Scams

March 17, 2009 -- WASHINGTON – A federal jury in Miami today convicted two physicians and two medical assistants in connection with a $5.3 million Medicare fraud scheme, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced.

After a two-week trial in federal court in Miami, a jury found David Rothman, M.D., 66; Keith Russell, M.D., 65; Eda Marietta Milanes, 43; and Jorge Luis Pacheco, 50; guilty on all charged counts, including conspiracy to commit health care fraud and multiple counts of health care fraud for submitting claims to Medicare for unnecessary medications.    » read more »

March 5, 2009 -- The FBI continues to receive reports of individuals victimized while attempting to purchase vehicles via the Internet. Victims find attractively priced vehicles advertised at different Internet classified ad sites. Most of the scams include some type of third-party vehicle protection program to ensure a safe transaction. After receiving convincing e-mails from the phony vehicle protection program, the victims are directed to send either the full payment, or a percentage of the payment, to the third-party agent via a wire payment service. No vehicles are delivered to the victims.    » read more »

February 4, 2009 - Washington D.C. -- The FBI and the Internet Crime Complaint Center (IC3) continue to receive numerous complaints from individuals who have fallen victim to work-at-home scams and remind consumers to be vigilant when seeking employment online.

These work-at-home schemes are designed by criminals to gain the trust of job seekers in order to take advantage of working relationships to further illegal activity. Most victims do not even realize they are engaging in criminal behavior until it is too late.    » read more »

Multilevel marketing scheme bilked victims out of thousands of dollars

August 6, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today filed a lawsuit today against Quincy company AdSurfDaily accusing the company and its owners of operating a huge pyramid scheme. The Attorney General’s lawsuit is seeking civil damages for the victims and an injunction against the company, its president, Andy Bowdoin Jr., and its employees to prohibit them from engaging in future deceptive marketing.

The lawsuit comes on the heels of a raid conducted by the U.S. Secret Service on the company’s headquarters. The federal authorities also froze $53 million in bank accounts held by the company.    » read more »

August 5, 2008 -- LOS ANGELES -- California Attorney General Edmund G. Brown Jr. today announced a lawsuit against YourTravelBiz.com for operating a "gigantic pyramid scheme" that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.

“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else,” Attorney General Brown said. “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”    » read more »

BRIDGEPORT, W.Va., July 3, 2008 -- Like moths to a candle, disasters seem to attract slippery predators skilled at preying on the pain and misfortune of others.

That is a warning by officials of Federal Emergency Management Agency (FEMA) and the West Virginia Division of Homeland Security and Emergency Management (DHSEM) to residents affected by the storms, tornadoes, flooding and other severe weather of June 3-7.

"In disaster situations, there are often those who are ready to take advantage of such situations," said State Coordinating Officer Jimmy Gianato. "Be especially alert for phone or door-to-door solicitors who hand out flyers and promise to speed up the insurance or building permit process, and those who ask for large cash deposits or advance payments in full."    » read more »

June 16, 2008 -- Kansas Attorney General Steve Six today warned Kansans to be wary as they begin the clean-up and rebuilding process following the recent severe weather that damaged Kansas communities.

"The rebuilding efforts following the recent storms demonstrate the courage and strength of Kansans," Six said. "Still, some unscrupulous individuals may see our tragedy as an opportunity to scam or con Kansas consumers."

Six encourages everyone in storm ravaged areas to be aware that some businesses may come to Kansas with the intention to help themselves, not our communities.    » read more »

June 16, 2008 -- Chicago - Illinois Attorney General Lisa Madigan today urged residents affected by the severe flooding throughout Illinois to protect themselves from home repair con artists who are eager to exploit natural disasters for personal profit.

“Flood and storm victims now are faced with the daunting task of rebuilding and repairing their homes and businesses,” Attorney General Madigan said. “It’s important that they remain vigilant as they prepare to recover and keep an eye out for repair fraud that inevitably follows storms and natural disasters.”    » read more »

$1 million telemarketing scheme victimized at least 50 people

June 16, 2008 -- TALLAHASSEE, FL - Florida Attorney General Bill McCollum today announced four South Florida men have been sentenced after they pleaded guilty in January to their participation in an illegal boiler room operation that victimized more than 50 people out of more than $1 million. The men were prosecuted by the Attorney General’s Office of Statewide Prosecution.

“Investment scams are particularly harmful because they target individuals who are trying to use their money wisely, perhaps to fund important life decisions such as buying a home or planning for retirement, and it our responsibility to protect our communities from this threat,” said Attorney General McCollum.    » read more »

May 30, 2008 -- SAN DIEGO -- California Attorney General Edmund G. Brown Jr. today announced that Theodore Swain, 60, was sentenced this morning to 24 years in state prison for running a $7 million Ponzi scheme that ripped off 100 investors in Southern California.

“This is the fourth time Swain has been caught ripping people off with his worthless investment schemes,” Attorney General Brown said. “Most recently, he convinced 99 consumers, including a doctor, lawyer and aerospace engineer, to invest tens of thousands of dollars in property which does not exist."

Today, the Honorable Judge Charles Gill sentenced Theodore Swain to 24 years in state prison and ordered him to pay $6.7 million in victim restitution.    » read more »

May 28, 2008 -- Oregon Attorney General Hardy Myers today announced a settlement reached with iMergent, Inc., and its subsidiary, Storesonline, Inc., both Delaware-based companies operating out of Utah, for alleged violations of Oregon's Unlawful Trade Practices Act. In an Assurance of Voluntary Compliance (AVC) filed in Marion County Circuit Court, the company agrees to comply with state consumer protection laws and resolve any future complaints.    » read more »

May 23, 2008 -- Oregon Attorney General Hardy Myers today announced a settlement with the Delaware-based wireless provider of cellular phones and service, United States Cellular Corporation (U.S. Cellular), operating out of Illinois, and its subsidiary, United States Cellular Operating Company of Medford, an Oregon corporation. An Assurance of Voluntary Compliance (AVC) was filed by Myers in Multnomah County Circuit Court. The AVC admits no law violation.    » read more »

May 22, 2008 -- Clayton, Mo. - The owner of a St. Louis repair business was arrested today and charged with defrauding area homeowners by not completing repairs or honoring warranties paid for by consumers. Kenneth J. Mers (DOB - 7/30/70), the owner of AMRP Construction, was indicted on three counts of unlawful merchandising practices by a St. Louis County grand jury last year at the request of Attorney General Jay Nixon.

Mers was originally arrested last September and held in the Jefferson County jail. On May 16, he was sentenced to five years probation on two counts of stealing by deceit and one count passing a bad check in Jefferson County. Upon his release on probation, Mers was rearrested to face the unlawful merchandising practices charges in St. Louis County.    » read more »

May 22, 2008 -- SAN DIEGO -- California Attorney General Brown today shut down a team of scam artists that acquired deeds to hundreds of homes in foreclosure by convincing desperate consumers to place their property in a “land grant,” a phony and worthless real estate document.

Federal Land Grant Company—a San Diego-based business run by Bill Hutchings, his wife Xiaoke Li and former wife Shawna Landis—tricked desperate homeowners into believing that they could protect their homes from foreclosure by deeding their property to “federal land grants.” Land grant transfers, used hundreds of years ago when the United States was still acquiring land from other countries, are no longer recognized by any court or county assessor.    » read more »

National operation includes more than 180 actions against instances of telemarketing fraud

May 20, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson, the Federal Trade Commission (FTC), and a series of Florida partners today announced the results of a national telemarketing fraud sweep, including several actions taken throughout Florida over the past few months.    » read more »