More Than a Dime a Dozen

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The idiom ”A Dime a Dozen” refers to something that is easy to come by or common. It could also refer to the price of a dozen eggs way back in the 19th century, but today’s reference for the expression points to one bad egg, who used nearly four dozen stolen identities (a commonly committed fraud these days) to collect $290,494 in unemployment insurance benefits. (He definitely made more than a dime a dozen on this scheme – an average of $6,600 per victim is more like it.) The Orlando Sentinel reports that a former Wilton Manors man scammed 44 people from Florida and Massachusetts through two fictitious companies that claimed to assist borrowers in restructuring mortgage loans with lenders to lower interest rates.

The fraudster hit the jackpot in Florida by obtaining the names, dates of birth and Social Security numbers of 21 people. He then created fraudulent W-2 documents, listing his victims as employees of his company, with the purpose of accumulating wage credits in their names. After a period of time, the business owner would classify the so-called ”employees” as laid off and file fake unemployment compensation benefits applications. More than $219,000 was deposited directly into his bank account through electronic funds transfers. The scam worked so well in Florida that he opened a similar company in Massachusetts and stole the identities of 23 people, allowing him to pocket more than $70,000 in unemployment benefits.

The fraudster was convicted of wire fraud and aggravated identity theft. He was sentenced to five years in federal prison and three years of probation. He was also ordered to pay restitution to both states.

After the federal penitentiary is done with the con man, let’s hope he will have learned how to make an honest dollar. Anyone ready to take bets on that?

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Ex-Wilton Manors Man Gets Five Years for ID Theft and Fraud,” written by Wayne K. Roustan and published in the Orlando Sentinel on August 9, 2013.

ORLANDO – A former Wilton Manors man was sentenced to more than five years in federal prison for stealing the identities of about 44 people to collect $290,494 in unemployment insurance benefits on their behalf, U.S. Attorney Wifredo A. Ferrer announced Thursday.

Denny Ray Hughes, 40, was convicted of wire fraud and aggravated identity theft for his role in defrauding unemployment compensation programs in Florida and Massachusetts, prosecutors said.

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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.