Call Kurtis Investigates: Gas tax rebate fraud
As the Franchise Tax Board tells people to quickly spend their gas tax rebates in response to reports of fraud, one Antelope viewer called Kurtis when most of the money on her card was spent by someone else.
Trish Grosjean says she used her gas tax rebate care once, visiting her son in Pacifica. But the second time she tried to use it, she found out she only had a dollar left. Someone had drained her rebate on a southern California shopping spree.
"This card that I literally have in my hand is now useless," she told CBS13.
And Sacramento's Lap Luu says the Franchise Tax Board sent him a 1099-MISC for a $750 gas tax rebate he never got.
"I was surprised," he said. "I didn't even know what a 1099-Miscelaneous was. I had to look it up."
The growing reports of fraud have some legislators raising questions.
"This was intended to help people who were really struggling," said San Diego Assemblyman David Alvarez, who wants answers over the large number of complaints he's hearing involving fraud, missing payments and people struggling to get through to the Franchise Tax Board or the Money Network, the company the state used to issue the debit cards.
"It's not acceptable," he told CBS13. "When we make a promise to Californians, we have to make sure we follow through with that."
The Franchise Tax Board says of the $9 billion sent out, the fraud rate is less than 1 percent. But Assemblyman Alvarez isn't buying it.
"We really don't know the extent until we have professional auditors go in there and look at all the data," he said.
So CBS13 was wondering, who is on the hook to cover this fraud?
According to the Franchise Tax Board's contract, the Money Network "shall assume responsibility (from the point of activation) for any replacement of debit card funds resulting from fraudulent use."
Lap reported his missing money to the FTB and was told it could take up to six weeks to get a check.
Trush reported her fraud to the Money Network, and now must wait up to 90 days for an investigation and replacement card. She thinks the audit is a good start.
"It's not just about me," she said. "It's not just about the money. It's about being taken advantage of. Nobody likes to be ripped off."
For people struggling to get through to the FTB or Money Network to report issues with their rebate cards, the state says wait times tend to be shortest early in the day on Wednesdays, Thursdays and Fridays.
