WASHINGTON– Today, Congressman Raja Krishnamoorthi (D-IL), alongside Congressman Glenn Grothman (R-WI), introduced the bipartisan Federal Fraud Prevention Workforce Training Act, legislation to establish a government-wide training program to better equip federal employees to identify fraud risks, implement proven anti-fraud practices, and safeguard taxpayer-funded programs.
The bill directs the U.S. Department of the Treasury, in coordination with the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM), to develop standardized training across agencies and make these resources available to state and local governments that administer federal funds.
“Every dollar lost to fraud is a dollar taken away from the American people,” said Congressman Krishnamoorthi. “Our bipartisan legislation will give federal, state, and local officials the tools they need 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.