August 2005
| Updated: 8/31/05 7:35 a.m. 08/30/05 SEC may fine Morgan Stanley $10 mln over email-WSJ -The Securities and Exchange Commission is threatening to fine Morgan Stanley (MWD.N: Quote, Profile, Research) more than $10 million for failing to keep e-mails in a number of cases the agency brought against the Wall Street firm, the Wall Street Journal reported on Tuesday. 08/30/05 Investment fraud scheme nets 17-year prison sentence - A Carlsbad man who used La Jolla companies to run a currency-exchange fraud that cost investors more than $11 million was sentenced yesterday to more than 17 years in federal prison. 08/30/05 Former Huntington Beach mayor to plead guilty in fraud case - Former Huntington Beach Mayor Pam Julien Houchen and four others have agreed to plead guilty to profiting from the sale of illegally converted condominiums, a federal prosecutor said. 08/30/05 Trash Hauler to Cover Costs of SEC Settlement - Looking to avoid the publicity of a trial, the country's largest trash hauler will pay $26.8 million to cover most of the costs of a settlement between former executives and the Securities and Exchange Commission. 08/30/05 3 Broward Clerk of Courts employees charged with theft, fraud - Three Broward County Clerk of Courts employees were arrested and charged with defrauding the county out of more than $9,200. |
| Updated: 8/30/05 8:05 a.m. 08/29/05 Pakistan Fighting Fraud Using Viisage Solution in Country's Electronic Passport and National ID Program - Face Recognition Technology Proves Critical Tool in Finding Fraud in 34 Million Image Database 08/29/05 Top Five Methods to Prevent Internet Fraud - Any fraud prevention solution or methodology must be assessed in terms of its overall benefit to the merchant. A stalwart solution that reduces fraud, but negatively impacts the customer experience -- either by increasing "false positives" or by delaying order fulfillment, might be as dangerous to the well-being of a company as an ineffective fraud solution. 08/29/05 U.S. Department of Justice Corporate Fraud Task Force Fact Sheet - Since its creation by Executive Order in July 2002, the Corporate Fraud Task Force (CFTF) has spearheaded the Administration's effort to prosecute corporate malfeasance, protect the jobs of hard-working Americans, and restore confidence to the marketplace. 08/29/05 KPMG Will Pay $456 Million to Defer Tax-Fraud Charges - KPMG LLP, the fourth-largest accounting firm, agreed to pay $456 million to avoid criminal prosecution by the U.S. government over abusive tax shelters, and eight of its former partners were indicted in the matter. 08/29/05 U.S. lobbyist Abramoff pleads innocent to fraud - Washington lobbyist Jack Abramoff, a key figure in ethics investigations involving U.S. House Majority Leader Tom DeLay, pleaded not guilty on Monday to charges he defrauded lenders in a casino cruise line deal. |
| Updated: 8/29/05 10:25 a.m. 08/28/05 Fraud Is a Big Deal? That's the Case Here - Given the myriad television shows about cops and crime-solving, most people have a general sense of what it takes to prosecute murders, rapes and kidnappings, Cafferty says. "But on a white-collar type of crime, they probably have no sense of what it took to put it together." 08/28/05 Man Charged with Stealing Model Tractors - A man who used to work for equipment-maker John Deere is accused of stealing more than 100 miniature tractors and selling them online for $16 to $10 each. 08/27/05 Phoenix Title, realty owner pleads guilty to wire fraud - The owner of Phoenix Title pleaded guilty Friday to wire fraud charges in connection with a $1.6 million mortgage fraud scheme, said U.S. Attorney Catherine Hanaway. 08/27/05 Ex-state worker to admit to scam - A former state computer network engineer has agreed to plead guilty to grossly overcharging a state agency and Indiana University for equipment and keeping thousands of dollars for himself. 08/27/05 French Beaujolais king DuBoeuf denies wine fraud - France's Beaujolais king George Duboeuf has on Saturday denied allegations of blending the equivalent of some 300,000 bottles of his company's premium wines with cheaper wines. 08/26/05 Lawyer gets 30 years in fraud case - A former Stone Mountain attorney will serve 30 years in federal prison and pay $11.5 million in restitution for orchestrating an elaborate mortgage fraud ring that targeted several homes in Gwinnett County and elsewhere. 08/26/05 Ex-Prudential broker to plead guilty to fraud-lawyer - A former Prudential Securities broker is likely to plead guilty to securities fraud charges, his lawyer said on Friday, adding that the improper trades he was accused of making were approved by his managers. |
