Archive for September, 2010

Ally GMAC Foreclosure Investigation Widens

Filed September 29th, 2010 meg

Fallout over GMAC Mortgage’s foreclosure practices deepened as Ohio’s top law enforcement official asked courts in that state to review all foreclosure cases involving the Ally Financial Inc unit. Investigators in several states including California, Colorado, Connecticut and Illinois are investigating GMAC foreclosure practices or have asked the company to halt or defend its foreclosures. […]

Foreclosures Questioned in Wake of GMAC Errors

Filed September 27th, 2010 meg

The recent admission by a major mortgage lender that it has filed dubious foreclosure documents is likely to fuel a furor against hasty foreclosures, which have prompted complaints nationwide since housing prices collapsed. Lawyers for distressed homeowners and law enforcement officials in several states seized on revelations by GMAC Mortgage that it had violated legal […]

FTC, Courts Shut Down Envelope-Stuffing Scam

Filed September 23rd, 2010 meg

The FTC has gotten a district court to shut down an envelope-stuffing operation that promised consumers they could make thousands of dollars sruffing envelopes from the comfort of their own home. According to the FTC’s complaint, Louis Salatto and Global US Resources bought classified ads in local newspapers that promised weekly earnings ranging from $1,200 […]

Springsteen fans will get refunds from Ticketmaster in deal to settle bait-and-switch charges

Filed September 17th, 2010 joshua

The Federal Trade Commission has sent claims forms to more than 1,000 Bruce Springsteen fans, victims of a bait-and-switch scam perpetrated by Ticketmaster. According to the FTC, an administrator working on its behalf has sent these claims forms to people who were unknowingly switched to a Ticketmaster-owned ticket resale site, TicketsNow.com. Those thousand-plus people logged […]

FTC probe of Apple Inc. continues, based mostly on Adobe’s complaint

Filed September 14th, 2010 joshua

The Federal Trade Commission is continuing a criminal investigation into Apple Inc., despite it reversing a decision it made earlier this year to disallow Flash-based Applications on its iPhone device. Earlier this year, Apple said it would only allow third-party App creations for its new iOS4 system written in specific computer programming languages. That list […]

FDIC warns of phone scam to repay payday loans

Filed September 10th, 2010 joshua

Federal officials are warning of an ongoing phone scam which demands payments on “payday loans” that may or may not exist. According to several reports, the scamming callers purport to represent the Federal Deposit Insurance Corp. (FDIC) and demand payments over the phone so a consumer will avoid legal action or arrest. The caller tells […]

FDA warns makers of green tea drinks about making false claims

Filed September 9th, 2010 joshua

The Food and Drug Administration says advertising for two green tea beverages is misleading and make unfounded medical claims. According to a Los Angeles Times report, regulators have warned the makers of Canada Dry Sparkling Green Tea Ginger Ale and Lipton Green Tea 100% Naturally Decaffeinated beverages they must change marketing and labels of those […]

American Apparel Faces Fourth Shareholder Lawsuit

Filed September 8th, 2010 meg

A fourth shareholder lawsuit has been filed against Los Angeles, California-based American Apparel. The filing in the local US District Court seeks class-action status for shareholders that allege they were misled by American Apparel’s leaders regarding how its ability to hire and keep workers would effect its bottom line. Last year, American Apparel had to […]

New Whistleblower Awards Leads to Surge in Fraud Tips

Filed September 7th, 2010 meg

New awards for informants who help the Securities and Exchange Commission uncover fraud are already prompting a surge in tips. The Dodd-Frank financial law passed in July provides for the larger bounties, with the hope of fingering wrongdoers such as Bernard Madoff before they swindle thousands of people. People who supply “original information” about large […]

Credit Union Execs Sued for Fraud

Filed September 3rd, 2010 meg

A federal agency is accusing two former executives of a giant failed credit union in Los Angeles County of fraud for their roles in adding millions of dollars to retirement payouts for themselves and other top brass at the financial institution. A lawsuit by the regulators also alleges breach of fiduciary duty and negligence by […]