Article: L.A.'s Skid Row as Fraud Magnet

L.A.'s Skid Row is Gaining Notoriety as Fraud Magnet
Authorities say homeless are being used to cheat the U.S. out of millions
By RICHARD WINTON
Los Angeles Times

(Following are excerpts taken from the article)

LOS ANGELES — Skid row in Los Angeles has become a magnet for fraud schemes that use the area's homeless population to rip off the federal government, authorities warned as they launched a crackdown on the activities.

In the past few months, state and federal investigators have busted two food-stamp scams, one of which involved a merchant who allegedly gave homeless people 50 cents on the dollar for their stamps, then charged the entire value — $6 million — to the government.

Taken for medical tests

"It makes you sad and cynical the way some people take advantage of people here," said Andrew Bales, president of the Union Rescue Mission.

The mission's security chief, Scott Johnson, said his team earlier this year began noticing red, white and blue vans several times a day soliciting homeless people with Medi-Cal or Medicare cards.

He soon learned the people were being taken to an East Los Angeles clinic for medical tests. "They'd pay $30 a day," he said.

Read the full article over here.