Archive for October, 2009

Some Madoff Victims Starting to Receive Payments

Filed October 30th, 2009 meg

Trustee Irving Picard announced that more than $534 million has been paid to 1,368 victims of Bernard Madoff through the national fund that insures against failed brokerage firms. Picard said he has so far identified allowable claims totaling $4.43 billion and is still processing thousands of claims filed by alleged victims. To date, he has […]

House health care bill gives FTC power to monitor insurance fraud

Filed October 30th, 2009 joshua

The House health care bill proposed late this week would give the Federal Trade Commission new powers to monitor health insurers for fraud. President Barack Obama maintained his position recently in his Weekly Web Address that insurance company fraud remains the biggest obstacle in providing adequate, competitive health care to most Americans who need it. […]

Washington Mutual Bank Lawsuit Advances

Filed October 29th, 2009 meg

A judge has refused to dismiss a multibillion dollar securities fraud case against former officers, directors, accountants and underwriters of Washington Mutual Bank. Washington Mutual Bank collapsed last year in the biggest bank failure in U.S. history. The 267-page lawsuit focuses mainly on practices involving home loans, the bank’s principal business, and on securities issued […]

States Cracking Down on Debt Relief Companies

Filed October 29th, 2009 meg

The attorneys general of 40 states have asked the FTC to tighten regulation of companies offering debt relief services to consumers. The FTC is currently reviewing a new rule proposal to amend the current Telemarketing Sales Rule. The new rule proposes prohibiting debt relief companies from charging fees until they have performed services as well […]

Cuomo unveils new health care database for out-of-network services

Filed October 29th, 2009 joshua

Aiming to curb the fraud that riddled the health insurance industry in his state, New York Attorney General Andrew Cuomo this week unveiled a non-profit database for out-of-network insurance payments. New York harbored United Health Group and its corrupt database for consumer reimbursements of out-of-network health care services. The Ingenix database was used as a […]

Key email in Bear Stearns case thrown out as evidence

Filed October 28th, 2009 joshua

A judge overseeing the fraud and conspiracy trial of a former Bear Stearns hedge fund manager has dismissed an email key to the prosecution. The attorney for 48-year-old Matthew Tannin argued that the emails, which showed the defendant admitting he knew the hedge funds were on the verge of collapse, were obtained illegally, according to […]

Mortgage Banks Subpoenaed Over Preferential Treatment Claims

Filed October 27th, 2009 meg

A House committee has subpoenaed documents related to Countrywide Financial Corp’s VIP program. The program offered preferential treatment to well-connected or powerful mortgage customers, including government officials. The committee is also demaning information from Wells Fargo & Co, Bank of America Corp, JPMorgan Chase & Co, Citigroup Inc, US Bancorp and GMAC’s Residential Capital. The […]

Disney offers refunds on Baby Einstein video

Filed October 27th, 2009 joshua

Disney has agreed to refund money to parents who purchased its Baby Einstein video, admitting it made false claims about the product. Anyone who purchased a Baby Einstein video from June 5, 2004, until September 4, 2009, is eligible for a full refund of the purchase price of the DVD. The children’s advocate Campaign for […]

Madoff Friend Found Dead

Filed October 26th, 2009 meg

Bernard Madoff friend Jeffry Picower, 67, was found Sunday at the bottom of the pool at their oceanside mansion and pronounced dead. Picower was accused of profiting more than $7 billion from Madoff’s investment schemes, which trustee Irving Picard was demanding be returned. Picower and his wife started the Picower Foundation in 1989, which has […]

ChoicePoint agrees to pay consumers for 2008 data breach

Filed October 23rd, 2009 joshua

Choice Point, a data broker, has agreed to pay consumers a total of $275,000 to compensate for a 2008 data breach of its system that exposed the identities of more than 13,000 people. This data breach showed that ChoicePoint failed to implement better security measures following a similar incident in 2005 which exposed more than […]