underserved victims: financial exploitation and fraud...underserved victims: financial exploitation...
TRANSCRIPT
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Underserved Victims: Financial Exploitation and Fraud
Cheryl Hystad Civil Justice, Inc.
520 W. Fayette Street, Suite 410 Baltimore, MD 21201
410-706-1148 [email protected]
www.civiljusticenetwork.org
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Economic and financial crimes cost American individuals and businesses billions of dollars every year.
Various forms of fraud generate massive losses to individuals every year.
Researchers widely believe that financial crime is underreported, and these crimes can be difficult to investigate and prosecute.
Financial Crimes
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During 2011, an estimated 10.8 percent of adults (25.6 million people) were victims of one or more types of fraud for a total of 37.8 million estimated incidents of fraud.
In 2014, consumers reporting fraud to the Federal Trade Commission lost a total of more than $1.7 billion dollars.
Economic Fraud Stats
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Mortgage and Real Estate Related Fraud
Foreclosure rescue schemes
Loan modification schemes
Illegal property flipping
Home equity conversion mortgages (HECM)
Illegal lockouts
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Automobile Related Fraud
Sales & financing fraud
Fraud & misrepresentations about defects
Forgery
Repossession abuses
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For Profit School Fraud
Fraud and misrepresentation about eligibility, quality of instruction, placement rates
Use fraud and deceptive high-pressure sales techniques to obtain signatures on loan documents
Schools close abruptly leaving students with significant debt and no degree
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Landlord-Tenant Abuses
Illegal lockout/eviction
Termination of utilities
Tenant loses place to live and also property, medicine, important papers
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Identity Theft – most common types in 2014: Government documents/benefits (39%)
Credit Card theft (17%)
Phone/utilities fraud (13%)
Bank Fraud (8%)
Internet based financial crimes Internet crime Complaint Center received over 269,000
complaints in 2014, totaling over $800 million in losses
Other Financial Crimes
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Financial and Economic Crimes: The Consequences
Loss of home or car
Loss of personal property
Ruined credit
Possible judgment
Wage garnishments and bank account attachments
For student loans -ineligibility for additional loans, tax refund seizures, social security offsets
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Civil Legal Services Can Assist Victims with Recovery
Civil legal services may be able to: Save home, car or other
property
Recover losses through civil lawsuit
Assist with credit repair
Obtain loan discharges
Stop collection actions
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Challenges in Assisting Victims
Victims from all income brackets, but low-to- moderate income face most serious consequences
Many victims don’t reach out for assistance
Victims who do reach out are often referred from place to place and then give up
Not enough attorneys who handle fraud cases
Fraudsters often disappear, making recovery more difficult
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Civil Justice Assists Victims A low-wage single mother was sued by a used
car dealer for over $6000 dollars after it had wrongfully repossessed her car; CJ able to get case dismissed and recovered $17,000 to compensate her for her losses
Woman was illegally evicted by vindictive LL who disposed of all of her property including important documents and family photos; CJ recovered $65,000 to compensate her for her losses
Examples of Success Assisting Victims of Financial Crimes