fraud news stories on Newser

Online Romance Scams: a $50M Business

Dustin Lushing — Sat, 19 May 2012 11:43:00 CDT

Scammers conned $50 million out of 5,600 people last year who were searching for love on the Internet, says a new report. That's an average of $8,900 per victim. The way it generally works: Fraudsters hunt for vulnerable targets on dating sites and social networks, and convince the...

Cops: Woman Faked Cancer to Get Implants

Fri, 04 May 2012 16:11:30 CDT

A Phoenix woman has been charged with fraud and theft after authorities say she told people she had cancer and needed treatment, then used their donated money to buy breast implants. Police reports filed in Maricopa County Superior Court say 27-year-old Jamie Lynn Toler told her former boss she needed...

'Real-Life Norman Bates' on Trial for Fraud

Mary Papenfuss — Sun, 29 Apr 2012 10:37:35 CDT

A real-life Norman Bates has been busted for fraud for dressing up like his dead mother for six years and collecting her benefits, according to authorities. Thomas Prusik Parkin, 51, doesn't believe he's done anything wrong—because he actually believes he is his mother, say officials. “I held my mother...

Scammer of Homeowners Gets Life in Prison

John Johnson — Sat, 28 Apr 2012 10:50:56 CDT

California's three-strikes law has produced an unusual result in Orange County: A non-violent, white-collar criminal has been sentenced to 25 years to life, reports the Los Angeles Times . But Timothy Barnett may not be getting much sympathy, given that he was convicted of swindling the elderly out of their homes....

It's Not Just Waste: Fraud Rampant at GSA

Kevin Spak — Mon, 23 Apr 2012 07:55:55 CDT

The General Services Administration's Vegas shindig was just the tip of the iceberg. The GSA is so loaded with cash that it's a magnet for fraud and abuse, the Los Angeles Times reports. From October 2010 to September 2011 alone, the agency prosecuted 64 cases in which people inflated costs,...

$1M Lotto Winner Charged With Welfare Fraud

Rob Quinn — Wed, 18 Apr 2012 01:22:47 CDT

Some people decide not to quit their jobs after a lottery win. Amanda Clayton apparently decided not to stop collecting welfare . The 25-year-old Michigan woman, who won a $1 million jackpot last year, has been charged with felony welfare fraud for failing to report her winnings while receiving $5,475...

Weird Twists in Tale of Bride Who Faked Cancer

Evann Gastaldo — Tue, 10 Apr 2012 15:15:05 CDT

Weddings are so expensive these days, but authorities say Jessica Vega found a way to fund hers: tell everyone she was dying of acute myeloid leukemia! Vega, then 23, said she wanted to marry her daughter's father, Michael O'Connell, before she died. As was earlier reported , the community rallied around...

Obama Just Legalized Fraud

Kevin Spak — Tue, 10 Apr 2012 09:12:46 CDT

Did you enjoy the dot-com bubble? Well, expect a replay on an even bigger scale, because last week President Obama signed a bill that, according to Matt Taibbi of Rolling Stone , "will very nearly legalize fraud in the stock market." The JOBS Act is ostensibly designed to make it easier...

Treasurer 'Fleeced Calif. Dems Out of $7M'

Rob Quinn — Wed, 28 Mar 2012 02:19:00 CDT

The woman California's Democrats once considered their most reliable treasurer scammed dozens of candidates, officeholders, and organizations out of at least $7 million over a decade, prosecutors say. Kinde Durkee—who was dubbed the "Madoff of campaign treasurers" after her arrest in September —is expected to plead guilty this week...