Fraud in the News

Google to Warn 500,000+ of DNS Changer Infections

Thu, 24 May 2012 13:15:42 -0400

Google plans today to begin warning Internet users if their computers show telltale signs of being infected with the DNSChanger Trojan. The company estimates that more than 500,000 systems remain infected with the malware, despite a looming deadline that threatens to quarantine the sick computers from the rest of the Internet.

Security experts won court approval last year to seize control of the infrastucture that powered the search-hijacking Trojan in a bid to help users clean up infections. But a court-imposed deadline to power down that infrastructure will sever Internet access for PCs that are not rid of the malware before July 9, 2012.

Eighteen People Indicted for Roles in $3 Million Schemes Involving Seven IHOP Restaurants

Thu, 24 May 2012 13:11:37 -0400

Eighteen people were indicted for their roles in a series of criminal schemes, including money laundering, identity theft, alien harboring, and arson, centered around seven IHOP restaurants in northwest Ohio and Indiana that resulted in losses of more than $3 million, law enforcement officials announced today.

“These defendants turned pancakes houses into crime dens,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This indictment lays out a menu of crimes ranging from harboring undocumented workers to identity theft to money laundering to insurance fraud.”

Woman admits 848K theft from Entek

Thu, 24 May 2012 13:07:34 -0400

A Lebanon woman has admitted in federal court that she stole about $848,000 from Entek, where she was employed as the president’s secretary.

Rhonda M. Milligan, 41, pleaded guilty to one count of wire fraud May 17 before Chief U.S. District Judge Ann Aiken in Eugene, the U.S. Attorney’s Office reported.

NJ Identity Theft Brings Credit Card Skimming to Light

Thu, 24 May 2012 13:01:27 -0400

A thief known for credit card skimming New Jersey restaurant patrons’ cards has pleaded guilty to his role in a credit card fraud ring. With skimming threatening identity theft, credit issues and more, it’s a good idea for cardholders in the state and nationwide to learn more about how to protect themselves from this crime.

Executives at Debt Collection Agency Admit Roles $10 Million Client, Lender, and Investor Fraud Scheme

Thu, 17 May 2012 14:35:03 -0400

David B. Fein, United States Attorney for the District of Connecticut, today announced that Richard Pinto, 68, of Wellington, Florida, and Peter Pinto, 37, of East Quogue, New York, each pleaded guilty late Friday, May 11 before United States District Judge Stefan Underhill in Bridgeport to one count of conspiracy to commit wire fraud, bank fraud, and money laundering and one count of wire fraud stemming from a $10 million fraud scheme they executed while executives at Oxford Collection Agency.

“These defendants carried out a significant fraud scheme through which they stole millions of dollars from their company’s clients, lenders, and investors...

Credit Card Skimmers Nabbed in Northeast Ohio

Thu, 17 May 2012 14:32:35 -0400

Two men from Canada were caught putting data skimming devices on several First Merit ATMs in the area last week, raising concerns about the high-tech method of credit card fraud.

Detective Lt. John Janowski said no one in Strongsville has reported being a victim of card skimming.

But he said the crime "is around" and it's devious.

Key Phish Phry Player Sentenced

Thu, 17 May 2012 14:17:47 -0400

A U.S. District Court in Los Angeles has sentenced Nichole Michelle Merzi, a key figure in an international cybercrime ring that between 2008 and 2009 drained thousands of dollars from U.S. bank accounts.

Merzi, who helped to orchestrate an elaborate phishing scheme that involved 53 co-conspirators in the U.S. and 47 in Egypt, on May 15 was sentenced to more than five years in prison. She was convicted last year on charges of bank and wire fraud conspiracy, aggravated identity theft, computer fraud conspiracy and money laundering conspiracy.

SoCal Manager of International Computer Hacking Ring Sentenced to Five Years in Federal Prison for Defrauding Banks

Thu, 17 May 2012 14:15:37 -0400

A principal figure in the domestic arm of an international “phishing” operation that used spam e-mails and bogus websites to collect personal information used to defraud American banks was sentencing this morning to five years in federal prison.

