Daniel Silverstein, Lyudmila Shimonova Lived In Mansion While On Welfare, Investigators Say (VIDEO)

Federal investigators say a Seattle couple lived in a $1.2 million mansion while one of them received welfare payments.

The Seattle Post Intelligencer reports that Lyudmila Shimonova is accused of collecting $135,000 from various federal and state programs for housing, disability and food assistance while living in luxury with access to bank accounts containing tens of thousands of dollars.

The paper also notes that investigators suspect Shimonova is actually married to her partner Daniel Silverstein, which she failed to disclose in her applications for government aid. The failure to disclose that information would have allowed Shimonova to significantly underreport her income.

Silverstein and Shimonova are now accused of welfare fraud and allegedly making false claims for government assistance. While federal prosecutors have filed a civil suit against the couple, neither currently face criminal charges.

Seattle television news outlet KING 5 spoke to an unnamed federal official who said that a "flaw" in the program means welfare officials don't look into where people are living. Shimonova did provide her correct address when she applied for housing assistance.

Despite high-profile cases such as this, the U.S. Department of Labor has maintained that unemployment insurance fraud is rare.

But further investigation by KING 5 has revealed that government welfare inspectors visited Shimonova's home no less than nine times. Those inspectors took detailed notes which described the home as being "above average" and having a deck, high-end appliances, a Jacuzzi tub and a view," according to KING 5.

A similar instance of potential welfare abuse was recently uncovered in Oregon, where food stamps were used to buy a Starbucks Frappuccino from a location inside a grocery store.

Meanwhile, Sen. Tom Coburn released a report last month detailing how millionaires are receiving billions in taxpayer-funded support for things like child care, bad debts, boats and vacation homes. It all adds up to $30 billion in unnecessary spending, according to the Republican lawmaker.

Comments

[YunekFlava]

05:28 PM on 12/12/2011

All the while not paying their "fair" share of taxes. GREED. What luzers.

[Aksumite]

04:04 PM on 12/12/2011

John Boehner, help these poor people! Can't you see how these federal investigators are harassing these job creators.

[The Contrary]

07:48 PM on 12/11/2011

While poor American children and their families are living on the street with no relief insight, see video below, crooks like the Silverstein must be prosecuted to the fullest extension of the laws and let' it be a lesson for all.

http://www.cbsnews.com/8301-18560_162-57330802/hard-times-generation-families-living-in-cars/?tag=contentMain;contentBody

[Ohbummer]

01:34 PM on 12/12/2011

That's what happens when government handles social welfare. There is no oversight.

[StopMakingSense2]

02:09 PM on 12/12/2011

As corporations know too well when it comes to corporate welfare! There should be more oversight!

[The Contrary]

12:52 AM on 12/13/2011

Sure! You think private companies have better oversight than gov't? Let's see, remember Enron? MCI-WorldCom? Halliburton? HealthSouth?

Need a full list:
http://en.wikipedia.org/wiki/List_of_corporate_scandals

Well, maybe Republic'CONS' party can do better? How about "strip club scandal"?
http://www.foxnews.com/politics/2010/04/01/religious-right-leader-urges-donors-stop-giving-rnc-club-visit/

Let's try religious groups?
http://en.wikipedia.org/wiki/List_of_scandals_involving_evangelical_Christians

LOL. Stop smoking TEA, would ya?

[hamsteronwheel]

12:56 PM on 12/11/2011

we're all hamsters on neocon "financially engineered" and "financially innovated" wheels

we have sent TRILLIONS to israel in direct and indirect aid over the decades

The number of Israeli billionaires doubled over the last two years to 16 while their combined wealth tripled to $45 billion, according to Forbes magazine. Recently deceased shipping magnate Sammy Ofer led his countrymen with $10.3 billion, followed by diamond mine mogul Benny Steinmetz and Carnival Cruise heiress Shari Arison.

While much of the world struggles with recession, Israel's economy is going strong and is minting new millionaires at a faster rate than just about any other country. The number of Israeli millionaires nearly doubled to 10,153 from 2008 to 2010, according to the Merrill Lynch-Capgemini World Wealth Report.

