Archive for January, 2011

Sky Capital Stock Brokers Plead Guilty to Stock Fraud

Filed January 31st, 2011 meg

Two brokers who formerly worked for Sky Capital LLC have pleaded guilty to a $140 million stock fraud scheme with other broker-dealers, who denied involvement in the criminal misconduct. In 2009, the Securities and Exchange Commission charged Michael Passaro, Arn Wilson and three others, including Robert Grabowski, who served as president of Thornwater Company LP […]

Manhattan DA Seeks Prison Time for Securities Fraudsters

Filed January 28th, 2011 meg

Manhattan District Attorney Cyrus R Vance Jr, one of New York City’s top prosecutors, wants the state to start requiring prison time for perpetrators of million-dollar securities fraud schemes. Vance said he’ll push lawmakers to boost penalties for violating the state Martin Act and to require prison in the biggest cases. The Martin Act prohibits […]

Changes at Life Partners Holdings likely to spark lawsuits, more regulation

Filed January 28th, 2011 joshua

Life Partners Holdings change in marketing is likely to gain regulator attention and spark lawsuits from its investors. According to Investment News, Life Partners has instructed its sales force to advertise annual returns of 7 percent over 7 years, rather than previous claims of 12 to 14 percent.

Congressional Panel Pushes Prosecution of Mortgage and Bond Companies

Filed January 26th, 2011 meg

The congressional panel examining the root causes of the nation’s financial crisis have voted to refer to state and federal prosecutors a wide range of potential criminal wrongdoing by financial industry figures and corporations. The Financial Crisis Inquiry Commission is likely to detail the referrals in releasing its final report, based on testimony from more […]

Prescription drug fraud lawsuit against Walgreens dismissed

Filed January 26th, 2011 joshua

An Illinois court has dismissed a lawsuit alleging Walgreens pharmacy stores of fraud for dispensing expensive brand-name prescription drugs instead of generic alternatives. The fraud suit was filed by Pirelli Armstrong Tire Corp. Retiree Medical Benefits Trust. This organization pays the difference for prescription drugs when its price exceeds a co-payment. Walgreens allegedly filled 97 […]

Google Chrome, Firefox Browsers Add Opt-Out Features

Filed January 25th, 2011 meg

Following increased pressure from the FTC, Google and Mozilla are introducing opt-out features to their Chrome and Firefox browsers. Soon, users will have the option to stop personalized advertisements, ads tailored to your Web-surfing habits that have sparked significant privacy concerns. Last month, the FTC’s Bureau of Consumer Protection proposed a “Do Not Track” tool […]

Mississippi man charged with fraud on BP oil spill claim

Filed January 25th, 2011 joshua

A Mississippi man faces up to 20 years in prison after pleading guilty to charges he tried to defraud the federal BP Gulf Coast Claims fund established following last summer’s oil spill. According to an AP report, Dennis L. Moore, 39, filed false documents related to a fictitious business he owned. He sought $90,000 in […]

Securities Fraud Cases, Cases Against Chinese On Rise

Filed January 22nd, 2011 meg

Federal securities fraud class-action cases rose in the second half of 2010, according to a report prepared by the Stanford Law School in cooperation with Cornerstone Research. The report shows 104 class-action cases alleging federal securities fraud were filed in the second half of the year, up from 72 filings in the first six months […]

Life Partners Holdings under investigation by SEC over business practices

Filed January 21st, 2011 joshua

Life settlements company Life Partners Holdings confirmed this week that it’s under investigation by the Securities and Exchange Commission. The investigation was first reported by Wall Street Journal, according to a New York Times report. Life Partners Holdings deals in life insurance, but not in the traditional sense. Instead of offering insurance policies, Life Partners […]

JP Morgan Chase over-charging thousands of military families on mortgages, wrongfully foreclosed 14 homes

Filed January 21st, 2011 joshua

JP Morgan Chase admits it over-charged thousands of military families on the home mortgages and that it also wrongfully foreclosed on at least 14 families, according to an exclusive report from NBC News. The admission comes on the heels of a lawsuit filed by Marine Capt. Jonathan Rowles and his wife. Rowles rides in the […]