Giving Compass' Take:

· The Cato Institute takes a look at the Christopher Bathum scandal and examines the relationship between federal subsidies and fraudulent activity.

· Why do federal subsidies and breaks lead to fraud? How can these actives be prevented?

· Here's how fraud has infiltrated the healthcare sector.

One of the problems with federal hand-out programs is that individuals take advantage of them and scam artists outright loot them. You see this in programs such as Medicaid, Medicare, school lunches, earned income tax credits, housing aid, student loans, and farm subsidies.

Daily Beast writer Evan Wright has the appalling story of Christopher Bathum, who looted addiction-treatment funds made available by the Obamacare law. The law required addiction-treatment funding by Medicare, Medicaid, and private insurance companies.

Addiction is, of course, a huge problem, but to me Wright’s article indicates that the wrong solution is throwing federal money and mandates at it. The costly Americans with Disabilities Act also played a role in Bathum’s scam.

Read the full article about fraud from federal subsidies by Chris Edwards at the Cato Institute.