New York Department of State’s Division of Consumer Protection Warns Consumers to Avoid Financial Traps When Considering Short-Term Borrowing Options

 

Short-Term Borrowing Options May Be Appealing, But They Could Lead to Long-Term Financial Consequences

More Than 26% Increase in Short-Term Borrowing Over One Year, Signaling Increased Stress on Household Budgets

Secretary Mosley: “If you find yourself using buy now and pay later options to cover your essentials on a consistent basis, it’s important to understand the impact this type of borrowing can have on your financial health.”

The New York Department of State’s Division of Consumer Protection is warning consumers to avoid financial traps when considering short-term borrowing options to purchase goods or cover essential expenses during a financial hardship. While consumers search for ways to bridge the gap between income and expenses, it is important to understand the potential drawbacks of relying on short-term borrowing options to cover basic necessities. Regularly using these services can lead to financial traps like missed payment penalties, hidden fees, high interest rates and cycles of debt that can have long-term consequences.

“If you find yourself using buy now and pay later options to cover your essentials on a consistent basis, it’s important to understand the impact this type of borrowing can have on your financial health,” said Secretary of State Walter T. Mosley. “Short-term borrowing can offer a quick solution in a financial pinch, but what seems like a temporary fix can become a long-term burden when these products are used repeatedly. New Yorkers should know the true cost before they borrow and take on additional debt.”

WHAT YOU NEED TO KNOW ABOUT SHORT-TERM BORROWING OPTIONS

Short-term borrowing options can be helpful if used for a one-time emergency with a clear repayment plan. They can be a financial bridge when other options are not available, and are generally intended for short-term use. While these options offer fast access to funding, they require careful navigation to avoid debt traps. According to Experian, some consumers are shifting to short-term options to bridge the gap between paychecks. The number of returning borrowers increased 26.5% in one year, signaling an increasing reliance on these types of products. 

Frequent reliance on forms of credit such as cash advances, buy now/pay later options, preapproved “live check” offers (which offer quick cash but may actually be long-term/high interest loans) or payday loans is a sign that a budget is already under stress, and using these products regularly to cover basic necessities may make your financial situation worse in the long run. It is important to have a clear plan to pay for these products in full and compare the true cost. Relying on these products to cover basic necessities can lead to a financial trap if you miss a payment or stack multiple plans. If you’re consistently short on basics, there are better options to check first, including financial and food assistance that may be available through state or local programs.

The Division of Consumer Protection highlights the following tips to keep in mind when considering short-term borrowing options and related financial services:

• Review the fine print. When exploring lenders, don’t skip the fine print in the terms and conditions. For instance, cashing a live check offer means you have automatically accepted the terms of that offer and are locked into an agreement. Interest charges start the moment the bank clears or cashes the check. It’s crucial to read all the details and look out for potential fees, interest rates and repayment terms associated with financial services, especially those relating to late or missed payments.
   
• Avoid overspending. Short-term borrowing options such as buy now, pay later (BNPL) platforms may seem enticing and offer a seemingly-affordable option to consumers – but they may psychologically blur the true cost of goods and lead to overspending. According to a recent report by the Consumer Financial Protection Bureau, 20% of borrowers can be characterized as heavy users, originating more than one BNPL loan on average per month in 2022. Avoid taking multiple loans at the same time and read more about the risks of BNPL financing here.
  
  
• Avoid multiple loans and monitor your accounts. Multiple short-term loans can lead to juggling multiple overlapping payments. Before you know it, due dates can start accumulating, triggering late fees and penalties which can increase the cost of loans and may lead to perpetual debt cycles. 
   
• Be aware of limited protections. Short-term borrowing options may not offer the same protections as traditional credit cards when it comes to disputing charges, returning items, or addressing fraud. Without guaranteed consumer protection policies in place, shoppers are more vulnerable to financial harm. These types of alternative financial services may also not come with the option to build credit nor gain rewards or benefits that are offered by traditional payment methods.
   
• Review your budget. While we all love a good deal, avoid impulse shopping. Aim to stay within your budget, keep track of payment due dates and be mindful of wants versus needs. 
   
