Con Men Exploit Stimulus Program To Scam Thousands Of Americans, Say Government Auditors

Scroll down for GAO report and FTC testimony

Using postcards promising "free government money" and through companies with names like the "Google Money Tree," con men have exploited the government stimulus program to scam millions of dollars out of unwitting Americans.

So far, 270,000 Americans have been affected by stimulus-related scam, according to Federal Trade Commission. Government auditors are currently pursuing investigations into hundreds of allegations of fraud in the stimulus program.

As of September 2, the Government Accountability Office's FraudNet hotline has received 80 allegations "considered credible enough to warrant further review," according to a new GAO report.

The GAO's Forensic Audits and Special Investigations unit is pursuing eight allegations (while another 12 are pending further review) related to wasteful and improper spending, conflicts of interest, supplanting funds and contract fraud. Of the remaining allegations, 38 were found to not address waste, fraud or abuse or lacked specificity and 22 were referred to inspectors general at other agencies.

And the FTC, working with law enforcement, "has filed almost 400 cases or legal actions" involving stimulus scams by "opportunistic fraudsters," FTC chairman Jon Leibowitz told a Senate hearing into stimulus fraud on Thursday.

One example cited by Leibowitz included a Website featuring photos of President Obama and Vice President Biden offering "free government money," and a postcard promised cash for consumers to use to pay bills and travel expenses, reports Bloomberg News.

In another scam, a company named Google Money Tree lured consumers into divulging their financial account information "using the false promise of a lucrative work-at-home opportunity." Though the work-at-home kit only cost $1.99, victims lost hundreds of dollars each through unauthorized recurring monthly charges.

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Auditors have estimated that $50 billion of the $787 billion program could eventually wind up in the hands of swindlers and thieves, MarketWatch reported in June.

Read Leibowitz's prepared remarks:

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Read the GAO report:

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Comments

[yourlibral]

Everyday it's the same old rethreads. NO change form Washington.

good articles: http://www.iamned.com ....

[KIVPossum]

Con men have managed to seperate fools and their money throughout history. Why should this be any different? Call me unfeeling and jaded, but I don't have much sympathy for anyone who loses money when their greed takes control of their senses.

[totaldisbelief]

In China these thieves would be shot.

[JimBozo]

I've seen those ads numerous times before. Right here on HuffPo, now that I think of it. ("Evil Google made us do it, honest!")

[mrcontinental]

This definitively shows that the average american is dumber than a box of hammers.

Do some research for crying out loud!

[themodernleader]

Creating wealth through the printing press may give short term succor but at the loss of America's future. Instead of facing our problems we print and borrow money. We are bankrupt both financially and intellectually. We are incapable of new or renewed ideas and actions. Indeed, we are a broken governance system.

[HeWhoReads]

We aren't out of new ideas. Quite the opposite. Harsh times like these are a cradle for new ideas. Unfortunately, every time something great and world changing comes up, people start screaming "Witch!" and set it on fire. Metaphorically speaking.

In other words, there are plenty of new ideas, but for every person with a new idea, there are a dozen there to stop progress.

[Kassandra]

The prob is that people still think they can take the easy way out or things like this wouldn't have any traction at all. Ever fallen for one of those money laundering deals from Africa? A friend of mine did.
It's all about money for some people. And they are the easiest to sucker.

[FreedomCorpse]

I thought the article was going to be about the 'best and brightest' bankers and investment firms on Wall Street.

[SunshinePuppies]

As a progressive who actually supports capital punishment, I would extend crimes which qualify for the death penalty to cover scams like this during a national crisis. If betraying your nation to the enemy during a time of war is considered treason punishable by death, the surely betraying your fellow citizens during a time of economic crisis also qualifies.

[cartunes]

Thats Obama's hand spreading the wealth.

[2008CaliforniaFan]

It's called a ' Con game '.
There was a more recent one going on... maybe you heard of it. Called the AFT Fund..

A certain EX-Gov from a very Cold State created this thing called the " Alaska Fund Trust "

They beg from the poor and try to get their money... all the while telling them it to go toward

paying for some ' phony ' made-up Legal Bills. It's quite the racket. They fooled LOTS of people.

[XME]

So was our previous president just as "guilty" for trying to help people affected by 9-11 when cons took advantage then??

Not everything has to be about spewing partisan hate you know...

[WierdWookie]

Noticed a Black Hand in the money grabbing photo. My guess is, the money belongs to a Corporation who sent a courrier.

[ImissBush]

enuff about glen beck alreddy

[erinsf]

i was on facebook this morning and clicked on a 'survey' of True Blood viewers...i was sent however, to this type of 'google money' site. bad news bears

[rapunzel]

"And crown thy good with brotherhood, from sea to shining sea."

[rapunzel]

"Thine alabaster cities gleam
filled by human tears!"

[rapunzel]

Who more than country their own self loved
And own riches more than mercy!

[Wordknight]

Republicans, we must stop the evil, muslim, communist, racist president and his healthcare plan which will naturally destroy all life as we know it. Therefore, I have put together a lobbyist group and I am requesting donations for that group. The name of the lobbist group is the Consumer Action for Safe Healthcare. Please send whatever you can. Also, you can make the checks out to the acronym for the group. That's right, just make the checks out to C.A.S.H. and send them to me. :)