Fraud Headlines
2016 Articles
December
Benjamin Netanyahu Faces 'Criminal Investigation' Over Fraud And Bribery Claims
Israeli Prime Minister alleged to have accepted €1 million from convicted French fraudster but denies any wrongdoing. (Independent)
U.S. sues Barclays, ex-executives for mortgage securities fraud
The U.S. Department of Justice on Thursday sued Barclays Plc and two former executives on civil charges of fraud in the sale of mortgage-backed securities during the run-up to the 2008-09 financial crisis. (Reuters)
The Psychology Of White-Collar Criminals
A researcher reflects on conversations with nearly 50 convicted executives about why they did what they did. (Atlantic)
Why Older Adults Are So Susceptible To Financial Fraud
In 2010, one fifth of Americans over age 65 reported in a telephone survey that they had been subject to some sort of financial fraud or abuse. (Forbes)
China's $8.6 Billion P2P Fraud Trial Starts
Criminal prosecution of 26 people involved in China's biggest alleged online fraud - a nearly 60 billion yuan ($8.64 billion) case involving online peer-to-peer lender Ezubao - has started in Beijing, the official Xinhua news agency reported. (Reuters)
Australians Lost $521m To Card Fraud In 2016 Financial Year
The APCA said the rise in card fraud was driven by card-not-present fraud, when card details are stolen and then used to make payments without the card, usually online. (ABC)
Spanish Police Arrest 200 Chinese Nationals In €16m Fraud
Police in Spain have arrested more than 200 Chinese nationals in a €16m fraud investigation involving call centres run from luxury Spanish villas, officials say. (BBC)
Surprise: Stealing $300,000 In Deposits Is Bank Fraud, Supreme Court Rules
The U.S. Supreme Court today ruled against a man who argued stealing $300,000 of an acquaintance's bank deposits didn't fit the definition of bank fraud. (Forbes)
Accusations Of Fraud At Wells Fargo Spread To Sham Insurance Policies
When Wells Fargo admitted a few months ago that thousands of its employees had created as many as two million unauthorized accounts for its customers, alarm bells went off at Prudential, one of the nation’s biggest insurance firms. (New York Times)
Taiwan Foxconn Manager Indicted For Stealing Thousands Of iPhones
A former senior manager at Taiwan's technology giant Foxconn has been indicted for stealing and selling 5,700 iPhones in China to pocket around $1.56 million, Taiwanese prosecutors said. (AsiaOne)
‘Avalanche’ Global Fraud Ring Dismantled
In what’s being billed as an unprecedented global law enforcement response to cybercrime, federal investigators in the United States, United Kingdom and Europe today say they’ve dismantled a sprawling cybercrime machine known as “Avalanche” — a distributed, cloud-hosting network that for the past seven years has been rented out to fraudsters for use in launching countless malware and phishing attacks. (Krebs on Security)
I Dialed A Wrong Number And Stumbled Into International Phone Fraud
Of calls from North America and Europe, the ones to Cuba are the most likely to be fraudulent in some way, according to the Communications Fraud Control Association’s 2015 global survey. (The Atlantic)
November
Online Fraud Poses A Major Threat This Holiday Season
The busy online shopping season over the holidays is bringing a rise in fraudulent purchases, especially among card-not-present attempts, according to data from ACI Worldwide. (Reuters)
China Recovers Over $1.5 Billion Of Assets In Online Lending Fraud Case
China has recovered more than 10 billion yuan ($1.5 billion) of illegal assets since launching a fraud investigation into an online lending platform, the official Xinhua news agency quoted the Beijing public security bureau as saying. (Reuters)
Dozens Of Wells Fargo Employees Filed Whistleblower Complaints With Feds, New Data Shows
Dozens of Wells Fargo employees filed whistleblower complaints with the federal government, alleging the company retaliated against them for raising red flags about corporate and consumer financial fraud. (NBC Bay Area)
Banking Fraud Is Costing The Nigerian Economy Dearly
Pervasive electronic banking fraud is affecting Nigeria's banking system and costing the Nigerian economy dearly. (AllAfrica)
Two Are Charged In Fraud And Kickback Scheme Against Valeant Pharmaceuticals
Gary Tanner and Andrew Davenport, the former CEO of Philidor Rx Services, have been arrested and charged with fraud. (Forbes)
Hacker Charged With Fraud After 'Stealing' In-Game FIFA Currency
A U.S. man is facing felony wire fraud charges for the theft of digital currency from game developer Electronic Arts. (CNET)
Ex-Autonomy CFO Indicted For Alleged Fraud In H.P. Acquisition
The former chief financial officer of British software company Autonomy has been indicted on U.S. charges of engaging in a fraudulent scheme to deceive investors and Hewlett Packard about his firm’s performance before its sale in 2011. (Fortune)
'Flash Crash' Trader Pleads Guilty To Spoofing, Wire Fraud
A London-based trader on Wednesday became the second person convicted of criminally spoofing U.S. futures markets, after he pleaded guilty to federal charges that he contributed to Wall Street's 2010 "flash crash" by using the manipulative trading practice. (CNBC)
Tesco Bank Online Fraud “Unprecedented In U.K.,” Says Watchdog
Tesco Bank customers remain locked out from making current account transactions, two days after it was revealed that money had been stolen from 20,000 accounts over the weekend. (Ars Technica U.K.)
