Frauds and scams tend to rise around the holidays, when busy consumers are distracted or rushed. (Wellesley Consulting Services file photo)
Every holiday season a number of scams make an appearance in an effort to deprive the unsuspecting of their money and purchases. This year is no different. Here follows a quick survey of some recent well-known scams this holiday season. Continue reading
The United States Attorney for New York’s southern district announced charges in a $42.5 million non-profit organization fraud, yesterday.
Seventeen people have been charged, including 6 insiders who worked for the Conference on Jewish Material Claims Against Germany, an organization that distributes payments to holocaust survivors.
Manhattan U.S. Attorney Preet Bharara praised the investigative work of the FBI, which conducted the investigation following a complaint from the organization.
The Conference administers funds paid by Germany to survivors of the Holocaust, and includes a “hardship fund” and an “article 2″ fund. The latter provides monthly payments, while the former makes one-time payments.
The U.S. attorney’s office alleges the scammers used false identification and fraudulent applications to misdirect payments to unqualified applicants. The investigation found that 658 article 2 cases processed were fraudulent, amounting to losses of $24.5 million. Another $18 million in losses related to 4,957 fraudulent hardship fund applications. The frauds took place over a long period of time, with some dated back to 1993.
The Association of Certified Fraud Examiners released their annual Report to the Nations earlier this year, which found that the average time period before an organization discovers internal fraud can be 18 months or more, and that tips, management reviews and internal audits were the top three methods of fraud discovery.
Police in Timmins, Ontario, allege that a 21 year old woman has been fraudulently soliciting donations by lying about having cancer, according to media reports.
QMI Agency and The Daily Press (Timmins) both report that Jessica Ann Leeder was arrested Friday on fraud charges, and remains in custody awaiting a bail hearing. The allegations have not been proven in court.
Timmins police have told the media that Leeder “doesn’t and has never had cancer.” They are seeking witnesses and anyone who may have been contacted by Leeder to donate money to call investigators.
Just last week, a Burlington woman pleaded guilty to fraud over $5,000 in a similar fraud, after pretending to have cancer and accepting donations.
Ashley Kirilow, 23, pleaded guilty to one count of fraud over $5,000 today at a Milton, Ontario, courthouse, according to media reports.
Kirilow was charged following a investigation by Halton Regional Police which began in June 2010.
According to a news release issued at the time, Halton fraud detectives determined that Kirilow did not have a terminal illness, although she had been fundraising for her battle against cancer through the use of social media.
The woman still faces six charges of fraud under $5,000 and will return to court later this year.
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