• Do the research. Before using short-term borrowing options, research the lending company for complaints about late fees, hidden charges, or return issues. This could give a good indication of what you may be getting yourself into before making purchases, and help you understand the risks and avoid potential financial hurdles and complications. It’s also advisable to shop around and compare lenders to ensure you are choosing the best offer that works for you. 
  
  
• Check local resources. If you’re consistently short on basic supplies and going through a financial hardship, local assistance may be available through food pantries, utility payment plans or energy assistance programs. There are several key public programs and resources that are available to eligible New Yorkers to help cover essential needs. Check out NYS social programs and Community Action Agencies for assistance if you qualify. 

While short-term borrowing option and financial services may seem quick and convenient, they also come with risks and hidden costs. With diligent research and careful consideration of the terms of agreements, consumers can make wise financial decisions that work best for them and their wallets.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection. The Division can also be reached via X at @NYSConsumer or Facebook.

DEC ANNOUNCES GRADUATION OF 17 NEW YORK STATE FOREST RANGERS

 

Department of Environmental Conservation

Forest Rangers Charged with Protecting New York's Communities and Natural Resources

New York State Department of Environmental Conservation (DEC) Commissioner Amanda Lefton welcomed 17 new graduates from the 25th Basic School for New York State Forest Rangers. As part of DEC’s Division of Forest Protection, New York State Forest Rangers protect natural resources and public safety and stand ready to support out-of-state emergencies, like wildfires and flooding. The ceremony held in Lake Placid this afternoon celebrated graduates from across New York State who followed extensive law enforcement and natural resources training in the classroom and in the field.   

“I am thrilled to bring on 17 brave new Forest Rangers into the DEC family,” Commissioner Lefton said. “Over the past six months, these Forest Rangers and their families made tremendous sacrifices to make this day possible. Their skills and dedication will carry them as they pursue this noble career protecting our resources and positively changing the trajectory of other people’s lives. I wish them success as they begin this next chapter with DEC.”   

DEC Deputy Commissioner for Public Protection Melinda Seiden said, “Forest Rangers patrol more than five million acres of land and do it all hours of the day and night to keep people safe. I am excited to add these 17 Rangers to our ranks.”

For the last six months, recruits endured strenuous training at the State University of New York College of Environmental Science and Forestry campus in the hamlet of Wanakena and the Huntington Wildlife Forest in the town of Newcomb. The Division of Forest Protection trained the Ranger recruits in a wide range of rescue techniques, including rope rescues, and led extensive training in wildfire suppression, prescribed burns, water rescues, and wildlife protection, among other skills. The 17 graduates will join the State's Forest Ranger force for a total of 161 Rangers statewide.     

Upon graduation, DEC assigns recruits to patrol areas to join the ranks of Forest Rangers currently serving across the state. In 2025, DEC Forest Rangers conducted 362 search and rescue missions, extinguished 202 wildfires covering nearly 840 acres, participated in 68 prescribed fires that served to rejuvenate 1,649 acres of land, and worked on cases that resulted in more than 1,100 tickets or arrests.    

Below is the list of graduates from DEC’s 25th Basic School for Forest Rangers:  

Joshua Betts – Highland, Ulster County 

Jack Caulfield – Massapequa, Nassau County 

Ian Dill – Morris, Otsego County 

Ethan Engel – Peru, Clinton County 

Tucker Griffin – Niskayuna, Schenectady County 

Griffen Johnson – Rome, Oneida County 

Isaac Knapp – Stanfordville, Dutchess County 

Ian Lupole – Kirkwood, Broome County 

Alison MacCue – Croghan, Lewis County 

Kaylynn Massa – Freehold, Greene County 

Brian McMahon – Spencerport, Monroe County 

Jacob Owen – Allegany, Cattaraugus County 

Jeremy Patnode – Chateaugay, Franklin County 

Mitchell Rigano – North Chili, Monroe County 

Nathan Ryan – East Greenbush, Rensselaer County 

Timothy Sarno – Kinderhook, Columbia County 

Samantha Severing – Livingston Manor, Sullivan County 

For more information about New York State Forest Rangers, visit DEC’s website at https://dec.ny.gov/environmental-protection/public-safety/forest-rangers and https://dec.ny.gov/about/employment/explore-career-descriptions/forest-ranger-1

