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Maine may spare some scam victims from paying taxes on losses

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Maine may spare some scam victims from paying taxes on losses


Maine is poised to stop collecting income tax on money stolen from victims of certain types of scams under legislation that moved forward Thursday with strong bipartisan support.

LD 714 would align state law with federal income tax changes adopted last year by the Internal Revenue Service, which now allows some victims to claim a theft deduction.

The Legislature’s taxation committee voted 12-0 to send the bill to the House and Senate with an “ought to pass” recommendation. If it becomes law, it would apply to scams that began after Jan. 1, 2023.

To qualify for a theft deduction, the IRS stipulates that the loss must result from criminal conduct classified as theft under state law; the taxpayer must have no reasonable expectation of recovering the stolen funds; and the loss must arise from the theft of funds while invested.

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The deduction doesn’t apply to losses from romance scams, false kidnappings and other frauds where victims transfer funds to scammers for non-investment purposes, Steven Langlin, a legislative analyst, told the taxation committee.

Committee member Rep. Gary Friedmann, D-Bar Harbor, noted that older Mainers are especially vulnerable as residents of the oldest state, with a median age of 44.8, according to the U.S. Census.

“I’m moved that we do all we can to protect our seniors,” Friedmann said.

Rep. Thomas Lavigne, R-Berwick, also a committee member, described a recent online scam he experienced. “It was terrible and it can happen to anybody,” he said.

The legislation was drafted after the Portland Press Herald reported on a China couple who lost $1.3 million in a government impersonation scam.

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Barbara and Larry Cook of China lost $1.3 million in a government impersonation scam. (Shawn Patrick Ouellette/Staff Photographer)

From October 2023 to April 2024, Larry and Barbara Cook drained their retirement accounts and transferred the money as bitcoin and gold bullion to scammers posing as Federal Trade Commission investigators. The scammers convinced the couple that it was the only way to protect their savings, which became taxable income once they cashed out their retirement accounts.

“Unlike the IRS, the current Maine tax law does not allow deduction for fraud from gross income,” Larry Cook, 82, said in written testimony to the tax committee. “The fraud and its ongoing consequences have impacted us financially, emotionally and even physically.”

Committee member Rep. Kristina Smith, R-Palermo, represents the Cooks and submitted a copy of the Press Herald article with her written testimony.

“This bill protects the most vulnerable among us — seniors with substantial but finite savings, people with limited technological familiarity, and anyone who falls prey to highly organized criminal schemes,” Smith said.

Scams are on the rise. The number of complaints about government impersonation scams in particular increased 50% in recent years, from 11,554 incidents worth $240.6 million in 2022 to 17,367 incidents worth $405.6 million in 2024, according to the latest FBI data.

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Among people age 60 and up, scams involving cryptocurrency more than tripled in the same period, from 9,991 incidents worth $1 billion to 33,369 incidents worth $2.8 billion.



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This Maine lawmaker is trying to ban Flock license plate readers

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This Maine lawmaker is trying to ban Flock license plate readers


Daniel O’Connor is a Report for America corps member who covers rural government as part of the partnership between The Maine Monitor and the Bangor Daily News, with additional support from BDN and Monitor readers.

A Maine lawmaker is preparing to push for legislation that would ban almost all of the controversial automatic license plate readers popping up around the state.

Rep. David Boyer, R-Poland, said he submitted a bill title to ban both municipalities and police departments from using the readers with an exception for cameras used for toll collection. This is the first step in the legislative process. Details may be added to the bill later, and it won’t be considered at least until the Legislature reconvenes in January.

Automatic license plate readers are proliferating in Maine and across the country. Some municipalities here are using cameras by the companies Flock and Verkada. The cameras are meant to alert police departments if a vehicle connected to an active investigation passes by. Footage is sometimes shared with police across the country, raising privacy concerns.

Boyer said local officials in his district covering have the “good taste” to have avoided using license plate readers so far, but he added that his constituents are likely to encounter them in neighboring Auburn. That city, which is the main service center near Boyer’s district, recently approved funding to install Flock cameras at intersections and in neighborhoods.

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He said the proposal was inspired by reader malfunctions in other states. Some people have found themselves under investigation after camera errors. But Boyer, a libertarian-leaning lawmaker, also said he was “just trying to slow down the impending surveillance state.”

