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TOLEDO, Ohio (AP) -- Laura Hankins knew something was wrong when she filed her daughter's tax return and it was rejected hours later: An identity thief already had sent in a return using the 19-year-old's personal information.

"This is the first time in her life she has ever filed income taxes, after earning all of $1,800 stocking products on grocery store shelves," Hankins said. "I did her taxes for her online, but immediately she got the rejection."

Thieves have claimed billions of dollars in bogus tax refunds from the IRS by swiping the Social Security numbers and identities of schoolchildren in Florida, prisoners in Pennsylvania, teachers in Washington state and soldiers deployed in Iraq and Afghanistan.

Hackers and employees with access to thousands of names stored in company databases have tapped into reams of personal information, allowing them to submit hundreds of fraudulent returns by computer and receive refunds within days. Five people in Cincinnati were sentenced to prison late last year for using the names of employees at nursing homes and hospitals to file tax returns.

It all adds up to a lot of frustration for legitimate taxpayers who face more paperwork and months of waiting for their tax refunds.

Hankins was told her daughter Claire, a college student from West Milwaukee, Wis., would get her refund in about six months. But Hankins first had to spend about 20 hours filling out forms, gathering information and photocopying documents because she couldn't file electronically after the tax identity theft was discovered in February.

"Some kids get to go to Florida for spring break, but she got to go to the West Milwaukee police station to file a theft report," said Hankins, who added that her daughter is worried about what will happen next now that her personal information is out there.

The IRS paid out nearly $4 billion to people using stolen identities in 2012, according to a government report. Since identity theft fraud exploded over the past three years, the agency has made stopping it a priority, but thieves are becoming more aggressive and still finding ways to get around increased scrutiny.

"It's like that game of Whac-A-Mole. When you're attacking one scheme, they come up with another," said Wifredo Ferrer, the U.S. attorney in South Florida, a hot spot for the schemes.

Fraudulent filers have evaded detection lately by getting refunds loaded onto prepaid debit cards instead of receiving them by check. Others have robbed postal workers to get refunds and even recruited mail carriers to take part, Ferrer said.

A former records clerk in Alabama's prisons department was charged in January with selling inmates' personal information to claim over $1 million in refunds. Three others were sentenced to prison for taking part, including a mail carrier who stole the refunds from the mail.

"They're getting very creative by using people in the inside," Ferrer said. "They're creative and brazen. They're using the IRS like their own ATM."

The IRS said Thursday that it has started more than 200 investigations into identity theft and refund fraud schemes this filing season and that enforcement efforts are taking place nationwide. It said investigators are especially focused on the misuse of specialized identification numbers assigned to firms that electronically file tax returns.

But the ease of the schemes means no one is immune. The best steps to reduce the chance of refund fraud are to protect Social Security numbers and other personal information.

The practice has spread to the most unlikely of places. Even employees and volunteers within the Archdiocese of Seattle became victims last month in a case that's still being investigated.

Because the goal of the IRS is to get refunds out quickly, it often sends them out before verifying wages and other income from employers and financial institutions. Victims don't know they've been targeted until they file their taxes.

Dallas radio host Ed Wallace said he found out just over a year ago that someone filed a return using his name. What surprised him was that it got through even though his name was misspelled, his address had been changed and his wife's name wasn't on the form.

"I can't believe there wasn't a field in the IRS computers to alert them," Wallace said. "They must have so many they can't keep up."

He spent about $2,700 on attorney fees to straighten out the mess.

Among the biggest frustrations is the amount of time it takes victims to resolve the issue with the IRS and get their refunds.

The average wait for identity theft victims to clear their cases had been about 10 months but is now down to three months, according to the IRS.

Agency Commissioner John Koskinen said the IRS has more than doubled the employees dedicated to working on identity theft and improved its screening to catch suspicious returns.

The IRS stopped more than $12 billion in fraudulent refunds from going to identity thieves in 2012, compared with $8 billion the year before, according to an inspector general's report released in November.

---

Associated Press writer Lisa Cornwell in Cincinnati contributed to this report.

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SEBELIUS, A LIGHTNING ROD FOR CRITICS, RESIGNS

Friday, 11 April 2014 07:55 Published in National News

WASHINGTON (AP) — For five years, Health and Human Services Secretary Kathleen Sebelius has been a lightning rod for critics of President Barack Obama's health care law. But with sign-ups exceeding expectations and a new face soon to be in charge at HHS, the White House is eager to see if the poisonous atmosphere might give way to more pragmatic efforts aimed at fixing problems with the nation's newest social program.

