Financial Fraud Law

    • 21 Mar 2014

    Biloxi Breach: Attorney Pleads Guilty to Trust Account Fraud

    An attorney in Biloxi, Mississippi, Stephen Richard Colson, has pleaded guilty in federal court to falsifying, concealing, and covering up material facts in connection with a scheme to defraud two banks and the bankruptcy court in violation of federal law. The government indicated at the guilty plea that it would seek restitution on behalf of the victims in the amount of $7,749,576.65. Colson, a settlement agent...
    • 21 Mar 2014

    ‘Largest Scam of Its Kind’ Is Targeting Thousands

    The Internal Revenue Service is warning consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. Treasury Inspector General for Tax Administration Russell George said that “thousands of victims” already have lost more than $1 million in this financial fraud and that the IRS already has received over 20,000 complaints. “This is the largest...
    • 20 Mar 2014

    Fighting Financial Fraud with Big Data? That’s IBM’s Goal

    Can the fight against financial fraud be waged with computers and software? That’s what IBM seems to believe. IBM said that it has introduced new software and services to help organizations use ”Big Data and Analytics” to address the $3.5 trillion lost each year to fraud and financial crimes. In particular, IBM has launched its “smarter counter fraud” initiative, which it said would draw...
    • 20 Mar 2014

    Attorney Heading to Prison for Helping Clients Keep Secret Swiss Bank Accounts

    California attorney Christopher M. Rusch has been sentenced to serve 10 months in prison for helping his clients Stephen M. Kerr and Michael Quiel, both businessmen from Phoenix, hide millions of dollars in secret offshore bank accounts at UBS AG and Pictet & Cie in Switzerland. U.S. District Judge James A. Teilborg also ordered Rusch to serve three years of supervised release following his prison sentence. ...
    • 19 Mar 2014

    Law Clerk and Stockbroker Charged with Trading on Inside Information Stolen from Prominent New York Law Firm

    The managing clerk of the New York office of Simpson Thacher & Bartlett LLP – a prominent, international law firm – and a professional stockbroker who worked at Oppenheimer & Co. and Morgan Stanley have been arrested and charged with participating in a multi-year insider trading scheme that allegedly netted more than $5.6 million in illicit profits. Steven Metro and Vladimir Eydelman both were charged...
    • 19 Mar 2014

    Singapore Executive is Second to Plead Guilty in International Navy Corruption Scandal

    Alex Wisidagama, a former executive with Glenn Defense Marine Asia (GDMA), has pleaded guilty to participating in a scheme to defraud the United States, admitting that he and others duped the U.S. Navy into overpaying by at least $20 million for supplies and services to American ships in Asian ports. Wisidagama’s plea is the second in what federal prosecutors characterize as an extensive international fraud and...
    • 19 Mar 2014

    IRS Chief Who Opposed Nixon’s Efforts to Audit ‘Enemies,’ Dies at 100

    Randolph W. Thrower, the commissioner of the Internal Revenue Service who opposed the Nixon Administration’s efforts to punish President Nixon’s political “enemies” by auditing their tax returns – and who was fired as a result – has died at 100. Thrower made clear that he objected to the Nixon Administration’s efforts to audit opponents of the Vietnam War, leaders in the civil...
    • 18 Mar 2014

    Who’s Your Anti-Corruption Hero?