Nichole Michelle Merzi, 26, of Oceanside, was sentenced in the fraud case by Senior United States District Judge Terry J. Hatter, Jr.

After a six-week trial last year, Merzi was found guilty of bank and wire fraud conspiracy, aggravated identity theft, computer fraud conspiracy, and money laundering conspiracy charges.

Deutsche Bank to Pay $202 Million Over Mortgage Fraud

Thu, 10 May 2012 14:04:15 -0400

Deutsche Bank AG (DBK) agreed to pay $202.3 million to settle civil claims that its MortgageIT unit lied to qualify thousands of risky mortgages for a federal insurance program in what the U.S. called a “massive fraud.”

The U.S. claimed in a lawsuit filed May 3, 2011, that Frankfurt-based Deutsche Bank and MortgageIT falsely certified that they properly assessed the default risk of borrowers, qualifying loans for insurance by the Housing and Urban Development Department’s Federal Housing Administration.

The bank admitted to some of the conduct alleged in the complaint...

Police arrest dozens in credit card scam

Thu, 10 May 2012 14:01:26 -0400

It was a theft allegedly carried out on a massive scale, with military precision, and it repeatedly victimized the holders of debit and credit cards.

Two-dozen “runners” would allegedly be on standby at different ATM machines in the wee hours of the morning, awaiting a call from a ringleader. Upon getting the green light, they would start withdrawing money simultaneously from different machines, using cloned bank cards.

Bank of the Commonwealth Loan Officer Pleads Guilty

Thu, 10 May 2012 13:56:45 -0400

Jeremy C. Churchill, 35, of Norfolk, Virginia, pled guilty today in Norfolk federal court to conspiring with others to cause the Bank of the Commonwealth to suffer millions of dollars in losses from loans meant to conceal financial problems at the bank and with one of its customers. ...

... Today, Churchill pled guilty to conspiracy to commit bank fraud. He faces a maximum penalty of five years in prison when he is sentenced on Aug. 24, 2012.

St. Louis Man Pleads Guilty to Fraud, Conspiracy, and Identity Theft Charges

Tue, 08 May 2012 14:42:33 -0400

Mario Darnell Smith pled guilty to charges involving his use of customer information to steal money from bank accounts at U.S. Bank.

According to the facts filed with the court, Jeffrey G. White was employed by U.S. Bank at a branch in St. Louis County. As part of his employment, White had access to customer account information, including account numbers for business accounts and names of persons associated with business accounts. Mario Darnell Smith was a friend and acquaintance of White. In the spring of 2011, Smith and White agreed that ...

Phisher Guilty of $1.3 Million Scam

Tue, 08 May 2012 14:40:03 -0400

Fraud experts are encouraged to see banks joining forces with law enforcement to fight cybercrime. But as online attackers become increasingly organized, financial institutions may find themselves fighting even tougher battles.

The latest win: In Georgia, a man has pleaded guilty for the role he played in a $1.3 million phishing scheme that targeted customers of Chase, Bank of America, ADP and Branch Bank & Trust.

Strongsville Woman Sentenced for Wire Fraud

Tue, 08 May 2012 14:37:45 -0400

A 38-year-old Strongville woman was recently sentenced to 27 months in prison for wire fraud, according to Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

U.S. District Judge Lesley Wells also ordred Antonela Ceabuca to pay $261,093.21 in restitution to the Western Reserve Center for Orofacial and Cosmetic Surgery

Ceabuca was charged on Jan. 20 with one count of wire fraud in connection with scheming to defraud her employer. She pleaded guilt on Feb. 2.

2 Illinois men face charges of fraud, theft in ATM transactions

Tue, 08 May 2012 14:35:20 -0400

Two Illinois men stole several debit cards then used one from a Florida man to steal more than $6,000 through ATM transactions, police said.

Eugene Childs, 34, of Hazel Crest, and Adesina A. Oluseyi, 28, of Markham, each were charged Friday in Lake Superior Court with two counts of theft, two counts of fraud and two counts of identity deception.

Arrest in check thefts leads to huge fraud ring

Thu, 03 May 2012 14:27:52 -0400

Police tracked a woman wanted in a string of bad-check thefts to a squalid San Bernardino house. What they found there led them to believe she was just a small part in a sprawling crime ring responsible for at least $1 million in fraud.