Goldman Sachs, Paulson Settle Fraud Lawsuit Over Abacus
Goldman Sachs Group Inc has settled a 2011 lawsuit claiming the investment bank fraudulently induced a bond insurer to guarantee payments on the doomed Abacus collateralized debt obligation ahead of the financial crisis. (Reuters)
Trial Of Ex-BSI Banker Yeo Jiawei Kicks Off In Singapore, First In International 1MDB Probe
The prosecution will call nine witnesses in its case against former BSI banker Yeo Jiawei - the first person to be tried for the key role he allegedly played in a massive money laundering operation linked to scandal-hit 1Malaysia Development Bhd (1MDB) fund. (Straits Times)
October
Ex-President Of El Salvador Arrested Over Fraud Accusations
Elias Antonio Saca, president of El Salvador from 1999 until 2004, and six others have been arrested over accusations of corruption, prosecutors said. (UPI)
Fraud Charges Dropped Against South Africa's Finance Minister
South Africa's respected finance minister, Pravin Gordhan, is in the clear after the country's chief prosecutor dropped fraud charges against him. (CNN)
TARP Auditor Wants Bank CEOs To Certify They’ve Checked For Fraud
The Special Inspector General for the Troubled Asset Relief Program wants Congress to pass legislation that forces Wall Street CEOs to come out of the shadows and swear there’s no fraud or illegal activity in their organizations. (MarketWatch)
More Than $1 Million In Food Stamp Charges Signaled Fraud At Convenience Store, Feds Say
When investigators started examining a South Florida convenience store's receipts, they figured it was either uncommonly popular with food stamp recipients or the owner was operating a fraud. (Sun Sentinel)
Tesco Trio To Stand Trial In September 2017 Over Fraud Charges
Three former Tesco directors will stand trial in Crown Court next September to face charges of fraud in relation to the retailer's £263m accounting scandal. (Telegraph)
Brazil Hotbed Of Financial Fraud, Report
Brazil has emerged as a primary center of financially motivated e-crime threat activity, according to a just released report from FireEye. (SC Magazine)
'Vultures' Make Millions On Text Message Scams, Fraud Experts Say
Canadian Anti-Fraud Centre has heard from 200 victims at a cost of $2.2M this year, many more unreported. (CBC)
Fraud Case Could Tip South Africa Over The Edge
Prosecutors charged Finance Minister Pravin Gordhan with fraud, news that went down badly with investors. (CNN)
India Arrests Dozens Over U.S. Call Center Scam
Police in India say they have arrested 70 call centre workers on suspicion of tricking American citizens into sending them money by posing as U.S. tax officials. (Al Jazeera)
Nursing Home Operator From Chicago Jailed As Feds Allege $1 Billion Scheme
"This is the largest single criminal health care fraud case ever brought against individuals by the Department of Justice," Assistant Attorney General Leslie Caldwell said. (Chicago Tribune)
Former Drug Company CEO Charged In $100 Million Fraud Scheme In U.S.