    The global anti-corruption organization Transparency International now is accepting nominations for its 2014 Integrity Awards. Launched in 2000, the awards recognize the courage and determination of individuals and groups taking remarkable steps to combat corruption, often at great personal risk, TI said. Past winners come from all walks of life and have included a schoolteacher and a pilot as well as public officials...
    • 18 Mar 2014

    Politics, Prison for Financial Fraud, and Now More Politics: Louisiana’s Ex-Governor to Run for Congress

    He’s baaack! Former Louisiana Governor Edwin Edwards, who spent nearly a decade as a guest of the federal government following his conviction for financial fraud, racketeering, and extortion, loves politics. And now, the 86-year-old Democrat, with a new wife and a new baby, is running for the House of Representatives. As he pointed out while announcing his candidacy, nothing prevents a convicted felon from being...
    • 18 Mar 2014

    Whistleblower Nets $1.1 Million in False Claims Act Case against Bristol-Myers Squibb

    New York has reached a $6.2 million settlement of a whistleblower case alleging that a medical imaging company that made millions of dollars’ worth of sales in New York knowingly evaded New York State and New York City taxes. The whistleblower in the action will receive $1,137,814.80 from the settlement proceeds. The complaint alleged that Lantheus Medical Imaging Inc. and its former parent company, Bristol...
    • 17 Mar 2014

    Madoff Employees’ Fate Now with the Jury

    A jury of nine women and three men have begun to deliberate the fate of five former employees of Bernard Madoff’s company after receiving their instructions from U.S. District Court Judge Laura Taylor Swain in Manhattan. The trial involving a 31 count indictment against Jerome O’Hara, George Perez, Annette Bongiorno, JoAnn Crupi, and Daniel Bonventre is the first in the Madoff case. Eight other individuals...
    • 17 Mar 2014

    Jury Convicts CEO in $1 Billion Check Kiting Scheme

    Mair Faibish, the former chief executive officer of Synergy Brands, Inc., has been convicted by a federal jury in Brooklyn on all three counts of the indictment for defrauding Signature Bank out of $26 million through a massive check kiting scheme, for making false statements to the U.S. Securities and Exchange Commission, and for defrauding investors by overstating the value of the company. The jury’s verdict...
    • 15 Mar 2014

    17 Large Banks Manipulated LIBOR, FDIC Claims

    The Federal Deposit Insurance Corporation, as receiver for dozens of failed banks including Washington Mutual and IndyMac Bancorp, has sued 17 large banks, alleging that they manipulated LIBOR – the London interbank offered rate – over approximately a four-year period. The suit contends that the banks – including Bank of America, Citigroup, Credit Suisse Group, Deutsche Bank, and J.P. Morgan Chase...
    • 14 Mar 2014

    Hong Kong Regulator Clears All Banks, Except UBS, in Rate-Rigging Investigation

    The Hong Kong Monetary Authority (HKMA), announcing the results of its Hong Kong Interbank Offered Rate (HIBOR) rate-fixing investigation into the actions of nine banks, said that it has found evidence of misconduct in the submission of HIBOR rates by only one bank, and no evidence of collusion between these banks to rig the HIBOR fixing. Nine banks designated as HIBOR reference banks were required to appoint external...
    • 14 Mar 2014

    7 for 7: Jury Convicts All Defendants in $97 Million Medicare Fraud

    A federal jury in Houston has convicted two owners of a former Houston mental health care company, Spectrum Care P.A., several of its employees, and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud. Physicians Mansour Sanjar and Cyrus Sajadi, the owners of Spectrum, each were convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as...
    • 14 Mar 2014

    It’s Showtime for ‘Billions,’ where a US Attorney Fights Hedge Fund Billionaires

    The premium cable network Showtime has decided on its first drama pilot of the year: “Billions.” Co-created and written by Brian Koppelman, David Levien, and New York Times columnist Andrew Ross Sorkin, "'Billions' is a fictional drama that focuses on the collision and, at times, collusion between an aggressive U.S. attorney in New York and some of the richest hedge fund billionaires in the country...
    • 13 Mar 2014

    Lawyer and Two Others Named to Senior Positions at the Consumer Financial Protection Bureau

    The Consumer Financial Protection Bureau (CFPB) has filled three positions: the Assistant Director for the Office of Installment and Liquidity Lending Markets; the Assistant Director for the Office of Research; and the Assistant Director for the Office of Financial Empowerment. “I’m pleased that these incredibly talented individuals have joined the Bureau,” said CFPB Director Richard Cordray. “All...
    • 13 Mar 2014

