Scams

Washington, D.C., March 10, 2010 -- The Securities and Exchange Commission is alerting investors about a Web site that falsely claims to have recovered $1.3 billion in funds hidden by convicted Ponzi schemer Bernard Madoff in Malaysia.

The site asks Madoff victims to submit information to verify that they are on a refund list — a ploy commonly used by con artists to further rip off financial fraud victims.

The phony Web site claims to be home to the "International Security Investor Protection Corporation" — a fictitious entity. The "ISIPC" Web site bears a certain likeness to the Securities Investor Protection Corporation's (SIPC) Web site, mimicking its look, feel, and content in an attempt to achieve an aura of authenticity with Madoff victims.    » read more »

March 12, 2010 -- The Internet Crime Complaint Center (IC3) and the Federal Bureau of Investigation remind individuals to be cautious when using the Internet to advertise rental properties and real estate. The IC3 continues to receive numerous complaints from individuals who have fallen victim to scams involving rentals of apartments and houses, as well as online real estate postings.    » read more »

January 27, 2010 -- MIAMI—Jeffrey H. Sloman, U.S. Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, FBI, Miami Office; and Daniel W. Auer, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation Division, announced today that attorney Scott Rothstein, 47, of Fort Lauderdale, Fla., entered a plea of guilty to a five-count information. Defendant Rothstein is scheduled for sentencing before the Honorable James I. Cohn on May 6, 2010. He faces a total maximum statutory term of 100 years in prison.    » read more »

January 18, 2010 -- Washington D.C. -- The FBI and the National Center for Disaster Fraud (NCDF) have established a telephone hotline to report suspected Haitian earthquake relief fraud. The number is (866) 720-5721. The phone line is staffed by a live operator 24 hours a day, seven days a week. You can also e-mail information directly to disaster@leo.gov.    » read more »

January 13, 2010 -- The FBI today reminds Internet users who receive appeals to donate money in the aftermath of Tuesday’s earthquake in Haiti to apply a critical eye and do their due diligence before responding to those requests. Past tragedies and natural disasters have prompted individuals with criminal intent to solicit contributions purportedly for a charitable organization and/or a good cause.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, to include the following:

* Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.    » read more »

Beware of Scam Emails and Search Engine Results When Donating to Haitian Relief Effort

January 15, 2010 -- As Connecticut residents make plans to send aid to support recovery efforts in Haiti, Governor M. Jodi Rell is urging the public to beware of scam emails and fraudulent search engine results that may contain links or attachments which may direct users to phishing or malware-laden websites.

“We see the overwhelming devastation and of course we want to help in some way,” Governor Rell said. “But please be mindful of potential email scams and search engine poisoning campaigns that may circulate regarding the disaster. We want everyone to know how to protect themselves.”

The public can take the following measures to protect themselves:    » read more »

Washington, D.C., Jan. 11, 2010 — The Securities and Exchange Commission today announced that it has charged Beverly Hills, Calif.-based NewPoint Financial Services, Inc. and its co-owners and controller for conducting an unregistered offering fraud aimed at Iranian-Americans in the Los Angeles area. The SEC obtained an emergency court order to freeze their assets and preserve remaining funds that were collected from investors.    » read more »

Aims To Provide Expanded Tax And Retirement Relief To Small Investors Who Invested All And Have Nothing Left Because Of Convicted Scam Artist

December 7, 2009 -- Joined by middle class New York City residents who lost everything they had at the hands of convicted scam artist Bernie Madoff, U.S. Senator Charles E. Schumer today unveiled the Madoff Investors’ Bill of Rights that would dramatically expand federal tax benefits aimed at helping devastated smaller investors recoup some of their losses.

Many of Madoff’s victims were older and retired and don’t have a monthly income to rely on day to day. The largest Ponzi scheme, run by disgraced financier Bernie Madoff, cost thousands of investors more than $60 billion.    » read more »

December 1, 2009 -- MIAMI -- Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation, Miami Office; and Daniel W. Auer, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced the filing of a five-count Criminal Information charging attorney Scott Rothstein, 47, of Fort Lauderdale, Fla., with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; one count of conspiracy to commit money laundering; one count of conspiracy to commit mail fraud and wire fraud; and two counts of wire fraud.    » read more »

November 30, 2009 -- WASHINGTON – The U.S. Environmental Protection Agency is warning consumers to beware of unscrupulous vendors who may market ineffective and unregistered products or services that claim to disinfect surfaces or entire rooms against the H1N1 influenza virus. In the current flu-conscious climate, heightened anxiety about the spread of the H1N1 virus has bred false claims in the marketplace.

“Unfortunately some vendors may try to take advantage of people’s fears at a time like this and market products that aren’t effective or make unsubstantiated claims,” said Steve Owens, assistant administrator for EPA’s Office of Prevention, Pesticides and Toxic Substances. “Americans need to be aware of what they may be buying.”    » read more »

Washington, D.C., Nov. 30, 2009 — The Securities and Exchange Commission today charged a Dallas and New Orleans-based hurricane restoration company and several executives for lying about non-existent business deals in the wake of Hurricane Katrina, and fraudulently inflating the company's stock price before the company's CEO sold millions of dollars in company shares.    » read more »

New Law Signed on Eve of Citizens Utility Board’s 25th Anniversary

CHICAGO – November 29, 2009. Governor Pat Quinn today signed a bill into law that protects consumers from the deceptive and unauthorized telephone practice commonly known as “cramming.”

The new law prohibits third-party telecommunication providers from adding charges to a consumer’s telephone bill without their consent. The legislation is supported by Illinois Attorney General Lisa Madigan, industry leaders and watchdogs, including the Citizens Utility Board (CUB).    » read more »

11/16/2009 -- WASHINGTON -- United States Senator Mary L. Landrieu, D-La., today urged the Federal Trade Commission (FTC) to help protect homeowners from scams by companies and individuals claiming to have solutions for tainted Chinese drywall. In a letter to FTC Chairman Jon Leibowitz, Sen. Landrieu and five other Senators raised concerns about deceptive practices that prey on consumers with defective drywall and asked the Commission to fully investigate and prosecute companies engaging in these activities.

The letter was signed by Senators Bill Nelson (D-Fla.), David Vitter (R-La.), Thad Cochran (R-Miss.), Roger Wicker (R-Miss.) and Jim Webb (D-Va.).    » 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 »

Last Week Schumer Requested The FTC Step Up Enforcement Actions Against Websites Peddling Fake H1N1 Cures and Prevention Methods

November 16, 2009 -- Today, U.S. Senator Charles E. Schumer announced that the Federal Trade Commission (FTC) is embarking on a major crackdown on companies selling phony H1N1 remedies. As the problem of fake remedies grows worse, and concerns about the H1N1 flu increase, the FTC announced that they would take further enforcement action against ten companies that are peddling fake H1N1 remedies on-line.    » read more »