Extreme Greed

42711336 - agent, rent, concept.

Extreme poverty often drives individuals to commit welfare fraud, which costs state and federal governments millions of dollars a year. One of the most common ways this type of fraud occurs is when a beneficiary knowingly reports less income than they are earning. (The smaller the amount of income earned, the greater the eligibility for government benefits such as food, cash, medical care or subsidized housing.) A Springfield, Oregon man committed welfare fraud by concealing the amount of income he earned from owning numerous rental properties.

Over more than a decade, the 82-year-old man who owned eight rental properties in North Springfield, claimed that he had no income or assets. (That claim could not be further from the truth.) His rental properties were valued at $600,000 and his bank account had a balance of $30,000 at times, even though he said he only had a few hundred dollars to his name.

The property manager, who rented to individuals who received disability payments, avoided detection by incorporating a foundation. (He told the Internal Revenue Service that his foundation was a church that provided temporary housing for victims of religious persecution.) He transferred the rental properties to his foundation before applying for welfare benefits, so the assets and source of considerable income would not be discovered.

An investigation was opened ten years after the elderly man began receiving a variety of government benefits including Supplemental Security Income, food stamps and Medicaid benefits. (This happened after a social worker discovered that the landlord was housing many people who were also receiving disability benefits.)

The elderly Oregonian was sentenced to five years of probation for committing welfare fraud.
He was ordered to pay more than $309,000 in restitution and forfeiture, and is required to complete 300 hours of community service for concealing his income in order to qualify for welfare benefits.

This fraudster’s extreme greed caused him to deprive others, including the very beneficiaries who lived in his rental properties, from obtaining assistance they qualified for and deserved. Kudos to the social worker who put two and two together to put a halt to this criminal’s ruse.

Today’s “Fraud of the Day” is based on an article entitled, “Springfield property manager gets probation for welfare fraud,” posted on KTVZ.com on April 3, 2018.

A Springfield property manager was sentenced Tuesday to five years probation for concealing income in order to qualify for welfare benefits.

Parthava Behesht Nejad, 82, was also ordered to pay more than $309,000 in restitution and forfeiture and must complete 300 hours of community service.

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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.