Police say Kandi Puterbaugh, 35, used stolen identities and forged checks to steal tens of thousands of dollars in Orange County and elsewhere in Southern California. She left behind a two-year trail of botched attempts, surveillance footage and counterfeit driver's licenses, according to a federal complaint against her.

Huntington Beach police began investigating last summer, when a woman reported that someone had drained her bank account of $24,000. Sgt. Dale Shields checked the bank security video and saw a woman he would come to know well.

Wolcott Man Who Participated in Scheme to Defraud Webster Bank is Sentenced to Federal Prison

Thu, 03 May 2012 14:24:37 -0400

David B. Fein, United States Attorney for the District of Connecticut, announced that Kevin W. Caffrey, 47, of Wolcott, was sentenced today by United States District Judge Janet C. Hall in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for his role in his ex-wife’s scheme to defraud Webster Bank of more than $6.2 million.

According to court documents and statements made in court, between approximately May 2000 and May 2006, Caffrey was married to Susan Curtis, who worked in the Property Services Division of Webster Bank. The Property Services Division was responsible for, among other things, the acquisition and leasing of properties for Webster Bank’s Retail Banking business. In 2002, Curtis and Caffrey formed New House LLC and registered the limited liability company with ...

Georgia Man Admits Role in $1.3 Million Phishing Fraud Scheme

Thu, 03 May 2012 14:22:21 -0400

Waya Nwaki today admitted his role in an Internet fraud ring that stole more than $1.3 million after “phishing” confidential account information from Internet users, New Jersey United States Attorney Paul J Fishman announced.

Nwaki, a/k/a “Shawn Conley,” a/k/a “usaprince12k,” 31, of Atlanta, pleaded guilty to one count each of wire fraud conspiracy; wire fraud; aggravated identity theft; and conspiracy to gain unauthorized access to computers—counts one, nine, 14, and 20 of the indictment against him. Nwaki entered his guilty plea before United States District Judge William J Martini in Newark federal court.

According to documents filed in this case and statements made in court...

Global Payments Breach Window Expands

Thu, 03 May 2012 14:20:06 -0400

A hacker break-in at credit and debit card processor Global Payments Inc. dates back to at least early June 2011, Visa and MasterCard warned in updated alerts sent to card-issuing banks in the past week. The disclosures offer the first additional details about the length of the breach since Global Payments acknowledged the incident on March 30, 2012.

Visa and MasterCard send periodic alerts to card-issuing banks about cards that may need to be re-issued following a security breach at a processor or merchant. Indeed, it was two such alerts — issued within a day of each other in the final week of March — which prompted my reporting that ultimately exposed the incident. Since those initial alerts, Visa and MasterCard have issued at least seven updates, warning of additional compromised cards and pushing the window of vulnerability at Global Payments back further each time.

Members of Bank Fraud Ring Sentenced in $3.7 Million Scam

Tue, 01 May 2012 11:51:00 -0400

After three days of hearings, United States District Judge William S. Duffey, Jr. today concluded the sentencings of six co-conspirators involved in a $3.7 million dollar bank fraud ring involving home equity lines of credit (HELOCs). Among those sentenced were two of the ringleaders: Otis Bernard Livingston, 44, of Gulfport, Mississippi; and Dionne Michelle Whitted, 37, of Castle Hayne, North Carolina; a prolific straw borrower, Shalena Sutherlin, 27, of Douglasville, Georgia; a forger of false financial documents, Todd Ivery, 43, of Kennesaw, Georgia; former bank employee, Hung Quoc Nguyen, 30, of Buford, Georgia; and a recruiter, Catasha Browning, 36, of Douglasville, Georgia.

“This fraud scheme, like so many, was based on greed and lies...

Feds bust three ex-NFL players on ID theft

Tue, 01 May 2012 11:46:51 -0400

Three former National Football League players have been arrested by the FBI on federal charges in connection with an alleged scheme to steal people’s identities and file false tax returns in others’ names to collect thousands of dollars in refunds, according to authorities.

