Archive for June, 2010

FTC Delays “Red Flag” Rule Again for Physician Offices

Filed June 30th, 2010 meg

The FTC has announced that it will further delay the enforcement of its so-called “Red Flags” rule until a federal appeals court rules on a lawsuit filed by the American Bar Association. The FTC rule designates physician offices and certain other businesses as creditors, thus requiring them to submit written identity theft mitigation and prevention […]

Recession Sparks Jump in Work-At-Home Scams

Filed June 29th, 2010 meg

Chester Mazzoni has pleaded guilty in US District Court for the Northern District of Ohio to criminal charges of conspiracy to commit mail fraud related to the work-at-home scheme. He faces up to five years in prison when he is sentenced in August. Mazzoni used a work-at-home medical billing scam, EDI Healthclaims Network, and persuaded […]

Supreme Court’s Rulings Limit Corporate Fraud Cases

Filed June 25th, 2010 meg

In four high-impact decisions, the Supreme Court has significantly limited the scope of federal laws used by prosecutors and plaintiffs in pursuing alleged corporate fraud. The high court re-defined the “honest services” criminal fraud statute to cover only bribes and kickbacks, instead of the range of illicit activities prosecutors have used the law to punish. […]

Obama announces legislative pact with Senate leaders on financial reform bill

Filed June 25th, 2010 joshua

President Barack Obama announced he has reached a deal with Congressional leaders this morning on legislation aimed at putting stricter rules on securities trading and Wall St., in general. AP reports the President shook hands with Congressional negotiators on the deal at 5:39 a.m., just before he embarked to an economic summit in Toronto, Canada. […]

Car dealers may be exempt from new federal laws on loans

Filed June 25th, 2010 joshua

Car dealers may be exempt from a new set of laws aimed at regulating businesses who offer consumer loans. According to an NPR report, the National Auto Dealers Association appears to have won a lobbying battle in Washington to get car dealers exempt from laws under the new Consumer Financial Protection Board. One of the […]

Madoff Employees Accused of Perpetuating Fraud

Filed June 24th, 2010 meg

Two of Bernard L. Madoff’s former back office employees have been accused by federal prosecutors of knowingly perpetuating the fraud. The accusations leveled against former employees Annette Bongiorno and JoAnn Crupi are aiming for $5 million in asset. Ms. Bongiorno worked as a superviser in Mr. Madoff’s back office, where she spoke with clients about […]

AR Capital Group Founder Sentenced

Filed June 21st, 2010 meg

AR Capital Group Inc’s Alan Fishman has been sentenced to 37 months in prison for his role in stealing from investors. Fishman, 50, and Daniel Ledven, 38, a principal at the firm, pleaded guilty in March to one count each of conspiring to commit securities fraud AR Capital raised about $20 million from individual investors […]

FTC settles false advertising charges with 16 mortgage rescue companies

Filed June 18th, 2010 joshua

The Federal Trade Commission announced this week it has reached settlements with 16 companies accused of falsely advertising mortgage and loan assistance. According to an AP report, the settlement bars these companies from participating in mortgage-rescue operations in the future. The FTC also announced it filed a $11.4 million contempt order against the operator of […]

Former mortgage company CEO accused of massive fraud scheme using TARP funds

Filed June 17th, 2010 joshua

A former mortgage company executive has been accused of defrauding the federal TARP fund and leading to the collapse of one bank. According to a Bloomberg report, Lee Farkas, the former chairmat at Taylor, Bean & Whitaker Mortgage Corp. has been accused of operating a $1.9 billion fraud scheme. FBI investigators arrested Farkas earlier this […]

BP Faces Securities Fraud Suits Over Oil Spill

Filed June 16th, 2010 meg

BP now faces more than 225 lawsuits in 11 states, as litigation from businesses, individuals and investors continues to increase almost two months after the Deepwater Horizon oil rig exploded. Almost all the lawsuits also name Transocean Ltd, which owned the rig, along with Cameron International Corp and Halliburton Energy Services Inc, which provided the […]