Help Me Hank! Grant fraud

Help Me Hank: Help Me Hank! Grant fraud

Posted: 06/19/07

Packing up your TV, your furniture and your whole kitchen can take a lot of work! But Kathy LeBlanc would like nothing more than to call in the movers.

Kathy LeBlanc, consumer
"My son and I were hoping to go to Florida."

To get to the Sunshine State, LeBlanc needed some extra money.

Kathy LeBlanc, consumer
"Something that would be helpful to move."

So, she got online looking for a government grant.

Kathy LeBlanc, consumer
"I know that a grant is money that's given to you most of the time you don't have to repay it."

A quick search yielded tons of grant sites. She picked one and filled out a survey.

Kathy LeBlanc, consumer
"I really didn't expect to hear anything."

But a couple of days later, the phone rang.

Kathy LeBlanc, consumer
"They said you may qualify."

They said she might get $8,000 and maybe more.

Kathy LeBlanc, consumer
"I was psyched."

But first she had to give them $300. So, she pulled out her checkbook and read off all the numbers.

Kathy LeBlanc, consumer
"I gave her all the information."

Then she asked them to hold off three days until she made sure she had enough money in the bank.

Kathy LeBlanc, consumer
"I was like, 'Hey, this could be really cool.'"

But then she got back online and started to worry.

Kathy LeBlanc, consumer
"You know, my mother always told me that if it sounds too good to be true it usually is."

Was she about to get ripped off?

Kathy LeBlanc, consumer
"One of the girls I worked with said you know, call Hank and find out."

Pay someone to give you government grant money? We know the answer is no way.

Lois Greisman, Federal Trade Commission
"It's a red flag if somebody says you've been awarded a grant all you have to do is pay this one-time shipping or handling or processing fee."

The Federal Trade Commission said these government grant schemes are often just another kind of fraud, designed to take your money and give you nothing. They're simply not legit.

Lois Greisman, Federal Trade Commission
"We have an active law enforcement program targeting a whole range of frauds, such as these."

We told LeBlanc to put a stop on her check and luckily it hadn't been cashed. That cost her $25, but at least she wasn't out $300. And LeBlanc learned a valuable lesson about government grants.

Kathy LeBlanc, consumer
"They won't send you to Florida and help you live there."

(Copyright 2007 Sunbeam Television. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Segment Information

Reported by:

Hank Phillippi Ryan

Producer:

Melina Schuler

Contact:

MSchuler@whdh

Archived Reports:

All Help Me Hank