Governor Hochul Announces Major Progress on Syracuse East Adams Transformation Plan With Construction Start on 125-Unit Senior Housing Community

Phase II Will Create Quality, Sustainable Homes for Seniors

Revitalizes and Reconnects East Adams Neighborhood Ahead of I-81 Viaduct Removal

Governor Kathy Hochul announced the start of construction of a $100 million, 125-unit affordable senior public housing development in the city of Syracuse. The project marks the second phase of the East Adams Neighborhood Transformation Plan, a multi-phased reinvestment strategy led by the Syracuse Housing Authority (SHA) that will ultimately build or preserve approximately 1,500 high-quality homes at multiple Syracuse Housing Authority properties. This will create a vibrant mixed-use community and reconnect the neighborhood as the State advances the plan to remove the city’s elevated Interstate 81.

“This latest phase of the East Adams Transformation plan builds on the promise we made to this important Syracuse neighborhood — to reverse decades of injustice, replace aging public housing, reconnect a community to its city, and invest in the East Adams neighborhood and its current and future residents,” Governor Hochul said. “With this new senior housing development, we are ensuring that New Yorkers can thrive in this rejuvenated neighborhood, with modern, sustainable homes and the ability to access all that Syracuse has to offer. This project reflects our commitment to delivering the kind of transformative investment this community has long deserved.”

Under Governor Hochul’s leadership, New York State Homes and Community Renewal (HCR) has created or preserved more than 2,600 affordable homes in the city of Syracuse. East Adams Phase 2 continues this effort and is part of Governor Hochul’s $25 billion five-year Housing Plan, which is on track to create or preserve 100,000 affordable homes statewide.

Developed by McCormack Baron Salazar and SHA, apartments at East Adams Phase 2, named The Simmons, in honor of recently-retired SHA Executive Director, William J. Simmons, will be reserved for residents age 62 and older. Priority will go to seniors relocating from Pioneer Homes, which is slated for future demolition and redevelopment as part of the Transformation Plan, followed by former residents of McKinney Manor, which was demolished in 2025. Additional availability will be open to other SHA seniors. All units will be affordable to households earning up to 60 percent of the Area Median Income.

The four-story development is being built on a vacant site just south of downtown Syracuse that was previously a parking lot for SUNY Upstate Medical Hospital. It will be close to Syracuse University and accessible to public transportation, restaurants and a pharmacy.

The development will include a community room, library, and fitness center, providing residents with dedicated spaces to gather, exercise, and connect. The community-oriented environment will continue outdoors with seating areas, landscaped open spaces, walking paths, and terraces. There will be eight units to accommodate residents with mobility disabilities and three units to accommodate residents with sensory disabilities. The building will be all-electric, with geothermal heat pumps and energy-efficient appliances.

Financing includes a mix of public and private sources, including Federal and State Low-Income Housing Tax Credits from HCR that are expected to generate more than $45 million in equity, as well as $36 million in HCR subsidy. The site is participating in the New York State Department of Environmental Conservation's successful Brownfield Cleanup Program and, when completed, would be eligible for $11 million in tax credits administered by the New York State Department of Taxation and Finance. All 125 units are supported by Section 8 Project-Based Vouchers administered by the Syracuse Housing Authority.

East Adams Phase I is currently under construction and will replace the outdated McKinney Manor public housing complex with 117 affordable homes.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This next chapter for the East Adams community will bring 125 modern, affordable apartments for seniors to this important, but long-neglected Syracuse neighborhood. By breaking ground on this building, we continue the comprehensive efforts to create the integrated, vibrant community that generations of residents will be able to enjoy and deserve. Under Governor Hochul’s leadership, we are committed to reinvesting in places that were too long overlooked, and we are proud to join the Syracuse Housing Authority, McCormack Baron Salazar, and all our partners to help create an inclusive neighborhood where people can thrive for years to come.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “The East Adams Neighborhood Transformation Plan in Syracuse is the latest successful use of New York State’s Brownfield Cleanup Program to further advance Governor Hochul’s successful efforts to increase affordable housing statewide. DEC is proud of the results the Brownfield Cleanup Program helps achieve as a critical community revitalization tool in Central New York and across the state, helping clean up environmental pollution to protect public health and the environment and support sustainable development.” 