The three ex-NFL players charged with defrauding the federal government and ID theft are: William Joseph, a University of Miami defensive tackle drafted in the first round by the New York Giants in 2003; Michael Bennett, a University of Wisconsin running back also drafted in the first round by the Minnesota Vikings in 2001; and Louis Gachelin, a Syracuse University defensive tackle who was drafted by the New England Patriots in 2004.

Joseph and Gachelin are ...

New Fraud that Involves Counterfeit Checks

Tue, 01 May 2012 11:44:35 -0400

An international vendor for secure services pertaining to web-access, Trusteer has unearthed one new case of fraud wherein data harvested through malware and phishing assaults is exploited for creating counterfeit business check books that are customized to suit their buyers' requirements The scam's countries-of-origin are China, UK and USA.

The forged bank checks that undergo scanning via computer systems having state-of-art printing devices, paper and ink are each sold for $5. The criminals supply these checks whose means for preparation are, however, filched bank account and other details the buyers want.

Former Regions Bank employee in Jefferson County pleads guilty to bank fraud scheme

Tue, 01 May 2012 11:36:40 -0400

A former bank employee pleaded guilty today to a scheme with another employee that defrauded Regions Bank out of $32,413.

Crystal Thomas, a former Regions Bank employee, pleaded guilty to one count of bank fraud before Chief U.S. District Judge Sharon Blackburn at a hearing in Birmingham. Thomas will be sentenced in about 15 weeks, the judge said.

"She has accepted responsibility ...

More than 40 Arrested in Check Fraud Scheme

Thu, 26 Apr 2012 12:52:44 -0400

Police and other law enforcement agencies have arrested more than 40 people suspected of running a check fraud ring in the greater Houston area, and more arrests could be on the way.

Wednesday, the Houston Police Department announced the arrests of those suspects believed to have stolen check and money orders from local apartment complex lock boxes, specifically in Harris, Montgomery, Brazoria and Galveston counties.

Investigators learned a group of people were targeting lock boxes in those areas. They would burglarize the boxes, “wash” the money orders and counterfeit them. That group would also target ...

Former Asheville bank president pleads not guilty

Thu, 26 Apr 2012 12:48:54 -0400

A former bank president accused of a fraudulent scheme to funnel money to a troubled Henderson County development pleaded not guilty to the charges Wednesday.

Another defendant in the case told Magistrate Judge Dennis Howell she doesn’t have the money to hire a lawyer, and the judge agreed to appoint a public defender.

Thomas “Ted” Durham, 57, former Pisgah Community Bank president, pleaded not guilty to bank fraud and money-laundering charges ...

Skimtacular: All-in-One ATM Skimmer

Thu, 26 Apr 2012 12:35:47 -0400

I spent the past week vacationing (mostly) in Southern California, traveling from Los Angeles to Santa Barbara and on to the wine country in Santa Ynez. Along the way, I received some information from a law enforcement source in the area about a recent ATM skimmer attack that showcased a well-designed and stealthy all-in-one skimmer.

The skimmer pictured below is the backside of a card acceptance slot overlay. It was recovered by a customer at a bank in the San Fernando Valley ...

Carmel businessman pleads guilty in $2 million bank fraud scheme

Thu, 26 Apr 2012 12:33:00 -0400

A Carmel businessman and his colleague have admitted defrauding a bank out of $2.2 million by submitting a phony invoice, federal prosecutors said.

Michael Abreu, 43, of Carmel and a fellow businessman from Manhattan both pleaded guilty Wednesday in federal court in Manhattan to conspiracy to commit mail fraud and wire fraud, a charge that could put them in prison for 20 years.

Raleigh Man Pleads Guilty to Bank Fraud and Identity Theft Scheme

Thu, 26 Apr 2012 12:29:53 -0400

United States Attorney Thomas G. Walker announced that Roger Van Santvoord Camp, 68, pled guilty last week to a six-count indictment charging him with four counts of bank fraud, in violation of Title 18, United States Code, Section 1344(2), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

At his arraignment on April 11, 2012, Camp pled not guilty, and the matter proceeded to jury trial before United States District Court Judge Terrence W. Boyle, in Elizabeth City, North Carolina. At the close of the government presenting its case, Camp pled guilty to all six counts of the indictment.

