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Fraud

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An anonymous caller posing as a member of the Port Jeff Village code enforcement targeted a local business Jan. 4, demanding immediate payment for an alleged outstanding violation. The caller was reported to have requested the business to send money immediately electronically.

The village authorities were quick to respond to this scam, issuing a warning to all residents and local businesses. The affected business reported the fraudulent call on the morning of Jan. 5, prompting immediate action from code enforcement.

Port Jefferson Village code enforcement chief Andy Owen emphasized in a statement that the village officers “will never call your business demanding money.” He urged residents and businesses to remain vigilant. 

“We want to assure and alert the community that this is, in fact, a scam, and we are actively working to prevent further incidents,” Owen said in a statement to the community.

The village code enforcement team is collaborating with Suffolk County Police Department to investigate the matter thoroughly. Anyone who receives suspicious calls or demands for immediate payment is urged to report them immediately to both Suffolk police and the village Code Enforcement Bureau.

In light of this incident, the community is advised to be cautious of unsolicited calls, especially those demanding immediate payments. The Port Jeff Village code enforcement team is actively working on increasing awareness and implementing measures to prevent such scams in the future.

With the increased presence of technology in our communities, scams of all kinds are on the rise. According to TechReport, “Daily, one out of every 10 calls is a scam call.” Additionally, TechReport statistics reveal that scam calls increase by the year. From the source’s scam call trend, there was an increase of 118% in 2021 from 2020.

Suffolk County residents are reporting increased scam calls, with fraudsters employing tactics such as posing as utility companies, enforcement authorities or even distant relatives in distress. The rise in these deceptive practices has prompted local authorities to collaborate with telecommunications providers to explore ways to combat and trace these illicit activities.

In lieu of the recent uptick in reported scams, New York State Attorney General Letitia James (D) issued an alert advising residents to take the following precautions to safeguard themselves from falling victim to scams:

Never give your personal or financial information to someone who calls you. Think of the phone as a “one-way street” — only give out personal information if you made the call. Be sure to verify that the phone number is legitimate.

Don’t engage the caller. Scammers can manipulate caller ID so that it appears to be an “official” call or a call from your city or town. Only answer calls when you recognize the number. If you do answer, hang up if it seems like a scam, or consider using a call-blocking app.

Government agencies usually reach out to you in writing. A government agency will not call you, threaten your arrest or demand payment. 

Residents and business owners are urged to report any suspicious calls or demands to the authorities. 

Photo from Wikimedia Commons

Mailbox fishing and check washing, two pernicious crime phenomena, are on the rise.

The United States Postal Inspection Service defines check washing as a scam involving “changing the payee names and often the dollar amounts on checks and fraudulently depositing them.” Often, thieves steal the checks from mailboxes, removing the ink using commonplace chemical agents.

Chelsea Binns, assistant professor at John Jay College of Criminal Justice in New York City, described check washing as an “old school fraud” that is ascending in popularity.

“It is actually the second most common form of consumer fraud right now,” trailing only identity theft, she told TBR News Media in a phone interview.

Carrying out mail theft is relatively simple, Binns noted. Mailbox fishers commonly send a “line” into a post box, often with a sticky end.

“Similar to catching a fish, they’re using these devices and techniques to catch the check out of the mail,” she said.

After stealing the check, criminals can use commonplace chemical agents, such as nail polish remover, to “wash” the stolen checks, removing and changing the payee and amount to suit their preferences. Fraudsters can either cash the check themselves or sell it online in the underground market.

While check fraud is a longstanding practice, the crime has spiked following the COVID-19 pandemic. A February report by the Financial Crimes Enforcement Network indicates mail theft complaints rose 161% between March 2020 and February 2021 compared to the same period over the previous year.

While there have been cases of U.S. postal service employees committing fraud, the report suggested the rise has been driven by non-USPS employees — ranging from rogue individuals to organized criminal operations — carrying out mail thefts.

David Shapiro, a distinguished lecturer at John Jay College, is a fraud risk and financial crimes specialist. Reached by phone, he detailed why these crimes are multiplying regionally and nationally, noting the relative ease with which one can become a check fraudster.

