Hundreds fired from Southwest Side Target facility over alleged healthcare loan fraud

CHICAGO (WGN) — Hundreds of employees at a Southwest Side Target distribution facility have been fired after allegedly stealing money from the company through healthcare loans.

Employees at the Target Flow Center, located at 3501 S. Pulaski Rd. in Chicago’s Little Village neighborhood, say word spread rapidly about a fraud scheme carried out by their coworkers.

Block Club Chicago reports workers took advantage of a glitch in Target’s medical loan program. The glitch allowed employees to take out loans for $3,000 and pay back just $50 to have the balance erased.

Block Club’s Charles Thrush has spent the past week talking with employees, who told him about one employee, considered the ringleader, who discovered the glitch and helped coworkers carry out the fraud.

The so-called ringleader would charge a $200 to $300 fee per person involved, and there were hundreds of employees in on the scheme, according to Thrush’s findings.

“You’re seeing anywhere from 400 to 700 firings from Target,” Thrush said.

The company isn’t confirming how many people were involved but says in a statement:

“Following an internal investigation, we have terminated team members found to be in violation of our company’s code of ethics.”

It’s not clear whether those involved could also face criminal charges. The scheme could have lost the company $1 million, according to Block Club Chicago.

Target says it’s put measures in place to make sure this type of scheme doesn’t happen again. The firings will not impact business operations.