D.A. Bragg: Trio Sentenced For Fatal Stabbing Of Jervey Barfield In Upper Manhattan

 

Manhattan District Attorney Alvin L. Bragg, Jr., announced that NAQUAN ANDERSON, 28, TREVOR CARPENTER, 44, and ALVIN NELSON, 45, were each sentenced to 22 years-to-life in state prison for the fatal stabbing and assault of 33-year-old Jervey Barfield in Upper Manhattan on May 3, 2025. On August 11, 2026, a New York State Supreme Court jury convicted ANDERSON and NELSON of Murder in the Second Degree and CARPENTER of Manslaughter in the First Degree. All the defendants were also convicted of Gang Assault in the First Degree.

“The defendants caused a personal dispute to spiral into deadly violence when they brutally attacked Jervey Barfield,” said District Attorney Bragg. “Mr. Barfield was unarmed when the defendants repeatedly stabbed and beat him, leaving him helpless on a Manhattan sidewalk. These sentences hold all three defendants accountable for their actions, and I hope they provide a sense of justice for Mr. Barfield’s family and loved ones, who continue to endure the unimaginable pain of their loss.”

As proven at trial, on May 3, 2025, prior to the stabbing, NELSON argued with and physically fought Mr. Barfield over a personal dispute outside a deli, near West 142nd Street and Frederick Douglass Boulevard. NELSON was then joined by CARPENTER and ANDERSON, and the defendants walked down the block, pursuing Mr. Barfield.

At approximately 5:14 a.m., the defendants confronted Mr. Barfield, near West 141st Street and Frederick Douglass Boulevard, where a second physical altercation ensued. During the attack, NELSON and ANDERSON stabbed Mr. Barfield several times, including in the face, neck, and torso, while CARPENTER simultaneously assaulted him. Once Mr. Barfield collapsed on the ground, immobile, CARPENTER continued punching him in the back of the head.

Following the attack, the defendants ran back up the block. NELSON and ANDERSON stopped at the deli, where they used a bottle of water to wash blood from their hands and arms. All of the defendants then entered CARPENTER’s car, which was parked nearby, and fled toward the 145th Street Bridge.

Mr. Barfield was transported to a hospital, where he died from stab wounds to his neck and torso, as well as blunt force injuries to his head.

NELSON was arrested on May 16, 2025. CARPENTER was arrested on May 22, 2025. ANDERSON was arrested on June 9, 2025.

Assistant D.A.s Kathleen Coulson and Madison Meyer handled the prosecution of the case under the supervision of Assistant D.A. Nicole Blumberg (Chief of Trial Bureau 40) and Executive Assistant D.A. Lisa DelPizzo (Chief of the Trial Division). Trial Preparation Assistants Robert Rose and Catalina Rojas, Senior Investigative Analyst Anissa Weisel, and Senior Investigator Dennis Suarez provided invaluable assistance in the prosecution. 

D.A. Bragg thanked the New York City Police Department (NYPD), particularly Detective Quincy Smith.

Six Indicted on Drug-Trafficking Charges in Connection with Federal Investigation

The U.S. Attorney’s Office announced, today, that six individuals face indictment stemming from a federal drug trafficking organization (DTO) investigation. 

George Robinson, 58, of Baltimore; Shane Green, 50, of Baltimore; Shawn Hearn, 53, of Baltimore; Cori Grant, 47, of Baltimore; Vanessa Dancy, 59, of Baltimore; and Angela Pugh-Smith, 61, of Dayton, Ohio, are charged with drug-trafficking crimes in connection with the federal investigation. The co-conspirators are all charged with conspiracy to distribute and possess with intent to distribute controlled substances while some of them face additional charges.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Cindy Marx, Drug Enforcement Administration (DEA) – Washington Division; Special Agent in Charge Jimmy Paul, FBI Baltimore Field Office; Clinton J. Fuchs, U.S. Marshal for the District of Maryland (USMS); and Commissioner Richard Worley, Baltimore Police Department (BPD).