“It’s a low-tech fraud, so it makes it available to so many people,” he said. “Granted, it can get higher tech when you want to expand the network and make it more profitable for organized criminals … but you can enter this business basically as a solo practitioner.”

Compounding this problem is the crime’s profitability, which he indicates has increased considerably due to broader financial trends.

“The number of checks in circulation is way down, but the average value of the checks is way up,” he said. “Now you’re fishing, but you’re not fishing for minnows. You’re fishing for flounders, making it more appealing to the low-tech street thief.”

While much of the national discourse around these crimes centers around security breaches within the postal delivery system, Shapiro regarded the problem primarily as a payment system problem.

“It’s being driven by the banks because the banks are ultimately liable for this kind of thing,” he said. “The customer is not out [of pocket], generally. The fraudster gets away, so basically it’s a bank liability.”

Given the scale and reach of the crime, these losses can compound astronomically. Earlier this year, Randy Hutchinson, president and CEO of the Better Business Bureau of the Mid-South, reported that check washing now accounts for more than $815 million per year in losses to individuals, businesses and financial institutions.

In the face of these challenges, there are tangible ways to protect oneself from mailbox fishing and check washing. Binns advises using a black-ink gel pen when writing out checks.

“That sinks into the check’s fibers, and it can’t be washed,” she said.

The assistant professor also advised against using one’s residential mailbox for check deliveries, and recommended mail with issued checks be taken directly to the post office and handed to a postal worker. She said mailboxes, even those placed outside the post office, are at risk of fishing.

She lastly advised consumers, particularly elders, to explore transitioning to online payment systems, removing the risks associated with paper checks altogether.

“Unfortunately, it’s time for us to change our habits to try to combat this,” Binns concluded.

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Shatia Parker. Photo from SCPD

Suffolk County Police arrested a former aide on Nov. 12 for allegedly fraudulently using an elderly client’s EBT card in Smithtown more than a dozen times in 2020. Shatia Parker, an aide who advertised on Care.com, used an elderly client’s EBT card to make 17 unauthorized purchases at a grocery store in Smithtown between October 2020 and December 2020.

The unauthorized transactions ranged between $37 and $193. A family member contacted police after noticing a discrepancy on receipts. Following an investigation by Fourth Precinct Crime Section, Parker, 30, of Riverhead, was arrested and charged with 17 counts of Petit Larceny. She will arraigned on a later date.

Anyone who believes they could be a victim, is asked to call Fourth Precinct Crime Section at 631- 854-8455.

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METRO photo

Giving to charity is a selfless endeavor that’s vital to the survival of countless nonprofit organizations across the globe. Without the generosity of donors, many charitable organizations would cease to exist, leaving the people they help vulnerable to illness and financial hardship. Fraud may be the furthest thing from donors’ minds, but it’s something charitable individuals must be aware of as they consider donating to charity.

According to the Federal Bureau of Investigation, charity fraud increases during the holiday season, when many people embrace the spirit of giving and seek to made end-of-year tax deductible gifts to their favorite charities. The FBI also warns that charity scams are common after disasters or tragedies, including pandemics. In fact, the Federal Trade Commission noted in September 2020 that Americans had lost more than $145 million to charity fraud related to the coronavirus in the first six months of the pandemic.

One measure all prospective donors should take is to learn the signs of charitable fraud. Many charity scams target seniors, but no one is entirely safe from charity fraud. AARP® notes that the following are some warning signs of charity fraud.

• Pressure to give: Reputable charities do not pressure prospective donors into giving. A strong, trustworthy charity will accept donations whenever donors choose to make them. Legitimate operations like the American Red Cross may heighten their solicitations after natural disasters, but such groups still will not try to pressure people into donating.

• Thanking donors for donations they don’t recall making: AARP® notes that some charitable fraud perpetrators will try to convince potential victims they have already given to a cause. This is done in an effort to lower potential victims’ resistance, giving them a false sense of security and the impression that a fraudulent operation is legitimate. If donors don’t recall donating to a specific charity, chances are strong they didn’t make such a donation and that the message of gratitude is merely a fishing expedition intended to reel in new victims.

