USLegal Reporter » Fraud

Supreme Court Hears Ex-Enron CEO Appeal

Dana Altman — Tue, 02 Mar 2010 12:04:38 +0000

The U.S. Supreme Court is hearing arguments in the appeal of former Enron CEO Jeffrey Skilling, who is currently serving a 24-year sentence after being convicted on 19 counts of conspiracy, insider trading, and securities fraud. The Court will consider if and to what extent the government must rebut the presumption of jury prejudice due to pretrial publicity and community impact from the crimes. Also at issue is whether the federal honest services fraud statute is unconstitutionally vague.

Skilling’s attorney argued that the lower court’s voir dire process during jury selection was inadequate to identify unduly biased jurors because of the degree of passion and prejudice in the community. After the downfall of Enron in 2001, Skilling was found to have deprived shareholders and the public of “the intangible right to honest services”, in violation of federal law.

Sources: http://jurist.law.pitt.edu/paperchase/2010/03/supreme-court-hears-enron-ex-ceo-appeal.php

http://www.breakinglegalnews.com/entry/Former-Enron-CEOs-Case-Before-High-Court

Madoff Sentenced to 150 Years

Dana Altman — Tue, 30 Jun 2009 16:27:14 +0000

U.S. District Court for the Southern District of New York Judge Denny Chin gave Bernard Madoff the maximum sentence of 150 years for 11 counts of securities fraud. Madoff has pled guilty to the charges involving a multi-billion dollar Ponzi scheme. In court, Madoff made a statement apologizing to his victims.

Chin issued a restraining order on more than $100 million in Madoff’s assets in April to prevent them from going into bankruptcy. A federal bankruptcy judge was also appointed as an interim trustee to managr Madoff’s assets ahead of legal action by victimized investors. In February, Madoff agreed to a partial judgment with the SEC. The SEC had brought civil charges to get a preliminary injunction and asset freeze against him.

Source: http://jurist.law.pitt.edu/paperchase/2009/06/madoff-sentenced-to-150-years-for-fraud.php

House Approves Legislation to Create Financial Fraud Commission

Dana Altman — Tue, 19 May 2009 16:54:51 +0000

Legislation called the Fraud Enforcement and Recovery Act was approved by the U.S. House of Representatives, after being approved by the Senate. It will become law once it is signed by President Obama. The bill allocates $165 million over the next two years for increased enforcement activities against fraud related to mortgages, securities and commodities, financial institutions, and federal assistance and relief programs. The funding will be shared among the Federal Bureau of Investigation, Department of Justice, and U.S. Attorneys Office.

The legislation would also create a “financial crisis inquiry commission,” consisting of ten members with subpoena power to investigate the cause of the current financial and economic crisis, as well as the collapse of major financial institutions. Commission members would be appointed by both the majority and minority leaders of the Senate and House.

Source: http://jurist.law.pitt.edu/paperchase/2009/05/house-approves-financial-fraud.php

Katrina Fraud Charges Against Mississippi Mayor

Della Sellers — Thu, 29 Jan 2009 14:40:48 +0000

Brent Warr, mayor of Gulfport, Mississippi, has been indicted for conspiring to defraud the federal government and filing a false claim for Hurricane Katrina disaster assistance. After entering a not-guilty plea Wednesday, Warr says he plans to continue in his position as mayor.

Warr and his wife are being charged with trying to obtain a grant for a beach house they owned but did not live in. The government is seeking to forfeit $222,798 in funds, and Warr faces a prison sentence of up to 210 years and fines totalling $4 million if convicted on all charges.

Source: http://www.google.com/hostednews/ap/article/ALeqM5i1iPkSKCbK1qKls7wV3kv5nBUFmgD960CO3O1
http://www.wlox.com/Global/story.asp?S=9746725&nav=menu40_11

Madoff Arrogance and Hypocrisy Exposed

Dana Altman — Wed, 17 Dec 2008 15:42:03 +0000

Bernard Madoff, the money manager accused of swindling investors in a $50 billion Ponzi scheme once boasted to the Securities and Exchange Commission about the money he made. He also formally advised the U.S. government on ways for investors to avoid falling victim to con artists.

The once well-respected Madoff was formerly a chairman of the NASDAQ Stock Market. He also had connections to the same Washington regulators charged with overseeing the operations of investment funds like the one Madoff operated. Madoff’s victims included big banks, and the rich and famous.

