Archive for September, 2009

Ex-Enron exec gets 16-month prison sentence

Filed September 30th, 2009 joshua

The former chief executive of Enron‘s broadband business was sentenced to 16 months in prison for lying to shareholders and wire fraud. Authorities said Joseph Hirko, then in charge of Enron’s telecommunications development. He pleaded guilty last year to a single count of wire fraud. The Houston-based Enron collapsed for all to see in 2001 […]

Picard Sets to Sue Madoff Relatives

Filed September 29th, 2009 meg

Court-appointed trustee Irving Picard plans to sue Bernard Madoff’s two sons, his niece and his brother this week, seeking the return of $198 million. The lawsuits will accuse the four family members of breach of fiduciary duty and negligence, among other charges. The trustee and his lawyers have already filed 13 suits seeking to recover […]

SEC going to trial over Bank of America bonus lies

Filed September 29th, 2009 joshua

The Securities and Exchange Commission is taking Bank of America to trial on charges it lied to shareholders about $6 billion in bonus payments made to employees of Merrill Lynch. Each of the companies have fallen on catastrophic economic times, falling on public money to “bail out” the failed businesses. A judge rejected a previous […]

Dish Network, Authorized Dealers Charged with Telemarketing Violation

Filed September 25th, 2009 meg

Two authorized dealers of Dish Network have agreed to settle charges that they violated the FTC’s Telemarketing Sales Rule by calling consumers whose numbers are on the Do Not Call Registry. The final court orders are against Vision Quest, LLC, and its principal Brian K. Cavett, and against New Edge Satellite, Inc., and its principal […]

Nadel may get released on reduced bond

Filed September 25th, 2009 joshua

Jailed hedge fund manager Arthur Nadel appears closer to getting out of prison before his trial. Nadel is being held in New York on charges he bilked investors out of at least $330 million in a Ponzi scheme. In January, Nadel fled his Sarasota, Fla., home, just a day before he was supposed to pay […]

FINRA Debates on Release of Madoff Report

Filed September 24th, 2009 meg

The Financial Industry Regulatory Authority board may decide to keep their report on Bernard Madoff under lock and key, not letting it be seen by the outside world. The FINRA board led the review after Madoff confessed to operating a $65 billion Ponzi scheme and Stanford was accused of running a $7 billion fraud through […]

Barney Frank wants to downsize scope of new consumer agency

Filed September 24th, 2009 joshua

Massachusetts Rep. Barney Frank believes the scope and power of President Barack Obama’s new consumer protection regulatory agency before it even begins working. The usually outspoken Frank said his initiative is designed to head-off some of the criticisms of the proposed new regulatory agency which has the main goal of spotting fraud trends and warning […]

FTC Looks into Food Marketing Directed at Kids

Filed September 23rd, 2009 meg

The Federal Trade Commission is seeking public comment on its proposal to conduct a new study on food marketing to kids and adolescents. It seeks to get information from 45 food, beverage and fast food restaurant companies in regards to their to nutritional content and marketing practices. The study will include companies’ child-targeted marketing activities […]

FTC may re-write rules on “free trial” programs

Filed September 22nd, 2009 joshua

The Federal Trade Commission is currently reviewing the validity of numerous “free trial” offers available to consumers. So-called free trial offers inundate consumers every day, if not every hour, on the Web. The FTC hasn’t changed rules regarding negative-options marketing since the mid-1980s. Negative-options marketing includes offers where a consumer receives a “free” item up-front, […]

FTC Warns Against Natural Disaster Charity Scams

Filed September 22nd, 2009 meg

The FTC is warning consumers to use caution when donating to charities that claim to help victims of the devastating California wildfires. While many legitimate groups help victims, scam artists may take advantage of the disaster by creating bogus fundraising operations. The FTC advises consumers to research the companies asking for donations, see if the […]