The former chief executive of defunct drug company Inyx has been charged in connection with a fraud scheme that caused more than $100 million in losses and led to the collapse of one of Puerto Rico's largest banks, the U.S. Justice Department said. (CNBC)
EU's Anti-Fraud Body Probes Aid For Syrian Refugees
The European Union's anti-fraud body is investigating Syria aid projects, officials said, after a similar U.S. probe exposed bribery and fraud in some of its humanitarian assistance in the war-torn state. (Reuters)
Congress Expanding Mylan Inquiry To Determine If There Was Medicaid Fraud
Top senators angered by the exorbitant cost of the EpiPen, produced by Mylan, are expanding their inquiry to federal health regulators to discern whether the drug company knowingly and improperly paid state Medicaid programs less than it should have. (Washington Post)
September
PM Says Malaysia Will Cooperate With U.S. Investigation Of 1MDB Funds
Malaysian Prime Minister Najib Razak said his country would cooperate with U.S. and other international authorities investigating the misappropriation of funds from a Malaysian state-owned fund that he founded. (Channel NewsAsia)
Spain Bankia Fraud Trial For Ex-IMF Boss Rodrigo Rato
Former IMF chief Rodrigo Rato and 64 other bankers have gone on trial in Madrid over an alleged credit card racket at Spain's troubled Bankia bank. (BBC)
Whistleblower Suit Accuses Visiting Nurse Service Of Fraud
The lawsuit, brought under federal and state False Claims Acts by a senior manager who worked at the agency for 16 years, charges that the Visiting Nurse Service of New York has systematically extracted hundreds of millions of dollars from Medicare and Medicaid through falsified and improper billings, while shortchanging needy patients of the care their doctors ordered. (New York Times)
Exposed: The Secret Powerhouse Processing Millions In Global Fraud
The frauds rake in millions from the sick and elderly -- leaving them with nothing. This is a story about the little-known company that cashes the checks. (CNN)
Wells Fargo Workers: I Called The Ethics Line And Was Fired
Almost half a dozen workers who spoke with us say they paid dearly for trying to do the right thing: they were fired. (CNN)
How Does Corporate Culture Fuel Fraud? Start With Volkswagen And Wells Fargo
“There are a lot of articles out there right now trying to understand the issue,” he wrote me. “But very few, if any, are actually mentioning the ways in which this could have been easily prevented if the management…had been properly informed and/or cared, and why they didn’t.” (Forbes)
Wells Fargo CEO Blames Multimillion-Dollar Fraud On The Lowest-Level Employees
Stumpf seems to be blaming low-level Wells Fargo employees for opening up millions of fake bank and credit card accounts and billing customers for services and products they didn’t request. (Huffington Post)
Management Could Be Prosecuted For Failure To Prevent Fraud By Staff
Attorney general proposes expanding ‘white-collar crime’ laws to include money laundering and false accounting by employees. (Guardian)
Wells Fargo Reaches $185 Million Settlement To Settle Secret Account Fraud Case
Wells Fargo reached a settlement with the Los Angeles prosecutor and federal regulators who accused the lender of pushing customers into multiple, fee-generating accounts that they never requested. (CNBC)
China Fines Five Auto Makers For Electric-Vehicle Subsidy Fraud
The Chinese government has fined five auto makers it says defrauded it of a total of 1 billion yuan ($150 million) worth of subsidies aimed at promoting electric vehicles,. (Wall Street Journal)
Thai Protest Leader Gets 20 Years In Prison for Fraud
The court affirmed a lower court's 2012 ruling that Sondhi Limthongkul violated Securities and Exchange Commission regulations in 1996-97 by presenting fraudulent financial data to obtain a large bank loan for one of his businesses. (ABC)
France's Ex-Budget Minister On Trial For Tax Fraud
Former budget minister Jerome Cahuzac was the face of the country’s fight against tax evaders – until he was forced to admit he himself was dodging taxes, hiding money in secret accounts around the world. (Euronews)
Australia Sues Volkswagen Over Alleged Emissions Fraud
The Australian consumer watchdog said it had sued the Australian arm of world No. 2 carmaker Volkswagen AG for intentionally selling more than 57,000 vehicles with software which lied about levels of toxic emissions. (Reuters)
Report Details New Fraud, Theft In Detroit Schools
The report includes summaries of investigations of what happened in the latter half of 2014 through April 2015 and in 2016. The cases include missing technology equipment, missing money, fraudulent transcripts provided by an employee at the time of hire and payroll over-payments. (Detroit Free Press)
August
PricewaterhouseCoopers Settles $5.5 Billion Crisis Era Lawsuit
Accounting giant PricewaterhouseCoopers LLP has settled a $5.5 billion lawsuit in the middle of a weekslong trial over its alleged failure to catch the massive fraud that led to one of the most expensive bank failures in U.S. history. (Wall Street Journal)
