The Collar
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Scammers Use Dead Doctors to Bilk Medicare
Continue reading… 11 CommentsWhile a dead doctor isn't much use to a patient, it turns out they can be quite helpful to perpetrators of Medicare fraud.
From The Associated Press:
Sellers of wheelchairs, drugs, and other medical supplies collected as much as $93 million in fraudulent Medicare claims based on prescriptions from doctors who actually were dead, some for 10 years or more, a congressional investigation has found.
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Fugitive Executive Surrenders
Continue reading… 1 CommentLess than a month after disappearing under suspicious circumstances, former hedge fund cofounder Samuel Israel gave himself up to authorities Wednesday, the Associated Press reports.
So where was this crooked executive hiding out all this time?
From the Associated Press:
Officials said that after Israel abandoned his car, he took off in a white recreational vehicle carrying a motor scooter and his belongings. He was believed to be staying at RV parks, campgrounds, or highway rest areas.
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Another State—Florida—Sues Countrywide
Continue reading… 33 CommentsLast week, attorneys general in California and Illinois filed lawsuits against beleaguered mortgage lender Countrywide. On Monday, Florida threw its hat in the ring as well:
From Reuters:
Florida sued mortgage lender Countrywide Financial Corp. on Monday for predatory lending practices, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.
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California and Illinois Sue Countrywide
Continue reading… 15 CommentsBeleaguered mortgage lender Countrywide faces a fresh set of headaches after attorneys general in two states filed lawsuits against the company.
From the Associated Press:
Countrywide Financial Corp. is accused of using misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn't fully understand in a lawsuit filed Wednesday by the California attorney general's office.
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Ex-Chicago Bears Fullback Admits Fraud
Continue reading… 0 CommentsRoland Harper, an ex-Chicago Bears fullback who once charted running lanes for Hall of Famer Walter Payton, could find himself in prison for more than a year after admitting his involvement in a fraudulent scheme.
Harper pleaded guilty Tuesday to serving as "a front man in a fraud involving a $1.5 million Chicago Public Schools landscaping contract reserved for minority firms," the Associated Press reports.
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Feds: Crooked Executive Didn't Kill Himself
Continue reading… 1 CommentThe mystery surrounding the whereabouts of financial fraudster Samuel Israel III deepened Monday, as the feds officially ruled out suicide.
Israel's abandoned vehicle was found on a bridge in New York State—with the phrase "Suicide is Painless" written on it—on the very same day he was supposed to begin serving his 20-year prison sentence for fraud and conspiracy.
From the Associated Press:
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Did Crooked Executive Fake Suicide?
Continue reading… 2 CommentsAlthough a financial fraudster reportedly left his car on a bridge with the words "Suicide is Painless" written in dust on the vehicle, police and investors aren't convinced he took his own life.
Why? Because the swindler—Bayou hedge fund cofounder Samuel Israel III—was recently sentenced to a 20-year prison term for fraud and conspiracy. He was scheduled to begin serving the sentence Monday, the same day his abandoned car was found.
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Fake Refund Scam Reported
Continue reading… 0 CommentsLooks as if Internet fraudsters are zeroing in on the same folks they've already duped. The FBI is warning the public to be on the lookout for E-mails falsely offering refunds to victims of Internet fraud schemes. The phony E-mails purport to be from the government of the United Kingdom and the Internet Crime Complaint Center.
From the FBI press release:
The e-mails promise refunds of thousands of dollars which are to be sent via bank wire transfer from the "bank of England [sic]" once the victim signs a "fund release order." The e-mails contain warnings that failure to sign the order will place the funds on hold and a penalty will be applied.
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Walgreens Settles Medicaid Fraud Allegations
Continue reading… 9 CommentsPharmacy retailer Walgreens has agreed to fork over $35 million to settle allegations that it squeezed the government out of additional reimbursements by improperly switching the type of drugs given to Medicaid patients, the Justice Department said in a press release this week.
Walgreens did not admit guilt in the settlement, a company spokeswoman said.
From the press release:
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Investment Adviser Is Convicted of Fraud
Continue reading… 4 CommentsHere's another candidate to scratch off your short list of potential money managers: Amit Mathur.
The 38-year-old Massachusetts man was convicted in mid-May on 20 counts of fraud in connection with an investment scheme that squeezed roughly $13 million out of 15 investors.
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Boy Band Mogul Sings the Blues
Continue reading… 0 CommentsLou Pearlman—the mind behind boy band sensations Backstreet Boys and 'N Sync—will have plenty of time to plan new song-and-dance routines during the 25-year prison sentence he was given last week.
According to the Department of Justice, in addition to turning teenaged boys into stage-rattling heartthrobs, Pearlman also had a talent for making investor's money disappear.
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Wesley Snipes, Not Dangerous?
Continue reading… 4 CommentsA federal judge—who apparently still hasn't seen Demolition Man—on Thursday granted Wesley Snipes's request to remain free on bond until his conviction and sentence are reviewed by a higher court, saying that the former action hero turned tax criminal "does not constitute a danger of any kind."
