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Americans Are Losing Millions to COVID-19 Scams

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  • Coronavirus-related scams have cost Americans nearly $39 million, according to a report from the FTC.
  • The SEC has also seen increased complaints about misconduct as a result of the pandemic, noting that fraudsters often “exploit difficult situations” for their own financial gain.
  • Some scams include robotexts pretending to be the IRS, which lure people to give their information under the belief that it will allow them to receive their stimulus check.
  • In one case, a man was arrested for allegedly attempting to defraud New York City out of $45 million in a scheme to sell protective gear, that was not even in his possession, at a jacked rate.

FTC Says Americans Lost $39 Million

As the novel coronavirus has spread throughout the United States, so have scams relating to the pandemic, leading to millions of dollars lost and, in some cases, arrests.

Federal Trade Commission says they have received over 52,000 complaints related to the coronavirus, resulting in Americans losing nearly $39 million in scams. The majority of their complaints are about fraud, and of all the fraud complaints they receive, roughly 45% resulted in a financial loss. Their report, which was released on May 21, states that the median loss per person is $470.

Many of the scams have to do with travel and vacation. There were 8,196 reports pertaining to this kind of scam, resulting in $14,239 lost. Online shopping trailed behind as the second most reported scam, as well as the second-highest loss. 

People aged 30-39 lead the pack in reporting this behavior, followed by people aged 40-49. However, the age groups that ended up losing the most money were the 60-69 age bracket, followed by those who are 50-59. 

SEC Complaints Increase

The FTC is not alone in fielding COVID-19-related complaints. According to Reuters the Security and Exchange Commission says they have seen 4,000 complaints from mid-March to mid-May, which is a 35% increase from that same time period last year.

“Unfortunately, fraudsters often seek to exploit difficult situations like the ongoing pandemic for their own gain,” one SEC spokesperson told Reuters. 

The SEC believes that this has to do with the increase in complaints, and that the far-reaching scale of this crisis has created an influx of misconduct.

Reuters’ report indicated that the SEC also thinks the complaints can be attributed to an increase in whistleblowers due to unemployment. They say that many of their tips come from people recently laid off reporting on issues with their former employers. Because they are no longer employed by these companies, they no longer fear facing punishment at work and are freer to speak.

The SEC is expecting to deal with a variety of misconduct, which could include “loan fraud, price-gouging, counterfeit or substandard medical goods, or healthcare fraud.”

Right now, they’ve created a new group that looks out for misconduct. The efforts of this group have led to the suspension of trading in “31 so-called penny stocks for allegedly touting dubious COVID-19 cures, tests, treatments and medical supplies to investors.”

The SEC told Reuters that they charged two organizations related to this, Applied BioSciences Corp and Turbo Global Partners Inc.

COVID-19 Scams Uncovered

As for what kind of scams people should be on the lookout for in their day-to-day lives, CNBC warned of a new robotext scam that is fooling people into thinking they were communicating with the Internal Revenue Service.

The text states the IRS needs you to confirm information about your stimulus check. It then takes you to a realistic-looking IRS website that asks for personal details like your Social Security number. CNBC says that after this, to make the scam look all the more legitimate, it takes you to the real IRS website. 

However, it’s not just robot messages and calls landing people in hot water. In New York, the Department of Justice arrested a man who had a massive scheme to defraud the city of $45 million dollars.

The man, who has been identified as a used car salesman in New Jersey named Ronald Romano, allegedly attempted to “deceive and price gouge New York City into paying him and his co-conspirators approximately $45 million for personal protective equipment that Romano did not possess and was not authorized to sell.”

This scam allegedly began in February, when Romano tried to obtain mass quantities of personal protective equipment for resale, like N95 respirators.

In March he created a fake letter saying his company was authorized to sell all of this PPE. A statement from the DOJ says that brokers on his behalf approached the city, “which at the time was in critical need of legitimate, potentially lifesaving PPE, including respirators, in order to supply frontline healthcare workers and first responders during the COVID-19 public health emergency.”