The SEC Just Charged 71 Cities And States With Fraud
The U.S. Securities and Exchange Commission has charged 71 municipal bond issuers, including the states of Hawaii and Minnesota, as well as related entities, for using offering documents that misled investors. (Fortune)
Penny-Stock Scammer Pleads Guilty To Fraud Hatched In Prison
A penny-stock swindler pleaded guilty to a $15 million scam prosecutors say he launched while still serving a 10-year prison sentence on an earlier fraud. (Bloomberg)
U.S. Army Fudged Its Accounts By Trillions Of Dollars, Auditor Finds
The Defense Department’s Inspector General, in a June report, said the Army made $2.8 trillion in wrongful adjustments to accounting entries in one quarter alone in 2015, and $6.5 trillion for the year. Yet the Army lacked receipts and invoices to support those numbers or simply made them up. (Reuters)
To Crack Down On Securities Fraud, States Reward Whistle-Blowers
Securities regulators in two states (so far) are enlisting the aid of these informants to enforce their own fraud statutes and protect residents from financial harm. (New York Times)
Payment Fraud Jumps 13 Per Cent To $469 Million
Almost half a billion dollars in fraudulent transactions were charged to Australian bank accounts last year as digital deception continues to rise. (Sydney Morning Herald)
Germany's Leoni 'A Victim Of Massive Fraud'
German wire manufacturer Leoni has reported that it has been targeted by cybercriminals, who made off with tens of millions of dollars using falsified documents. (Deutsche Welle)
Israeli Regulator: Binary Options Fraud Disgusting, Ruinous To Our Reputation
The Israeli financial agency responsible for protecting investors has vowed to urgently tackle massive worldwide fraud by Israel-based binary options companies, acknowledging that the global scam is causing devastating damage to Israel’s international reputation. (Times of Israel)
Former NFL Player Arrested For Alleged $10 Million Fraud
The federal government has charged a former NFL player with allegedly defrauding investors out of more than $10 million. (CNN)
Nigerian Scammers Infect Themselves With Own Malware, Revealing New Wire-Wire Fraud Scheme
A pair of security researchers recently uncovered a Nigerian scammer ring that they say operates a new kind of attack called “wire-wire” after a few of its members accidentally infected themselves with their own malware. (IEEE Spectrum)
AT&T To Pay $7.75 Million In Fraud Scheme That Benefited Drug Traffickers
In the latest fallout from Dallas-based AT&T's "cramming" practices, the company will have to pay $7.75 million in reimbursements and penalties to settle a case involving a third-party directory assistance service. (Dallas News)
Egypt Probes $70m Fraud In Wheat Supply
Egypt's general prosecutor said that local wheat suppliers worked with government employees to falsely claim $69.93 million worth of grain that does not exist. (Trade Arabia)
Airbus Faces Criminal Fraud Probe
The Serious Fraud Office has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus. (Telegraph)
UK Card Fraud Sees Double-Digit Spike
UK card fraud rose a staggering 18% in 2015, the sharpest rise across the whole of Europe. (Infosecurity)
Nigerian Arrested For International 60-Million-Dollar Online Fraud
A 40-year-old Nigerian man has been arrested for defrauding hundreds of victims through email scams. (Deutsche Welle)
3 Ex-Bankers Jailed Over Ireland's Biggest Accounting Fraud
Three former senior bankers were sent to prison for their roles in concealing the loss of billions in deposits at the defunct Anglo Irish Bank, the biggest accounting fraud in Irish corporate history. (ABC)
July
Crippling Cyberfraud: Cases Rise 3-Fold In Tamil Nadu
Cheating above Rs 1 lakh touched Rs 1,831.08 crore in 2014-15, majority related to personal loans. (Times of India)
Florida Becomes Credit Card Fraud Capital Of U.S.
Florida is the credit card fraud capital of the nation based on the number of complaints to the Federal Trade Commission. (WTSP)
Trader Michael Coscia 1st In Nation To Be Sentenced Under 'Anti-Spoofing' Law
In the outcome of a closely watched trial that could set precedent, convicted futures trader Michael Coscia was sentenced in federal court to three years in prison and two years of supervised release for spoofing and commodities fraud. (Chicago Tribune)
U.S. Rep. Corrine Brown Indicted After Fraud Investigation
U.S. Rep. Corrine Brown of Florida and her chief of staff pleaded not guilty to multiple fraud charges and other federal offenses in a grand jury indictment unsealed after an investigation into what prosecutors call a phony charity turned into a personal slush fund. (ABC)
Financial Fraud Is Hammering Retirees, To The Tune Of $36 Billion A Year
Cases of older Americans being taken advantage of by telemarketers, investment professionals or even members of their own family are a common and growing problem that occurs mostly under the radar, advocates say. (CNBC)
Four Ex-Barclays Traders Jailed For Libor Fraud
