Meet the Disability-Industrial-Complex: Up to 45% on Disability Insurance are Frauds

If the American public knew what was going on in our system, half would be outraged and the other half would apply for benefits.

Marilyn Zahm, one of the 1,500 disability judges operating in the U.S.

I’ve known about the “disability” scam for many years now, but I had never read a report that details the racket until I checked out the following from CBS’ 60 Minutes. As usual, the real money being made in the whole scheme is not centered around the people collecting the checks, but rather attorneys, doctors and even judges who grease the wheels of the $135 billion “disability-industrial-complex.”

For example, in the economically depressed border area of Kentucky and West Virginia we find 10%-15% of the population on disability, or three times the national average. The regional disability racket is essentially run by attorney Eric Conn, who’s clients for disability enjoy a 100% success rate thanks to Mr. Conn’s relationship with doctors and a local judge named David Daugherty.

Here are just a couple of examples of how Mr. Conn uses his advertising budget:

Screen Shot 2013-10-08 at 11.11.20 AM

Screen Shot 2013-10-08 at 11.09.41 AM

Senator Tom Coburn explains to CBS’ 60 Minutes that:

Coburn says the report — to be released tomorrow — will show that Conn collected more than $13 million in legal fees from the federal government over the past six years and that he paid five doctors roughly $2 million to regularly sign off on bogus medical forms that had been manufactured and filled out ahead of time by Conn’s staff.

Just another scam from a scam economy. More from 60 minutes:

Read more

Like this post?
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G


Follow me on Twitter.

R.I.P. Retirement: 28% of Americans are Raiding Their 401k Plans

This trend has been in place since the financial crisis, but the fact that it is accelerating is extremely disconcerting.  First off, this is not the kind of behavior that should be witnessed in an “economic recovery.”  Second, we need to remember the huge percentage of Americans on food stamps and/or disability.  As I have discussed previously, many of them also have jobs.  So essentially, a wage and a check from the government is still not enough to survive.  They still need to tap into a loan from their 401k plans.

From the Washington Post:

More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.

A report due out this week from the financial advisory firm HelloWallet found that more than one in four workers dip into retirement funds to pay their mortgages, credit card debt or other bills. Those in their 40s have been the most likely culprits — one-third are turning to such accounts for relief.

Read more

Like this post?
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G


Follow me on Twitter.