Billon Dollar Bank Failure Caused By “Massive Bank Fraud” At Bank of the Commonwealth

Tue, 24 Apr 2012 14:02:24 -0400

Four years after the start of the banking crisis, federal investigators are proving what many Americans have long suspected – the root cause of many banking failures was due to fraud.

The Office of the Special Inspector General for The Troubled Asset Relief Program (SIGTARP) announced last week that a massive $41 million bank fraud contributed to the 2011 collapse of Bank of the Commonwealth, Norfolk, Virginia. The failure of Bank of the Commonwealth, which had almost one billion ...

Woman gets 32 charges for credit and debit card fraud

Tue, 24 Apr 2012 13:59:35 -0400

A Maple Ridge Way woman was arrested Monday, April 23, and charged with fraudulent usage of a credit card and debit cards, for a whopping 32 times, Cocke County Sheriff's Department Det. David Crowder said.

Brittany Nicole Cureton, 20, of 1154 Maple Ridge Way, in Newport, was charged with 32 counts of fraudulent use of a credit or debit card and one count of theft of property under $500, Det. Crowder reported.

Identity theft and imposter scams on the rise

Tue, 24 Apr 2012 13:55:30 -0400

This is what a victim of consumer fraud looks like, and how he lost his money: The scam artist contacted him by email. He stole his identity by tricking the victim into revealing personal information. He managed to get more than $2,000 of the victim's money. The thieves took his money by using his credit card information, buying something over the phone or online, or cleaning out a bank account. The victim is 55 years old, and he is hearing about more and more people who are victims of fraud much like him.

Hampton Roads Developer Pleads Guilty to Massive Bank and Historic Tax Credit Fraud

Tue, 24 Apr 2012 13:52:30 -0400

Eric H. Menden, 53, of Chesapeake, Virginia, pled guilty today to engaging in a $41 million bank fraud scheme that contributed to the failure of the Bank of the Commonwealth. He also pled guilty to a separate fraud involving a six-year historic tax credit scheme that cost state and federal governments over $12 million and investors more than $8 million.

Federal Jury Convicts Bank Officer and Customer in Connection with Multi-Million-Dollar Check-Kiting Scheme

Tue, 10 Apr 2012 09:42:39 -0400

Earlier today, a federal jury found a former Twin Cities bank officer and a bank customer guilty of fraud. Their crimes were related to the customer’s multi-million-dollar check-kiting scheme and a loan scheme orchestrated in an effort to conceal the check-kiting from the bank’s board.

Following a 12-day trial, the jury convicted John Anthony Markert, age 58, of Mendota Heights, the former president of Pinehurst Bank in St. Paul, with five counts of misapplication of bank funds. George Leslie Wintz, Jr., age 72, an area businessman and the bank customer, was convicted on two counts of bank fraud and one count of theft from an employee benefit plan. Gregory Paul Pederson, age 44, of Roseville, the bank’s former chief credit officer and senior vice president, was acquitted on all counts.

Following today’s sentencing...

Wells Fargo didn't block fraud loss, lawsuit says

Tue, 10 Apr 2012 09:33:05 -0400

Sometimes, even smart guys get taken.

That's what the Edina law firm of Milavetz, Gallop & Milavetz (MGM) says happened after it received an e-mail from someone claiming to be a 40-year-old Korean woman who'd been hurt in Minnesota, and who needed help securing a $400,000 legal settlement.

Unbeknownst to Milavetz, the government had begun a secret investigation a year earlier of Nigerian collection scams that target U.S. lawyers in a strikingly similar pattern.

That investigation led to a federal indictment in Harrisburg, Pa., of a Nigerian man and a Canadian resident. Much of the case is under seal, but the government alleges that they were part of a far-flung international conspiracy that has cost 80 victims -- lawyers and law firms -- at least $32 million, and that failed in attempts to extract more than ...

Fraud in the cards: Gangs pile up profits

Tue, 10 Apr 2012 09:29:03 -0400

Credit-and debit-card fraud has dogged police in Greater Victoria since the beginning of the year and the RCMP say it has become the new currency for organized-crime groups hungry for profit.

