Archive for August, 2009

Ex-CFO of Stanford Financial Group Pleads Guilty to $7 Billion Ponzi Scheme

Filed August 28th, 2009 meg

The former chief financial officer of Stanford Financial Group has pleaded guilty to three criminal counts for his part in an alleged $7 billion Ponzi scheme. James Davis plead guilty to conspiracy to commit mail, wire and securities fraud as well as mail fraud. Indicted in June, he also plead guilty to conspiracy to obstruct […]

Most ‘robo-calls’ will stop Sept. 1

Filed August 28th, 2009 joshua

The Federal Trade Commission is set to put an end to annoying “robo-calls” at the end of this month. According to an AP report, the regulatory action will require telemarketing firms to seek written permission from consumers before soliciting them with pre-recorded telephone offers for such products as car warranties and vacations. This is commonly […]

North Carolina lawmaker calls for investigation of CVS pharmacy

Filed August 28th, 2009 joshua

U.S. Rep. Larry Kissell, of North Carolina, has asked the Federal Trade Commission to investigate CVS/Caremark pharmacy for anti-competitive and deceptive practices. According to a report from The Charlotte Observer, Kissell believes, based on hearings he hosted several months ago, that CVS/Caremark has an unfair prescription drug pricing program. Kissell believes CVS should not have […]

Eight Arrested in $1.4 Million Mortgage Scam

Filed August 26th, 2009 meg

Eight people, including four lawyers, face charges in an alleged mortgage scheme that defrauded four Westchester County families and two mortgage lenders of $1.4 million. They reached out to homeowners, saying they could transfer the deed to an investor, who would hold the title so they could save money and reclaim their home. They then […]

State leaders form mortgage fraud task force

Filed August 26th, 2009 joshua

Several state Attorney Generals have formed a task force with federal officials to combat mortgage fraud. After meetings in Washington, D.C., earlier this summer, Attorney Generals from 10 states decided to pool resources in taking a proactive approach to curbing mortgage fraud. Larger cities across the country have thousands of properties involved in some type […]

Debit Card Company Settles FTC Complaint

Filed August 24th, 2009 meg

Debit card company VirtualWorks has agreed to settle a complaint brought by the FTC. The company charged customers $54.95 for a debit card they had unknowingly ordered when applying for a payday loan online through Swish Marketing. California-based VirtualWorks was formerly known as Private Date Finder and was also doing business as EverPrivate Card and […]

Starbucks settles with California DAs on gift card refunds

Filed August 21st, 2009 joshua

Starbucks Coffee Company has agreed to settle fraud charges with several California District Attorneys over customers not receiving cash for their gift cards. According to a report, numerous California customers had demanded cash back on their Starbucks gift cards when the balance was under $10. Starbucks employees would try to force customers into buying a […]

Lawsuits Filed Against Acai Berry Suppliers

Filed August 20th, 2009 meg

Illinois Attorney General Lisa Madigan has urged consumers to be cautious of signing up for free trials of acai berry products. Madigan filed consumer fraud lawsuits against three suppliers and a local affiliate marketer of acai products charging that the companies lure customers with free trials. The companies then charge customers’ credit cards prematurely, do […]

State attorneys pushing for new consumer regulatory branch

Filed August 20th, 2009 joshua

A group of 24 state attorneys is pleading with members of Congress to help pass legislation to establish the Consumer Financial Protection Agency. According to a Reuters report, the attorneys believe establishing this regulatory branch, it would curb a lot of shady business, especially among financial institutions. On this blog, nearly every day a post […]

Former Credit Suisse Broker Convicted of Securities Fraud

Filed August 19th, 2009 meg

Former Credit Suisse Group AG broker Eric Butler has been convicted of fraudulently selling millions of dollars in subprime securities to corporate clients. Those sales allowed him to generate higher commissions. Butler falsely told clients the products were backed by federally-guaranteed student loans and a safe alternative to bank deposits or money market funds. The […]