• Requests for cash, gift cards or wire transfers: Cash, gifts and wire transfers are difficult to trace, which makes it easier for perpetrators of fraud to escape the authorities. Reputable charities will welcome donations made by personal check or credit card.

Perpetrators of charitable fraud prey on the vulnerability of well-meaning donors who simply want to support a good cause. Learning to spot signs of charitable fraud can provide an added measure of protection against the criminals behind such operations.

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Suffolk County District Attorney Tim Sini. File photo by Alex Petroski

The Suffolk County District Attorney Wednesday released a massive indictment of 13 individuals and several companies for allegedly conspiring to defraud using fake identities. 

In what’s called a synthetic identity fraud scheme, the defendants are charged in a 108 count indictment of using stolen social security numbers to obtain over $1 Million from fraudulent loans and credit card accounts from financial institutions.

The indictment was announced in a press conference held Sept. 23 with DA Tim Sini and Suffolk County Police Commissioner Geraldine Hart. The investigation started in August, 2018 when a member of the DA’s financial investigations started tracking a suspect of identity fraud at several banks and credit unions on Long Island. They would eventually discover the defendants allegedly created more than 20 identities and obtained loans and credit accounts from 19 different institutions. They said the investigation was conducted alongside the U.S. Postal Inspection Service, California police and DAs as well as several credit bureaus. The investigation is still ongoing, Sini said.

Of the 13 individuals charged, Viki Osredkar, 35 of East Northport, was charged with multiple counts of grand larceny, falsifying business records and scheme to defraud. Osredkar is one of 10 from Long Island to be charged by a grand jury. 

An additional three companies have been charged with money laundering. District Attorney Tim Sini said all these companies are owned by the same individual, Adam Arena, 43, of Corona, California.

“Some of the people involved in this scheme had strong financial backgrounds and recruited individuals who were down on their luck, offering them cash, for assistance in this operation,” Hart said in a release. “Together, they stole more than a million dollars but fortunately, our dedicated team unraveled their plot and are holding the perpetrators accountable.”

The crime goes like this: participants would allegedly create synthetic identities by associating a stolen social security number with a different name, address and date of birth. The social security numbers usually involved children, recent immigrants, elderly or anyone else not likely to monitor their credit history.

Perpetrators would allegedly make the identities more legitimate by applying for phone accounts, email records, library cards and more. They would then allegedly build credit for the fake identities. Using that credit, they would take out loans and credit card accounts. They would use this credit to the maximum amount allowed but the balances would never be paid.

Among the banks the individuals allegedly defrauded included State Farm, USAA, Suffolk Federal Credit Union, Teachers Federal Credit Union among many others.

“This is an extremely complex crime and it can be very difficult to identify the perpetrators, but the team who is investigating and prosecuting this case meticulously followed the evidence and unraveled this scheme, which has far-reaching impacts on everyday citizens,” Sini said in a release. “We will seek justice for all of the victims — both the financial institutions that have been defrauded and the individual victims whose identities were stolen by these criminals.”

 

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Suffolk County District Attorney Tim Sini (D). File photo

A Mount Sinai man was officially sentenced in Suffolk County Supreme Court Wednesday, Aug. 26 for an alleged scheme to defraud people about a fake recycling plant in upstate New York.

Between August 2010 and November 2017, the Suffolk County District Attorney’s office said Joseph Prosa, 53, of Mount Sinai, operated a money-making scheme where he claimed to victims that he was seeking investments to build a recycling facility in Poughkeepsie, telling them he owned land for the facility, that he had a permit and that he was a recycling and plant construction expert for a process called “gasification,” or the process of burning garbage for use in things like boilers furnaces and gas engines. Prosecutors said none of this was true. 

Through the scheme, Prosa stole around $3.6 million from a blind Poughkeepsie man in his 80s. The man has since passed away. He also allegedly stole around $250,000 from a second victim who resides in Suffolk County. Both victims were previous acquaintances of Prosa’s, the DA’s office said.

