’t doing any of that. They were bilking the system. They did collect almost $ 2 million. Of the $ 13 million, many of the banks realized there was some scam going on and didn’t release the funds. But they got away with it, $ 1. 9 million, and they spent it lavishly.

2:08 Speaker 1 Understood. And how much of this is going on in our country?

2:14 Speaker 2 John, it’s going on everywhere. This is what I call the revolving door of public money fraud. This has been going on since the prior administration when they let loose and we had the invasion that came in. There was no money for any of that. So it just became a free for all. I mean, look what’s going on

2:34 in Minnesota, California, here in New York. There’s It’s now we have a president and an attorney general who are determined to stop it.

2:47 Speaker 1 Understood. I understood that because is the state attorney general’s not doing anything or is the local DA’s not doing anything?

2:58 Speaker 2 Well, let’s say this. If these two individuals, now convicted felons, if this case was referred to the state and one of them is a Colombian citizen, they will have likely fled to Colombia. We’ll probably never see them again, all right?

3:15 And we don’t have that here in the federal system. But New York, with its no bail, it’s the revolving door of crime. That’s what I call it here in New York. So I’m glad that, by the way, I have to credit the state comptroller, Tom DiNapoli, and his office and his team for referring this to us. And

3:34 we’re going to continue to do great work together.

3:37 Speaker 1 Well, John Sarkone, thank you for getting this thing done and reducing the fraud in our country. And we’ll talk to you again real soon. Thank you, John.

3:50 Speaker 2 Always a pleasure.