Four former bankers at Barclays have been jailed for their role in attempting to manipulate the interest rate benchmark Libor. (Telegraph)
Messi Given 21 Months For Tax Fraud, Likely To Avoid Prison
Lionel Messi and his father were sentenced to 21 months in prison for tax fraud by a Barcelona-based court, with both sentences likely to be suspended. (ABC)
Ukrainian Lawmaker Stripped Of Immunity Over $64 Million Fraud
Ukraine’s parliament stripped a lawmaker of his immunity and allowed his arrest on charges of misappropriating more than $60 million, the first high-profile anti-corruption case since promises of a renewed crackdown from President Petro Poroshenko. (Bloomberg)
June
Volkswagen's U.S. Diesel Emissions Fraud Settlement: $15 Billion, Largest In U.S. History
Volkswagen AG's settlement with half a million U.S. regulators and diesel vehicle owners over polluting vehicles is valued at more than $15 billion cash. (BoingBoing)
SEC Accuses Breitling Energy CEO, Others, Of $80 Million Fraud
The U.S. Securities and Exchange Commission charged Breitling Energy Corp, its chief executive and seven other people with defrauding investors out of around $80 million by misleading them about the value of oil and gas assets. (Fortune)
Hundreds Arrested For $900 Million Worth Of Health Care Fraud
The Justice Department announced it is charging hundreds of individuals across the country with committing Medicare fraud worth hundreds of millions of dollars. (CNN)
After China Fraud Boom, Nasdaq Steps Up Scrutiny Of Shady Listings
Nasdaq, Inc. has been checking up on the companies it lists much more closely since a 2009 boom of China-based companies using its exchange abruptly crashed in 2011, creating a massive fraud pile-up. (MarketWatch)
Andrew Caspersen, Charged In $40 Million Fraud, Had Gambling Addiction, Lawyer Says
Federal prosecutors claim that Andrew Caspersen ran a Ponzi-like scheme to defraud friends, family and a hedge fund foundation of nearly $40 million over an 18-month period. (New York Times)
U.S. Rear Admiral Pleads Guilty In 'Fat Leonard' Navy Bribery And Fraud Case
U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty to a felony charge of lying to federal investigators about his extensive relationship with a foreign defense contractor who's at the heart of a sweeping bribery and fraud scandal. (NPR)
Ad Fraud Could Become The Second Biggest Organized Crime Enterprise
That's according to a new report from the World Federation of Advertisers, which estimates that within the next decade, fake Internet traffic schemes will become the second-largest market for criminal organizations behind cocaine and opiate trafficking. (Mashable)
U.S. Card Issuers Lose $10.9B Annually To Fraud: LexisNexis
U.S. card issuers lose $10.9 billion each year to card fraud, according to research released by LexisNexis Risk Solutions. (Payments Source)
NY Fed First Rejected Cyberheist Transfers, Then Moved $81M
Hours before the Federal Reserve Bank of New York approved four fraudulent requests to send $81 million from a Bangladesh Bank account to cyberthieves, the Fed branch blocked those same requests because they lacked information required to transfer money,. (CNBC)
Former AIG Chief Greenberg Must Face New York Fraud Trial
Former American International Group CEO Maurice "Hank" Greenberg must stand trial for allegedly orchestrating sham transactions at the insurer, New York's top court ruled, as the long-time financial industry titan failed in his 11-year-old quest to escape civil fraud charges. (Reuters)
Feds: Mail Fraud Schemes Scammed Seniors
U.S. and Dutch authorities have moved to halt alleged international mail fraud schemes suspected of bilking millions of dollars from elderly and vulnerable victims in the U.S. and around the world. (USA Today)
Trail In Ecuador Cyberheist Leads To Gamers’ Crash Pad In Hong Kong
The paper trail left behind by $2 million stolen from a hacked Ecuadorian bank runs cold in a windowless gamers’ crash pad in a gritty industrial area of Hong Kong. (Reuters)
Insider Trading, Official Corruption, And Their Common Roots In Fraud
Insider trading and official corruption prosecutions—two of the cornerstones of recent white-collar enforcement efforts by the Department of Justice—have both generated sufficient doctrinal confusion to land them on the Supreme Court’s docket this year and next. (Forbes)
May
EU Budget Lost Nearly Billion Dollars To Fraud Last Year
Nearly $1 billion of European Union funds were given out to fraudulent claimants last year, with the biggest concentrations of suspected false claims in Romania, Bulgaria and Hungary, data from EU investigators shows. (Reuters UK)
Netanyahu's Wife Could Be Arrested, Indicted For Fraud
Israeli police have recommended that Prime Minister Benjamin Netanyahu's wife, Sara, be arrested and indicted on counts of fraud, Israeli daily Haaretz reported. (TeleSUR)
Appeals Court Reverses $1.2 Billion Countrywide Verdict, Saying It Wasn't Fraud
Countrywide may have pumped billions of dollars worth of shoddy mortgages through the pipeline that ended with the collapse of Fannie Mae and Freddie Mac but that wasn’t necessarily fraud, a federal appeals court has ruled. (Forbes)