Obama will announce Sebelius' resignation Friday and nominate his budget director, Sylvia Mathews Burwell, as her replacement. The moves come just over a week after sign-ups closed for the first year of insurance coverage under the so-called Obamacare law.

The opening weeks of the enrollment period were marred by website woes, straining ties between Sebelius and officials in the West Wing. Though the administration rebounded strongly and exceeded expectations by enrolling 7.1 million people by the March 31 deadline, the comeback wasn't enough to tamp down Republican criticism of Sebelius or boost the public's perception of the federal health care overhaul.

Enrollment has since risen to 7.5 million as people were given extra time to complete applications.

Even with the robust enrollment, huge implementation challenges remain. The administration has to improve customer service for millions of Americans trying to navigate the new system. And there's a concern that premiums may rise for 2015, since many younger, healthier people appear to have sat out open enrollment season.

On the political front, congressional Republicans remain implacably opposed to the Affordable Care Act, even as several GOP governors have accepted the law's expansion of safety-net coverage under Medicaid. GOP opposition means Republicans can be expected to continue to deny additional funds for implementation.

Senate Minority Leader Mitch McConnell., R-Ky., welcomed Sebelius' resignation but appeared to indicate an openness to a dialogue with Burwell even as he declared that "Obamacare has to go."

"I hope this is the start of a candid conversation about Obamacare's shortcomings and the need to protect Medicare," McConnell said.

In nominating Burwell, Obama is signaling that he wants to avoid a contentious election-year fight to fill the HHS post. Burwell was unanimously confirmed by the Senate for her budget position and is well-liked by many Republican lawmakers.

A White House official confirmed Sebelius' resignation and Burwell's nomination but requested anonymity because the official wasn't authorized to do so by name ahead of the official announcement.

Obama remained publicly supportive of Sebelius throughout the rough rollout, deflecting Republican calls for her resignation. But she was not by his side last week when he heralded the sign-up surge during an event in the White House Rose Garden.

The official said the 65-year-old Sebelius approached Obama last month about stepping down, telling him that the sign-up deadline was a good opportunity for a transition and suggesting he would be better served by someone who was less of a political target.

A spokeswoman for Sen. Pat Roberts, a Republican from Sebelius' home state of Kansas, called the resignation "a prudent decision" given what she called the total failure of Obamacare implementation.

Sebelius dropped no hints about her resignation Thursday when she testified at a budget hearing. Instead, she received congratulations from Democratic senators on the sign-up surge.

A popular former governor of Kansas, Sebelius has been one of Obama's longest-serving Cabinet officials and his only HHS secretary. She was instrumental in shepherding the health care law through Congress in 2010 and implementing its initial components, including a popular provision that allows young people to stay on their parents' insurance plans until age 26.

But Sebelius' relationship with the White House frayed during the fall rollout of the insurance exchanges that are at the center of the sweeping overhaul. The president and his top advisers appeared caught off guard by the extent of the website problems, with warnings from those working on the technology never making it to the West Wing.

With technical problems crippling online sign-ups after the Oct. 1 launch, the White House sent management expert and longtime Obama adviser Jeffrey Zients to oversee a rescue operation that turned things around by the end of November. After taking the helm of the project, Zients said management issues were partly to blame but did not point the finger at any individuals.

Sebelius took personal responsibility for the chaotic launch of the website and asked the HHS inspector general to conduct an investigation. That report is not expected for months.

House Minority Leader Nancy Pelosi, a staunch supporter of the health care law, praised Sebelius as a "forceful, effective and essential" secretary.

"Secretary Sebelius was a leader in the long effort to make history for our country with passage of the Affordable Care Act," the California Democrat said in a statement.

In nominating the 48-year-old Burwell, Obama is tapping a Washington veteran with a low profile and the respect of some Republicans on Capitol Hill. Though she only joined the Obama administration last year, Burwell held several White House and Treasury posts during President Bill Clinton's administration.

Between her stints in the executive branch, Burwell served as president of Wal-Mart's charitable arm and led the global development program at the Bill and Melinda Gates Foundation.

___

Associated Press writers Erica Werner in Washington and John Hanna in Topeka, Kan., contributed to this report.

___

ORLAND, Calif. (AP) — The long bus ride north from Los Angeles for a group of high school students who planned to visit Humboldt State University had been fun: The hours whizzed by as they watched movies, chatted up new friends, and jammed to hip-hop on the radio.

Steven Clavijo, 18, a senior at West Ranch High in Santa Clarita, was looking forward to his visit to Humboldt, where he planned to enroll. Just as Clavijo was trying to catch a nap Thursday afternoon, he said he felt the big vehicle begin to shake from left to right and then he heard a loud boom.

