Mike Shedlock

In response to several recent posts on disability fraud, I received several interesting emails from readers.

Reader Ervin writes ....

Hi Mish,

I have a niece and nephew in their early thirties. Both are perfectly healthy. They have a son with a slight learning disability. The mom got him on disability and then applied for funds to take care of him and got it. Her husband, an Afghanistan vet in supply never saw a moment’s action. He worked at a desk. When he came home he applied for disability claiming Post Traumatic Stress Syndrome and got on disability. The wife then applied for money to take care of him. She got it. They are also on a long list of other entitlements like welfare.

They bought a new house a little over a year ago and a month ago they both went out and bought two brand new cars! She actually brags about playing the system.

I have no doubt there are hundreds of thousands or millions doing the same thing. Needless to say it boils my blood.

Ervin
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Since when do lawyers do anything for free? Someone has to pay. So who is it?

I wanted to call them, but there is no number, just online forms, then they call you.

Possibly states pay them to get you off welfare and on to disability, or possibly you pay them something if they succeed in getting you on disability.

Either way, there is no one acting on behalf of the taxpayer, to stop fraud.

Incentive For Fraud

I noted in detail how fraud works and why in States Have an Incentive to Promote (Not Stop) Disability Fraud; So How Much Fraud Is There?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.