Businessman with $900K House Accused of Welfare Fraud

Welfare fraud cases like this are frequently popping up all around the country.

By Jesse Newman, Marketing —

What is the purpose of welfare in America? Taxpayers believe that it is supposed to help people get back on their feet and become self-reliant again. Unfortunately, not everyone shares that same opinion. Recently, a well-off businessman has been accused of a fraud that is shocking.

A Poor Wealthy Man

Marc Lederman is a successful businessman who owns, and is a partner in, multiple businesses. His house was assessed to be worth nearly $1 million. Yet despite his income, Lederman was receiving welfare benefits. In 2008 and 2009, Lederman received over $13,000 in benefits. He was charged for fraud in Chelsea District Court last year and reportedly paid $10,000 in restitution to the state.

A Popular Issue

Lederman is not alone. Cases like this are frequently popping up all around the country. In Massachusetts, welfare fraud is up 44 percent in the past year alone. The government has yet to find a practical solution to the problem. Part of the difficulty is that there are so many people involved in the welfare system and so many opportunities for fraud to occur. Due to the controversial nature of the topic, not many people in leadership positions dare to address the issue. Unfortunately, this has created a culture within the system that makes fraud a real threat. One solution could be to conduct more frequent audits of the government employees in charge of distributing benefits. Another could be to screen those receiving these benefits.

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Photo courtesy of Jeff Eaton.