Prisoner SSNs Used in $3 Million Fraud


This story originates in Texas but it’s about a Delaware woman who was convicted in Dallas after being arrested in Virginia last year. In the process, she defrauded the state of Texas $3 million. The story’s from WDEL – in Delaware.

In yet another example of using prisoner SSNs, the story details how Lorna Moseti of Clayton, Del., conspired with others to claim millions in false tax refunds over a three-year period. She used the SSNs along with false spellings of the inmates’ names to perpetrate the fraud. Moseti was arrested last year in Virginia – though it’s not clear if it’s from a related charge – but she’ll be sentenced in January and could spend up to 20 (additional) years in prison. She could also be fined up to $250,000, which doesn’t sound like much in the grand scheme of things. She’ll also have to ”pay restitution to her victims,” according to the report. (Is the U.S. Government considered a victim? If not, where is the $3 million in stolen taxpayer dollars?)

Source: Today’s ”Fraud of the Day” is based on a story entitled, ”TX jury convicts DE woman of $3M worth of tax fraud,” by WDEL 1150 AM, October 25, 2011.

A federal jury in Texas has convicted a Delaware woman of bilking the federal government out of more than 3 million dollars over 3 years.

Jurors in Dallas Monday convicted Lorna Moseti of Clayton of conspiring with others to claim tax refunds to which she and her accomplices weren’t entitled between 2007 and last year, using prison inmates’ Social Security numbers and various spellings of the inmates’ names.

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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.