“This was a grossly deceitful scheme in which the defendant stole millions of dollars from his victims, including a senior citizen who was robbed of his life savings,” District Attorney Tim Sini (D) said. “He operated this scheme out of pure greed and callousness.”

The DA said the investigation revealed Prosa used the stolen money on personal expenses, including using more than $1.2 million in casinos and racehorse gambling. An additional amount was used to purchase a racehorse. The defendant also used the stolen funds to repay large amounts of debt incurred by gambling and to pull his house out of foreclosure.

Prosa was indicted in December 2018 and he pled guilty May 18, 2019.

Prosa was sentenced by Acting Suffolk County Supreme Court Justice Fernando Camacho for first degree grand larceny and first degree scheme to defraud. The sentence incurs 2 ½ years to 7 ½ years for the grand larceny and 1 to 3 years for the scheme to defraud. The sentences will run concurrently.

The case was prosecuted by Assistant District Attorney Thalia Stavrides, currently of the Conviction Integrity Bureau.

 

Geoffrey Girnun hiking in the White Mountains of New Hampshire. Photo supplied by Geoffrey Girnun for a previous article

Federal prosecutors announced Jan. 14 that Geoffrey Girnun, 49, a former professor at Stony Brook University, has pled guilty to stealing hundreds of thousands of dollars in government funds from cancer-related research grants.

At federal court in Central Islip, Girnun, of Woodmere, pled guilty to stealing $225,000 in those grant funds. The ex-professor issued fraudulent invoices for research equipment to SBU from sham companies he created to conceal his theft of funds from cancer-related research grants issued by the National Institutes of Health and SBU. Prosecutors said this went to pay for things like Girnun’s mortgage.

Prosecutors said Girnun faces up to 10 years in prison as well as restitution, forfeiture and a fine, which are all to be determined by the judge at that time.

U.S. Attorney for the Eastern District of New York Richard Donaghue said the ex-professor is being held responsible.

“With today’s guilty plea, Girnun has been held accountable for his unconscionable scheme to embezzle for his personal use hundreds of thousands of dollars in government funds that were intended to help find a cure for cancer,” he said in a release.

The professor had been arrested in September last year and was charged in a seven-count indictment with theft of state and federal government funds, wire fraud and money laundering. 

Girnun was featured in a March 25, 2015, TBR News Media article. At the time, the researcher was exploring the role of different proteins that either promote or prevent various cancers. The one particular protein in the liver cell he was studying is one that classically regulates the cell cycle, according to the article.

Girnun discovered that the protein promotes how the liver produces sugar, in the form of glucose, to feed organs such as the brain under normal conditions. In diabetic mice, the protein goes back to its classic role as a cell cycle regulator.

Girnun made the move to SBU from the University of Maryland in 2013 and said at the time he was inspired by the opportunity to create something larger.

“I want to build a program in cancer metabolism,” he said. “I want to build something beyond my own lab.”

An attorney for Girnun did not immediately respond to requests for comment.

 

A V. Garofalo Carting truck. Photo from Facebook

A Brentwood-based garbage carter and two of its employees have been charged with attempting to defraud the Town of Smithtown and its taxpayers of nearly $1 million after an investigation conducted by Suffolk County District Attorney’s office.

V. Garofalo Carting, its principal owner Mario Garofalo and employee Robert Garofalo pled not guilty to allegations of enterprise corruption, money laundering and grand larceny among other charges in Suffolk County Supreme Court Nov. 15 before Judge Richard Ambro.

“This is a serious case of wrongdoing that defrauds the Town of Smithtown,” Suffolk County District Attorney Tim Sini (D) said. “Our message is we will hold these type of bad actors accountable.”

This is a serious case of wrongdoing that defrauds the Town of Smithtown.”

— Tim Sini

Sini said the investigation was born out of a complaint filed with the county by the Town of Smithtown in 2014. It had laid stagnant, untouched, until he conducted a file review at the start of his term.

