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Thread: When Govt Gets Too Big

  1. #1
    Senior Member Gerry Clinchy's Avatar
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    Default When Govt Gets Too Big

    Thought that this thread could become a catch-all for various examples of how big govt gets in its own way.

    NEWARK, N.J. (AP) - Authorities say the owner of $4 stores in northern New Jersey has admitted to a scheme in which patrons were allowed to make more than $5 million in fraudulent food stamp transactions.


    Essex County prosecutors say 49-year-old Muhammed Farooq of Somerset pleaded guilty Wednesday to theft by deception and agreed to forfeit $832,830, He faces up to seven years in state prison when he's sentenced Jan. 6.


    Authorities have said Farooq allowed patrons to use food stamps to buy nonfood items, such as electronics. They say the purchases totaled roughly $5.2 million and went on for nearly 2 1/2 years.


    Farooq owns two stores in Newark, one in East Orange and another in Elizabeth.
    Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    This doesn't explain how the fraud was finally uncovered ... except that it took 2-1/2 years to do so.
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    Senior Member Henlee's Avatar
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    [B]NEWARK, N.J. (AP) - Authorities say the owner of $4 stores in northern New Jersey has admitted to a scheme in which patrons were allowed to make more than $5 million in fraudulent food stamp transactions.

    How come they never do a story when someone uses food stamps to buy milk for their kids.


    [FONT=Arial][COLOR=#575757]Essex County prosecutors say 49-year-old Muhammed Farooq of Somerset pleaded guilty Wednesday to theft by deception and agreed to forfeit $832,830, He faces up to seven years in state prison when he's sentenced Jan. 6.

    $832,830 fine when he profited over $5 million, does anyone think this is a good and fair punishment. Think I need to get in the food stamp business. I would easily do seven years for over 5 million dollars. The punishments for "white collar crime" is so disproportionate it encourages people to commit it.
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    Senior Member Gerry Clinchy's Avatar
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    The article appeared to say that it was $5 million in food stamps, but that would not have been larger than the "profit" on that amount ... but I DO agree that the punishment is inadequate. He should have been fined multiples of his profit from his illegal acts.

    Not only did he steal (as Bernie Maddoff did), but this guy stole funds intended for the most vulnerable in society. And if those who used the food stamps for illegal purchases, they should also be removed from the program immediately, at the very least ... and given an ankle bracelet for a few years as well.

    Fraud and abuse turn taxpayers against safety-net programs and that can end up penalizing those who may truly need assistance.

    For starters, though, I'd think we should decrease food stamp spending next year by the amount this guy fleeced from the program. Every time something like this is turned up, the amount of fraud/abuse should be deducted from the following year's funding. Maybe then those who need the programs will start to get a little angry at the people who do the fraud and abuse, and start reporting them?
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    Senior Member Henlee's Avatar
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    Dude is a scumbag.

    I am afraid I do not remember the name of the person who came up with the idea, but an idea that was floated around to fight bribery was to legalize offering bribes. The idea was one offered a bribe and another took it that both parties had a mutual interest in keeping their arrangement secret, however by making the offering of a bribe legal meant that the person accepting the bribe had to put absolute trust the briber would keep their secret.

    Applied to this situation a shop owner would have to trust every individual that walked into the door to not turn him in. To add to the distrust an offer of reward for information leading to a prosecution may make one think about breaking the law.

    this is all academic, but I liked the idea originally and it seemed like a fit here also.
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    Senior Member Gerry Clinchy's Avatar
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    Don't think it would work, Henlee. If it's legal, then it should be reported in some way for bureaucrats and elected officials, so that we know who is taking bribes and who isn't. Sort of like reporting campaign contributions. Do you think we could get them to admit to it?

    You really can't "legislate" morality ... so something that is "wrong", even if legal, means that there will still be negative perceptions on the idea of buying "favors".
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    Senior Member Gerry Clinchy's Avatar
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    http://townhall.com/tipsheet/heather...efits-n1699691
    Over a billion dollars of over-spending by the Social Security Administration is completely inexcusable. It’s time for reform to take hold and get rid of the abundance of fraud in this organization.
    Why is no bureaucrat ever held accountable for their errors? They never get fired or even "replaced". What are the chances that someone in the private sector would keep his job if had "inexcusable" errors like this?
    G.Clinchy@gmail.com
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    Senior Member Gerry Clinchy's Avatar
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    Was just reading about the backlog of VA claims, only 500,000 remaining. It had been 900,000. The system serves 6.3 million veterans. Meanwhile the VA gave out over $1/2 million in bonuses to the administrators of VA facilities.

    I wonder if Sebelius is getting a bonus this year? (like Lerner got during her tenure at the IRS).

    Will Obamacare work this well?
    G.Clinchy@gmail.com
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    My VA claim has now been waiting 27 months.
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    Government taxes are imposed by force, the people don't want these. we should decrease food stamp spending, by the amount this guy fleeced from the program. Every time something like this is turned up, the amount of fraud/abuse should be deducted.

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    Gerry, how does your first post have anything to do with "examples of how big govt gets in its own way."? You cited a case of a private business person committing a crime, fraud, with his customers and the government (i.e. police, law enforcement) caught them.

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