Fraud In $4 Trillion Trade Finance Has Banks Turning Digital
The risk posed by fraud in the $4 trillion trade-financing industry has prompted banks to start exploring distributed-ledger technology like the one that underpins bitcoin. (Bloomberg)
1.4 Bil. Yen Stolen From 1,400 Convenience Store ATMs Across Japan
Police suspect that the cash was withdrawn at ATMs using counterfeit credit cards containing account information leaked from a South African bank. (Mainichi)
United States Rewards International Whistleblowers For Help In Uncovering Fraud
In many cases, whistleblowers located outside of the United States are best positioned to uncover schemes involving fraudulent bills submitted to the U.S. government, tax evasion, and/or securities fraud involving U.S. companies. (Huffington Post)
JPMorgan Wins Dismissal Of Madoff Investors' U.S. Lawsuit
JPMorgan Chase & Co won dismissal of a lawsuit brought by former customers of Bernard Madoff who blamed the U.S. bank for playing an active role in his Ponzi scheme and ignoring red flags of his fraud. (Reuters)
Supreme Court: Concealment Sufficient For Bankruptcy Fraud
The U.S. Supreme Court ruled that "actual fraud," as it relates to the discharge of debt under the bankruptcy code, may be committed by purposeful concealment and does not require overt misrepresentation. (Jurist)
FIFA Compliance Chief Quits, Saying Corruption Fight Threatened
FIFA’s head of audit and compliance, Domenico Scala, quit Saturday to protest changes at the top of global soccer’s governing body that he said will imperil efforts to eliminate corruption. (Bloomberg)
Panama Papers Whistleblower Says Global Corruption Behind Rationale For Massive Data Leak
The person who claims to have disclosed the Panama Papers, a trove of financial data that has implicated politicians and business leaders around the world in large-scale tax evasion, issued a statement explaining the motives behind the massive leak. (Japan Times)
Mortgage Fraud By Identity Thieves At Highest Level Since 2012
During first quarter of 2016, proportion of crimes attempted by fraudsters increased to 6% — often by using identities of recently deceased. (Guardian)
Former MEP Peter Skinner Jailed For Fraud
A former Labour Member of the European Parliament has been jailed for expenses fraud after wrongfully claiming thousands of pounds. (Kent Online)
$15bn Arms Scandal: Presidential Panel Uncovers Massive Fraud In The Nigerian Army
The presidential panel set up by President Muhammadu Buhari through the Office of the National Security Adviser to probe arms procurement between 2007 and 2015 has allegedly uncovered massive fraud in the Nigerian Army. (Sahara Reporters)
'Card Cracking' Latest Fraud Scheme Targets Millennials
Using social media with promises of fast cash, fraudsters lure young people, tricking them into handing over their debit cards and PIN numbers claiming a return on investment. (WPLG)
April
SWIFT Bank Network Hit By Multiple Cyber Fraud Attacks
SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers that it was aware of “a number of recent cyber incidents” where attackers had sent fraudulent messages over its system. (Fortune)
$35M GI Bill Fraud Tied To N.J. University, Feds Say
A Pennsylvania man who allegedly schemed with former officials at Caldwell University was charged with plotting to defraud a program that funded the education of veterans who served in the armed forces following the Sept. 11, 2001 terrorist attacks. (NJ.com)
Red Flags Preceded Fraud Allegations At Jay Peak Resort
Two of Vermont’s most prominent businessmen, Jay Peak Resort owner Ariel Quiros and president Bill Stenger, were accused last week of securities fraud and misuse of more than $200 million raised from investors since 2008. (Boston Globe)
`Shameful' Mitsubishi Fraud Risks Pushing Carmaker To Brink
President Tetsuro Aikawa bowed in apology before telling reporters the fuel efficiency of 625,000 minicars had been exaggerated by as much as 10 percent. (Bloomberg)
Whistleblowing Claims Spark Debate Over Meaning Of Fraud At Supreme Court
The booming business of filing whistleblowing claims against government contractors came to the U.S. Supreme Court today as the justices debated exactly what constitutes fraud under the Civil War-era False Claims Act. (Forbes)
Visa: Some Merchants See Dip In Fraud Thanks To Chip Cards
The new chip-enabled cards flowing into the U.S. marketplace have already made a dent in fraud, with some of the biggest merchants seeing a dip of more than 18% in counterfeit transactions, according to Visa. (USA Today)
Papua New Guinea Police Barricade Anti-Fraud Squad Head's Office, Say Reports
Papua New Guinea police officers have reportedly barricaded the office of the head of an anti-fraud squad after a court threw out his suspension, in a dramatic escalation of a long-running corruption saga engulfing the country’s leadership. (Guardian)
New York Suburb, Officials Charged In Landmark Bond Fraud Case
