Fraud

Washington, D.C., Feb. 4, 2009 — The Securities and Exchange Commission has taken emergency action to stop a massive and ongoing international boiler room scheme that allegedly sold shares of U.S. penny stock issuers to investors located in Europe by misrepresenting that investors paid no sales commissions. The SEC alleges that, in fact, investors paid commissions exceeding 60 percent of the amount invested, and the fraudulent scheme raised at least $44.2 million from 1,400 investors since March 2007.

"This case demonstrates that the SEC will act aggressively to stop securities fraud that spans international borders and protect investors in U.S. markets," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.    » read more »

Washington, D.C., Jan. 30, 2009 — The Securities and Exchange Commission today charged Merrill Lynch, Pierce, Fenner & Smith, Inc. and two of its former investment adviser representatives with securities laws violations for misleading pension consulting clients about its money manager identification process and failing to disclose conflicts of interest when recommending them to use two of the firm's affiliated services. Merrill Lynch has agreed to settle the SEC's charges and pay a $1 million penalty.    » read more »

January 29, 2009 -- WASHINGTON—The U.S. Department of Justice today announced the availability of an online computer system to help protect states and consumers from automobile fraud and to provide law enforcement with new tools to investigate fraud, theft, and other crimes involving vehicles.

The National Motor Vehicle Title Information System, or NMVTIS, will be available for consumers on January 30, 2009 and will be accessible through third party, fee-for-service websites. The Office of Justice Programs’ (OJP) Bureau of Justice Assistance (BJA) administers NMVTIS in coordination with the Federal Bureau of Investigation (FBI).    » read more »

Washington, D.C., Jan. 28, 2009 — The Securities and Exchange Commission today took emergency action to charge Nashville, Tenn.-based investment advisor Gordon B. Grigg and his firm ProTrust Management, Inc. with securities fraud, and obtained a court order freezing their assets. The SEC alleges that Grigg and ProTrust defrauded clients out of at least $6.5 million and misrepresented that their money was invested in the federal government's Troubled Asset Relief Program (TARP) and other securities that, in reality, do not exist.    » read more »

January 27, 2009 -- WASHINGTON – The former vice president of reinsurance of American International Group Inc. (AIG), was sentenced today to four years in prison for his role in a fraudulent scheme to manipulate AIG’s financial statements, the Department of Justice announced.    » read more »

January 23, 2009 -- WASHINGTON — A former employee of the New York Power Authority (NYPA) was sentenced today to serve 37 months in jail and to pay a $5,000 criminal fine for his role in a kickback and bribery scheme, the Department of Justice announced.    » read more »

12 August 2008 -- A new report says the United States has spent about $100 billion on private contractors to support operations in Iraq since the 2003 invasion to oust Saddam Hussein.

At the height of last year's military surge in Iraq, the United States had roughly 168,000 troops deployed in the country.

Blackwater security guards, Republican Palace, Baghdad: US Army Corps of Engineers (USACE) photograph by ACoE photographer Jim Gordon.

But America's armed forces have been outnumbered by what some see as a private army funded by the federal government: contractors that provide a wide array of services, from security operations to rebuilding projects to logistical support.    » read more »

August 13, 2008 -- BOSTON – Today, a Suffolk County Grand Jury returned indictments against a former account manager at a local wealth management company for allegedly stealing more than $70,000 from a client to pay her personal credit card bills. Donna Payne, age 39, of Mattapan, was charged with Larceny over $250 and Making False Entries in Corporate Books.    » read more »

August 8, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today announced that his office has reached a $1 million settlement with a Hong Kong-based company that creates and distributes content for cell phones. Building on earlier agreements with advertising networks and a major wireless carrier, the agreement with MobileFunster, Inc., which does business as FunMobile, is the first CyberFraud agreement the Attorney General’s Office has negotiated with a mobile content provider and addresses another link in a business model that includes wireless carriers, billing aggregators, advertising networks, and content providers like FunMobile.    » read more »

Multilevel marketing scheme bilked victims out of thousands of dollars

August 6, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today filed a lawsuit today against Quincy company AdSurfDaily accusing the company and its owners of operating a huge pyramid scheme. The Attorney General’s lawsuit is seeking civil damages for the victims and an injunction against the company, its president, Andy Bowdoin Jr., and its employees to prohibit them from engaging in future deceptive marketing.

The lawsuit comes on the heels of a raid conducted by the U.S. Secret Service on the company’s headquarters. The federal authorities also froze $53 million in bank accounts held by the company.    » read more »

August 5, 2008 -- LOS ANGELES -- California Attorney General Edmund G. Brown Jr. today announced a lawsuit against YourTravelBiz.com for operating a "gigantic pyramid scheme" that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.

“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else,” Attorney General Brown said. “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”    » read more »

Washington, D.C., Aug. 11, 2008 — The Securities and Exchange Commission today announced the distribution of more than $48 million to more than 12,000 investors who were victims of fraudulent financial reporting by media conglomerate Vivendi Universal, S.A. Investors receiving checks reside in the United States and in 15 other countries. More than half bought their Vivendi stock on foreign exchanges and are receiving their Fair Fund distribution in euros.

"Today we are able to provide financial remediation to investors who were misled by Vivendi's false financial reporting," said David Nelson, Regional Director of the Commission's Miami Regional Office. "I am particularly gratified that we have been able to identify and help investors not just in this country, but overseas as well."    » read more »

BRIDGEPORT, W.Va., July 3, 2008 -- Like moths to a candle, disasters seem to attract slippery predators skilled at preying on the pain and misfortune of others.

That is a warning by officials of Federal Emergency Management Agency (FEMA) and the West Virginia Division of Homeland Security and Emergency Management (DHSEM) to residents affected by the storms, tornadoes, flooding and other severe weather of June 3-7.

"In disaster situations, there are often those who are ready to take advantage of such situations," said State Coordinating Officer Jimmy Gianato. "Be especially alert for phone or door-to-door solicitors who hand out flyers and promise to speed up the insurance or building permit process, and those who ask for large cash deposits or advance payments in full."    » read more »

Target no longer is able to accept the coupon

MINNEAPOLIS, July 02, 2008 -- Unfortunately, due to fraudulent tampering and transferring, Target no longer is accepting coupon offers for $5 off a $25 or more toy or general merchandise purchase at Target. The coupons state they are valid through October 1, 2008.

Target sent the original coupons for $5 off a $25 or more toy purchase via e-mail to approximately 85,000 guests during the months of February and March. The altered coupon had an image and the word toy removed to make it appear to apply to any purchase.    » read more »

Defendants Allegedly Violated Consumer Protection, Civil Racketeering Acts

June 17, 2008 -- TRENTON -- New Jersey Attorney General Anne Milgram filed mortgage fraud lawsuits against 36 defendants charging consumer fraud and civil racketeering by various mortgage brokers, real estate entities and others throughout New Jersey.    » read more »