| Updated: 8/26/05 8:17 a.m. 08/25/05 Visa pushes for smart cards to cut fraud, store more data - The world's largest credit card company is making a push for greater use of the chip, or smart card. 08/25/05 U.S. charges former Prudential broker with fraud - Federal authorities on Thursday said they charged a former Prudential Securities broker with fraud for improperly trading mutual funds for hedge funds clients. 08/25/05 County hotline aids fraud search -Investigators opened 162 investigations from April 1 to June 30 and closed 106 cases, including 25 that were substantiated. Of those, five employees were fired, four resigned, two were suspended, three were counseled, two were required to pay restitution and two were referred to the District Attorney's Office for prosecution. 08/25/05 California sues 39 drug makers for inflated prices - California's attorney general said on Thursday the state has filed a lawsuit accusing 39 pharmaceutical companies of bilking the state's Medicaid program of hundreds of millions of dollars by inflating drug prices. 08/25/05 Lawmaker pleads guilty to federal fraud charges - Former state Sen. John A. Celona pleaded guilty on Thursday to accepting hundreds of thousand of dollars from three companies, including the pharmacy chain CVS Corp., that sought to influence legislation before the General Assembly. 08/25/05 HealthSouth ex-CFO gets 3 months in jail - HealthSouth Corp. (HLSH.PK: Quote, Profile, Research) co-founder and first Chief Financial Officer Aaron Beam on Thursday was sentenced to three months in prison for his part in the multibillion-dollar accounting fraud that rocked the health care company. 08/25/05 John Byrne Joins Bank of America from ABA -Bank of America announced today the appointment of John J. Byrne to the position of Anti-Money Laundering Strategy Executive in the bank's Compliance Risk Management Division. |
| Updated: 8/24/05 6:25 p.m. 08/24/05 MicroBilt Seeks to Reduce Identity Fraud With New Driver's License Scan and Verification Product - MicroBilt Corporation, a leading online provider of credit information, announced today the release and launch of a fraud fighting identity verification product that captures driver's license data on-site. MicroBilt is offering Driver's License Scan through CreditCommander.com. 08/24/05 SEC charges hedge fund with fraud -U.S. financial regulators charged a former hedge fund manager, who is serving time in prison, with civil fraud on suspicion he lied about his fund's returns to tempt clients into investing. 08/24/05 Aide to Hollinger's Black to plead guilty-lawyer - Former Hollinger International Inc. (HLR.N: Quote, Profile, Research) President and Chief Operating Officer David Radler will plead guilty next month to fraud charges tied to a scheme estimated to have defrauded investors of $32 million, his lawyer said on Wednesday. 08/24/05 AOL to Pay $1.25M to Settle State Inquiry- America Online Inc., the world's largest Internet service provider, will pay $1.25 million in penalties and costs and reform some of its customer service practices to settle an investigation by Attorney General Eliot Spitzer's office. 08/24/05 KPMG Nears Agreement On Tax-Shelter Abuses - KPMG LLP is nearing agreement on a deal with federal prosecutors that would avert an indictment against the nation's fourth-largest accounting firm for its sale of abusive tax shelters, according to sources familiar with the pact 08/24/05 City Auditor Ready to Retire - Come Oct. 1, the city will lose the one man who really knows what’s going on. |
| Updated: 8/23/05 9:09 p.m. 08/23/05 Audit Firms Tell Partners Not to Poach KPMG Clients, People Say - The three largest U.S. accounting firms ordered their partners not to poach clients or personnel from smaller rival KPMG LLP while it is under federal scrutiny for allegedly selling abusive tax shelters, people familiar with the matter said. 08/23/05 Judge Recommends Dismissing Grant Thornton Suit - Grant Thornton LLP said that a Chicago judge has recommended that a case brought against the law firm regarding its bank auditing work be dismissed. 08/23/05 Another Reinsurance Firm Under SEC Scrutiny - Reinsurer MBIA Inc. recently said that it had received a Wells notice from the Securities and Exchange Commission that it may face civil charges over past reinsurance transactions. 08/23/05 Man charged with insurance fraud in allegedly staged disappearance - A St. George man who had been thought missing on a hiking trip until he was traced to Australia has been charged with insurance fraud. 08/23/05 Ex-Kmart Officers Accused of Fraud by U.S. Regulator - Former Kmart Corp. Chief Executive Charles Conaway and the retailer's ex-chief financial officer misled investors about the company's finances before its 2002 bankruptcy, the U.S. Securities and Exchange Commission 08/19/05 Miss. likely to file criminal suit against KPMG - Mississippi likely will file criminal charges against accounting giant KPMG because it created a tax strategy the state says illegally let WorldCom, now called MCI Inc. (MCIP.O: Quote, Profile, Research), shield billions of dollars from taxes, sources close to the case said on Friday. |