An elected official of a New York City suburb was charged with defrauding investors who helped finance a controversial minor league baseball stadium, in what authorities called the first criminal securities fraud prosecution involving municipal bonds. (Reuters)
Jury Convicts Texas Doctor In Biggest Home Health Care Fraud
A jury convicted a Dallas-area doctor of fraud for allegedly "selling his signature" to process almost $375 million in false Medicare and Medicaid claims in what investigators called the biggest home health care fraud case in the history of both programs. (ABC)
SEC Charges Texas Attorney General With Fraud
The charges are related to an investment in a Texas tech startup that Paxton helped promote before being elected in November 2014. (Fortune)
Tata Steel Confirms UK Fraud Probe
In a filing to the Bombay Stock Exchange, Tata confirmed media reports of an SFO probe, saying it notified fraud investigators after discovering the problems in 2015. (Times of India)
Britain's Anti-Fraud Chief David Green Battles The Critics And City Wrongdoing
Anyone with doubts as to just how serious the Serious Fraud Office (SFO) is about fraud or indeed its office finds them dispelled as soon as they try to enter its headquarters on the western edge of Trafalgar Square. (Telegraph)
Florida Man Sentenced For Leading $100M Tax-Refund "Fraud Factory"
A man described by a Florida federal judge as the boss of a $100 million-plus "fraud factory" that used thousands of stolen identities to illegally obtain income tax refunds was sentenced to nearly 20 years in prison. (CBS)
30% Of Companies Experience Supply Chain Fraud
Thirty percent of companies reported experiencing some form of fraud in their supply chain, according to a new poll. (Accounting Today)
The Panama Papers
A giant leak of more than 11.5 million financial and legal records exposes a system that enables crime, corruption and wrongdoing, hidden by secretive offshore companies. (ICIJ)
March
Mattel vs. Chinese Cyberthieves: It's No Game
The scam the company fell victim to — known as the fake CEO or fake president scam — has cost companies, many of them American, more than $1.8 billion, according to the FBI. (CBS)
Supreme Court Says 'Untainted' Assets Of Fraud Suspects Can Be Unfrozen, Used To Defend Self
People charged with fraud have a right to spend their own "untainted" money to hire a lawyer, the Supreme Court ruled. (Los Angeles Times)
Former Money Advisor To Scottie Pippen Gets 3 Years For Fraud
Chicago Bulls legend Scottie Pippen was near the end of his storied 17-year NBA career when he invested more than $20 million with a financial adviser he says had come highly recommended by the team. (Chicago Tribune)
£61 Million Deadly Vaccines Fraud Uncovered In China
A mother and daughter have been held in China after police uncovered a £61 million trade in illegal vaccines, potentially exposing patients to dangerous drugs in what appears the country’s biggest case of its kind. (Telegraph)
Business Email Compromise Fraud Rising Fast, Hard To Fight
This type of fraud cost global business more than $1.2 billion over the past two years, the FBI reported late last summer, and the number of victims increased by 270 percent during the first eight months of 2015. The average loss per scam was $130,000. (CSO)
Ex-Oklahoma State Senator Sentenced To 37 Months For Fraud
A former vice chairman of the Oklahoma Senate's Finance Committee was sentenced to 37 months in federal prison Friday after admitting he stole $1.8 million from the nonprofit agency where he worked for 16 years. (ABC)
SEC Alleges Widespread Fraud At Aequitas, Sues Top Execs
The U.S. Securities and Exchange Commission moved decisively into the Aequitas Capital Management scandal Thursday, suing the Lake Oswego company and three top executives for allegedly running a $350 million Ponzi scheme. (Oregonian)
Snapchat, Seagate Among Companies Duped In Tax-Fraud Scam
A major phishing scheme has tricked several major companies — among them, the messaging service Snapchat and disk-drive maker Seagate Technology — into relinquishing tax documents that exposed their workers' incomes, addresses and Social Security numbers. (ABC)
SEC Cites Wells Fargo With Fraud In Failed Curt Schilling Startup
The Securities and Exchange Commission said the San Francisco bank failed to disclose an important financial gap facing Schilling's startup, 38 Studios, to bond investors who lost money in the high-profile 2012 collapse. (USA Today)
Former Nigerian Defence Chief Denies £10m Fraud Charges
Air Marshall Alex Badeh is accused of using money allocated for the air force to buy a mansion and to build a shopping mall. (Guardian)
Yet Another Whistleblower Alleges Medicare Advantage Fraud
Florida doctor claims Humana knew of inflated bills, but did nothing, even though misleading diagnoses could harm patients. (Center for Public Integrity)
China Court Jails 24 Over $1.5-Bln Financial Fraud
A court in southern China has jailed 24 people for fraudulently raising nearly 10 billion yuan ($1.5 billion) in one of the country's biggest financial scams, the official Xinhua news agency said. (Reuters)
Suit: Ramsey Guilty Of 'Official Misconduct'