According to the indictment, Robinson is also charged with three counts of possession with intent to distribute a controlled substance. Additionally, Grant, Green, Hearn, and Pugh-Smith are each charged with one count of possession with intent to distribute a controlled substance. 

As revealed in court documents, in September 2025, the DEA began investigating the DTO after it learned about Robinson’s reputation as a well-known, large-scale drug supplier in Baltimore.  Confidential sources informed law enforcement that Robinson owned numerous legitimate businesses that he used to launder money. Additionally, the confidential sources estimated Robinson obtained between 50 to 150 kilograms of cocaine at a time.  One source also believed Robinson possessed heroin and/or fentanyl.

Then during the investigation, law enforcement observed that between October 2025 and May 2026, on six different occasions, Robinson received large drug shipments concealed inside steel structures. The steel structures were packed in crates that were loaded on flatbed trailers and delivered to two warehouses in Baltimore. Robinson then allegedly unloaded the drugs and concealed them inside these warehouses. Law enforcement also discovered that Robinson stored drug proceeds inside the crates and steel structures, loaded them onto flatbed trailers, and then shipped them to his drug supplier. 

On May 6, law enforcement executed search warrants at Robinson’s residence, warehouses, laundromat, and other locations associated with DTO members. During the search, investigators seized more than 140 kilograms of cocaine; approximately 10 kilograms of fentanyl; smaller amounts of a variety of drugs; approximately $1.3 million; firearms; drug-packing paraphernalia; and dozens of cellular devices.

If convicted, the co-conspirators face a minimum of 10 years and a maximum of life in federal prison for all counts charged in the indictment. 

Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Hayes commended the DEA, FBI, USMS, and BPD for their work in the investigation, along with the Baltimore County Police Department and Washington County Sheriff’s Office, for their valuable assistance 

Mamdani Administration, NYCHA and Development Partners Put Public Land to Work, Breaking Ground on 229 Affordable Homes at Sol on Park

 

New homes coming to Morris Houses campus, including 80 homes for current NYCHA residents in the largest use of “Transfer of Assistance” program to date

Today, Mayor Zohran Kwame Mamdani, Deputy Mayor Leila Bozorg, the New York City Housing Authority (NYCHA), City agencies and development partners broke ground on Sol on Park, a 229-apartment, 100% affordable senior housing development on the Morris Houses campus in the Bronx.

The project represents the largest use of the Transfer of Assistance program to date. Through the program, NYCHA, the Department of Housing Preservation and Development (HPD) and the Housing Development Corporation (HDC) are leveraging public land to create new affordable senior housing for current NYCHA residents, formerly homeless New Yorkers and low-income seniors.

“New Yorkers are facing a housing crisis, and we have no time to waste,” said Mayor Mamdani. “Sol on Park shows what is possible when we invest in NYCHA and use every tool available to build affordable homes. This project will give current NYCHA residents and low-income seniors the opportunity to move into new, high-quality homes while strengthening the Morris Houses community. That’s what building a city for the many looks like.”

“Sol on Park shows what is possible when we bring a human-centered approach to delivering affordable housing. When this project is complete, it will provide brand-new housing to formerly homeless and low-income seniors as well as NYCHA residents – along with new community and open space. I'm grateful to the many public agencies, development partners, and neighborhood residents who have made this milestone possible and who will continue to ensure this deeply needed affordable housing is a success,” said Leila Bozorg, Deputy Mayor for Housing and Planning.

“Sol on Park is an excellent example of how we can leverage underutilized land on NYCHA properties and innovative tools like Transfer of Assistance to deliver brand-new, modern, and permanently affordable homes for seniors,” said NYCHA Chief Executive Officer Lisa Bova-Hiatt. “We are investing in the Morris Houses community by reserving 80 apartments for existing residents and providing a brand new space for the Resident Association in the new 18-story building. We are grateful to the development team and all of our city partners for their collaboration and partnership in helping turn this vision into a reality.”

“Sol on Park exemplifies our commitment to both seniors and public housing tenants,” said HPD Commissioner Dina Levy. “Not only will the project create more than 225 affordable homes for seniors, including current NYCHA residents and formerly homeless seniors, it will also provide social services and a new health and wellness center.”