Romano and his conspirators allegedly made many false representations about their PPE and had fake references. He had plans to jack the prices of the PPE significantly. 

“Romano hoped to get profit quickly through the scheme,” the statement said. “As he described in a message to a co-conspirator, ‘I’m working on a few deals that if I get any of them you might be buying a Ferrari.’”

Romano was charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to violate the Defense Production Act. The first two charges each carry a maximum prison sentence of up to 30 years while the last has a maximum of just one year. 

“At a time when the pandemic was ravaging New York City, this defendant greedily preyed on the City’s desperate need for protective equipment to stop the spread of the virus,” said Margaret Garnett, the Commissioner of the New York City Department of Investigations. “There is no tolerance, at any time, in particular during this crisis, for individuals who seek to victimize this City by holding essential workers’ safety hostage to price-gouging and fraud.”

See what others are saying: (CNBC) (Reuters) (Forbes)

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Wisconsin Police Deny Planting Evidence in Viral Video, Release Their Own Body Cam Footage

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The footage police released shows that during a search, officers found a corner tear from a plastic bag inside a backseat passenger’s pocket. An officer then discarded it into the car after determining that it was empty.


Viral Video Appears To Show Officer Planting Evidence

The Caledonia Police Department in Wisconsin has responded to a viral cell phone video that appears to show an officer planting a small plastic baggie inside of a car during a traffic stop.

The now-viral footage was posted to Facebook by a man who goes by GlockBoy Savoo.

The user, who also filmed the clip, wrote in his post’s caption that the officer did this “just to get a reason to search the car” and said the cop didn’t know he was being recorded by the passenger.

Source: Facebook/ GlockBoy Savoo

Police Shut Down Accusations With Their Own Footage

After that video spread across social media, many were outraged, calling the Caledonia police dirty for seemingly planting evidence. All the outrage eventually prompted the department to announce an investigation Saturday.

Within hours, the department provided an update, claiming that officers didn’t actually plant any evidence or do anything illegal.

Police shared a lengthy summary of events, along with two body camera clips from the incident. That statement explained that the driver of the vehicle was pulled over for going 63 in a 45mph zone.

Two passengers in the backseat who were then spotted without seatbelts were asked to identify themselves and step out of the car. During a search of one passenger’s pockets, an officer pulled out “an empty corner tear” from a plastic baggie.

Police claim the corner tear did not contain any illegal substances, though they said this type of packaging is a common method for holding illegal drugs.

In one body cam clip, an officer can be heard briefly questioning the backseat passenger about the baggie. Then, that piece of plastic gets handed off to different officers who also determined it as empty before the officer in the original viral video discarded it into the back of the car.

The officer can also be seen explaining where the plastic came from to the passenger recording him.

“Aye, bro you just threw that in here!” the front seat passenger says, as heard in his version of the events.

“Yeah, cause it was in his pocket and I don’t want to hold onto it. It’s on their body cam that they took it off of him…I’m telling you where it came from, so. It’s an empty baggie at the moment too, so,” the officer replies.

The department went on to explain that while it would discourage officers from discarding items into a citizen’s car, this footage proves that evidence was not planted.

Authorities also noted that no arrests were made in this incident and the driver was the only one issued a citation for speeding. The statement added that since four officers were present at the scene, police have more than six hours of footage to review but they promised to release the footage in full in the near future.

See what others are saying: (Heavy)(CBS 58) (Milwaukee Journal Sentinel)

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Medical Groups, Local Leaders Push for Healthcare Workers and Public Employees To Get Vaccinated

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The move comes as COVID cases have nearly quadrupled in the last month due to the rapid spread of the highly infectious delta variant.


Increased Calls for Mandatory Vaccinations in Certain Sectors

More than 50 of America’s largest medical groups representing millions of healthcare workers issued a statement Monday calling for employers of all health and long-term care providers to require mandatory COVID-19 vaccinations.

The groups, which included the American Medical Association, the American Nurses Association, and 55 others, cited contagious new variants — including delta — and low vaccination rates.

“Vaccination is the primary way to put the pandemic behind us and avoid the return of stringent public health measures,” they wrote.