Source: http://www.breakinglegalnews.com/entry/Fund-manager-in-scandal-once-boasted-about-profits

Criminal Charges Filed Against Former Bear Stearns Executives

carrie — Thu, 19 Jun 2008 21:36:55 +0000

Two former Bear Stearns investment managers were indicted today on charges stemming from the collapse of hedge funds last year which cost investors more than $1 billion dollars.

Ralph R. Cioffi and Matthew M. Tannin were charged with nine counts including conspiracy, securities fraud, wire fraud, and allegedly misleading investors.

Both men have entered pleas of not guilty in a Brooklyn federal court.

Sources:

http://www.reuters.com/article/governmentFilingsNews/idUSN1935034820080619

http://money.cnn.com/news/newsfeeds/articles/djf500/200806191412DOWJONESDJONLINE000875_FORTUNE5.htm

Mississippi Residents Plead Guilty to Katrina Fraud

Della Sellers — Tue, 10 Jul 2007 21:55:27 +0000

Mississippi Gulf Coast residents, Vincent Pempeit and Sandy Barron, pleaded guilty today to fraudulently seeking disaster assistance following Hurricane Katrina. By falsely claiming he lived in a particular home, Pempeit received $9,558 from FEMA and was approved by the Mississippi Development Authority for a $60,449 grant. Barron received $15,184 from FEMA after claiming hurricane damage to a former residence.

Pempeit and Barron are set to be sentenced on October 9, 2007 and face potential penalties of anywhere from 30 to 100 years in prison, as well as fines ranging from $500,000 to $5 million.

Source: http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20070710/NEWS/70710038

Best Buy Faces Bait-and-Switch Lawsuit

carrie — Fri, 25 May 2007 19:12:00 +0000

Connecticut attorney general Richard Blumenthal has announced a lawsuit against Best Buy accusing the chain of using in-store computer kiosks to deceive consumers and overcharge them.

Best Buy is one of the nation’s largest consumer electronics retailers. The lawsuit was filed yesterday. It accuses Best Buy of denying customers the best prices quoted on Best Buy websites by having its employees refer to look-a-like internal websites which quote higher prices.

“Best Buy used in-store kiosks to conceal lower online prices and renege on its price match guarantee. Consumers seeking bargains were led to believe that lower online prices had expired or never existed. Best Buy treated its customers like suckers, not patrons to be prized,” said Blumenthal.

The lawsuit seeks consumer refunds, civil penalties, and other remedies. Best Buy has until June 13 to respond.

See http://www.ct.gov/ag/cwp/view.asp?Q=382168&A=2788,

http://www.star-telegram.com/business/story/114130.html

Order for Federal Agencies to Eliminate Unnecessary Collection and Use of Identifying Information

Della Sellers — Thu, 24 May 2007 14:14:44 +0000

Clay Johnson III, Deputy Director for Management of the Office of Management and Budget, issued a memo on Tuesday to all department and agency heads ordering the implementation of new security measures to fight identity theft.

The agencies have until early 2009 to reduce and protect the personal identifying data that they maintain in records for public citizens and employees. The agencies must review their files within 120 days to identify cases where Social Security numbers are not required and “establish a plan in which the agency will eliminate the unnecessary collection and use of Social Security numbers within 18 months.” The agencies also have 120 days to establish a policy for notifying security officials, possible victims and the general public of loss or exposure of identifiying information. Further, agencies must encrypt all data on mobile computers or information storage devices unless there is written certification that the information is not sensitive, and must secure a safe method for remote access to sensitive data. Finally, agencies must improve security training of employees and establish written discipline descriptions for violations.

The memo stemmed from recommendations from the Identity Theft Task Force to reduce the growing loss and theft of personal information.

Source: http://news.findlaw.com/ap/o/51/05-23-2007/f1e100298b396793.html

Tax Scam Involving Identity Theft of Dead Persons

Della Sellers — Fri, 13 Apr 2007 13:32:11 +0000

A woman in California was charged on Thursday for filing false claims against the U.S. with a possible penalty of up to 15 years in prison. The accused admitted to Internal Revenue Service agents that she filed and submitted more than 200 fraudulent tax returns equalling more than $1 million in tax refunds, under the stolen identities of dead persons. The government paid almost $604,000.

The IRS uncovered the scheme when they noticed that numerous returns requested that the refunds be deposited in a small number of bank accounts belonging to Uzeegoa Makeba Sayles and a family member. They further discovered that the persons supposedly filing the returns were deceased. Agents claim they identified Sayles’ fingerprints on many of the false returns. Sayles’ initial court appearance is set for May 3, 2007.

Source: http://www.pe.com/ap_news/California/CA_BRF_SoCal_Tax_Scam_283189C.shtml