COLUMBUS, Ohio (WSYX) — A group of contractors is facing criminal charges after investigators linked them to millions of dollars in improperly released pandemic unemployment benefits.
During the COVID-19 pandemic, Congress expanded the Pandemic Unemployment Assistance program which sparked a historic increase in unemployment claims to the Ohio Department of Job and Family Services. The agency reported about $7.6 billion in benefits being issued in 2021 and identified millions afterwards as fraudulent.
The Ohio Department of Job and Family Services referred the initial allegation involving TEKsystems subcontractor Ferris Johnson to the Office of the Ohio Inspector General on Aug. 22, 2024. Investigators determined that Johnson manipulated identity verification processes and eligibility documentation to wrongly release previously denied Pandemic Unemployment Assistance benefits to…
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.