Welfare Fraud - Convictions
- $3/4 MILLION IN INTERNAL FRAUD
An eligibility worker for the Department of Public Social
Services created fictitious public benefit cases for friends and
family. Over $700,000 in public funds was lost. She was sentenced
to almost seven (7) years in prison. Her relatives and friends who
participated have been arrested, convicted and several sentenced
to join her in prison.
- MEDI-CAL FRAUD MILL & OVER $380,000 IN CASH
While searching the home of a welfare recipient, D.A.
Investigators recovered over $155,000 cash. Follow-up
investigation revealed that the defendant was the "administrator"
of a clinic where mass fraudulent Medi-Cal billings were prepared.
Several million dollars may already have been stolen from the Medi-Cal
system by this welfare cheat. Search warrants were used to seize
an additional $225,000 from bank accounts. The defendant was
convicted of Welfare Fraud and sentenced to prison. The Medi-Cal
fraud case in pending with another prosecutorial agency
- RIVERSIDE COUNTY RESIDENTS LOOT L.A. COUNTY WELFARE SYSTEM
A couple, both of whom operated businesses in Los Angeles
County, purchased a $200,000 home with $25,000 cash down. Cash in
the amount of $162,000 was seized from these L.A. County welfare
recipients. Another $70,000 was seized from their checking
account. These longtime welfare recipients also owned several cars
including a Lexus, Jaguar, BMW, and a vintage Corvette. The female
defendant who was receiving the public assistance was convicted,
sentenced to prison and her assets seized and distributed to all
the victimized public agencies through innovative use of
California’s White Collar Crime Enhancement.
- BAKERY OWNERS & $252,000 IN CASH
Defendants owned and operated a bakery for which
they had paid $50,000 cash. They also owned a 1995 Avalon
automobile for which they had paid cash. The initial search
warrant sought by the District Attorney's Office resulted in the
seizure of $135,103 in U.S. currency. The case investigation
continued until July 25, 1997, when the defendants were arrested
during the course of a major welfare fraud sweep conducted by
District Attorney Investigators. While arresting the defendants
in their home, another $11,725 in plain view was seized.
Investigators obtained follow-up search warrants with the
assistance of Public Assistance Fraud Division prosecutors and seized
another $90,000 in cash. Seized bank accounts brought the total to
$252,000. Forfeiture of the cash and a prison sentence are being
sought. One defendant has been convicted of all counts.
- EUROPEAN FAMILY VACATION & $50,000 IN CASH
On December 11, 1997, D.A. Investigators
executed search warrants prepared after a tip was received by
prosecutors in the Public Assistance Fraud Division. The suspects had been
receiving various forms of public assistance for approximately ten
years. They recently returned from a lengthy multi-country family
European vacation, as evidenced by a thick photo album entitled
"Our 1997 Family European Vacation." Investigators seized $50,612
from the suspects' home and safe-deposit box. The currency was
forfeited and distributed to the victimized public entities, and a
state prison sentence was imposed.
While receiving AFDC and food stamps for seven
years, defendants built a four-unit apartment house behind their
home. The wife had reported her husband in another country. He
used a P.O. box to conceal the fact that he was living in the
home. A conspiracy to commit welfare fraud theory was used to
convict both defendants. The Court sent the wife to prison.
- JEWELRY STORE & UPSCALE HOME REMODEL
While on aid for almost ten years, defendants
owned a jewelry store. They remodeled a 1200 sq. ft. home to 4,000
sq. ft. with marble and exotic fixtures throughout. Over $100,000
in public benefits had been paid to the defendants. A prison
sentence was imposed