| Updated: 8/22/05 9:57 p.m. 08/22/05 Two Ex-Bristol-Myers Officers Sued by SEC for Fraud -Two former Bristol-Myers Squibb Co. executives defrauded investors by improperly accounting for $1.5 billion in revenue in 2000 and 2001, according to the U.S. Securities and Exchange Commission. 08/22/05 CalPERS defrauded, suit claims - Pension fund is customer of firm ex-workers charge mishandled drug orders. 08/22/05 Blue Cross and Blue Shield Plans' Anti-Fraud Efforts Recovered and Saved Nearly $228 Million in 2004 - Blue Cross and Blue Shield Plans' anti-fraud efforts resulted in savings and recoveries of nearly $228 million in 2004, according to new anti-fraud data released by the Blue Cross and Blue Shield Association (BCBSA). 08/22/05 - Targus Suit Over Embezzling CFO Set for Trial A lawsuit pitting Anaheim-based Targus Group International Inc. against accounting firm KPMG LLP is nearing a trial. 08/22/05 Scrushy Civil Charges Proceed, for Now - U.S. District Judge Inge Johnson has turned down Richard Scrushy's attempt to have civil charges against him dismissed, according to press reports. |
| Updated: 8/21/05 10:30 p.m. 08/18/05 Judge Lets SEC File New HealthSouth Suit - A federal judge considering whether to let the Securities and Exchange Commission proceed with its lawsuit against former HealthSouth Corp. chief Richard Scrushy said Thursday the government can revamp its complaint 08/20/05 New MassMutual chairman says company studying policy changes - HARTFORD, Conn. --Lawyers for MassMutual Financial Group argued in Superior Court on Friday that documents summarizing internal investigations into the conduct of former chief executive Robert O'Connell cannot be made public because they are part of an antitrust investigation. 08/19/05 County spies on employees - Now administrative officials want to hire another private investigator to delve into accusations filed with the county's Fraud, Waste and Abuse Hotline. 08/19/05 Rendell Administration and Treasury Take Action to Prevent Identity Theft - HARRISBURG, Pa., Aug. 19 /PRNewswire/ -- To help protect Pennsylvanians from identity theft, Pennsylvania Department of Labor & Industry (L&I) Secretary Stephen M. Schmerin and State Treasurer Robert P. Casey Jr. have taken action to stop printing Social Security numbers on Unemployment Compensation (UC) benefit checks. 08/19/05 Westchester lawyer pleads guilty to fraud - WHITE PLAINS — An Eastchester real estate lawyer faces up to five years in prison after admitting today that he stole more than $1 million from his clients' escrow accounts over the last four years. 08/19/05 One charged, one pleads guilty in mortgage fraud investigation - LOUISVILLE - One man is charged and another pleaded guilty in what the FBI describes as a large, ongoing investigation into mortgage fraud. |
| Updated: 8/19/05 10:30 a.m. 08/18/05 Mortgage fraud takes a growing toll -The FBI, which is targeting mortgage fraud throughout the country, said in a May report that the crime is "pervasive and growing." 08/18/05 Click Fraud Claims Drive Lawsuits - A few years ago, Diane Frerick and Kevin Steele, co-founders of Karaoke Star, a Phoenix-based karaoke equipment seller, were on their way to $3 million in annual revenue. 08/18/05 Hollinger's Radler, Kipnis Indicted on Fraud Charges - David Radler, Hollinger International Inc.'s former president, was indicted along with the newspaper publisher's ex-lawyer and Conrad Black's private holding company in what prosecutors say was a $32 million fraud. 08/18/05 KPMG Strikes Back on Ex-Clients' Tax-Shelter Suits - The accounting firm KPMG is quietly putting the boxing gloves back on. Even as KPMG is in discussions with federal prosecutors to settle a criminal investigation over its sale of what the Internal Revenue Service says are bogus tax shelters, the firm has been taking on former clients who have sued it over those same shelters. 08/18/05 U.K. Watchdog to Review Deloitte MG Rover Work -The U.K.'s Accountancy Investigation and Discipline Board said that it is looking into the audit and advisor work that Deloitte performed for bankrupted car manufacturer MG Rover. 08/18/05 Ruling spells end of contracts waiving future jury trials -The California Supreme Court recently ruled that companies cannot waive their right to a jury trial at the outset of a business relationship, even though both parties agree that it is in their best interests to do so. 08/16/05 Guidance on Implementing a Fraud Hotline - The Federal Deposit Insurance Corporation (FDIC) encourages financial institutions to consider implementing a fraud hotline to assist in their enterprise risk management, corporate governance and fraud protection efforts. The FDIC has established the following guidelines for institution management to consider when implementing a fraud hotline to ensure its overall effectiveness. |
