fraud

Law
3:32 pm
Mon September 16, 2013

Michigan is launching a crackdown on auto insurance fraud

Is the driver in the car next to you insured? A recent one day spot check found 16% of Michigan auto registration renewals included phony paper insurance certificates.
Steve Carmody/Michigan Radio

The state of Michigan is launching a campaign to crackdown on auto insurance fraud.

Secretary of State Ruth Johnson says her office will be working with the Michigan State Police, local prosecutors and the insurance industry to catch people selling and using phony auto insurance policies.

She says a one day snap shot of more than 3 thousand auto registration renewals using paper insurance certificates found 16% were using phony auto insurance.

Johnson says many of the scams are quite sophisticated.

Read more
Politics & Government
12:49 pm
Thu June 6, 2013

No more welfare for dead people: Snyder cracks down on fraud

Michigan's Bridge Card, which provides food and cash assistance benefits.

Governor Rick Snyder has signed a new law (House Bill 4042) to ensure that dead people and incarcerated citizens are not eligible for Michigan’s Bridge Card food assistance program.

The Department of Human Services already has policies to ensure that those who are not eligible (example: dead people and those incarcerated) do not receive aid. But House Bill 4042 makes the policy a law.

Read more
Stateside
4:38 pm
Tue May 28, 2013

Diane Hathaway sentenced to one year and a day in prison

Former Michigan Supreme Court Justice Diana Hathaway and her lawyer Steve Fishman leaving the federal courthouse in Ann Arbor after sentencing.
Mark Brush Michigan Radio

An interview with Rick Pluta about Diane Hathaway.

Former Michigan Supreme Court Justice Diane Hathaway was sentenced for bank fraud in federal court today in Ann Arbor.

Hathaway was forced to resign in January, halfway through her eight-year term on the state Supreme Court.

She resigned before pleading guilty to a scheme to cheat a bank by hiding assets including a vacation home in Florida.

That helped her qualify as a distressed homeowner, so she could then sell a lakefront home in Grosse Pointe Park as a short-sale.

Rick Pluta, Lansing Bureau Chief for the Michigan Public Radio Network, has been covering this story for us, and he joined us today in the studio.

Listen to the full interview above.

Politics & Government
7:35 am
Tue May 28, 2013

In this morning's news: Diane Hathaway in court, Benton Harbor on the rebound, Farm Bill rally

User: Brother O'Mara flickr

State Supreme Court Justice faces sentencing

Former Michigan Supreme Court Justice Diane Hathaway is due in court today to be sentenced for fraud. Hathaway was forced to resign in January when she pleaded guilty to a scheme to cheat the bank by hiding assets.  Hathaway’s attorney is asking that she be allowed to perform community service and pay thousands of dollars in fines; however, federal prosecutors have asked for prison time of 12 to 18 months. Michigan Radio's Rick Pluta has more.

Benton Harbor EM believes deficit will be eliminated in one year

Tony Saunders, the emergency manager of Benton Harbor, says elected leaders are likely to regain control within a year when the city's structural deficit will be eliminated. Michigan Radio’s Lindsey Smith reports Benton Harbor’s new emergency manager says he’s cut more than a million dollars from the budget in just three months.

Senator Debbie Stabenow's farm bill is headed to the senate

Senator Debbie Stabenow will rally in West Michigan this week. She's trying to get farmers to pressure lawmakers to pass her new farm bill to funds crop insurance programs and research to help fight invasive insects. Last year the Senate passed the farm bill but it died in the House. The Senate is expected to vote on the farm bill early next month.

Law
9:28 am
Thu April 11, 2013

Insurer: Flint arson ring operated for 2 decades

A Flint firefighter hoses down a home next to another building already consumed by fire. Like many fires in Flint, the building that burned was vacant at the time. (file photo)
Steve Carmody/Michigan Radio

FLINT, Mich. (AP) - An insurance company says more than a dozen people operated an arson-for-profit ring in Flint that collected more than $2 million over two decades.

The Flint Journal reports State Farm Insurance says in a lawsuit in Detroit federal court that fires purposely were started at homes owned or rented by members of the group. The insurer says insurance claims were filed to receive thousands of dollars in insurance payouts.

No criminal charges have been filed against any of those named the case.

The case has sparked counter lawsuits by some of the defendants. Six of those named in the State Farm lawsuit have settled, including Flint-based public adjustment company Allied and Associates and Gary Lappin, its president. He calls the case "witch hunt."

State Farm isn't discussing the case.

Law
3:03 pm
Wed January 23, 2013

Former justice Diane Hathaway will face bank fraud charge next week

michigan.gov

Former Michigan Supreme Court Justice Diane Hathaway will face a federal bank fraud charge in a United States District Court in Ann Arbor next Tuesday.

The charge was filed as criminal “information,” meaning Hathaway has negotiated with prosecutors and is likely to plead guilty, the Detroit News reports.

Read more
Politics & Government
1:27 pm
Sat January 19, 2013

Michigan Supreme Court justice charged with fraud

Michigan Supreme Court Justice Diane Hathaway
Credit michigan.gov

Michigan Supreme Court Justice Diane Hathaway has been charged with bank fraud just a few days before quitting the state's highest court. The charge was filed Friday and titled as a criminal "information," which means a guilty plea is expected in federal court.

