ASTONISHING FRAUDS.

Hawera Star, Volume XLV, 5 June 1925, Page 9

ASTONISHING FRAUDS.

health INSURIANOE OASES. BOGUS WIVES ANT) BABIES. A.sitoni'shing frauds by officials of approved .societies, invlovihg forged medical certificates and fabricated •e----ceipibs, are revealed in. tihe report ol the British. Niational Health Insurance audit department for 192-1, which was issued in April. ■Seventy-four instances- —the highest number for seven years.—were reported of “failure to account and serious financial irregularities,” involving a total of £3878. In nine of these cases evidence'of due disbunsemient, to the extent o.f £827, was subsequently produced. In 12 instances the sum involved exceeded £IOO, and in one case it was £567. A scrutiny of the accounts of one lodge secretary showed that irregularities had been going oat since 3919. The committee of management of the society appointed one of their members to investigate 14 cases of maternity benefit payments suspected by the auditor, and be reported that he had visited the members and had seen the children to whom the claims related. Bogus Signatures.

“The'task,’.’ the member reported, “was noi joke, ats it occupied from. 10 a..m. to 8 p.m., and some of the' cases were miles apart.” He expressed the opinion that “every case” was all right,” but 13 of the eases' wereselected by the auditor for re-investiga-tion; and, with the exception of two members whose ivhereabout® were, unknown, all the member.', concerned signed declaration® denying the. authenticity of signatures .purporting to be theirs, and 'Stated (that‘the ! heti<?fit-s; were neither due- to ■ ;nor receives! by them. 1 W

Mare than half of ,the. 74 cases, .representing; twor.hhi.iil'S ,o|f the -tOitfii amounts, involyed TailsificMtipo pf counts. In some instaneeei dt 'is suggested that committees- of m'angement failed to take businesslike precautions to .safeguard funds, and “in certain cases of fraud by local agents a simitar failure had occurred on the. part of officials at. the societies’ head offices, 5 ' - i; :

One secretary, -whose ja.ccoiii.nbs included many fraudulent .entries, obtained duplicate medical .certificates from a. doctor on the plea, -that the originals had been 'mislaid, a ; nd, by altering dates; iised the .ciyjiJicates to vouch amounts r ,which were .never -pawl to the member; 'Medical ce.rhifibates of members ; who -t'ere '.disentitled to benefit were •-produced wi;th. -fftbricated receipts;. . , : ■ * '

The same -secretary grade' -fictit.io.us maternity benefit charges- in .respect, of the .ariegefl wives q<f flyidou'erS'and unmarried men.

Spurious ..Certi-ficates.

A. local agent, whose accounts also contained many .fictitious ..entries, -had obtained a supply .of blank medic-al certificate fo-rnis. ’ He giade out spivnou.s ..certificates, traced debtors 5 signatures. and inked them over.

“In a few cases,' 5 it is .stated, “fraudulent officers were found to have taken advantage of increases in the rate of maternity benefit to withhold the amount of the increase from members and to misappropriate it. 55 The report .states that “both the amounts and the numbers of cases reported may be regarded as incon.sider able- in relation to the volume ..cf th?. tniasac-tions and the number o.f officials entrusted with funds.’’ The total paid in sickness, disablement, an« maternity benefits in 192 * was ove £15', 1)00,000.