| Updated: 8/18/05 7:23 a.m. 08/17/05 US firms find fraud hotlines too risque in France - Some fraud hotlines are going dark in France as U.S. companies find themselves caught in the middle of a trans-Atlantic culture clash. 08/17/05 FDIC helps banks fight real estate fraud - As mortgage fraud continues to increase in the United States, a federal agency has released a guide for banks and other institutions on how to implement a fraud hotline. 08/17/05 Fair Isaac Announces Payment Optimizer 2.5, Bolstering Fraud Detection and Payment Integrity for Pharmacy Claims - Fair Isaac Corporation (NYSE:FIC), a leading provider of analytics and decision technology, today announced the release and immediate availability of Payment Optimizer(R) 2.5 solution, an enhanced version of its fraud detection system for healthcare payers that provides prepayment and postpayment analysis to dramatically reduce fraud losses and ensure payment integrity. 08/17/05 Testimony in Westar fraud trial ends, goes to jury next week - Testimony in the federal fraud retrial of two former Westar Energy Inc. executives ended Wednesday, and the case will go to jurors next week. 08/17/05 Ex-credit manager, store owner charged with fraud - The former credit manager at Allen-Edmonds Shoe Corp. and the owner of Van's Shoe Shop in downtown Milwaukee were among six people charged with fraud in an alleged scheme that bilked the shoe manufacturer out of $1.2 million. 08/17/05 Vector Aerospace settles fraud claim against bond insurer for $4.2 million - Vector Aerospace Corp. said Wednesday it has settled a claim made against one of its fidelity bond insurers relating to a 2004 employee fraud for $4.2 million. 08/17/05 Putting More ''E'' in T&E - As technological endorsements go, "we didn't realize the ROI would be so great" is as good as it gets, particularly when it's coming from a finance person. And that's exactly how Bob Mendence, finance manager for corporate services at Applera, describes his company's adoption of a new travel-and-entertainment expense software system from Concur Technologies. 08/17/05 Former Bank of Jackson Hole CEO pleads guilty to fraud - The former chief executive officer of the Bank of Jackson Hole pleaded guilty to fraud, saying he was solely responsible for the $1.5 million scheme. |
| Updated: 8/17/05 11:45 a.m. 08/17/05 Fugitive con man found on yacht in North End - He was a crafty chameleon: a charming lover to women, a shrewd entrepreneur to investors, a kind-hearted savior for Native American artists. 08/17/05 SEC Settles With Former Execs in Accounting Fraud Case - The Securities and Exchange Commission settled charges of accounting violations by two former executives at First American Health Concepts Inc., acquired in 2001 by Italian eyeglass company Luxottica Group SpA, whose brands include Ray-Ban, Lenscrafters, Pearle Vision and Sunglass Hut. 08/17/05 Investors suing money manager over Google loss - An Evergreen-based hedge fund and 25 other investors are out nearly $20 million, and regulators blame a Tennessee money manager who bet big against the high-flying stock. 08/17/05 Beer exec says Maris engaged in fraud - Anheuser-Busch's second-in- command came to Gainesville Tuesday to testify in a multibillion dollar defamation case against the world's largest beer manufacturer. 08/17/05 Four found guilty of £40m VAT fraud - Four people were found guilty at Maidstone Crown Court on Friday of involvement in a “carousel” VAT fraud that is estimated to have cost HM Revenue & Customs (HMRC) over £40 million over two years. 08/16/05 FTC settles with Experian over misleading credit-report pitch - WASHINGTON -- The Federal Trade Commission reached a legal settlement Tuesday with major credit bureau that promised consumers a free credit report and then hit them with hidden charges, the agency announced. 08/15/05 Seminar Video Reveals More About Alleged Real Estate Pyramid Scheme - RALEIGH, N.C. -- Who would not like to make $10,000 a month without having to work for it? Plenty of people in the Triangle thought they made that kind of deal; now, they regret it. |
