Checks and Balances

In March 2007, the state of Minnesota accidentally sent Sabrina Walker a check for $2.6 million. Suddenly, the Hopkins High School counselor's life turned into a real-life rags-to-riches story.

She dropped the cash on jewelry, a Chrysler Crossfire, electronics, a $500K treasury bond, a few retirement accounts, and two grand worth of limousine service.

Meanwhile, the state didn't have a clue about the missing money, which was supposed to go to the Hennepin County Medical Center. Officials only got word of the missing funds when Walker called to ask if the check was legit.

Walker was charged with four felonies, including theft by swindle and concealing the proceeds of a crime. Last week she was sentenced to nine months in the workhouse.

But the Walker episode wasn't the state's only mistake. Between July 1, 2007, and June 30, 2008, the state wrote 162 checks to the wrong people—a potential loss of $331,281.

In each case, however, the recipient notified the state of the error or a company complained that a payment never came. "The payments were stopped," says Department of Finance Assistant Commissioner Lori Mo. "None of this money was lost."
Mo does concede that if no one reports a mistake, whoever receives the check could conceivably keep the money. And with around 630,000 checks being cut from the state's central accounting system annually, it's possible that a few folks are walking around with some state-sponsored bling.

—Bradley Campbell

http://www.citypages.com/2008-10-15/...by-feds-karma/