Uncle Sam needs you to help crush the billion-dollar financial fraud gangs.
Treasury Secretary Scott Bessent is launching a new program on Monday that will reward tipsters with up to 30% of the fines imposed on criminals who are trying to bleed US taxpayers dry, The Post has learned.
The program includes tips for Medicaid and Medicare rip-offs — and given that fraud in those two programs tops some $70 billion per year according to one estimate, whistleblowers could be in for some big payouts.
Other forms of financial crimes are also included.
The move comes after Bessent visited Minnesota in January, which had become ground zero for a sprawling web of scams by Somali immigrants, who allegedly ripped off…
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.