Those who are super-rich are no longer squeamish about displaying their wealth. One tycoon is building a 60,000-square-foot estate in the ancient city of Caesarea, along the coast between Tel Aviv and Haifa. Plans are underway for a special terminal at Ben-Gurion airport to handle the bustling traffic in private planes and helicopters. The national motor vehicle department said recently that it had to draft new regulations to allow for the import of Rolls-Royces, Lamborghinis and Aston Martins.

http://www.latimes.com/news/nationworld/world/la-fg-israel-rich-20111210,0,2643448,full.story

[Barbarian At The Gate]

12:18 PM on 12/11/2011

A mandatory drug test would have done absolutely nothing to catch these fraudsters. According to this article,:
http://www.nydailynews.com/news/national/ex-manhattan-chiropractor-living-style-seattle-cashing-welfare-checks-feds-article-1.987852

the couple created an elaborate scheme that lasted 8 years netting approximately $16,875 per year.

She posed as a destitute mother of 2 and he posed as the dutiful landlord. In reality the kids are adults, the daughter attended medical school and the son majored in middle eastern studies. The husband was a chiropractor who had offices in Manhattan and NJ.

The mansion, Jaguar, and other luxury items were not paid for exclusively from the welfare payments. The couple should face fraud charges and go to jail for committing a felony. However, there are other stories I heard of where as long as the criminals pay back the Government they get off scott-free or with minimal punishment.

[DJMarian]

08:29 AM on 12/12/2011

It's all in the details. There are cases where this would not be fraud whatsoever. I allow a relative to live in my summer home at a reduced rental rate because she has a child and does not work. She is a single mother and gets assistance from the government and does not have access to my bank accounts for regular use. Being related to someone with money does not mean you should be denied aid.

[Andman0121]

10:51 AM on 12/11/2011

I just came up with an excellent solution to end/cut down on this fraud: have the mailmen act as welfare associates! Think about it. The US Postal Service is going out of business. Why not pay them to not only deliver the mail (welfare checks included, obviously) but also act as informants to the welfare offices that these check recipients live in gigantic mansions? Killing two birds with one stone!

[Beernuts]

02:06 PM on 12/12/2011

they are already squealers

[fortressfountain]

10:24 AM on 12/11/2011

Oh and if Starbucks took foodstamps for the coffee-they were creating the act of fraud-not the person who paid for it.

[DJMarian]

08:39 AM on 12/12/2011

It was not a Starbucks, it was a grocery store that licensed the Starbucks name for use a a coffee stand in the store. People are not aware of it but most Starbucks in stores and bookstores are not corporate, they are just coffee stands that license the name. This, however, is most likely an outright lie. Food Stamps are not allowed to be used for the purchase of prepared foods in most states. In general, if tax is collected, you cannot buy it with Food Stamps. This may be different in that state, however, that would be a systemic problem and not a case of fraud. If they did make a purchase for this item it may have been from their "cash" part of their benefits and not their Food Stamp part. The way many states setup benefits is through an ATM style card that holds a portion for Food Stamps and a portion for incidentals that can be used to purchase things not covered by the former.

[Beernuts]

02:08 PM on 12/12/2011

I live in WA and you are exactly right. You have only one card for cash and food benefits and can spend the cash part, like cash, almost anywhere.

[fortressfountain]

10:23 AM on 12/11/2011

"This is so confusing, Newt and Clinton eliminated welfare as we know it." Yep, people no longer sign up for basic welfare but for ssi- a broader and bigger benefit.
American ingenuity. People do not wish to work for peanuts and take out credit to sponsor the elite.
Maybe more focus should be on creating high wage jobs-instead of destroying them.

[marshvegas]

09:28 AM on 12/11/2011

if you think this is bad, then come to massachusetts where people on welfare live like kings.they are treated better than the taxpayers who foot the bill.go to an area food store that is suppose to be in a poor neighborhood and you will find plenty of high end cars.far better ones than in a working neighborhood.the libs have let this whole system run wild because thet want the beggers votes.they will soon out number the people who work.this is news?the mayot in lawrence massachusetts lives with a women who was collecting welfrare even though she did not qualify for it.

