FBI Says Arrests Made in Coupon Fraud

  1. FBI Says Arrests Made in Coupon Fraud

    By KEVIN ORLAND, Associated Press Writer

    MILWAUKEE - Federal agents raided homes and grocery stores in seven states and arrested 16 people in a probe of clip-out coupon fraud that investigators said has netted $4.5 million.

    Some of the money was sent to Jordan and Israel's West Bank, said David Mitchell, agent in charge of the Milwaukee FBI (news - web sites). Details of how the money was used were still under investigation.

    U.S. Attorney Steven Biskupic said he had never seen such a large coupon scheme.

    "For an organization to be able to generate literally hundreds of thousands of coupons in order to net $4.5 million in money is far beyond what we've addressed in the past," Biskupic said Wednesday.

    According to investigators, the plot used coupons clipped from newspapers, primarily in the New York area. People posing as store owners sent the coupons to a clearinghouse that redeemed them, then were reimbursed by the products' manufacturer.

    The conspirators sometimes used actual store owners to submit the coupons to the clearinghouse, the complaint said.

    Mitchell said the scheme involved 370 stores in 15 states. Mitchell said there was no immediate evidence that the scheme was related to terrorism.

    Federal agents and local law enforcement served 40 search warrants in seven states.

    Arrested were five people from New York, five from Florida, three from Mississippi, two from Milwaukee and one from Tennessee. The investigation began in June 2001, authorities said.
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  2. 26 Comments

  3. by   molecule
    >>>FBI Says Arrests Made in Coupon Fraud
    Some of the money was sent to Jordan and Israel's West Bank, said David Mitchell, agent in charge of the Milwaukee FBI (news - web sites). Details of how the money was used were still under investigation.
    Mitchell said the scheme involved 370 stores in 15 states. Mitchell said there was no immediate evidence that the scheme was related to terrorism.<<<<


    While not defending coupon fraud or dismissing the possibility $$ may have been sent for terrorism.....
    the Palestinians need some $$$ on which to live....
  4. by   Q.
    Originally posted by molecule
    While not defending coupon fraud or dismissing the possibility $$ may have been sent for terrorism.....
    the Palestinians need some $$$ on which to live....
    Then I guess I don't see your point in mentioning this.
  5. by   molecule
    point about Palestinians
    1] let's not assume it is terror connected until proven
    2]The Palestinians are destitute. Border closures, curfews, economic sanctions, and military incursions have left the Palestinians with an unemployment rate of 70% in the territories. The economy is paralyzed.
  6. by   DebsZoo
    Originally posted by molecule
    point about Palestinians
    1] let's not assume it is terror connected until proven
    2]The Palestinians are destitute. Border closures, curfews, economic sanctions, and military incursions have left the Palestinians with an unemployment rate of 70% in the territories. The economy is paralyzed.

    So.................that makes it all ok I suppose?
  7. by   sunnygirl272
    Originally posted by DebsZoo
    So.................that makes it all ok I suppose?
    well, shoooooor...makes it fine to defraud our businesses...i guess?
  8. by   DebsZoo
    Originally posted by sunnygirl272
    well, shoooooor...makes it fine to defraud our businesses...i guess?


    Ok, thats what I thought.....just wanted to check












    Shhhheeeeeessshhhh


    Illegal is Illegal, Molecule................I don't give a flip what nationality you are..........we bust our tails to make an honest living .
    I realize there are millions of people around this world that do not have close to what some of the poorest Americans have............But then, WE are the hated of the world?? And it's ok for them to come here, be trained, educated AND rip us off????
  9. by   molecule
    As I posted, I am not defending coupon fraud, I understand it is illegal. To me giving some contextual information differs from excusing behavior.
    Please do not misrepresent my statement. I did not say it is fine or okay.
    Thank you!
  10. by   sunnygirl272
    Originally posted by molecule
    As I posted, I am not defending coupon fraud, I understand it is illegal. To me giving some contextual information differs from excusing behavior.
    Please do not misrepresent my statement. I did not say it is fine or okay.
    Thank you!
    ok..i am soooooo trying not to make this come off as starting a personal attack..if it comes across that way, my apologies in advance...

    ok....let's change the context....Deb'sZoo is broke,....dirtpoor, cannot afford a pot inwhich to urinate....decides to obtain funds on which to attempt to survive she will advertise a product for sale that she does not have....takes the money and runs....this also would constitute fraud, eh? is it excuseable cuz she's broke?




    sorry, Deb'sZoo....needed a naem to toss around...:kiss
  11. by   DebsZoo
    Originally posted by sunnygirl272
    ok..i am soooooo trying not to make this come off as starting a personal attack..if it comes across that way, my apologies in advance...

    ok....let's change the context....Deb'sZoo is broke,....dirtpoor, cannot afford a pot inwhich to urinate....decides to obtain funds on which to attempt to survive she will advertise a product for sale that she does not have....takes the money and runs....this also would constitute fraud, eh? is it excuseable cuz she's broke?




    sorry, Deb'sZoo....needed a naem to toss around...:kiss
    :roll :roll :roll

    No roblem


    And I can't find that darn pail.............so outside I trod in the bitter cold
  12. by   sunnygirl272
    <<passing around the Sears&Roebuck catalog>>
  13. by   nurs4kids
    lol, sunny...
    you're showing your age there!
  14. by   Sally_ICURN
    This BB just boggles my mind.

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