Archive for July, 2009

Ruth Madoff Sued for $45 Milion

Filed July 31st, 2009 meg

Ruth Madoff, wife of imprisoned Ponzi schemer Bernard Madoff, has been sued by a court-appointed trustee seeking $45 million in funds to compensate victims. Trustee Irving Picard claims Ruth received $44.8 million in “fraudulent” transfers during the six years leading up to the bankruptcy of her husband’s investment firm. Bernard Madoff has been forced to […]

Nadel’s wife wants home, credit for worth entering marriage

Filed July 29th, 2009 joshua

Peg Nadel, the wife of imprisoned fraudulent hedge fund manager Arthur Nadel, is petitioning a judge to allow her to keep her home. Calling it the “only thing she has left”, Mrs. Nadel said she gets paid about $200 a week from Social Security and planned to live off the equity of her $266,000 home. […]

FTC Addresses Cemetery Fraud

Filed July 28th, 2009 meg

The Federal Trade Commission has testified on efforts to oversee the cemetery industry. Hundreds of plots have been found unearthed at Chicago’s Burr Oak Cemetery in an alleged scheme to resell plots for cash. Similar claims of fraud have been filed in other cemeteries, prompting a congressional recommendation that the FTC regulate cemeteries. Recommendations include […]

Marshals Start Cataloging, Appraising Madoff Assets for Auction

Filed July 27th, 2009 meg

Federal marshals are taking inventory of everything Ruth and Bernard Madoff left in their Manhattan penthouse and Montauk home in advance of an auction. The contents of both properties forfeited by the Madoffs are being carefully cataloged and appraised. A $7.5-million Manhattan apartment, a $3.5-million house in Montauk, and a $10-million Palm Beach home, including […]

Suit Claims Debt Collectors Used Fraud to Collect Judgments

Filed July 23rd, 2009 meg

Tens of thousands of New York consumers had money seized by creditors using court orders that had been obtained by fraud, says the state’s attorney general. Lawyers and debt collectors obtained more than 101,000 court orders that were improperly issued, allowing them to seize, on average, $5,474 from each consumer. The collections agencies, lawyers and […]

Madoff’s Accountant Charged With Securites Fraud

Filed July 22nd, 2009 meg

David Friehling, Bernie Madoff’s accountant for 17 years, has been charged with securities fraud. The charges include aiding and abetting investment adviser fraud and four counts of filing false audit reports with the SEC. Friehling, who was Madoff’s auditor from 1991 to 2008, has pleaded not guilty. A federal judge has granted prosecutors more time […]

Bank of America Buys Back Securities

Filed July 22nd, 2009 meg

Two non-bank units of Bank of America Corp will buy back auction rate securities from Colorado investors who were unable to sell them after the market froze. The amount of the buyback totals $155 million. The settlement concludes an investigation into allegations that the companies misled clients by falsely assuring them that auction rate securities […]

Magnifier Manufacturer Settles “Made In USA” Deception Claim by FTC

Filed July 22nd, 2009 meg

A manufacturer of magnifiers and other desktop and portable vision aids has agreed to settle charges that it falsely claimed its products were “Made in the U.S.A.” Enhanced Vision Systems markets computer and television screen magnifiers and other devices to enhance vision. Because several of the company’s products contain a significant portion of foreign components, […]

Schwabb threatened with lawsuit over auction-rate securities

Filed July 22nd, 2009 joshua

New York Attorney General Andrew Cuomo said this week he’d sue Charles Schwabb & Co over the marketing of its risky auction-rate securities. Cuomo’s threat will escalate into charges against the financial firm unless it follows the lead set by competitive firms. Citigroup, UBS and Merrill Lynch recently agreed to buy back nearly $50 billion […]

Physicians must adhere to FTC law on ID theft by Aug. 1

Filed July 20th, 2009 joshua

Physicians face a tight deadline in adapting to a new Federal Trade Commission law regarding identity theft. Regulators consider doctors as entities that regularly extend credit to customers or patients, and therefore must adopt a written policy for their business which guarantees a person’s identity is safe. The American Medical Association and physicians are worried […]