Fraud

Washington, D.C., June 19, 2009 — The Securities and Exchange Commission today charged two accountants who produced bogus financial statements and an Antiguan regulator who took bribes to look the other way as Robert Allen Stanford conducted an alleged $8 billion Ponzi scheme.

The SEC previously charged Stanford and his companies — Antiguan-based Stanford International Bank (SIB), Houston-based broker-dealer and investment adviser Stanford Group Company (SGC), and investment adviser Stanford Capital Management — as well as SIB chief financial officer James Davis and Stanford Financial Group chief investment officer Laura Pendergest-Holt with securities fraud in an enforcement action filed in federal court in Dallas on February 17.    » read more »

Stanford Financial Group Executives and Former Chairman of Antiguan Bank Regulator Indicted for Fraud and Obstruction; Charges Related to $7 Billion Dollar Scheme to Defraud Investors

June 19, 2009 -- Robert Allen Stanford, 59, chairman of the Houston-based Stanford Financial Group (SFG), three SFG executives and the former chief executive officer of the Antiguan bank regulatory agency have been indicted on fraud and obstruction charges related to a $7 billion scheme to defraud investors.    » read more »

Washington, D.C., June 17, 2009 — The Securities and Exchange Commission today charged two Oklahoma City residents with securities fraud and other violations for a scheme in which they misappropriated to themselves millions of dollars from Quest Resource Corporation, Quest Energy Partners, L.P. and their affiliates while they were executives at the company.    » read more »

SEC Charges Operators of $80 Million Ponzi Scheme Targeting Korean-Americans

Washington, D.C., June 9, 2009 — The Securities and Exchange Commission today charged two California men and two companies they control for conducting an $80 million Ponzi scheme that targeted Korean-American investors with false promises of extraordinarily high returns from foreign currency (forex) trading.    » read more »

New Jersey University Hospital to Pay Additional $2 Million to Resolve Fraud Claims That Facility Double Billed Medicaid

June 9, 2009 -- WASHINGTON - The University of Medicine and Dentistry of New Jersey (UMDNJ) has agreed to pay the United States $2 million to resolve federal civil fraud allegations that its hospital defrauded Medicaid, the Justice Department announced today.

From 1993 to 2004, UMDNJ’s University Hospital submitted claims to Medicaid for outpatient physician services that were also being billed by doctors working in the hospital’s outpatient centers. By submitting duplicate claims for payment, University Hospital effectively doubled billed the government’s Medicaid program.    » read more »

Jenkens & Gilchrist Attorneys, BDO Seidman Accountants, and Bankers Charged in Criminal Tax Fraud Related to Tax Shelters Generating Over Seven Billion Dollars of Fraudulent Tax Losses

June 9, 2009 --
An indictment was filed today charging seven individuals -- three former shareholders of the Jenkens & Gilchrist law firm (J&G), the former Chief Executive Officer and a former tax partner from the BDO Seidman accounting firm (BDO), and two former bankers from a foreign bank with headquarters in New York (Bank A) -- with tax fraud conspiracy and related crimes arising out of tax shelters promoted by J&G, BDO, and the bank.    » read more »

United States Files False Claims Act Suit Against California Mortgage Lender Capmark Finance

June 9, 2009 -- WASHINGTON – The Department of Justice filed suit today against California mortgage lender Capmark Finance Inc., charging that Capmark violated the False Claims Act by making false statements on applications for federal mortgage insurance covering residential nursing homes.

The lawsuit, filed in United States District Court in Los Angeles, relates to a federal program under which the U.S. Department of Housing and Urban Development (HUD) guarantees mortgage loans used to acquire healthcare facilities such as hospitals and nursing homes.    » read more »

Boston-Based Firm and Affiliate to Pay $40 Million to Settle SEC Charges

Washington, D.C., June 8, 2008 — The Securities and Exchange Commission today charged Boston-based Evergreen Investment Management Company LLC and an affiliate with securities law violations for overstating the value of a mutual fund that invested primarily in mortgage-backed securities, and then only selectively telling shareholders about the fund’s valuation problems.

