A prescription fraud investigation that led to the arrest last month of a man identified in court papers as a flight test engineer at Patuxent River Naval Air Station determined that the drug purchase was submitted for payment through a military medical benefit program, St. Mary’s narcotics detectives report.

http://liarcatchers.com/fraud_investigation.html

Andrew Tkaczuk, 27, of Tall Timbers was released on personal recognizance and faces trial next February on charges including attempting to obtain oxycodone on Nov. 14 at a Hollywood pharmacy with a woman’s identification information, and obtaining that information with fraudulent intent. Charging papers allege that the suspect submitted a fraudulent prescription, ostensibly for the woman, and tried to use her insurance information to pay for the drugs.

“We’re not going to have any comment on this case at this time,” Kush Arora, the suspect’s lawyer, said Monday.

The pharmacy’s employees notified the woman and police, and the law officers were at the business when the suspect returned there and picked up the oxycodone pills, according to charging papers stating he was taken into custody without incident.

Narcotics investigators reported Friday that they determined the woman, who lives in Virginia, was a victim of identity theft, and that the prescription claim by the suspect was submitted to be paid for by the federal government through the benefit program.

The woman told police that she had never seen the doctor listed on the prescription, that she was not in Maryland when the prescription was written and did not authorize anyone to use her personal information to obtain any prescription medication, according to court papers.

Federal officers took part in a raid at the suspect’s home, detectives report, where a computer and hard drives were seized.

The suspect told a court commissioner last month that he has held the job on base for five years, with a current annual salary of $82,000.

Madison – Federal officials unveiled new rules Tuesday cracking down on fraud in public food benefits, including targeting illegal sales on social media sites and investigating recipients who report their cards lost repeatedly.

http://liarcatchers.com/fraud_investigation.html

The Milwaukee Journal Sentinel reported in June on area residents offering to buy and sell benefits on sites like Facebook. A state official also said Tuesday that one Wisconsin resident has already been disqualified from the state’s food assistance program for using social media to sell benefits.

A U.S. Department of Agriculture official said Tuesday that his agency was taking action after Internet trafficking of food assistance benefits had been highlighted by both the media and state officials around the country.

“We’re correcting that abuse . . . We will confront abuse head-on to make sure that (the program) is there for the people who truly need it,” said Kevin Concannon, the undersecretary for Food, Nutrition and Consumer Services.

The program formerly known as food stamps is now called FoodShare in Wisconsin and the Supplemental Nutrition Assistance Program at the federal level. It is paid for by the federal government and is administered by both the state and counties in Wisconsin.

A review by the Journal Sentinel – part of a larger investigation into FoodShare fraud – found nine Facebook users in Milwaukee and about 70 altogether nationwide who posted to Facebook seeking to either buy or sell food assistance benefits illegally or help others do so. Many more friends responded and, in some cases, later posts indicated that the sales were made.

In April, the newspaper also reported that nearly 2,000 FoodShare recipients claimed they lost their card six or more times in 2010 and requested replacements – a sign that the program is being cheated.

In addition, four Milwaukee County workers and one other person have been charged with multiple felonies for an elaborate scam involving creation of phony debit cards for the FoodShare program. The swindle allegedly defrauded the program out of more than $350,000 over three years, according to criminal complaints. So far, one of the county workers has pleaded guilty to a count of felony theft.

Concannon said that the USDA believes only 1% of the food benefits are lost due to fraud but acknowledged that even that amount is substantial in a program that has grown rapidly amid the difficult economy.

“Ninety-nine cents of every dollar is properly spent, but we take great offense and umbrage at that one cent that is fraud,” Concannon said.

Concannon said efforts by the USDA included reaching out to the site Craigslist about illegal sales being sought on that site. He said part of the problem in disciplining people offering to buy and sell benefits on sites like Craigslist or Facebook is proving whether sales had actually occurred.

Federal officials have now clarified their policy to show that simply offering to sell benefits online is an intentional violation of program rules even if no sale can be proven, he said.

Other steps being taken by USDA include:

Working with states to show them ways to investigate recipients that request excessive numbers of replacement cards.

Putting in place stronger sanctions against retailers who commit fraud.

Sharing other best practices with states about how to crack down on fraud.

State Department of Health Services spokeswoman Stephanie Smiley said that her agency “aggressively pursues” any tips about FoodShare recipients selling their benefits using the Internet and now monitors social media sites to track possible fraud.

Last week, the agency unveiled a new fraud hotline that has led to 23 complaints, with about one-third of those related to FoodShare, Smiley said.

Traditionally, the federal government has been responsible for policing food assistance fraud among retailers and states have been responsible for looking into misconduct by recipients. But Smiley said the state wants to change that.

“DHS plans to assertively make the argument with the USDA that we, at the state level, should be allowed the authority to pursue any type of fraudulent activity, including vendor fraud,” Smiley said.

Sherrie Tussler, executive director of Hunger Task Force in Milwaukee, praised the efforts.

“Foodshare is a very important program. With one in eight Wisconsinites needing the program to help make ends meet, we applaud the USDA’s oversight and concern that the benefits reach people in need,” Tussler said.

Jon Peacock, research director of the Wisconsin Council on Children and Families, also supported the move because it would address fraud “without creating red tape for people who should be participating” in FoodShare.