Between January 2015 and February 2016, prosecutors said the garbage carter and its employees allegedly hatched what they said was referred to as the Tulsa Plan, according to court documents. The garbage carter and its employees allegedly collected commercial garbage from businesses, both those unregistered with the Town of Smithtown, and others across Nassau and Suffolk County, to dispose of at the Covanta Huntington waste facility in East Northport on at least 19 different dates in exchange for a fee. Upon arriving at the facility, Garofalo employees then allegedly provided documentation falsely stating the commercial garbage had been collected in Smithtown, causing the town to be billed for its disposal, according to court records.

“Once we receive a copy of the indictment, our attorneys will review it to see if there’s any damages incurred by the town,” Smithtown Supervisor Ed Wehrheim (R) said Nov. 16. “Then we will take the appropriate measures.”

The town attorney’s office has since received a copy of the indictment against V. Garofalo Carting and the two men but was still reviewing it as of press time Nov. 20.

In addition, the district attorney’s investigation also alleged Mario Garofalo has used the Brentwood property of V. Garofalo Carting off Crooked Hill Road as a transfer station, storing commercial trash there, despite lacking the required permits to do so. 

At the end of the day, I firmly believe Mario, who has spent his life taking care of community, will gain his good reputation back at trial.” 

— Ray Perini

Ray Perini, a Huntington-based attorney representing Mario Garofalo, said he does not believe the allegations put forth by the district attorney’s office can be substantiated.

“At the end of the day, I firmly believe Mario, who has spent his life taking care of community, will gain his good reputation back at trial,” Perini said.

V. Garofalo Carting currently has a contract with the town to pick up and dispose of residential waste for approximately 17,000 homes, according to Wehrheim. Smithtown’s elected officials held a series of emergency meetings Nov. 16 to discuss possible measures to take, if needed, to ensure regular trash collection continues. 

“We are preparing in the event that they discontinue service how we will continue serving those homes,” Wehrheim said. “We hope it doesn’t happen. If it does, we will have a plan B.

Mario Garofalo’s attorney assured that should not be a concern, given the company’s good reputation having been in business for more than 57 years on Long Island, he said.

“This company will live up to contracts and continue to pick up residential trash,” Perini said.

Previously, a recyclables contractor for the Town of Smithtown, Jody Enterprises, was indicted for allegedly running a paper and cardboard scheme back in August 2012. The town, at that time under the leadership of former Supervisor Pat Vecchio (R), chose to settle the allegations out of court with an agreement the company would pay back restitution.

Maggie Hamm, of Leisure Village, speaks about how she almost fell victim to a scam, at a press conference held at the Rosa Caracappa Senior Center in Mount Sinai on March 11. Photo by Desirée Keegan

“Don’t trust anyone.”

That’s what Bernard Macias of AARP advised seniors to do at a press conference held at the Rosa Caracappa Senior Center in Mount Sinai regarding phone scams across Suffolk County.

“It’s happening more and more than you think,” he said. “Clearly, for AARP, we’re here to protect people 50 and over, but we’re finding that our member’s children and grandchildren and being faced with this. Don’t trust anyone, really, because they’re constantly changing those scams.”

Bernard Macias, Associate State Director of Outreach on Long Island for the American Association of Retired Persons, tells residents not to trust anyone when answering a call, as it may be related to scam, especially around tax season. Photo by Desirée Keegan
Bernard Macias, Associate State Director of Outreach on Long Island for the American Association of Retired Persons, tells residents not to trust anyone when answering a call, as it may be related to scam, especially around tax season. Photo by Desirée Keegan

Suffolk County Executive Steve Bellone (D) said that in 2015, the total cost of financial fraud against seniors across the country was $36.5 billion. Although anyone can be a victim of scam, con artists particularly prey on seniors, he said.

“That is an extraordinary sum that is being stolen from our citizens,” he said. “Tax day is April 15, it is fast approaching and it is a time that scam artists are working hard to get a hold of people’s hard-earned money.”

