Medical Crowdfunding Scams Proliferate

Some folks think that the medical crowdfunding scam (i.e., fraud) is a result of a psychological problem called “factitious disorder,” which at its extreme is illustrated by Munchausen by proxy (where a caregiver purposely causes another, usually a child, to become and stay ill).

“On GoFundMe alone, $930 million of the more than $3 billion raised to date on the site went toward healthcare expenses.”

However, the real problem is that there is no way to really verify the extent of the illness (if any), the portal’s “guarantee” is hard to collect and prosecutors have a hard time collecting evidence to charge someone for fraud (who may just disappear into the internet ether).


About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, balance, Charity, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, discrepancies, fraud, Funding Portals, Legislative Intent and tagged , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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