| Updated: 8/16/05 10:37 a.m. 08/16/05 The danger of appraisal inflation - A high appraisal can at first seem a homeowner's best friend. After all, the higher the property's apparent value, the more one can get on a cash-out mortgage refinancing or a home-equity loan. 08/16/05 DISD: No record of tech chief inquiry -The president of a national fraud examiners group said secrecy or lack of transparency can hinder the goal of such inquiries for public entities: to restore or maintain public trust. 08/16/05 JPMorgan to pay $350 mln in Enron case - NEW YORK (Reuters) - JPMorgan Chase & Co. (NYSE:JPM - news) agreed to pay $350 million in cash and Toronto-Dominion Bank (Toronto:TD.TO - news) will pay $70 million to resolve claims they helped Enron Corp. commit fraud, leading to the energy trader's 2001 bankruptcy 08/16/05 Former Kmart CEO Cleared Of Fraud Charges - Former Kmart chairman/CEO Charles Conaway has been cleared by arbitrators of charges made by former shareholders that he was guilty of negligence, mismanagement and essentially looting the company for his own benefit. 08/16/05 Four plead not guilty to fraud in housing scheme - SAN BERNARDINO - Four people accused of scamming nine property owners out of $1 million pleaded not guilty Monday to fraud charges. 08/16/05 Fake banker sentenced for Oakland fraud -SAN FRANCISCO — A former Oakland man who was convicted in March of inveigling people into investing in a fake Oakland bank was sentenced Monday to five years in prison and ordered to pay $87,850 in restitution, according to the U.S. attorney's office. 08/15/05 PwC Study: Audit Committees Can't Go It Alone - The third edition of PricewaterhouseCoopers' study, "Audit Committee Effectiveness: What Works Best," warns that given their increased workload, audit committees need to resist the temptation to try and do everything themselves. 08/15/05 SEC Weighs More Time for More Companies - Committee would give an additional year for small businesses to comply with Section 404 of Sarbanes- Oxley; it also recommends widening the definition of ''small company". |
| Updated: 8/15/05 10:50 a.m. 08/15/05 3 plead guilty in fraud scheme Three people accused of operating a multi-million-dollar mortgage-fraud scheme centered on East Manatee pleaded guilty to criminal charges Friday, the same day a federal grand jury indicted four others in the case. 08/15/05 Year-on-year increase in fraud in Russia - Interior Ministry - The number of fraud cases registered in Russia in the first six months of 2005 was 26% up on the same period last year, a senior Interior Ministry official reported Monday. 08/15/05 Brokers, day trader accused in U.S. fraud scheme - The U.S. Securities and Exchange Commission on Monday charged four brokers and a day trader for scheming to trade ahead of large orders and profiting from the subsequent price movements. 08/15/05 Gelco Expense Management Announces New Fraud Deterrence Capabilities; Mitigates Risk of Expense Reimbursement Fraud, Increases Compliance - Gelco Expense Management, the leading global provider of automated expense management solutions, today announced at the National Business Travelers Association conference in San Diego the roll-out of its suite of fraud deterrence capabilities that mitigate the risk of employee expense reimbursement fraud while increasing employee satisfaction and productivity. 08/15/05 Paper shredders fed by fear of fraud - Paper shredders have become a best-seller in Australian homes as concerns grow about identity theft and fraud. 08/13/05 Feds seek home forfeiture in alleged $3 million investment fraud - OIL CITY, Pa. - Federal prosecutors are seeking the court-ordered forfeiture of a home belonging to a woman who used to work at the Parker/Hunter brokerage office in Oil City. 08/12/05 Civil fraud charge eyed for Fidelity - Federal securities regulators are considering a civil fraud charge against Fidelity Investments for its alleged negligence involving the company's stock trader gift scandal, according to an official who has been briefed on the investigation |
| Updated: 8/12/05 9:37 a.m. 08/12/05 Federal prosecutor says five charged in real estate fraud -A real estate lawyer and four others have been charged with criminal fraud involving at least $286,000 skimmed from sales in Charleston's booming housing market. 08/12/05 Former Odessa attorney admits to tax fraud - Ashley pleaded guilty to felony charges of submitting false tax documents and conspiracy to defraud the United States to avoid paying estate taxes. 08/12/05 Probe finds poor data gathering, but no evidence of fraud by adult literacy agency - A poor data collection system — not fraud — may account for inaccuracies in state and federal reports on the success of Georgia's adult literacy programs, the state inspector general's office has concluded. 08/10/05 Mortgage brokers indicted on fraud, money laundering charges - JACKSON, Miss. - Three Hinds County mortgage brokers have been indicted in what federal authorities say was a scheme that left unsuspecting elderly homeowners liable for more than $5 million in phony loans. |
