Tag: fraud

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Accountability too much government

Federal Self-​Service

DOGE, corruption, spending, waste, fraud

Even government agencies that perform an identifiable function should be eliminated if they are not performing a proper function of government.

But what about an agency that exists primarily “to provide luxurious lifestyles for its employees”?

The Federal Mediation and Conciliation Service is one of the agencies getting the ax under the Trump administration, at least until some judge tries to resurrect it.

Nominally, FMCS existed to serve as a voluntary mediator between unions and businesses. But aside from doling out grants to unions and applicants with a tenuous connection to unions, its overriding purpose was to enable employees to splurge on themselves at the expense of taxpayers.

That’s what Luke Rosiak discovered during a year-​long investigation.

One FMCS official pretended to take a years-​long “business trip” so that taxpayers would foot the bill for his living expenses.

Employees unblocked government credit cards to circumvent protections against abuse, then used them to fund personal expenses. One leased a BMW with the card.

Junkets to resort locations supposedly to drum up interest in the pointless agency were really just a way of enjoying government-​funded vacations.

One employee told Rosiak: “Personally, the reason that I’ve stayed is that I just don’t feel like working that hard, plus the location on K Street is great, plus we all have these oversized offices with windows, plus management doesn’t seem to care if we stay out at lunch a long time. Can you blame me?”

Yes, we can.

This is Common Sense. I’m Paul Jacob.

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Illustration created with Krea and Firefly

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crime and punishment

Do Not Remove This Tag

penalty of law, mattress tag

Unless you’re the customer. Then it’s okay.

Once upon a time, the warning that now reads something like “Under penalty of law this tag is not to be removed except by the consumer” did not include those last four words.

The original wording has been the occasion of much not entirely genuine concern about the prospect that officers of the law will invade the homes of unruly tag-​rippers. These renegades were celebrated in song by science fiction writer, libertarian, and singer L. Neil Smith. (You’ll find the lyrics in his novel The Wardove.) More famously, Chevy Chase, in the movie Fletch (1985), bluffed his way out of a tight spot pretending to be concerned about mattress tags.

But if you’re a company selling something with a tag, removing it can be deceptive. Especially if you remove it in order to replace it with another tag that gives customers a very mistaken idea about the product you are selling.

Such a fraud has apparently been committed by a company called Lions Not Sheep, which caters to lions (leaders). The company removed tags saying Made in China from clothing that it sells and replaced them with tags saying Made in USA. For this, the FTC fined the firm $211,335.

Lions Not Sheep understands its market.

Yes, when buying stuff, many people hope to avoid directly or indirectly supporting the Chinazi government to the extent possible. These folks create a substantial demand for goods made not in China but in America (or in other acceptably non-​totalitarian countries).

But defrauding the buyer is, of course, not the way to meet this demand.

This is Common Sense. I’m Paul Jacob.

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Categories
ballot access Voting

Our Elections — How Broken?

ballot fraud, democracy, cheating, elections, finger, ink

Election fraud didn’t suddenly disappear during the 2020 presidential election.

Or so observes John Fund, co-​author of Our Broken Elections: How the Left Changed the Way You Vote, in a wide-​ranging interview with Jan Jekielek, Wall Street Journal reporter and elections expert.

The list of problems is long. One example is what happened in New York City during the last days of the Bloomberg administration.

Testing the election system, the Department of Investigations sent 63 inspectors to try their hand at fraudulent voting. The inspectors used names of dead people, jailed people, people who had moved out of state. All they had to do to immediately get a ballot was supply a name and address. There was no double-checking.

In almost every case, the inspectors had no problem putting over the fraud. (Fake fraud; they didn’t follow through.)

In one case, an inspector was merely sent from one precinct to another precinct, only a temporary delay.

In another case, an inspector was rebuffed only because he had used the name and address of an imprisoned person who happened to be the son of the poll worker the inspector was trying to con.

In response to an exhaustive and damning report, furious Board of Elections officials demanded that the inspectors be criminally prosecuted for impersonating people. The officials testing the system were so widely savaged for this temerity that they backed off.