“Sol on Park will help address the urgent housing needs of older New Yorkers by providing nearly 230 deeply affordable homes paired with on-site social services that will allow residents to age with dignity and stability,” said HDC President Eric Enderlin. “HDC looks forward to working with all our partners to bring this transformative project to life.”

Developed by The NRP Group, Selfhelp Realty Group and Foxy Management, Sol on Park will include 80 homes reserved for current NYCHA residents living at Morris I and II, 69 homes for formerly homeless seniors and 79 homes available through the Housing Connect lottery for low- and middle-income seniors. The development will also include health-focused amenities, more than 8,000 square feet of community space, a pedestrian plaza and a new, fully accessible space for the Morris Houses Resident Association.

Construction is now underway, with pre-leasing and early move-ins scheduled for early 2029.

Designed by Magnusson Architecture and Planning, Sol on Park will be built to LEED Platinum and Passive House standards. The development will use a high-performance, energy-efficient design that supports resident health and comfort while reducing energy consumption. On-site services will be provided through partnerships with Union Community Health Center and Green Bronx Machine’s National Health & Wellness Center.

The project represents New York City’s largest application of the Transfer of Assistance program to date. The innovative financing tool uses public land and investment to create new, permanently affordable housing while opening existing NYCHA apartments for future residents and giving current residents an opportunity to move into newly constructed affordable homes.

The Mamdani administration and NYCHA plan to expand the use of the Transfer of Assistance program through the Block by Block housing plan.

Investing in public housing and rebooting NYCHA as a public developer is a key component of Block by Block. Mayor Mamdani’s first capital plan includes the largest capital investment in NYCHA in recent history. Alongside additional expense budget investments, these resources will support comprehensive building repairs, bring vacant apartments back online, repair elevators and address mold and leaks.

Sol on Park is also example of the Mamdani administration’s commitment to building new housing on publicly owned land. On his first day in office, Mayor Mamdani created the Land Inventory Fast Track (LIFT) Task Force to identify publicly owned sites and accelerate housing development. In July, the administration launched the LIFT Tracker, showing the City’s work to create more than 50,000 new homes across more than 100 active sites.

The administration will continue an aggressive pace of affordable housing development on City-owned land, releasing additional requests for proposal (RFPs) each year.

“NYCHA residents should benefit from investment and new construction happening on their campus and today, we are one step closer today to being able to deliver 228 permanently affordable senior homes to this community, including 80 apartments for NYCHA residents,” said NYCHA Chief Real Estate Officer Heather Beck. “By using Transfer of Assistance, we will provide senior households at Morris Houses an opportunity to move into a brand new, accessible building with social services ensuring they can age in place in dignity. We look forward to seeing construction advance and to welcoming Morris Houses seniors into their new homes.”

“Sol on Park serves as a blueprint for how we build deeply affordable and quality housing that enables our older adults to age in place with the dignity and respect that they deserve,” said Bronx Borough President Vanessa L. Gibson. “I am excited to break ground on this important project, which will provide stability and support to our seniors and formerly unhoused New Yorkers, giving our most vulnerable residents an opportunity to live in an environment that prioritizes their security and well-being. Thank you to Mayor Zohran Mamdani, the New York City Housing Authority, the New York City Department of Housing Preservation and Development, the New York City Housing Development Corporation, The NRP Group, Selfhelp Realty Group, and Foxy Management for their support of this project and for bringing us one step closer to the finish line.”

DOJ’s Fraud Division Uncovers $1.34M in Stolen Social Security Benefits in One Month Takedown, Including Fraudster Who Allegedly Hid Deceased Mother in Garage Freezer

11 U.S. Attorney’s Offices, along with federal investigative agencies, participate in Social Security Administration fraud enforcement surge 

Today, the Justice Department’s National Fraud Enforcement Division announced the results of a surge of criminal enforcement actions targeting fraud in the Social Security Administration (SSA)’s benefits programs, including Supplemental Security Income (SSI). 

Between Aug. 21 and Sept. 18, the Fraud Division and U.S. Attorneys in 11 districts, along with the assistance of the SSA Office of Inspector General (SSA OIG), brought charges against 17 defendants who are allegedly responsible for more than $1.3 million in intended loss to the United States.

