United States acting Attorney General Todd Blanche during a press conference on healthcare and medicaid fraud in the Department of Justice building in Washington D.C., on Tuesday, June 23. (Aaron Schwartz/AP)
President Donald Trump on Saturday called on Congress to impose mandatory prison sentences on people convicted of defrauding Medicare, Medicaid, and Social Security and proposed holding state and local politicians personally liable if they knowingly allow such fraud to continue.
“Today, I’m calling on Congress to pass legislation to address fraud in Medicare, Medicaid, and Social Security programs,” Trump said in a video posted on Truth Social.
Trump said the first part of his proposal would establish mandatory minimum sentences for people who steal from federal benefit programs, eliminating probation as an option.
Advertisement
Advertisement
“If you steal…
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.