Stimulus package seen as windfall for fraudsters

The U.S. government’s $787 billion stimulus package offers ripe opportunities for fraud, according to criminal experts.
APR 02, 2009
The U.S. government’s $787 billion stimulus package offers ripe opportunities for fraud, according to criminal experts. There could be “tons of crime coming out of the stimulus package,” said Susan Will, assistant professor of sociology at John Jay College of Criminal Justice in New York. Criminals descended like “vultures” to take advantage of big government spending after disasters such as 9/11 or Hurricane Katrina, said Ms. Wills who spoke on Wednesday at a John Jay conference titled “How Do They Get Away With It? Tracking Financial Crime in the New Era.” “There are large sums of money going out quickly. There’s not enough FBI agents who know how to investigate” such matters, she said. Plus, government money often comes with “use or lose” constraints, meaning the money often winds up being spend in haste, Ms. Will said. The stimulus package is “obviously” a worry, said Deirdre McEvoy, deputy chief of the criminal division for white-collar crime in the U.S. Attorney’s Office for the Southern District of New York in Manhattan, who stressed she was not speaking on behalf of the government but airing her own views. After 9/11, criminal activity like false applications for funds or programs came to light, Ms. McEvoy noted.

Latest News

Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut
Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut

Elsewhere, a Commonwealth team in Massachusetts converts to Cetera, while Janney draws four former Wells Fargo advisors to its Radnor, Pennsylvania office.

Trader used firm ties to freeze $3.6 million, investors allege
Trader used firm ties to freeze $3.6 million, investors allege

Clients say he copied the boss on his emails - and now they can't touch their cash.

CFTC alleges North Carolina fund manager faked profits, lost $8.6 million
CFTC alleges North Carolina fund manager faked profits, lost $8.6 million

He wired millions to his own accounts and told investors the fund was winning.

OnePoint BFG taps RISR as advisors chase business-owner clients
OnePoint BFG taps RISR as advisors chase business-owner clients

The partnership arrives as most small business owners near retirement age still don't have a formal succession plan in place.

Trust & Will cuts staff amid restructuring, AI disruption
Trust & Will cuts staff amid restructuring, AI disruption

A spokesperson for the estate planning fintech cited AI's reshaping of the industry as Trust & Will restructures its business.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.