Balancing Act

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40933904 - hand of woman using payment terminal in an electrical shop, paying with credit card, credit card reader, finance concept

Balancing acts are one of the primary reasons people of all ages enjoy going to the circus. (Who doesn’t like the excitement of watching a performer walk across a tightly strung wire rope while carrying someone on his shoulders and juggling under the big top tent?) One wrong move and the acrobat’s mistake could have devastating consequences. An article published in the Yakima Herald describes how one man’s balancing act hid food stamp fraud. Unfortunately, he made two mistakes during his fraudulent acts that revealed his crime.

The story reports that a manager of a market allowed his cashiers to dispense money to Electronic Benefit Transfer (EBT) cards beneficiaries. The card holder would receive half the value of the card’s benefit balance, while the store’s bank account was credited with the full amount.

The storeowner was aware of the fraudulent transactions, but neglected to notify the authorities. (That’s because he was ”cooking the books.” His accounting methods cleverly hid the illegally received food stamp benefits.) Supposedly, he received more than $400,000 in food stamp benefits.

His ruse was revealed when undercover informants were sent to the store with EBT cards. During two separate visits, the agents were able to obtain cash in exchange for the card benefits.

The store owner pleaded guilty. He was sentenced to two years in prison, one year of probation and will have to pay back $300,000 in restitution. The two employees involved in the fraud also pleaded guilty; one to welfare fraud and the other to wire fraud.

This man and his employees didn’t do a very good job of walking the fine line between legal and illegal behavior. (Lucky for them, it looks like the justice system is going to be their safety net.) Perhaps the store manager will have some time in jail to learn how to walk the straight and narrow ethical line while experiencing the consequences of his unsuccessful balancing act.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Yakima Store Manager Sentenced for Food-Stamp Fraud,” written by Donald W. Meyers and published by the Yakima Herald on September 24, 2014.

The manager of a Mexican market was ordered Tuesday to pay back $300,000 in funds federal prosecutors say his employees collected in a food stamp fraud scheme involving Electronic Benefit Transfer (EBT) cards.

Manpreet Singh, who managed La Bodega/Yakimex, 511 N. First St., also was sentenced to two years in prison and a year probation for his role in the scheme.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.