As we predicted last week, health law creates unprecedented wave of scammers
October 1, 2013
Credit: intenteffect via Flickr
A non-profit organization sued by the federal government last year for fraud was awarded a $2.1 million federal contract this year to enroll Americans into Obamacare, confirming our prediction last week that widespread fraud will explode under the health law.
The New York Post reported today that an Obamacare grant recipient, Seedco, was sued by the federal government in 2012 for lying on government reports in order to receive additional bonus money.
As reported by the New York Times last year, Seedco received more than $8 million in federal grants for operating job placement centers.
According to federal prosecutors, Seedco falsely reported that it had successfully matched jobseekers with jobs by basing their claims on the positions jobseekers already had.
“By reporting thousands of fake job placements, Seedco collected ‘performance payments’ totaling perhaps as much as $1.6 million over five years,” reported Michael Powell with the New York Times.
The lawsuit did not stop the federal government from awarding Seedco another multi-million dollar contract, this time as a coordinator for the Obamacare Navigator program.
The Navigator program provides millions of dollars to organizations such as Seedco to hire “navigators” who will advise Americans on their Obamacare health “options” based on the sensitive information provided, such as social security numbers, income levels, employment history and home addresses.
In an article we broke last week, the very nature of the Navigator program will attract identity thieves who can literally go door-to-door to ask Americans for their personal information under the guise of Obamacare enrollment.
“These navigators will have our consumers throughout the country’s most personal and private information: tax return information, Social Security information,” Florida Attorney General Pam Bondi said in an interview with Fox. “And our biggest fear, of course, is identity theft.”
She also added that even those with prior identity theft convictions can still become navigators.
Bondi’s fears are well-founded considering that an organization sued for fraud is now coordinating Obamacare navigators who have immense opportunities to steal identities.