Archive for June, 2009

Mortgage fraud ring busted in Illinois nets 37

Filed June 30th, 2009 joshua

Thirty-seven people have been charged with operating a mortgage fraud ring in Illinois worth at least $48 million. According to Associated Press, the latest in a nationwide series of mortgage fraud rings involved five different cases with houses in several different Chicago neighborhoods. Among those charged in this particular bust are mortgage brokers, loan officers, […]

Scareware firms settle with FTC

Filed June 26th, 2009 joshua

Two “scareware” firms have settled fraud charges with the Federal Trade Commission. Rather than pay nearly $2 million in fines, defendants James Reno and ByteHosting Internet Services LLC have agreed to forfeit more than $116,000 in revenues they got illegally from consumers over the Web. The firm in question scammed Web surfers by offering a […]

Corrupt Ingenix database used by insurers nationwide

Filed June 25th, 2009 joshua

The Senate Commerce Committee has determined that health insurers nationwide were basing their out-of-network costs on the flawed and corrupted Ingenix database created by UnitedHealth Group. UnitedHealth faces legal action from New York State Attorney General Andrew Cuomo, who believes the Ingenix system is over-charging customers for such services. The fact that it served as […]

TJX will pay nearly $10 million to settle data theft lawsuits

Filed June 24th, 2009 joshua

Retailer TJX, which operates TJ Maxx and Marshall’s stores nationwide, has settled on charges it stole the personal data from customers for several years. The settlement forces TJX to pay more than $9.75 million to states which sued it following the revelation that it stole customer data. TJX admitted no wrongdoing in settling the numerous […]

SEC Files Action Against Madoff Recruiters

Filed June 23rd, 2009 meg

The SEC has brought a civil enforcement action against Cohmad Securities Corp. with securities fraud. Also included in the action are Cohmad chairman Maurice Cohn, chief operating officer Marcia Cohn and registered representative Robert Jaffe. They are charging that the brokerage firm raised money from investors to feed Bernard Madoff’s Ponzi scheme. Separately, the SEC […]

Stanford indicted on fraud charges

Filed June 22nd, 2009 joshua

Fraudulent billionaire Robert Allen Stanford has been indicted on federal criminal charges of conspiracy to commit mail, wire and securities fraud. The head of his own Stanford Group Co. turned himself into authorities late last week, according to a CNN report. In total, Stanford faces 21 separate charges in the indictment. Stanford believes he is […]

Investigators Seek Delay on Madoff Restitution

Filed June 22nd, 2009 meg

Investigators of Bernard Madoff’s Ponzi scheme want more time to calculate the amount of money lost and the number of investors defrauded as they seek to determine restitution. They have asked U.S. District Judge Denny Chin to delay a decision on restitution by three months. However, the investigators see no need to delay Madoff’s June […]

SEC Looks Deeper at Madoff-Like Firms

Filed June 21st, 2009 meg

The SEC is conducting a nationwide “sweep” of investment advisers that hold client assets and hedge funds that share characteristics with Bernard Madoff’s firm. The SEC also is scrutinizing money managers that employ an “unknown auditor”. The Commission is overhauling the process for handling examinations and tips on suspicious trading after it drew fire from […]

More than 10 years later, checks get sent for those scammed for Web services

Filed June 19th, 2009 joshua

More than 400,000 people who were charged illegally on their credit or debit cards for Web services are finally getting their money. The Federal Trade Commission said it has sent out that many checks to consumers on June 12 for people who were charged by J.K. Publications and other defendants in the case back in […]

Obama set to create consumer credit “regulators”

Filed June 18th, 2009 joshua

President Barack Obama is set to create a branch of government with its keenest eye set on protecting consumers from fraudulent loan, bank, or non-bank payment institutions. The Consumer Financial Protection Agency will oversee checking accounts, savings accounts and other deposit accounts at banking institutions as well as home, credit card and other loans like […]