Fraud

Washington, D.C., Nov. 17, 2009 — The Securities and Exchange Commission today charged two former Silicon Valley executives for improperly inflating the reported financial results at Santa Clara, Calif., semiconductor company Tvia, Inc.    » read more »

November 17, 2009 -- WASHINGTON -- Attorney General Eric Holder, Treasury Secretary Tim Geithner, Housing and Urban Development (HUD) Secretary Shaun Donovan, and Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro today announced that President Barack Obama has established by Executive Order an interagency Financial Fraud Enforcement Task Force to strengthen efforts to combat financial crime.    » read more »

November 17, 2009 -- WASHINGTON, DC – Senator Ted Kaufman (D-DE), a member of the Senate Judiciary Committee, released the following statement after the Obama Administration’s announcement of a Financial Fraud Enforcement Task Force earlier today:

“I applaud the President’s creation today of an interagency Financial Fraud Enforcement Task Force. As I’ve said since my first week in office, we need to hold accountable the people and institutions whose criminal behavior contributed to the worst financial crisis in my lifetime. That is the only way for investors and the public again to have confidence in the financial markets.”    » read more »

Senator has pushed for action to investigate and prosecute financial fraud

November 17, 2009 -- (WASHINGTON, D.C.) – U.S. Senator Byron Dorgan (D-N.D.) said today’s announcement that the Justice Department will ramp up efforts to crack down on financial fraud “is critical to bring these modern day bank-robbers to justice, necessary to restore confidence in our financial system, and I applaud the Department of Justice for taking this action.”

Dorgan has been pushing for increased investigations and prosecutions of those who wrongly profited from the financial collapse. In January, Dorgan introduced the Taxpayer Protection Act (S. 195), which would, among other things, investigate and prosecute financial fraud that contributed to the collapse of our financial markets.    » read more »

Washington, D.C., Nov. 16, 2009 — The Securities and Exchange Commission today charged four individuals and two companies involved in perpetrating a $30 million Ponzi scheme in which they persuaded more than 300 investors nationwide to participate in purported environmentally-friendly investment opportunities.

The SEC alleges that Wayde and Donna McKelvy, who were previously married and living in the Denver area, particularly targeted elderly investors or those approaching retirement age to finance such "green" initiatives of Pennsylvania-based Mantria Corporation as a supposed "carbon negative" housing community in rural Tennessee and a "biochar" charcoal substitute made from organic waste.    » read more »

Unprecedented Response in Voluntary Tax Disclosure Program

November 17, 2009 -- WASHINGTON – Deputy Attorney General David W. Ogden released the following statement regarding the announcement today by the Department of Justice and the Internal Revenue (IRS) regarding the results arising from previous settlements of civil and criminal cases against Swiss banking giant UBS AG.

The Justice Department and IRS announced that over 14,700 taxpayers have come forward to report previously-undisclosed foreign bank accounts under the voluntary disclosure program the IRS implemented following the settlement. This figure represents almost double the initial numbers the IRS announced in October and dwarfs the number of voluntary disclosures received in 2008.    » read more »

U.S. Joins False Claims Act Lawsuit Against Kuwait-Based Companies That Supplied Food to U.S. Troops in Middle East

November 16, 2009 -- The United States has joined a whistleblower suit against Public Warehousing Company (PWC), The Sultan Center Food Products Company (TSC), and PWC’s chief executive officer, Tarek Abbul Aziz Sultan Al-Essa, the Justice Department announced today.    » read more »

November 16, 2009 -- PAGO PAGO, AS -- Fraud is a rare occurrence during disaster recovery. However, if it does occur, the Federal Emergency Management Agency (FEMA) has a responsibility to take action.

People who intentionally try to defraud the government are taking money away from those who truly need assistance. FEMA must ensure that taxpayer dollars go only to people who incurred legitimate losses. This may include prosecuting anyone who makes a fraudulent claim.

Most cases where possible fraud is detected are not deliberate attempts to defraud the federal government. FEMA recommends that applicants receiving grant money keep receipts to show how funds were used.    » read more »

Washington, D.C., Nov. 13, 2009 — The Securities and Exchange Commission today charged two computer programmers for their role in helping convicted Ponzi schemer Bernard L. Madoff cover up the fraud at Bernard L. Madoff Investment Securities LLC (BMIS) for more than 15 years.

The SEC alleges that Jerome O'Hara of Malverne, N.Y., and George Perez of East Brunswick, N.J., provided the technical support necessary to produce false documents and trading records, and took hush money to help keep the scheme going.    » read more »

November 12, 2009 -- The Miami Division of the Federal Bureau of Investigation (FBI) and the Miami Field Office of the Internal Revenue Service (IRS) are seeking information from individuals who have invested in the Rothstein Structured Settlement Investment (RSSI) or from individuals who have information that would be helpful to the investigation. To facilitate information gathering, the FBI has established a dedicated e-mail address and an informational telephone line 1-800-CALL-FBI, "Rothstein Option."

Details of the investigation cannot be discussed at this time, as the investigation is ongoing. However, the FBI and IRS are seeking to identify victims and to obtain any information to determine the extent of any potential fraud.    » read more »

November 12, 2009 -- Washington, DC – More than three-quarters of older Americans are concerned that financial scams will damage their retirement nest eggs or those of someone they know, AARP and North American Securities Administrators Association (NASAA) said today.

In a survey released today by AARP, entitled Protecting Older Investors: 2009 Free Lunch Seminar Report, 78 percent of Americans age 55 and over surveyed indicated that they are very or somewhat concerned about financial scams affecting them or someone they know. A common setting for fraudsters to engage with their victims is by offering a free lunch or dinner, by which an older individual near retirement age is solicited to attend and learn more about investing in retirement.    » read more »

November 13, 2009 -- MILWAUKEE – Wisconsin Governor Jim Doyle today signed into law Senate Bills 280, 299, 331 and 347, which build on his work to protect kids, ensure every child has a chance to succeed, and prevent fraud.

“As Governor, my number one priority has always been putting our kids first,” Governor Doyle said. “We have come a long way to help kids have the best education, best health care and best family support system possible. These bills signed into law today build on our efforts to protect our kids and ensure they can get a great start to life.”

Legislation signed by the Governor also builds on efforts to detect and prevent fraud in Wisconsin Shares, the state’s child care program for over 60,000 low-income working families.    » read more »

Washington, D.C., Nov. 10, 2009 — The Securities and Exchange Commission today charged the former chief financial officer of a New York-based hedge fund with securities fraud for arranging secret sales of securities from his personal trading account to the hedge fund accounts at inflated prices to generate his own illicit profits.    » read more »

November 10, 2009 -- A South Korean businessman was sentenced today in U.S. District Court for the Northern District of Texas to five years in prison for his role in a bribery conspiracy involving a $206 million telecommunications contract and employees of the Army and Air Force Exchange Service (AAFES).

In addition to the prison term, U.S. District Judge Ed Kinkeade also ordered Gi-Hwan Jeong to pay a $50,000 fine. Jeong pleaded guilty on June 11, 2009, to a five-count indictment, charging him with one count of conspiracy, two counts of honest services wire fraud and two counts of bribery.    » read more »