Read more
Politics & Government
1:47 pm
Fri August 10, 2012

Three former McCotter staffers arraigned on election fraud charges

Attorney General Bill Schuette
Bill Schuette Facebook.com

Not guilty pleas were entered today on behalf of three former staff members accused of forging or falsifying signatures on nominating petitions for former Republican Congressman Thaddeus McCotter.

McCotter's former deputy district director Don Yowchuang and district director Paul Seewald appeared in court in Livonia for arraignment. Both are free on $50,000 personal bond.

Mary Turnbull was a district representative for McCotter in Howell. She appeared this morning in Troy district court and was released on $5,000 bond.

Read more
Politics
7:32 pm
Sat June 2, 2012

McCotter drops plans for a write-in campaign to hang on to Michigan congressional seat

Rep. Thaddeus McCotter, (R) Michigan

Michigan Congressman Thaddeus McCotter has decided to drop plans for a write-in campaign for the November ballot.

The decision effectively ends the southeast Michigan congressman’s tenure in Washington after five terms.

Read more
Commentary
11:42 am
Thu May 10, 2012

Commentary: Where's the outrage?

To badly paraphrase Abraham Lincoln, history will little note nor long remember Bob Dole’s presidential campaign sixteen years ago. Dole was the Republican nominee against President Bill Clinton that year.

This was before the sex scandals came to light, and Clinton breezed to reelection. Bob Dole, an authentic war hero with a hilariously caustic sense of humor, ran a bumbling race that didn’t reflect that he was actually a quite capable man. 

Read more
Politics
4:28 pm
Fri June 10, 2011

House republicans aim to reduce fraud in food assistance program

Lindsey Smith Michigan Radio

The state provides food-assistance to low-income residents who qualify through the Bridge Card Program. The card operates sort of like a debit card instead of more traditional food stamps. They were adopted to make it easier for the state to run the program and reduce the stigma associated with using food stamps.

State Representative Tom Hooker is one of the bill’s sponsors.

“We’re aren’t trying to take food away from little kids and old people and people who are suffering. That’s not the goal of any of these bills.”

Read more
Education
3:55 pm
Thu March 31, 2011

2 ex-Eastern Michigan University students may have used stolen IDs to file fradulent tax returns

Federal authorities investigate security breach at EMU
John-Morgan creative commons

Eastern Michigan University officials say two of its former student employees may have filed fake tax returns using other students’ personal information.

The two students were already under investigation for allegedly stealing 58 student records.

Walter Kraft is VP of communications for EMU. He says now six more students have come forward to say their personal information was stolen:

"Apparently what happened in this case is that the student records were used for the purpose of filing fraudulent tax returns in order for someone to obtain a tax return to which they were not entitled."

Kraft says EMU police and federal authorities are investigating the two former student employees, whose identities have not been released.

He says EMU already does background checks on student employees, and is looking to see what other steps can be taken to ensure this doesn’t happen again.

 Nearly 2,000 EMU students currently work for the university.

Politics
7:22 am
Wed March 23, 2011

Audit uncovers costly mistakes and fraud at unemployment office

The Michigan Office of the Auditor General reports says mistakes and fraud at the unemployment office cost the state $260 million.
Daniel Johnson creative commons

A legislative watchdog says Michigan’s unemployment office failed to catch overpayments and cases of fraud as the agency was hammered with jobless claims during the Great Recession.

The Michigan Auditor General says the mistakes cost taxpayers an estimated $260 million.

Like many states, Michigan’s been forced to borrow money from the federal government – almost $4 billion - to cover its jobless claims as unemployment reached peaks not seen in three decades (higher than 14%).

The Auditor General report found the agency ran into trouble handling all those claims.

The auditor’s sample found thousands of cases where the state accidentally overpaid benefits that were never recovered.

The audit also found instances where the state failed to detect cases of fraud that would have also been punished with big fines.

The unemployment agency is disputing some of the findings where the auditor determined there was fraud. The agency says in the other cases, it’s taking steps to fix the problems uncovered by the Auditor General.

Politics
7:18 am
Tue March 15, 2011

Sebelius, Holder to speak in Detroit

Kathleen Sebelius, U.S. Health and Human Services Secretary
US Mission Geneva Flickr

U.S. Attorney General Eric Holder and U.S. Health and Human Services Secretary Kathleen Sebelius will talk about health care fraud prevention at a regional summit at Wayne State University in Detroit this morning.

Law enforcement officials, consumer experts and health care providers are also expected to participate in the discussions, the Associated Press reports.

This is the fifth in a series of summits announced last June by President Obama. The AP reports:

Waste and fraud cost the federal Medicare program and Medicaid, its state counterpart, an estimated $54 billion in 2009. Holder said at a December summit in Boston that the Obama administration's crackdown on health care fraud has recovered $4 billion in Massachusetts alone over two years.

Crime
4:33 pm
Tue December 7, 2010

Michigan home health care agencies indicted for Medicare fraud

First page of the unsealed indictment
Department of Justice

Four Detroit-area residents have been indicted by the federal government for Medicare fraud.

The Department of Justice says Medicare fraud schemes were operated out of Patient Choice Home Healthcare and All American Home Care.

Read more