Auditor Diana DiZoglio and her team testified before the Joint Committee on Ways and Means on Wednesday, Feb. 11, 2026 in Gardner Auditorium. Alison Kuznitz/SHNS
Alison Kuznitz |SHNS
Auditor Diana DiZoglio warned a powerful legislative committee last week that her office has not received child care voucher fraud case referrals from a state agency in several years, piquing the interest of the House budget chief and touching off fresh sparring with the executive branch.
The Department of Early Education and Care told the News Service the drop-off is a result of the EEC taking the lead on fraud investigations, based on an updated procedure it discussed with the state auditor’s office, according to an EEC spokesperson. DiZoglio’s investigatory bureau chief fired back that the EEC is taking a “hostile” approach as the auditor’s office seeks a change in state law to remedy a now simmering…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.