[Andman0121]

10:46 AM on 12/11/2011

You fake cons like to generalize and point out extreme examples.

[doglove]

02:44 PM on 12/12/2011

I am a liberal who grew up in CT. If you get any kind of benefist in CT and own property, they put a lien put on your property are reimbursed at sale. My new state, WA, is the same.
In MA you can own property and collect benefits. I had a friend who built a $500,000 house in Truro twenty years ago, when that was a lot of $$$. She spent her last dime on the house and went on benefits and lived very nicely. Better than her working friend in CT. Her kids got more for holidays than mine did, her wood was delivered free and stacked. When she sold her house, there was no payback.
MA has always been a profitable state with high standard of living and perhaps they felt they could afford this while doing nothing for the working poor.
One of our many problems today is the working poor, and has been for decades. In many cases, it is correct that you can do better on benefits than by working a low paying job.
I believe the people who desgn the system ( and I don't mean just the politician­s) have it in their own best interest to keep the poor and the very poor squabbling­. I don't know what the answer is - but 'divide and conquer' has always worked.
Until we get a really progressiv­e government­, these policies will just continue to create hostility and anger.

[traceymarie]

07:35 PM on 12/11/2011

I bet they wore furs and jewels right bagger

[invirginia]

08:47 AM on 12/11/2011

I'm sure Dr. Silverstein knows a good lawyer.

[SisterAnn]

05:38 PM on 12/10/2011

Employment benefits and disablility are like Social Security, they are not means tested.

Applicants have to have an address to get benefits like food stamps, so she may have the address but doesn't really live there.

The biggest welfare is paid to our elected government. They usually arrive at the capital on Tuesday then leave on Thursday, the senate and congress both. They have messed up this country in the two days they were there. Think what they could do if they spent a week at work. They are over paid and their retirment is close to the 59 year old mark.

If our elected government wanted to get welfare benefits they would make it legal and easy.

This may be a welfare cadilac deal like Reagan used. It is in reverse. Be careful they may want to pit everyone on the poor and scream fraud in hopes we won't notice what messes the gov keeps making. If the woman did what they think she did, it still isn't comparable to the Wall Street fiasco.

Didn't a man win a big lottery but they didn't cut his welfare benefits because they go by the year before?

[mannapat]

03:38 PM on 12/10/2011

One year my husband volunteered to deliver Christmas food baskets to the needy, and he took our 2 little girls with him to experience giving, and to help carry all the stuff. They came home with some interesting stories. My oldest was confused (and a little angry) because one of the first houses had really nice carpeting, and a big color TV. My youngest just said, "Mom, they're richer than we are!" I had some explaining to do. They learned a lesson, but I'm not sure what it was.

[J S K]

10:54 AM on 12/11/2011

i don't buy this story, your making stuff up

[blndgenie]

11:46 AM on 12/11/2011

actually it happens frequently. A large herd in this country has figured out how to game the system, and are laughing all the way to easy street. Go look at the cars rollin 'thru the g het to and you'll see what I mean.

[mannapat]

11:48 PM on 12/11/2011

His Kiwanis club did that for many years.

[traceymarie]

07:36 PM on 12/11/2011

lmao...yeah because litttle kids notice nice carpeting...

[mannapat]

11:36 PM on 12/11/2011

They do when theirs has worn stairs.

[whoknew42]

03:24 PM on 12/10/2011

So much for the whole "welfare queen" image the republicans like to push, huh?

[fortysixandtwo]

10:59 PM on 12/10/2011

Like Michelle Bachman welfare queen hehe

[Linda from Deerfield]

03:20 PM on 12/10/2011

This is so confusing. Bill Clinton proudly eliminated welfare, and Newt Gingrich still brags that he is the one who planned the details and made it happen. Nobody told me that George Bush re- instituted welfare. Of course I am being facetious, but I am going to raise the same points every time we have to listen to Newt Gingrich's claim to have eliminated welfare or Republican complaints about so many people supposedly receiving it.

[mjtaylor22]

01:49 PM on 12/10/2011

what about all those corps getting govt subsidies and rpeferred zero interest rates on loans from the fed govt........that is the wel fare i am concerned about