"We knew we were in major trouble," he said.

A FedEx tractor-trailer had crossed a grassy freeway median and slammed into the bus. Ten people were killed in the fiery crash, including both drivers, authorities said.

Many of the more than 40 students on board escaped through a window that someone had kicked open, Clavijo said, running for their lives to the other side of Interstate 5 before hearing an explosion and seeing the bus burst into flame.

As he jumped out of the window, Clavijo said, he dropped his glasses and scraped his knee.

Two more explosions soon followed, he said, and he and other survivors looked on knowing others were still trapped in an inferno.

Massive flames could be seen devouring both vehicles just after the crash, and clouds of smoke billowed into the sky until firefighters doused the fire, leaving behind scorched black hulks of metal. Bodies were draped in blankets inside the burned-out bus.

In addition to the drivers, three adult chaperones and five teenage students were killed in the crash, according to the California Highway Patrol. Their identities were not immediately released. The bus carried between 44 and 48 students, four chaperones and the driver, the patrol said.

The crash happened a little after 5:30 p.m. on the interstate near Orland, a small city about 100 miles north of Sacramento.

The bus was one of two that the admissions office at Humboldt State University had chartered to bring prospective students from Southern California to tour the Arcata campus, Humboldt's Vice President of Administrative Affairs Joyce Lopes said.

The bus was owned by Silverado Stages, a tour bus company based in San Luis Obisbo. The company said in a statement on its website Thursday night that it was assisting authorities in gathering information.

"Our top priority is making sure that the injured are being cared for," the company said.

Humboldt State President Rollin Richmond issued a statement on the school's website. "Our hearts go out to those who have been affected, and we are here to support them, and their families, in any way possible," Richmond said.

The students came from a number of Southern California high schools and Humboldt spokesman Simon Chabel said the college was working to confirm where in Southern California all the were from.

Los Angeles Unified School District Superintendent John Deasy said an unknown number of students from Manual Arts Senior High School and Robert F. Kennedy Community Schools were on the trip. He did not know whether they were on the bus involved in the crash.

A high school senior from Alliance Renee & Meyer Luskin Academy High School in Los Angeles said she and a few of her classmates who were accepted to the university were invited to go on the tour.

Sabrina Garcia said the tour began Thursday, with buses taking students in Southern California on the ride to the campus for a three-day stay there. She said she decided to postpone the tour because she had a school project to complete.

"I was devastated when I heard about the crash, and relieved that I didn't attend," Garcia said. "I can't imagine how those kids feel. You think you're going somewhere safe with your school — and you end up in an accident."

A CHP dispatcher says the bus and truck were on opposite sides of the freeway when the truck crossed the median and slammed into the bus, causing an explosion and fire.

Investigators say the truck driver might have been trying to avoid a passenger car that was also involved in the crash, which shut down north- and south-bound traffic on the freeway.

"There was a small white sedan in front of the truck," Heitman said. "The FedEx vehicle did sideswipe the sedan before it crossed the median."

No one in the car was injured.

A first responder who helped set up a triage at the scene said 36 or 37 people received injuries ranging from minor to severe burns, broken legs and noses, and head lacerations.

"The victims were teenage kids. A lot of them were freaked out. They were shocked. They still couldn't grasp what happened," said Jason Wyman of the Orland Volunteer Fire Department.

Eleven people were taken to Enloe Medical Center in Chico, hospital officials said. Two of those patients were listed in critical condition Friday morning.

Five people were taken to Mercy Medical Center in Redding in fair condition. One patient was admitted to the burn unit of University of California, Davis, Medical Center in critical condition.

A nursing supervisor said three people were taken to Oroville Hospital in Oroville. She declined to describe their conditions, citing patient privacy laws.

Bonnie Kourvelas, a FedEx spokeswoman, said in a statement Thursday night: "Our thoughts and prayers are with everyone involved in the tragic accident on I-5 in California. We are cooperating fully with authorities as they investigate."

The American Red Cross set up a relief station at a Veterans Memorial Hall community center in Orland, about five miles from the crash site. Officer Joel Lynch said seven victims who were not hospitalized with injuries were staying the night with about 25 volunteers. A community member ordered pizza for the students.

___

Joseph reported from San Francisco. Associated Press Photographer Rick Pedroncelli in Orland, Associated Press Writers Lisa Leff in San Francisco and Daisy Nguyen and Tami Abdollah in Los Angeles contributed to this story.

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