    Allegedly Told ‘Don’t Get Caught,’ Swiss Banker Got Caught, and Now He’s Guilty of Conspiring to Defraud the IRS

    In what appears to be another significant step toward prosecuting U.S. citizens with unreported overseas bank accounts, and foreign banks – and bankers – that facilitate them, a Swiss banker has pleaded guilty to conspiring to defraud the Internal Revenue Service in connection with his work as a banking and investment adviser for U.S. customers. In a statement of facts filed with the plea agreement, the...
    • 12 Mar 2014

    Funeral Homes Continue to Violate FTC’s Disclosure Requirements

    Investigators working undercover in nine states have found that, in 32 of the 124 funeral homes they visited during 2013, the funeral homes failed to disclose pricing information to consumers as required by the Federal Trade Commission’s Funeral Rule. The FTC conducts undercover inspections every year to make sure that funeral homes are complying with the agency’s Funeral Rule. The Rule, issued in 1984...
    • 12 Mar 2014

    Animal Feed Company, Audit Committee Chair, and Other Executives in China and US Charged with Accounting Fraud

    The Securities and Exchange Commission has charged an animal feed company and executives in China and the United States with conducting a massive accounting fraud in which they repeatedly reported fake revenues from their China operations to meet financial targets and prop up the stock price. The SEC alleges that four executives in China orchestrated the scheme at AgFeed Industries Inc., which was based in China and...
    • 12 Mar 2014

    Bernard Madoff Guilty Plea: 5 Years Ago Today

    Five years ago today, on March 12, 2009, Bernard Madoff pleaded guilty to orchestrating the largest Ponzi scheme in history. That day, Madoff told the court, “I knew what I was doing was wrong, indeed criminal.” He said that when he began the Ponzi scheme, “I believed it would end shortly and I would be able to extricate myself and my clients.” He ultimately recognized the impossibility of that...
    • 12 Mar 2014

    European Parliament Votes to Toughen Anti-Money Laundering Rules

    The ultimate owners of companies and trusts would have to be listed in public registers in EU countries under draft anti-money laundering rules voted by the European Parliament. “The public registers will make life more difficult for criminals trying to hide their money. Our economy currently loses huge amounts to tax evasion,” said Civil Liberties Committee Rapporteur Judith Sargentini (Greens/EFA, NL...
    • 11 Mar 2014

    Pharmacy Preyed On HIV Patients While Fraudulently Billing Medicaid for Millions, Prosecutors Assert

    Three men have been arrested on charges that they defrauded government-funded health care programs by buying back prescriptions and billing Medicaid as if the medication had been dispensed. The two owners of 184th Street Pharmacy in the Bronx, along with the supervising pharmacist, targeted financially vulnerable patients, putting their health at risk by paying them to forgo necessary anti-retroviral HIV medications,...
    • 11 Mar 2014

    Robert Anderson, Jr., Named to Lead FBI’s Criminal, Cyber, Response, and Services Branch

    Robert Anderson, Jr., has been named the executive assistant director of the Criminal, Cyber, Response, and Services Branch at FBI Headquarters. In this role, he will be responsible for all criminal and cyber investigations worldwide, as well as international operations, critical incident response, and victim assistance. He succeeds Richard A. McFeely, who is retiring from the FBI in April. “Bob has the leadership...
    • 11 Mar 2014

    600 Stolen Identities, and Over $1 Million in Losses, Lead Identity Theft Ringleader to Prison

    The leader of an identity theft ring that stole more than 600 identities from U.S. government employees and others has been sentenced to serve 12 years in prison, followed by three years of supervised release. Jenaro Blalock previously pleaded guilty to access device fraud and aggravated identity theft. He was sentenced by U.S. District Judge Claude M. Hilton, who also ordered Blalock to pay full restitution to victims...