Archive for April, 2010

Former Mayor in Hamptoms village gets 8-year sentence on securities fraud charges

Filed April 30th, 2010 joshua

A former Mayor in a small, New York village in the Hamptons will serve 8 years in prison after his conviction on federal securities fraud charges. According to an AP report, George Motz, the former Mayor of Quogue, N.Y., also was president and CEO of Melhado, Flynn and Associates. In that role, he admitted to […]

FTC Accuses Talbots of Illegal Telemarketing

Filed April 27th, 2010 meg

The FTC has accused Hingham clothing retailer Talbots of making at least 3.4 million telemarketing calls in 2009 for its Talbots and J. Jill brands. The prerecorded sales pitches violated federal law intended to protect consumers against intrusive telemarketing. The FTC said Talbots failed to let customers know right away that they could press a […]

Con Artists Using Obama Health Care to Scam Consumers

Filed April 26th, 2010 meg

Con artists in several states are seizing on the public’s financial struggles and confusion about the recent health care overhaul, according to authorities. So far, the frauds appear to be relatively infrequent and are often no more than spam fax messages with blatant misspellings and no company letterhead. However, authorities are warning consumers of the […]

Toyota’s Settlement May Mean Consumer Fraud, Racketeering Suits Next

Filed April 22nd, 2010 laurie

Toyota will pay 16.4 million dollars in charges for not notifying the US government the safety issues its cars had in timely manner. This was arguably the largest penalty the Department of Transportation had put on any company. Lawyers may now be able to argue that Toyota committed consumer fraud since the settlement means the […]

Goldman defends itself from SEC charges of securities fraud

Filed April 22nd, 2010 joshua

Goldman Sachs is planning a vigorous defense against federal fraud charges filed earlier this week. And it appears Wall Street’s biggest and most influential investment firm is going to the court of public opinion months before it faces the charges in a trial. The Securities and Exchange Commission believes Goldman Sachs deceived its investors because […]

Top SEC Attorney Quashed Probes, Tried to Defend Swindler

Filed April 20th, 2010 meg

A former top attorney for the SEC was found to have quashed numerous investigations of accused swindler R. Allen Stanford according to an internal review. Spencer Barasch, the former head of enforcement for the SEC in Fort Worth, also repeatedly attempted to be Stanford’s defense attorney. He quit the case when the SEC told him […]

SEC says Goldman Sachs misled investors on mortgage securities, files fraud charges

Filed April 19th, 2010 joshua

The federal government has charged Wall Street’s most influential investor, Goldman Sachs & Co., of fraud. The company, authorities say, didn’t tell its investors that mortgage securities it sold were crafted by a man betting on them to fail. Goldman Sachs’ client, Paulson & Co., is accused of gaining at least $1 billion in the […]

SEC To Investigate Other Soured Mortgage Deals

Filed April 19th, 2010 meg

The SEC, after having hit Goldman Sachs Group Inc with a civil fraud charge, is investigating other mortgage deals arranged by some of Wall Street’s biggest firms. Among the firms that created mortgage deals that soon went sour were Deutsche Bank AG, UBS AG and Merrill Lynch & Co, now owned by Bank of America […]

Washington Mutual Execs Apparently Knew of Fraud

Filed April 16th, 2010 meg

Top executives at Washington Mutual knew about rampant fraud in the banks’ home lending arena, and did little if anything in response, according to reports. An internal investigation at the bank revealed that two of the top-producing offices making subprime loans in southern California were riddled with fraud. At one office, in Downey, 58 percent […]

New Balance continues sneaking around “Made in USA” rules

Filed April 16th, 2010 joshua

Shoe maker New Balance continues to flaunt rules on the “Made in USA” tagline. In 1997, the Federal Trade Commission ruled that all or virtually all of a product’s materials had to be made in the U.S. for a finished good to be considered “Made in USA”. At the time, the rules caused a row […]