We must not back off, though. Ballot fraud is an insidious enemy of democracy. 

This is Common Sense. I’m Paul Jacob.

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insider corruption

Jesse Jackson, Jr., Fraudster

Guilty. That’s what Jesse Jackson, Jr., former congressman, pleaded in court yesterday.

Fraud. That’s the name of his crime, though it was a particular kind of fraud, the taking of campaign contributions for personal use.

Partnered. The Rev. Jesse Jackson’s famous son was not alone, nor did he merely “fall into” crime out of lax record-​keeping. His wife was also involved in the pattern of embezzlement and tax fraud, and the level of their misappropriations was not trifling.

Sandra Jackson admitted to not reporting $600,000 of income, and the couple confessed to using re-​election campaign funds to

  • buy a gold-​plated Rolex for more than $40,000;
  • purchase $5,000 worth of fur capes and parkas;
  • over $9,000 worth of children’s furniture.

This is corruption, the most obvious kind to which a democratic republic is susceptible.

It is only made more frequent and more expensive in our modern times by the enormous power a congressman can hold over Washington’s tossing about of billions and trillions of dollars.

Who even notices the millions?

Jesse Jackson, Jr., isn’t alone in wanting a piece of the Washington action. Nor is he alone in thinking about himself first, and … well, not having time to think about anything second.

I’ve even seen this happen to minor-​party candidates. It’s too easy to see a political campaign as about the candidate and not the principles — about personal advancement, not representation.

We’ll never have perfect people in public office, but we can do a whole lot better. And it’s good to see the guilty caught and prosecuted.

This is Common Sense. I’m Paul Jacob.

Categories
crime and punishment national politics & policies

Ponzi in California

Keeping loans and investments distinct is important not merely for business people, but for governments.

Case in point? Mahmoud “Mike” Karkehabadi’s 89 felony counts of securities fraud and grand theft. The Laguna Niguel, California, movie maker is accused of turning his business into a Ponzi scheme.

When his film Hotel California flopped, bringing in just over half a million dollars, Mr. Karkehabadi convinced his investors to roll over their loans to him into future movie projects. When he did this, it is alleged, he fuzzed up the distinctions between different deals, and entered dark territory. Fraud.

According to California Attorney General Jerry Brown, Karkehabadi “ran a cold and calculated scam, making promises he never intended to keep and using the funds of new victims to pay off the earlier ones.”

I don’t know which this sounds like more, something out of Get Shorty or the Social Security Act of 1935.

It’s interesting that, at the same time it prosecutes Karkehabadi, the state of California is hastily and drastically re-​arranging its finances. Politicians are forced to do so because they have promised the state’s retiring employees returns on investments never made in amounts state government could never, realistically, afford to come through on.

The whole story of the accused Mr. Karkehabadi looks bad. Criminal. But then, so does the whole story of how politicians in California (and elsewhere) behave. 

Fraud isn’t as uncommon as it should be.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption

Global Warming Conspiracy?

In politics, we’re used to being lied to. But in science?

Revelations coming out of the University of East Anglia’s Climate Research Unit spark such questions, and more.

Hackers have released onto the Internet confidential emails of the CRU climatologists largely responsible for the “global warming” conclusions in the famous report by the International Panel on Climate Change, known as the IPCC. 

The emails include ugly stuff, like researchers’ fantasies about beating up catastrophe skeptics. They also include the tricks catastrophists used to cook up their numbers.

In particular, scientists reported temperatures in the Medieval Warming Period as cooler than they were, and more recent cooling trends as warmer. Anthropogenic global warming catastrophists have engaged in a massive public fraud.

Now, you might not bat an eye were you to learn that economists associated with, say, our recent bailouts, had been fudging numbers. Trillions of dollars to spend! 

But when climate scientists get caught lying — as well as conspiring to keep their basic data secret, and hijacking the peer review process — it’s hard not to feel a bit abused. Natural scientists are supposed to be above this.

Public, open criticism is the hallmark of science. Climate researchers who stonewalled to keep their actual data hidden from critics were scuttling science. 

This is Common Sense. I’m Paul Jacob.