Last month, Saanich police caught four men from the Lower Mainland who were using dozens of stolen credit-or debit-card numbers - obtained using doctored card readers in Calgary and Surrey - to make big purchases across downtown Victoria.

Victoria police arrested two people who had a hotel room full of credit-card skimmers, fake IDs and counterfeit gift cards.

Utah breach 10X worse than originally thought

Tue, 10 Apr 2012 09:26:21 -0400

The scope of a data breach involving a Medicaid server at the Utah Department of Health is much worse than originally thought. State officials now say that close to 280,000 Social Security Numbers may have been exposed in the incident instead of 25,000, as originally believed.

Less sensitive personal data such as names, birth dates and addresses of another 500,000 people may have also been compromised in the breach, state officials said today.

Global Payments data breach affects 1.5 million credit cards

Tue, 03 Apr 2012 14:26:12 -0400

Information stolen from as many as 1.5 million credit card accounts is the latest in a long line of data breaches — and an alert for consumers to monitor their accounts for fraudulent purchases, industry watchdogs say.

The latest major breach, reported late last week at Atlanta payments processor Global Payments Inc., resulted in no known consumer fraud as of Monday morning, Chief Executive Paul R. Garcia said in a conference call with analysts.

Authorities said Global Payments notified Visa and MasterCard, which had ...

Former Branch Manager at Bank of America in River Oaks Pleads Guilty

Tue, 03 Apr 2012 14:21:15 -0400

Pamela Kay Cobb, 30, appeared yesterday in U.S. District Court in Fort Worth, Texas before U.S. Magistrate Jeffrey L. Cureton and pleaded guilty to one count of bank fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Cobb, who is also known as Pamela Crabb and Pamela Engles, faces a maximum statutory sentence of 30 years in prison, a $1 million fine, and restitution. She will remain on bond pending sentencing before U.S. District Judge Terry R. Means on September 24, 2012.

According to documents filed in the case, Cobb was hired by Bank of America (BOA) in 1996 and worked at the BOA branch in River Oaks, Texas. She was promoted from personal banker to assistant branch manager and then to branch manager. Because of her positions at the bank, she had full access to customers’ bank accounts.

Three New Jersey Men Plead Guilty to Stealing $1.4 Million

Tue, 03 Apr 2012 14:19:15 -0400

A former insurance agent for a New York-based defense contractor and his two friends today admitted stealing $1.4 million from the company, U.S. Attorney Paul J. Fishman announced.

Daniel Tumminia, 49, of Millstone, New Jersey; Michael Feuer, 47, of Freehold, New Jersey; and Dennis Mannarino, 45, of Manalapan, New Jersey, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to informations charging them with conspiracy to commit wire fraud.

Buffalo Woman Pleads Guilty to Bank Fraud

Tue, 03 Apr 2012 14:15:30 -0400

U.S. Attorney William J. Hochul, Jr. announced today that Jayme Smith, 35, of Buffalo, New York, pleaded guilty to bank fraud before U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 30 years in prison, a $1,000,000 fine, or both. Under the terms of the plea agreement, the defendant will also be ordered to pay restitution in the amount of $20,100 to the victims of the offense.

Man sentenced in ATM identity theft scam

Thu, 29 Mar 2012 13:31:40 -0400

The California attorney general's office says a man has been sentenced to more than three years in prison for an ATM identity theft scam that spanned seven counties.

Attorney General Kamala Harris says Gervork Aroutiounyan also was ordered to pay more than $320,000 in restitution to Chase Bank at his sentencing Wednesday in San Luis Obispo County Superior Court.

Credit Card Scam Busted Up

Thu, 29 Mar 2012 13:29:17 -0400

Two Brooklyn men were arrested Wednesday and charged with running a $6 million Internet-based credit card fraud scam in which, among other things, they bought $100,000 worth of EZ Pass tags and credits, and resold them, the U.S. Attorney's Office said.

Rana Khandakar and Ussawan Saelim, both 27, also "created a bogus website that lured customers into purchasing products that they never received," prosecutors said in a statement.

