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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 Welfare 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 Welfare 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.
- APARTMENT HOUSE
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
