FBI probes fraudulent encashment of stimulus checks

The FBI is investigating the alleged fraudulent encashment of at least 10 federal stimulus checks in 2009 that supposedly belonged to Chinese workers.

Ge Zhao, office manager of Saipan Triple Star Recycling Co., on behalf of their 10 employees, sought the help of the FBI and the Department of Public Safety after Tax and Revenue informed them that the checks have already been released and were subsequently encashed.

Each stimulus check was in the amount of $400.

Zhao told Saipan Tribune yesterday that they first went to the FBI two weeks ago to report the matter and returned on Monday to follow up on their complaint.

Zhao said that an FBI special agent entertained their complaint and encouraged all other Chinese nationals to step forward if they believe their stimulus checks were also fraudulently encashed.

“We have to find out what happened to the checks because it’s for our employees’ benefits. Our employees did not sign the checks, so how were the checks cleared?” he asked.

Zhao said that they had obtained information before that many Chinese nationals did not get their stimulus or rebate checks but because of the language barrier, they just went back to China without getting their checks.

He said they decided to expose this scam because they don’t want this fraudulent scheme to happen again.

Zhao said they learned of the scheme when, after repeated follow-ups at Tax and Revenue, a staff gave them a list of checks that were supposedly released to their 10 employees.

The list indicates that the checks were released on July 24 and Aug. 13, 2010, and subsequently cleared on Sept. 29, 2010, Oct. 4, 10, 13, 18, 2010, and Nov. 1, 4, 15, 16, 2010.

Zhao said it is very suspicious that the checks cleared after three months of their release.

“If you receive your check, you don’t wait for three months to cash it to the bank,” Zhao said.

Bin Pan, who is among the 10 workers who did not get his check, said he is already tired of following up on his check, which would have been of great help to his family.

Pan said he regularly checked their post office box and followed it up for two months at Tax and Revenue in Dandan and on Capital Hill.

Pan said he and two others decided to file a complaint at DPS two weeks ago, but until now they have not received their police report. He said they also have a prior complaint with the FBI.

Shun Li said he has a 5-month-old baby and his wife is currently jobless so the check would have been a big help to them.

The eight other complainants are Wei Jin An, Lei Hai Zing, Wu Zin, Liu Ke Hong, Yu Ming, Li Xian Gang, Lu Li Jun, and Xia Jun.

The CNMI government started mailing some 10,000 refund checks worth some $6.4 million, as well as federal stimulus checks, in July 2010.