Mortgage Broker Sentenced to 10 Years

Thu, 29 Mar 2012 13:26:50 -0400

A resident of New Brighton, Pennsylvania has been sentenced in federal court to 10 years of imprisonment and five years of supervised release on his conviction of conspiracy to commit bank fraud, mail fraud, and wire fraud and money laundering conspiracy United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed the sentence on Michael Staaf, 42.

According to information presented to the court, Staaf operated Beaver Financial Services...

Bookkeeper arrested in $1.6 million embezzlement case

Thu, 29 Mar 2012 13:12:56 -0400

A 43-year-old Riverside bookkeeper is behind bars in connection with a $1.6 million embezzlement at the Corona tile company for which she worked, according to jail records and Corona police.

Bette Lenette Dahl was arrested at 2 p.m. March 22 along the 9000 block of Chris Court in Riverside and booked for investigation of a criminal transaction, committing a felony for the purpose of fraud, possession of fraudulent checks, grand theft and embezzlement, jail records show.

Armenian gang figures convicted of bank fraud and identity theft

Tue, 27 Mar 2012 13:47:37 -0400

Four members and associates of an Armenian organized crime ring have been convicted in a wide-reaching bank fraud and identity theft scheme that authorities called one of the largest in California history, prosecutors said Thursday.

The defendants were indicted in a 2011 sweep of Armenian Power, which authorities said has ties to the Mexican Mafia and high-level organized crime figures in Eastern Europe. A second case that remains pending accuses members of the group of running a racketeering enterprise engaged in kidnapping, extortion and illegal gambling in addition to financial crimes.

FBI: Pa. man stole Microsoft co-founder's identity

Tue, 27 Mar 2012 13:42:52 -0400

An AWOL soldier's simple scheme to defraud one of the richest men in the world has landed him in federal custody, according to a criminal complaint.

In the complaint unsealed Monday, federal investigators allege Brandon Lee Price changed the address on a bank account held by billionaire Microsoft co-founder Paul Allen, then had a debit card sent to his Pittsburgh home so he could use it for payments on a delinquent Armed Forces Bank account and personal expenses.

Former NBA Player and CEO of The George Group Indicted in Ponzi Scheme

Tue, 27 Mar 2012 13:40:16 -0400

C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was indicted today by a Newark grand jury for allegedly orchestrating a $2 million investment fraud scheme, U.S. Attorney Paul J. Fishman announced.

George, 43, of Newark, was indicted on four counts of wire fraud. He was previously charged by criminal complaint with one count of wire fraud. He will be arraigned on the new charges in Newark federal court on a date to be determined.

According to the indictment and other documents filed in this case...

Up to 500 targeted in ATM skimming

Tue, 27 Mar 2012 13:37:17 -0400

Up to 500 credit and debit cardholders have had money taken from their accounts following an Auckland ATM scam.

ANZ and National Bank cash machines in Parnell, Ponsonby, Takapuna and Howick were affected and there have been further reports of scams being carried out in Northcote and Orewa.

Fraudsters, thought to be from overseas, fitted a device over the card slot to collect information from accounts while a small camera records pin numbers.

Kansas City Business Owner Pleads Guilty to Multi-Million-Dollar Bank Fraud Conspiracy

Tue, 27 Mar 2012 13:33:54 -0400

David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that the owner of several used car dealerships in the Kansas City, Missouri metropolitan area pleaded guilty in federal court today to his role in a bank fraud conspiracy that resulted in losses of millions of dollars by several financial institutions.

John A. Hart III, 51, of Kansas City, pleaded guilty before U.S. District Judge Ortrie D. Smith to the charge contained in an information that was filed today in lieu of the September 21, 2011 federal indictment.

Ex-CFO pleads guilty in mortgage fraud case

Tue, 20 Mar 2012 13:54:44 -0400

Taylor, Bean & Whitaker Mortgage Corp's former chief financial officer pleaded guilty on Tuesday to charges he helped mislead investors and cover up shortfalls that led to the collapse of one of the largest mortgage companies during the recent U.S. financial crisis.

Delton de Armas, 41 of Carrollton, Texas, pleaded guilty to one count of conspiracy to commit bank and wire fraud and one count of making false statements, charges that each carry a maximum five-year prison term.