Recruiting for Fraud

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Most of the time, fraudsters can’t complete a scam without the help of co-conspirators. An article posted on MassLive.com tells about a criminal who assisted with recruiting couriers to help carry out a scam that laundered $110,000 worth of Social Security benefits and Internal Revenue Service (IRS) tax refunds.

The story states that the criminal and his partner directed couriers to open bank accounts in Massachusetts in the names of bogus companies. For about a year, illegally gained Social Security payments and IRS tax refunds were deposited into the accounts. The two ringleaders instructed the couriers to withdraw cash from the accounts. (That’s one way to conceal the illegal activities linking the ringleaders to the crime – have someone else do the dirty work.)

An investigation revealed that the identities of 14 victims were used to obtain more than $11,000 in Social Security payments, while another 20 victims were targets of more than $98,000 in IRS payments. (A search of the criminal’s home uncovered a list with 375 names, dates of birth, Social Security numbers and a debit card linked to one of the false bank accounts.)

The 22-year-old fraudster pleaded guilty to theft of government money and was ordered to pay more than $110,000 in restitution to the federal government. He will serve one year and one day in prison followed by three years of supervised release.

Five other co-conspirators have already pleaded guilty in connection with this scheme. (One of the couriers was the criminal’s sister.) This case can serve as a lesson to anyone who thinks getting involved in fraud is a good idea. If you are recruited to participate in an opportunity that sounds too good to be true, just say ”no.”

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Social Security, IRS Fraud of $110K Lands Worcester Man a Year in Jail,” written by Lindsay Corcoran and posted on MassLive.com on October 10, 2014.

WORCESTER — A former Worcester man involved in a scheme to divert more than $110,000 in Social Security payments and IRS refunds was sentenced to a year and one day in prison this week in U.S. District Court in Worcester.

Marvin Lubin, 22, had pleaded guilty in April to theft of government money. He was also ordered to pay $110,299 in restitution to the federal government and be under supervised release for three years after serving his jail sentences.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.