California’s welfare machine is bleeding billions a year. And, as we recently reported, few programs are more troubled than the state’s $30 billion, Medi-Cal backed In-Home Supportive Services Program.
IHSS has become one of the nation’s largest fraud magnets, losing as much as $12 billion to scam artists every year. The program sounds compassionate: pay people to care for their disabled and elderly family members at home, rather than warehousing them in facilities. But the system’s design created perverse incentives that all but guarantee corruption.
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A growing cadre of whistleblowers has confirmed what the numbers suggest: IHSS is not merely plagued by accidental waste but has become a way for criminals to get rich quick.
The latest of these is a former California law-enforcement official who has…
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.