Evergreen agreed to pay more than $40 million to settle the SEC’s charges without admitting or denying the findings in the SEC’s order. This enforcement action is the result of the joint efforts of the SEC and the Massachusetts Securities Division, which also brought related charges against the Evergreen entities today.    » read more »

Defendants Admitted to Conspiring to Defraud Medicare at HIV Infusion Clinics

June 5, 2009 -- WASHINGTON – Four Miami-area residents were sentenced today in connection with a $10 million Medicare fraud scheme involving HIV infusion clinics, Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced.

Alexis Dagnesses, 44; Gonzalo Nodarse, 38; Alexis Carrazana, 41; and Dr. Carlos Garrido, 69, all pleaded guilty in March 2009 to one count of conspiracy to commit health care fraud before U.S. District Judge Paul C. Huck.    » read more »

Legislation Would Limit Telemarketing Abuse, Provide Redress Against Illegal Debt Collection Practices and Advance Consumer Information Privacy

June 5, 2009 -- New York Governor David A. Paterson today announced that he has submitted three bills to the Legislature to greatly strengthen New York’s consumer protection laws. The legislation focuses on several important areas: telemarketing, sale of sensitive personal information, and debt collection.    » read more »

Former CEO Angelo Mozilo Additionally Charged With Insider Trading

Washington, D.C., June 4, 2009 — The Securities and Exchange Commission today charged former Countrywide Financial CEO Angelo Mozilo and two other former executives with securities fraud for deliberately misleading investors about the significant credit risks being taken in efforts to build and maintain the company's market share.

Mozilo was additionally charged with insider trading for selling his Countrywide stock based on non-public information for nearly $140 million in profits.    » read more »

Washington, D.C., June 3, 2009 — The Securities and Exchange Commission today announced finalized settlements with Bank of America, RBC Capital Markets, and Deutsche Bank to resolve SEC charges that the firms misled investors regarding the liquidity risks associated with auction rate securities (ARS) that they underwrote, marketed, or sold.

The SEC's Division of Enforcement previously announced preliminary settlements with Bank of America and RBC on Oct. 8, 2008. Today's finalized settlements with those two firms as well as Deutsche Bank provide nearly $6.7 billion to approximately 9,600 customers who invested in ARS before the market for those securities froze in February 2008.    » read more »

Sen. Martinez requests briefing on joint DoJ & HHS health care fraud plan

June 1, 2009 -- WASHINGTON - U.S. Senator Mel Martinez (R-FL) today called for a briefing from the departments of Justice (DoJ) and Health and Human Services (HHS) on their interagency effort to combat Medicare fraud.

Specifically, Senator Martinez is asking for the departments to provide information about the data-driven approach to prevent and detect Medicare fraud, plans to identify new geographic areas requiring targeted enforcement, the strategy to conduct on-site verification of medical equipment suppliers, compliance training for Medicare providers, and efforts to strengthen compliance and enforcement in Medicare Parts C and D.    » read more »

Survey Shows Over a Million Consumers are Being Swindled

May 27, 2009 -- Washington DC – Today, the Consumer Federation of America is launching a national campaign to combat fake check scams. Millions of consumers are lured into accepting genuine-looking checks and money orders and wiring money to crooks in return. According to the results of a CFA survey, nearly one third of adults have been approached with fake check scams and at least 1.3 million have become actual victims.    » read more »

May 20, 2009 -- WASHINGTON -- AARP Executive Vice President Nancy LeaMond released the following statement on today’s announcement on the creation of the Health Care Fraud Prevention and Enforcement Action Team by the departments of Health and Human Services and Justice.

“The skyrocketing costs of health care are hurting Americans’ wallets and the bedrock programs like Medicare that millions of Americans depend on. Too much of that spending is lost to health care fraud. We simply cannot afford to pay for care that is never delivered and equipment that is not needed.    » read more »