| Updated: 8/11/05 9:42 a.m. 08/11/05 Sullivan gets 5 years for WorldCom fraud - NEW YORK — Former WorldCom finance chief Scott Sullivan was sentenced today to five years in prison for his high-ranking role in the largest accounting fraud in U.S. history. 08/11/05 Four Brokers Charged With $5 Million Loan Fraud - The indictment alleges that from June of 1999 through August of 2005, Michael Lance Persac, Jason Ellis and Carroll F. Ellis, Jr. conspired to prepare false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers 08/11/05 Developer 'guilty' of tax fraud - Aspen developer George Gradow pleaded guilty to tax fraud Wednesday, admitting he altered financial documents five years ago to fool an IRS auditor and save $128,185 in taxes. "I was stupid, your honor. Absolutely," Gradow, 65, told Judge Wiley Daniel at a morning hearing in Denver federal court. 08/11/05 Pinochet's Wife, Son Charged With Aiding Tax Fraud - Former Chilean dictator Augusto Pinochet's wife and son were arrested on charges they helped commit tax fraud. 08/10/05 Eleven Lear Workers in Grand Rapids Area Guilty of Unemployment Fraud - Eleven workers in western Michigan have been found guilty of unemployment insurance fraud for collecting more than $100,000 in benefits to which they were not entitled. Twenty-nine others face strong administrative action from the state's Unemployment Insurance Agency. Updated: 8/10/05 10:45 a.m. 08/10/05 Background Checks - Worries about personnel integrity are creating a few worries of their own. 08/10/05 Krispy Kreme says former execs let controls lapse - CHICAGO – Krispy Kreme Doughnuts Inc. failed to meet accounting and reporting obligations as a public company, with its former chief executive and chief financial officer bearing responsibility, a special committee of the board of directors said Wednesday. 08/10/05 Despite Illegal Status, Buyers Get Home Loans - Across the country, particularly in Texas and parts of the Midwest, hundreds of illegal immigrants have bought homes using special lending programs that bypass the need for a Social Security number. Now, with backing from some of the country's largest financial institutions, this newest effort to tap customers for the real estate market is moving to the nation's largest concentration of illegal immigrants — California. 08/10/05 3 indicted in Jeffco in alleged mortgage fraud - The Jefferson County district attorney's office on Tuesday announced grand jury indictments of three people - a Lakewood Realtor, a loan officer and an unlicensed salesperson - for alleged mortgage fraud aimed at the Hispanic community.The indictments are the second in recent weeks arising from an ongoing Jefferson and Gilpin counties grand jury investigation of mortgage fraud. 08/10/05 PinnFund money raiser pleads guilty to wire fraud - The final executive facing criminal charges in the notorious PinnFund USA financial scam has pleaded guilty to wire fraud. James Hillman, 65, a lawyer now living in Nevada, was the chief money raiser for Carlsbad-based PinnFund, a defunct sub-prime mortgage lender that bilked investors out of millions of dollars. |
| Updated: 8/9/05 2:10 p.m. 08/09/05 Former WorldCom exec gets a year and a day in jail - Former WorldCom Director of Accounting Buford Yates was sentenced to a year and a day in prison on Tuesday for his role in the $11 billion business fraud at the company. 08/09/05 Two ex-Citigroup execs charged with fraud-SEC - U.S. securities regulators on Monday accused two former executives of two separate Citigroup (C. N: Quote, Profile, Research) units of securities fraud related to a transfer agent created to serve Smith Barney mutual funds at discounted rates. 08/09/05 Former Wembley US unit guilty of bribery Wembley, the UK gaming company that last month completed the sale of its assets, said on Tuesday that a Massachusetts federal court found Lincoln Park, its former gaming and dog racing unit located in Rhode Island, guilty on two counts of wire fraud and another charge relating to a long-running bribery case. 08/09/05 Trial opens for Daewoo's ex-chairman - Kim Woo-choong, former chairman of collapsed conglomerate Daewoo, appeared in a Seoul court Tuesday to face charges of massive fraud that led to the downfall of a South Korean corporate icon. 08/09/05 SEC Seeks Small Company Input — The SEC Advisory Committee on Smaller Public Companies published a series of questions to solicit public input from investors and companies on ways to improve the current regulatory system for smaller companies and to examine the impact of the Sarbanes-Oxley Act of 2002. 08/09/05 Ex-Citigroup Executives Sued by U.S. SEC Over Fees - Also Monday, the SEC accused two former executives at Citigroup Inc. of diverting to the bank tens of millions of dollars that should have gone to reduce costs for mutual fund investors. 08/09/05 Ex-U.N. Officer Pleads Guilty to Bribes - A former United Nations procurement officer pleaded guilty Monday to soliciting a bribe under the oil-for- food program, making him the first U.N. official to face criminal charges in connection with the scandal-tainted operation. 08/08/05 Man Linked To Al-Arian Indicted - A former Tampa man linked to Sami Al- Arian who allegedly delivered a satellite-phone battery to Afghanistan for Osama bin Laden's use in 1998 is now facing charges of immigration and mortgage-loan fraud, according to court documents unsealed in recent days. |