“The Social Security Administration’s benefits programs are meant to safeguard America’s elderly and most vulnerable — not to bankroll fraudsters,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Every dollar stolen is a dollar taken from a retiree’s medicine, meals, or housing. These cases represent just a fraction of the fraud we are aggressively pursuing every day. The egregious facts uncovered in these cases underscore why our mission to combat fraud — large or small — is vital to protecting public trust and ensuring justice.”

“President Trump and Vice President Vance have given the federal government an unprecedented mandate — and the tools and resources to back it up — to find fraud wherever it exists and root it out,” said Commissioner Frank Bisignano of the Social Security Administration. “At Social Security, we are putting that mandate into action. Working hand-in-hand with the Department of Justice, we are aggressively pursuing fraud, safeguarding taxpayer dollars, and protecting Social Security.”

“Fraud involving Social Security’s retirement and disability programs will not be tolerated. Thanks to OIG’s partnership with the Department of Justice, those targeting taxpayer dollars and jeopardizing our most vulnerable populations will be held accountable,” said Michelle L. Anderson, Assistant Inspector General for Audit as First Assistant at SSA OIG. “These cases demonstrate the value of focusing resources to identify and prosecuting fraud schemes to ensure taxpayers dollars are paid only to those who are rightfully entitled.”

Notable Cases (Intended Loss Figures):

S. v. Eva Bratcher (Indictment) – $21,402 – Northern District of Illinois      

Bratcher allegedly concealed her mother’s body in a deep freezer in her garage for two years. During those two years, Bratcher assumed her mother’s identity, collected her mother’s SSA benefits, and used her mother’s SNAP benefits. The defendant also allegedly used an alternative Social Security Number to steal additional SNAP benefits to which she was not entitled.

Charges: 18 U.S. Code § 641 (Theft of Government Property); 42 U.S. Code § 408 (Fraud, Misrepresentation, or misuse of Social Security Benefits)

Maximum Penalties: 10 years; 5 years in prison

Prosecuted by Assistant U.S. Attorney Parker Gardner-Erickson and Special Assistant U.S. Attorney Niranjan Emani for the Northern District of Illinois. District Fraud Counsel AOR: Assistant U.S. Attorney Vincenza Tomlinson for Northern District of Illinois.  

S. v. David Darling (Indictment) – $ 109,746 – Northern District of New York

Darling had control of his deceased brother’s ATM card and began withdrawing money the day after death. SSA was unaware of the death and continued to pay into the account. Darling continued his scheme for a total of $109,746 in stolen social security benefits.

Charges: 18 U.S. Code § 1029 (Access Device Fraud); 18 U.S. Code § 641 (Theft of Government Property); 18 U.S. Code § 1028A (Aggravated Identify Theft)

Maximum Penalties: 15 years; 10 years; 2-year mandatory minimum in prison

Prosecuted by Assistant U.S. Attorney Arne Soldwedel for the Northern District of New York. District Fraud Counsel AOR: Assistant U.S. Attorney Benjamin Clark for the Northern District of New York.  

S. v. Debra Reed (Indictment) – $ 59,070 – Western District of Pennsylvania

On Nov. 23, 2020, Debra Reed’s father died. Between Nov. 24, 2020, and Oct. 26, 2023, the Social Security Administration continued to pay social security retirement payments to the father’s account, and Reed either personally stole the money or caused her daughter to take the money and transfer it to her directly.

Charges: 18 U.S. Code § 641 (Theft of Government Property)

Maximum Penalties: 10 years in prison

Prosecuted by Assistant U.S. Attorney Brendan J. McKenna for the Western District of Pennsylvania. District Fraud Counsel AOR: Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania.

United States v. Laura Whisenant – $ 121, 980 – Eastern District of Michigan (Complaint)

Laura Whisenant served as a representative payee for her elderly, mentally disabled uncle.  For seven years, she stole and misused nearly $121 K of her uncle’s SSA benefits — all while he lived in squalor, in a house without running water, electricity, or heat. 

Charges: 42 U.S.C. § 408(a)(5)

Maximum Penalties: 5 years in prison

Prosecuted by Assistant U.S. Attorney Corinne M. Lambert for the Eastern District of Michigan. District Fraud Counsel AOR: Assistant U.S. Attorney Jason Norwood for the Eastern District of Michigan.