Bellone said that in one instance, a scamming entity posed as the Internal Revenue Service and said that if the person did not provide a certified check or transfer funds to the agency, they would be imprisoned. The caller went so far as the tell the victim that they would remain on the line until the woman reached her bank and successfully wired the funds to an account that was provided, he said.

Luckily, the bank manager recognized the customer and noticed that she looked and sounded worried, Bellone said. The victim told the manager about the person she was on the phone with, and the manager was able to stop the scam from happening.

This week is National Consumer Protection Week and as a result, Bellone said the county is urging citizens to remain informed. He said so far, Suffolk County Consumer Affairs has recovered over $534,000 through its investigations on behalf of county residents.

“These scammers use all kinds of threats and demands to gain access to your accounts, and threaten your identity,” he said.

The county executive urged those who felt vulnerable to a scam to file a complaint with the consumer affairs department by calling (631) 853-4600.

To avoid an IRS scam, Brookhaven Supervisor Ed Romaine (R) said that AARP offers free tax filings for senior citizens. Some locations in the town include the senior center and town hall, among local libraries, he said.

Maggie Hamm shares how she almost fell victim to a scam. Photo by Desirée Keegan
Maggie Hamm shares how she almost fell victim to a scam. Photo by Desirée Keegan

Maggie Hamm, of Leisure Village, received two suspicious phone calls within three weeks. She said that during the one call she did answer, TD Bank was mentioned. Hamm used to have an account with the organization, which she said piqued her interest in listening to what the caller had to say. The person on the other end of the phone mentioned having or owing money, which she said sounded off.

“I asked, ‘is this a scam? And boom, he hung up the phone,” she said. “You just know — you get a vibe and a red flag goes off. I think as we get older you don’t want to make any waves, and I understand seniors become afraid and concerned, because they don’t want any trouble, but you can’t be afraid to step forward and say no.”

Suffolk County Legislator Sarah Anker (D-Mount Sinai) said she too received two messages on her phone that were related to scams.

“Help us help you,” is what the caller said at the end of one of the messages.

Anker said she tried to call back the number, but the call didn’t go through.

“People will actually fall for it,” Anker said. “They’re trying to catch the person on the phone right away, because once they get you in person, the level of scamming has increased.”

She asked residents to call the Suffolk County Police Department to report the scam as a crime, at (631) 852-COPS. Two years ago, the legislator also created a scam alert website, SCPDscamalert.org, which has more information on how to protect yourself against incidents involving scam.

Councilwoman Jane Bonner (C-Rocky Point) said that calling 4(631) 51-TOWN would also provide residents with more information.

“If it doesn’t seem right, it probably isn’t right,” she said. “You should always follow your instincts and your gut, and the government will never call you when you’ve done something wrong. They’re required to mail you as proof of documentation. Don’t fall prey to the phone call.”

Suffolk County Executive Steve Bellone urged residents to remain cautious when answering the phone, as a result of the increase in phone scams across the county. Photo by Desirée Keegan
Suffolk County Executive Steve Bellone urges residents to remain cautious when answering the phone, as a result of the increase in phone scams across the county. Photo by Desirée Keegan

Macias, who said AARP serves over 500,000 members on Long Island, said, in light of tax day, to mail in tax returns as early in the season as possible, not to give out personal information and to shred all personal documents.
Three important facts Macias said to understand is that the IRS will never call and demand payment over the phone, the IRS does not ask for credit or debit card information over the phone and the IRS does not threaten to bring local law enforcement to your home.

“Scam artists continue to devise new things and new schemes that are becoming more and more difficult to detect, which is why AARP developed the AARP Fraud Watch Network as a way to protect people,” he said.

By logging onto aarp.org/money and clicking on the Consumer Protection tab, residents can access a link to the company’s Fraud Watch Network. There, anyone can sign up to get AARP’s Watchdog Alerts on scammers’ latest tricks and find out what to do if you’ve been victimized.

“You’re not only helping yourself, but helping other who may fall victim to the same scam,” Bellone said. “Don’t feel embarrassed to come forward. Feel empowered to help educate and protect others.”