| Updated: 8/8/05 4:10 p.m. 08/08/05 Utah College Savings Plan, Director Charged With Fraud - In its first enforcement action involving a college savings plan, the Securities and Exchange Commission filed securities fraud charges against the former director of the Utah Educational Savings Plan Trust for secretly stealing $505,976 from the plan’s participants and settled similar charges with the UESP for misleading investors. 08/08/05 Prosecutors step up Milberg Weiss probe - - U.S. prosecutors have stepped up their criminal probe of law firm Milberg Weiss, a specialist in class- action cases, and have given immunity to two former partners at the firm, The Wall Street Journal reported on Monday. 08/08/05 Greenberg Says AIG Restatements Needless - In a memo to federal regulators, lawyers for American International Group Inc.'s former chief executive outlined a case that the company's $3.9 billion earnings restatement was unnecessary and that any blame lay with its auditor of the past two decades, PricewaterhouseCoopers. 08/08/05 DaimlerChrysler Bribery Charges Probed - U.S. Justice Department investigators and German federal authorities are looking into allegations that the automaker's Mercedes unit paid bribes in at least 12 countries. 08/08/05 Regulators Eye Berkshire Hathaway Accounting - Quarterly filing discloses that governmental authorities are inquiring about ''the accounting by certain of Berkshire's insurance subsidiaries for assumed and ceded finite transactions.'' 08/07/05 Mortgage fraud huge in Florida, FBI report says - Lending schemes are 'pervasive,' and foreclosures on the rise. 08/07/05 Neighborhood activists battle mortgage fraud -They independently began investigations, starting with public records, such as deeds at the county courthouses. They discovered irregularities. Some of the problem houses in their neighborhoods had been sold twice in one day; the second sale often for hundreds of thousands of dollars more than the first. 08/06/05 Local man pleads guilty in $7.1 million loan fraud - James L. Spicer, 32, arranged for 139 loans from two out-of-state lending institutions, according to federal prosecutors. The scheme involved purchasing low-cost housing in low- income areas, then reselling it at inflated prices. 08/05/05 Ex-WorldCom Accountant Gets Prison Time - Pressed to say how she chose which entries to change, Betty Vinson reportedly testified, "I just really pulled some out of the air. I used some spreadsheets." 08/05/05 SEC Files Charges against Head of Utah 529 Plan - The administrators of a Utah college savings plan have settled with the Securities and Exchange Commission for issuing false and misleading information, though the fund's former director will be charged with misappropriating funds. |
| Updated: 8/4/05 6:40 p.m. 08/04/05 Andersen to Pay $25M for Global Crossing Collapse New York - Defunct accounting firm Arthur Andersen LLP will pay $25 million to settle a lawsuit brought by investors over its role in the collapse of telecommunications company Global Crossing Ltd. 07/31/05 Never a better time for 'executive transparency' The conviction of Bernie Ebbers and the failure of WorldCom just might have been averted if financial investigators had been given the right tools to ferret out his crimes much earlier. 08/04/05 Trusted neighborhood pharmacist' charged in $4 million fraud Pirro said Norwood used a code on his computerized customer lists to identify patients who would not notice or not complain if he shorted them on medications, dispensing 80 pills instead of the 100 prescribed, for example 08/04/05 Ex-official at Chicago parks took bribes-prosecutor - Federal prosecutors broadened their probe of public corruption in Illinois and Chicago on Thursday, announcing charges against a former park district official for accepting bribes from a landscaping firm. 08/03/05 Time Warner in $2.5B fraud settlement - Time Warner Inc. and its auditor have reached a $2.5 billion settlement to securities fraud litigation, according to statements Wednesday from the world's largest media company and the lead attorney for the plaintiff. 08/03/05 Legal experts expect more Enron settlements - Plaintiffs suing big investment banks on behalf of Enron investors keep winning increasingly larger settlements -- and legal experts said on Wednesday the trend may continue as more defendants feel pressure to settle. 08/03/05 German court convicts man for sex hotline fraud - A court in Germany convicted a man for fraud after he racked up huge phone bills phoning a sex hotline from work and split the proceeds with a woman working at the service, authorities said on Wednesday. 08/03/05 Blowing the Whistle Can Lead to Harsh Aftermath, Despite Law Robert Vaughn, an American University law professor, says the whistle-blower provisions in Sarbanes-Oxley offer the best employee protections in the world: "It promises changes in the workplace, in the private sector labor law and in the regulation of corporate conduct," he wrote in a law review article this year. 08/03/05 Former Cendant vice chairman gets 10 yrs in prison HARTFORD, Conn., Aug 3 (Reuters) - A former top executive at Cendant Corp. (CD.N: Quote, Profile, Research) was sentenced to 10 years in prison on Wednesday for his role in a $500 million accounting fraud in the late 1990s. |