From the judge's order, via the White Collar Crime Prof Blog:
The Court is persuaded by the history of the case and all of the attendant circumstances that the Defendant poses no substantial risk of flight and does not constitute a danger of any kind if he remains at liberty pending appeal.
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Warning: Chinese Earthquake Scam Reported
Continue reading… 0 CommentsThe FBI is warning consumers to be on the lookout for E-mails purportedly soliciting funds to support the victims of the recent earthquake in China. "Some of the Chinese earthquake scam messages claim to be offering free vacation trips to the largest donors and even use fake logos of legitimate online pay services to fool people," the FBI said in a release.
Similar fraudulent efforts followed other recent tragedies, such as 9/11, Hurricane Katrina, and the shootings at Virginia Tech, the FBI said. Criminals apparently use such events to prey upon the sympathy of individuals.
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How Frank Abagnale Would Swindle You
Continue reading… 19 CommentsDuring his years as a globe-trotting confidence man, Frank Abagnale passed $2.5 million of phony checks in every U.S. state and 26 countries. Now, as a teacher at the FBI academy, the real-life inspiration for the movie Catch Me If You Can trains law enforcement officials to prevent the very crimes he once committed. Abagnale recently spoke with U.S. News about how check forgery has changed over the years, why it remains such a problem today, and how he would swindle consumers—if he were still a bad guy. Excerpts:
How big of a problem is check forgery today?
I teach check forgery at the FBI academy. I really, honestly, truly believed 10, 15, 20 years ago that I would not be talking about it still today. It's amazing to me that check forgery is now at about $20 billion a year, up from about $12.6 billion in 1996. There was an increase in check forgery of over 25 percent last year. It's such a simplistic crime, and we are still very much a check-user society, so checks are still part of our payment system. -
Manhunt for Exec Ends at Golf Range
Continue reading… 0 CommentsIn a stirring tribute to a notoriously frustrating game, the alleged ringleader of a $20 million fraud scheme was captured on a golf driving range last week, authorities said. He had been a fugitive for more than two years.
Law enforcement officers arrested 52-year-old Jacob Kim of Palisades Park, N.J., while he was "taking swings" at the Alley Pond Golf Center in Queens, N.Y., according to the Department of Justice. Arresting officers reported finding $48,000 in cash—enough for quite a few range tokens—in his pocket.
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Former Financial Adviser Gets 87 Months
Continue reading… 0 CommentsAnd you thought your financial adviser was hosing you? At least he's not tipping strippers with your 5-year-old's college fund. Unfortunately, the clients of John A. Baldo, a former financial adviser from New Jersey, can't say the same.
Baldo was sentenced to 87 months in prison earlier this month for defrauding elderly investors out of hundreds of thousands of dollars and using the proceeds to pamper himself.
According to the Department of Justice, the 39-year-old Baldo obtained nearly $2 million from senior citizens in Massachusetts and Connecticut by convincing them they could enjoy "handsome returns" by investing with his firm, Freedom Financial.
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The Perp Walk
Continue reading… 0 CommentsDepartment of Justice: "Passaic Mayor Samuel 'Sammy' Rivera pleaded guilty today to attempted extortion, admitting that he accepted a bribe from a government cooperating witness who was representing an undercover insurance brokerage company in return for his official assistance in steering public contracts to the undercover company."
DOJ: "A Customs and Border Protection (CBP) officer has been arrested and charged for accepting bribes for fraudulently making and delivering an official travel document."
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The Perp Walk
Continue reading… 0 CommentsThe Wall Street Journal: "The Securities and Exchange Commission's investigation into Daniel Zwirn's hedge-fund firm has intensified, with more than a dozen subpoenas going out to investors in recent weeks, according to people with knowledge of the regulatory requests.
Newsday: "Two Brooklyn men were arrested yesterday on federal charges that they used their defunct mortgage company to pull a series of ripoffs, including $44 million involving over 250 home loans funded by Fannie Mae, the federally sponsored pool of home mortgages, officials said."
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Warning: Stimulus Check Scam Reported
Continue reading… 13 CommentsAs Americans receive their economic stimulus checks, Internet fraudsters are already looking to swipe them.
The FBI is warning consumers to be on the lookout for E-mails such as the following, which purport to be from the Internal Revenue Service but are actually attempts to purloin sensitive information:
Over 130 million Americans will receive refunds as part of President Bush program to jumpstart the economy.
Our records indicate that you are qualified to receive the 2008 Economic Stimulus Refund.
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The Perp Walk
Continue reading… 0 CommentsWall Street Journal: "U.S. prosecutors are investigating whether [UBS AG's private bank], which provides services to wealthy individuals, was involved in tax-evasion schemes that may have been carried out through Liechtenstein, a European principality that was beyond the reach of U.S. tax officials."
ABA Journal: "The FBI has raided the watchdog agency created to investigate complaints by federal employees and battle fraud in the U.S. government."
Department of Justice: "New York Man Sentenced for Role in Boiler Room Investment Scheme"
Department of Justice: "California Banker Pleads Guilty to Embezzlement"