The call to action comes as new COVID cases have almost quadrupled during the month of July, jumping from just around 13,000 infections a day at the beginning of this month to more than 50,000.

While the vast majority of new infections and hospitalizations are among those who have not received the vaccines, many healthcare workers remain unvaccinated. According to data collected by the Centers for Medicare and Medicaid Services, over 38% of nursing home staff were not fully vaccinated as of July 11. 

An analysis by WebMD and Medscape Medical News found that around 25% of hospital workers who were in contact with patients had not been vaccinated by the end of May when vaccinations became widely available.

In addition to calls for medical professionals to get vaccinated, some local leaders have also begun to impose mandates for public employees as cases continue spiking.

Last month, San Francisco announced that it was requiring all city workers to get vaccinated. Also on Monday, New York City Mayor Bill de Blasio said that all municipal employees — including police officers and teachers — must either get the jab or agree to weekly testing by the time school starts in September.

Dr. Fauci Says U.S. Officials Are Considering Revising Mask Guidance for Vaccinated People

Numerous top U.S. health officials have applauded efforts by local leaders to mitigate further spread of the coronavirus, including the nation’s top infectious disease expert, Dr. Anthony Fauci, who confirmed Sunday that federal officials are actively considering whether to revise federal masking guidelines to recommend that vaccinated Americans wear face coverings in public settings.

In May, the Centers for Disease Control and Prevention said people who are vaccinated do not need to mask in public. Although that was a non-binding recommendation, many states and cities that had not already lifted restrictions on masking began to do so shortly after.

But now, local leaders in areas seeing big spikes have begun reimposing mask mandates — even for those who are vaccinated — including major counties like Los Angeles and St. Louis.

In his remarks Sunday, Fauci also emphasized that, despite claims from many conservatives, those efforts are in line with the federal recommendations, which leave space for local leaders to issue their own rules.

While Fauci and other top U.S. public health officials have encouraged local governments to take action, Republican lawmakers in several states are taking steps to limit the ability of local leaders and public health officials to take certain mitigation measures.

According to the Network for Public Health Law, at least 15 state legislatures have passed or are considering bills to limit the legal authority of public health agencies — and that does not even include unilateral action taken by governors.

Some of the leaders of states suffering the biggest spikes have banned local officials from imposing their own mask mandates, like Arkansas, which has the highest per capita cases in the country right now, as well as Florida, which currently ranks third.

Notably, some of the laws proposed or passed by Republicans could go beyond just preventing local officials from trying to mitigate surges in COVID cases and may have major implications for other public health crises.

For example, according to The Washington Post, a North Dakota law that bans mask mandates applies to other breakouts — even tuberculosis — while a new Montana law also bars the use of quarantine for people who have been exposed to an infectious disease but have not yet tested positive.

See what others are saying: (The Washington Post) (The New York Times) (The Guardian)

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Couple Slammed Over Slavery-Themed Pre-Wedding Photoshoot

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Many have expressed outrage at the duo for trying to romanticize slavery while others were left completely dumbfounded by the entire ordeal.


Photoshoot Goes Viral

A couple has come under fire after sharing images on Instagram from their slavery-themed pre-wedding photoshoot.


The photos show a Black man in shackles looking deeply into his white fiancé’s eyes before she works to releases him.


1842. Days passed and everything changed, our love got stronger and stronger, he was no longer a slave, he was part of the family,” the post’s caption reads.


To indicate his transition from “slave” to family, a fourth image shows him wearing a long coat and top hat with well-shined shoes, as opposed to the white shirt, trousers, and straw hat he wore in the previous images.

Social Media Users React

It’s not immediately clear who these people are since the social media handle is redacted in the images circulating online.

Still, many have expressed outrage at the duo for trying to romanticize slavery while others were left just completely dumbfounded by this entire ordeal. Some also directed criticism at the photographer who agreed to the shoot, along with the hundreds of Instagram users who liked the original posts.

See what others are saying: (The Daily Dot) (Black Enterprise) (BET)

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