| Updated: 8/2/05 3:45 p.m. 08/02/05 Ex-Deloitte Manager Is Accused of Fraud The former operations manager for the Santa Ana office of Deloitte Consulting LLP, a major business consulting firm, was arrested Monday, accused of bilking her employer out of more than $500,000. 08/02/05 Former MCA Finance Exec Pleads Guilty Another executive pleads guilty as several other company officiers, including the CFO, are sentenced in Michigan’s biggest fraud scheme. 08/02/05 Anti-fraud 'fingerprint' hope A UNIQUE natural "fingerprint" on documents, plastic cards and packaging could be used to combat fraud, it was claimed today. 08/02/05 Gartner Says ATM/Debit Card Fraud Resulted in $2.75 Billion in Losses in Past Year; Criminals Create Phishing Attacks for Consumer ATM Card Numbers and PINs to Penetrate Unguarded Bank Systems -Thieves increasingly are exploiting vulnerabilities in consumer bank account systems, with an estimated 3 million U.S. consumers victimized by fraud involving automated teller machine (ATM)/debit cards in a recent 12-month period, according to Gartner, Inc. 08/02/05 Fake `Saudi princess' pleads guilty to larceny, insurance fraud - A former investment banker who posed as a Saudi Arabian princess was told to check into a mental hospital Tuesday after admitting she tried to cheat an insurance firm and that she stole from a credit card company. 08/02/05 University of California Launches Employee Ethics Hotline For All Its 10Campuses with The Network - The University of California has chosen The Network Inc., one of the nation's leading providers of ethics hotlines, to implement an anonymous employee ethics hotline service for use by more than 150,000 staff and faculty members based at its 10 campuses and three national laboratories managed for the Department of Energy. 08/02/05 HealthSouth's Chief Accountant Quits The company's finance chief, John Workman, will fill the slot. No delays are expected in 10-K filings for 2004 and 2005. 08/01/05 Sentencing of two former Tyco execs postponed until Sept. 19 NEW YORK – Sentencing for two former top Tyco International executives convicted of stealing hundreds of millions of dollars from the company has been postponed while lawyers prepare to argue how much money they must repay. |
| Updated: 8/2/05 11:50 a.m. 08/01/05 3 Ex-Judges Handed Lengthy Sentences 08/01/05 Mo fraud trial opens with two guilty pleas 08/01/05 IRS to Pay for Information Disclosures 08/01/05 Reliant, Deloitte & Touche to Settle Suits 08/01/05 Study Shines Light on Earnings Statements 08/01/05 Senate Panel OKs Fannie, Freddie Bill |
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| Updated: 9/1/05 8:45 a.m. 08/31/05 SEC charges KL Group executives with fraud - The U.S. Securities and Exchange Commission on Wednesday filed civil fraud charges against two executives of KL Group LLC, a Palm Beach, Florida, hedge fund. 08/31/05 Eisenhower pays $8 million in whistleblower case - Eisenhower Medical Center paid $8 million to the federal government on Monday to settle a "whistleblower" lawsuit, which alleged the Rancho Mirage hospital fraudulently overbilled Medicare and other federal health insurance programs from 1990 to 1998. 08/31/05 Ex-park district official pleads to fraud - A former Chicago Park District employee pleaded guilty Wednesday to steering $8 million in landscaping work at the city's showcase Millennium Park and elsewhere to a contractor in return for cash, gifts and free vacations. 08/31/05 Century Financial owners convicted in BestBank fraud -The co-owners of a company doing business with Boulder’s defunct BestBank, which federal authorities call one of the largest bank failures in the past 10 years, were found guilty Monday on 63 felony counts involving fraud. 08/31/05 U.S. Department of Transportation Awards Office of Inspector General Hotline Contract to National Hotline Services, Inc. - The U.S. Department of Transportation (DOT) has awarded a contract to National Hotline Services, Inc. (NHS), of Fredericksburg, Virginia, to establish and operate a nationwide compliance hotline for its Office of the Inspector General (OIG). |