It’s difficult to pinpoint how many automatic plate readers are running in Maine. DeFlock, an open-source network on which users report sightings of Flock and other cameras, lists 50 stretching from York to Bangor. The real number may be much higher. Earlier this year, Hancock County said it would install 13 Motorola license plate readers across six locations, but so far, none appear on DeFlock’s map.

Civil libertarians on both sides of the political aisle have voiced anxiety over the proliferation of AI-powered surveillance tools in Maine. The state’s chapter of the American Civil Liberties Union recently called Flock “a significant threat to our constitutional rights to privacy.” In April, the conservative Maine Wire also published an article critical of them.

When Hancock County began installing its cameras, some expressed fear they could be used for immigration enforcement despite policies that prevent data sharing with immigration officials. Similar concerns have come up in South Portland, where police recently stopped sharing footage with Flock’s national database accessible to departments across the country.

It’s not clear how the bill might affect other surveillance programs that are not specifically aimed at license plates. Bangor and surrounding towns recently faced significant backlash over their use of Placer AI, a program that uses phone data to monitor foot traffic. In some parts of the state, police are also using AI-powered cameras to generate police reports.

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Daniel O’Connor

Daniel O’Connor is a Report for America corps member who covers rural government as part of the partnership between The Maine Monitor and Bangor Daily News.

Hailing from a small town in Connecticut, Dan’s interest in government reporting brought him back to rural New England, where he aims to shed light on the government, politics and cultural trends impacting rural communities across Maine. He arrived in Maine after attaining his master’s degree at Columbia Journalism School in New York City. He is based in Augusta.

Contact Daniel via email with questions, concerns or story ideas: danMEMONiel themainemonitor org

Contact Daniel via Signal: 860-822-3533

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Maine veterans find closure, connection on Honor Flight to D.C.

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Maine veterans find closure, connection on Honor Flight to D.C.


WASHINGTON, D.C. (WABI) – Maine veterans returned home Sunday after a weekend in Washington, D.C.

Giving local veterans and their loved ones a visit to the capital of the nation they dedicated their lives to is the aim of Honor Flight Maine.

Marking their second trip of the year, the nonprofit provided about 70 Pine Tree State veterans a free trip to Washington to visit the memorials and monuments dedicated to their service.

For many, this was this first time seeing the capital in person.

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“Unreal,” “a once-in-a-lifetime opportunity,” and “tear-dropping” were among the sentiments shared by veterans about the Honor Flight. Others remarked on the memories revived by visiting the ceremonial spaces.

“I have some friends that’s over there, so it really was nice,” said Edward Lee, a Vietnam veteran from Bangor.

Lee was able to find one friend’s name engraved on the Vietnam Veterans Memorial. Using graphite and a piece of paper, he made a rubbing of the name to take home.

Rose Marie Curtis, a Navy nurse who served in Vietnam, said seeing the three nurses depicted at the Vietnam Women’s Memorial sent her back in time.

“For so many years, you don’t think about something. You’re doing this and doing that and having children, whatever. But this really brings you back,” Curtis described.

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Not only does the trip give veterans the opportunity to see these sites, it allows a chance to connect; with perhaps a past or present self, and with fellow veterans.

“It’s what makes Honor Flight Maine special because you’re with your own kind,” explained Charlie Paul, a Vietnam War veteran who has been involved with Honor Flight Maine for a decade. “We’re a segment of society, they remember us on Memorial Day. They remember us on Veteran’s Day. They remember us on Armed Forces Day. But then they forget about us. And so for us as an organization to take them down here and see their memorials, it just lets them know they’re that special.”

For Lincoln veteran Richard Rollins, the visit gave him “closure,” considering, “…when I got out of the service, I mean, to be honest, even in ’79, I was never thanked.”

Among former servicemembers of all ages, father-son veterans James and Michael Sherman said the trip opened up conversation, sharing stories they had never told each other about their service.

“It means the world that people care, and we shouldn’t wait a moment to tell the people that are important to us what they mean to us,” Michael Sherman remarked.

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Copyright 2026 WABI. All rights reserved.



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Car catches fire on Maine Turnpike in Kennebunk

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Car catches fire on Maine Turnpike in Kennebunk


KENNEBUNK, Maine (WGME) — A car caught on fire on the Maine turnpike Saturday.

It happened in Kennebunk in the southbound lanes of the turnpike.

A car caught on fire on the Maine turnpike Saturday. (Courtesy of Kennebunk Fire Rescue)

You can see a large cloud of black smoke coming from the scene.

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Nobody was hurt.

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Firefighters were able to extinguish the flames.



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