Your Money: Fraud Watch
‘HEARTBREAKINGLY EVIL’ FRAUD RING SHUT DOWN
Nationwide operation used grandparent scam to steal from more than 70 people
SIX PEOPLE HAVE PLEADED GUILTY, and two are charged but not arrested, for taking part in a grandparent fraud operation that stole from more than 70 older Americans. A federal judge called the scam “heartbreakingly evil.”
Timothy Ingram, the leader of the operation, was sentenced to nine years in federal prison for stealing nearly $2 million from grandparents, including at least 10 residents of San Diego who lost more than $300,000. Ingram was ordered to reimburse the victims.
The gang used a particularly cruel but long-used fraud in which a criminal calls, posing as a grandchild who has gotten thrown in jail or is in some other type of crisis and is urgently pleading for money. Too often, the grandparent panics and sends a wire, or transfers money via gift cards, before figuring out the scam.
Another person who took part in the scheme, Jack Owuor, was sentenced to nearly four years in prison in August and ordered to repay $434,600 to the victims.
U.S. District Judge Cathy Ann Bencivengo said during the sentencing hearing for Ingram that she hoped tough penalties would warn others against participating in what she described as one of the most harmful schemes she’d seen in 17 years on the bench.
“It is despicable that these fraudsters preyed on a grandparent’s care and concern for their loved ones to line their own pockets,” Randy Grossman, U.S. attorney for the Southern District of California, said in a statement.
The San Diego Elder Justice Task Force—a collaboration of federal and local law enforcement agencies—investigated those caught in the scheme. It’s believed to be the first time that crooks running the grandparent scam have been convicted under the Racketeer Influenced and Corrupt Organizations (RICO) Act aimed at busting up criminal gangs, say federal prosecutors in San Diego.
The use of the RICO Act in elder fraud cases could mark a turning point, law enforcement officials say. “It’s a powerful statute,” says Deputy Assistant Attorney General Brian Boynton. “It allows you to go after all of the participants in a conspiracy, and there are some pretty significant penalties.”
Christina Ianzito is a veteran journalist who writes about fraud for aarp.org.
Couple Jailed for Fleecing Medicare
The owners and manager of a string of Houston health companies have been sent to prison for improperly billing Medicare for millions of dollars of services—some for dead people and prison inmates—then using the illicit profits for personal luxuries.
Felix Amos, 72, of Houston was sentenced to 30 months in prison in October by a federal judge after pleading guilty to conspiracy to commit health care fraud. His wife had already been sentenced to six years in prison and an office manager had gotten a 12-year sentence for their roles in the scheme.
Federal prosecutors said the trio flooded Medicare with improper billing claims totaling more than $21 million.
“Many of the claims … were for people who were dead for over three years, or incarcerated in prison” and ineligible for claims, a statement by the U.S. attorney’s office in Houston noted. The money went to buy things such as a $3.5 million house for Amos in Houston and a small business for the office manager.
ASK THE FRAUD TEAM
I received a letter saying someone with my same name was dying and wanted to give their estate to me. It sounds fishy.
You are right to be suspicious; it’s almost certainly a scam. If you went through with it, there would be some sort of “good faith” fee or payment due from you to them, which they would take and then either disappear or keep pressing you for more.
My husband got a call from someone claiming to be with our utility company with a threat to turn off our power if we didn’t pay up. Was that legit?
No. Utility companies will notify you by mail if you are overdue in your payments. Often, during changes in the weather or extreme temperatures, criminals pose as utilities to try to scare people into sending them money. Hang up on these callers and let the actual utility company know these calls are happening.
I needed to call my bank and so I did an online search for the phone number, and five different numbers came up. What’s up with that?
This is a new trend. Criminals place fake customer service phone numbers online to trick people into calling them. If you need to call customer service, always go directly to the website of the company, or look on your account statement or on the back of your bank card.
Have questions related to scams? Call the AARP Fraud Watch Network Helpline tollfree at 877-908- 3360. For the latest fraud news and advice, go to aarp.org/fraudwatchnetwork.