United States v. Keshaune Pace also known as Keshaune Jenkins – Southeast Michigan (Complaint)

Keshaune Pace served as representative payee for her minor son, who was a recipient of SSI benefits due to disability. In order to maintain the receipt of her son’s benefits after he left her custody, she lied to the SSA about her son’s living arrangements, going so far as to have another person impersonate her son during an SSA-initiated review. Pace stole and misused $30,000 of the benefits paid on behalf of her son; $6,000 of those benefits should have been used for her son’s needs and were not, $24,000 should have been paid to no one at all.

Charges: 18 U.S. Code § 641 (Theft of Government Property); 42 U.S.C. § 1383a(a)(4) (Social Security Representative Payee Fraud)

Maximum Penalties: 10 years; 5 years in prison

Prosecuted by Assistant U.S. Attorney Corinne M. Lambert for the Eastern District of Michigan. District Fraud Counsel AOR: Assistant U.S. Attorney Jason Norwood for the Eastern District of Michigan.

Additional Charges During SSA Surge:

• United States v. Tammy Phillips - $65,000 – Western District of Pennsylvania
• United States v. Israel Gonzalez - $139,952 – Western District of North Carolina
• United States vs. John Zaccaria - $143,685 – District of Rhode Island
• United States v. Sherry Freude - $100,845 – Southern District of Texas
• United States v. Lisa Martinez - $50,501 – Western District of Texas
• United States v. Stacey L. Stoudermire - $31,237 – Northern District of Ohio
• United States vs. Ruthie M. Lewis - $33,131 – Northern District of Ohio
• United States vs. Lizbeth A. Reinhard - $170,166 – Northern District of Ohio
• United States vs. Carrie Miller - $50,658 – District of Idaho
• United States vs. Calandra Davis - $53,234 – Northern District of Indiana
• United States v. Tammy Hopkins - $98,879 – Eastern District of Michigan
• United States v. Darlette Williams - $46,844 – Eastern District of Michigan

U.S. Attorney Partners: District of Idaho, District of Rhode Island, Eastern District of Michigan, Northern District of Illinois, Northern District of New York, Northern District of Ohio, Southern District of California, Southern District of Texas, Western District of North Carolina, Western District of Pennsylvania, Western District of Texas.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Illegal Alien from Venezuela Charged with Assaulting and Resisting a Federal Officer in Austin

An illegal alien from Venezuela made his initial appearance in federal court today after being charged with one count of assaulting, resisting, interfering, and impeding a federal officer, announced U.S. Attorney Justin R. Simmons for the Western District of Texas.

According to court documents, on Sept. 20, Immigration and Customs Enforcement (ICE) Enforcement Removal Operations (ERO) officers initiated a traffic stop for Wilber Rafael Garces-Perez, 28. The stop was initiated due to confirmation of an immigration judge having issued a final order of removal on Garces-Perez.

The criminal complaint alleges that, during the stop, Garces-Perez provided the ICE ERO officers with his driver’s license. After verifying Garces-Perez was the person they were seeking, the officers asked Garces-Perez to place his vehicle in park and step out—orders which he allegedly ignored. The complaint alleges and body camera footage shows that after further direction from the officers in Spanish, Garces-Perez abruptly closed his window and drove off, striking one of the ICE ERO officers in the torso with the driver’s side-view mirror.

The ICE ERO officers pursued Garces-Perez in their vehicles with their emergency lights and sirens activated. The complaint alleges Garces-Perez led them on a high-speed chase through a commercial and residential area. While one of the officers lost sight of Garces-Perez during the pursuit, the other ICE ERO officer caught up to Garces-Perez, who allegedly attempted to strike the officer with his car, causing the officer to fire his pistol.

Garces-Perez made his initial court appearance today before U.S. Magistrate Judge Dustin Howell of the U.S. District Court for the Western District of Texas. A detention hearing is set for Friday, Oct. 2. If convicted, he faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Immigration and Customs Enforcement Homeland Security Investigations is investigating the case.

Assistant U.S. Attorney Britni Verdeja is prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.