A veteran former compliance officer at the University of Louisville says in a lawsuit that President James Ramsey and his lieutenants tried to squelch enforcement of conflict of interest rules, including in a case involving Ramsey himself. (Louisville Courier-Journal)
February
Citigroup Faces Fraud Suit Claiming $1.1 Billion In Losses
Citigroup Inc. was sued for fraud by investors and creditors of a bankrupt Mexican oil services firm over claims they were harmed by a loan scheme that also led the bank to cut 2013 profit by $235 million and fire at least a dozen people. (Bloomberg)
UBS Faces Money Laundering And Fraud Inquiry In Belgium
The Swiss bank UBS is under scrutiny by the Belgian authorities over accusations of money laundering and fraud in an inquiry into whether the bank assisted wealthy individuals in avoiding taxes. (New York Times)
Prosecutorial Bent Shows In SEC Accounting-Fraud Push, Ex-Official Says
The Securities and Exchange Commission’s push to step up policing of accounting fraud could have a lasting impact on the agency’s work, bringing more cases related to poor internal controls and more actions against individuals, a top former official said. (Wall Street Journal)
The Rise Of LinkedIn Fraud
There is an increasing number of fraudsters and hackers who are committing cyber crimes targeting LinkedIn users. (CSO)
Don't Ever Think Fraud 'Could Never Happen Here'
Seven instances of publicly reported fraud have been committed by nonprofit executive directors within Waco charities the past eight years. This is a shocking statistic but serves as a reminder that fraud happens, even in our community. (Waco Tribune-Herald)
Fraud Warning: Be Careful What You Sign For
Fraudsters are asking people for signatures on the doorstep as part of a sophisticated identity theft scam. (Coventry Telegraph)
Morgan Stanley to Pay $2.6 Billion to Settle Fraud Charges
Morgan Stanley will pay a $2.6 billion penalty to resolve claims related to Morgan Stanley’s marketing, sale and issuance of residential mortgage-backed securities. (Corporate Crime Reporter)
MoneyGram To Pay $13 Million To Resolve Fraud Investigation
MoneyGram has agreed to pay a $13 million settlement to resolve a multistate investigation involving consumer fraud. (CBS)
The Future Of Fraud-Busting
Here’s how leading fraud researchers, neuroscientists, psychiatrists, and computer scientists think technology can be put to work to fight fraud however it occurs — in person, online, or over the phone. (Atlantic)
Ex-French Minister In Court For Tax Fraud, Money Laundering
A former French budget minister will appear in court on charges of tax fraud and money laundering that forced him to dramatically resign three years ago. (ABC)
U.S. Is Probing A Possible Half-Billion Dollar Health Care Fraud
The FBI is reportedly investigating a half-billion dollar health-care fraud scheme involving pain-management creams. (Fortune)
Wells Fargo To Pay $1.2 Billion In U.S. Mortgage Fraud Settlement
Wells Fargo & Co said it had agreed to pay $1.2 billion to settle claims that it engaged in mortgage fraud, resolving a major U.S. lawsuit brought in the wake of the 2008 financial crisis. (Reuters)
Chinese Company Accused Of $7.6B Financial Fraud
Chinese police arrested 21 employees at China’s largest online finance business on suspicion of fleecing 900,000 investors for $7.6 billion, in what could be the biggest financial fraud in Chinese history. (USA Today)
Banks Reach $154.3 Million Settlement on 'Dark Pool' Fraud
Two major global banks, Barclays and Credit Suisse, are paying a combined $154.3 million to settle government investigations that they misled clients about being able to safely trade on their "dark pool" financial exchanges. (ABC)
January
China's Fraud Paper Trail Shows Flaws In Booming Funding System
An archaic part of China’s banking system meant to provide short-term funding to companies is coming under renewed scrutiny after at least two cases of fraud were uncovered recently. (Bloomberg)
Former HBO Executive Admits Stealing Nearly $1 Million From Cabler, Fraud Investigation Ongoing
A former HBO talent relations executive has admitted bilking the cabler out of nearly $1 million through fraudulent bills for services that were never rendered. (Variety)
Court-Appointed Probe Will Slam Caesars For Fraud
Caesars Entertainment’s court-appointed examiner has told company officials and creditors’ lawyers he believes the company acted improperly when it transferred assets away from the hobbled casino prior to putting it into Chapter 11. (New York Post)
Fraud Prosecutions Topped $1 Billion In 2015, KPMG Report Says
The total value of fraud cases that reached U.K. courts was more than 732 million pounds ($1.04 billion) in 2015, up 15 million pounds from the previous year, with society’s most poor and vulnerable persistently targeted by criminals, according to a report. (Bloomberg)
SEC Visa Fraud Case Rocks Florida City's Downtown Dream
Zhong raised at least $8.5 million from Chinese investors through the U.S. EB-5 visa program and improperly used some of it on personal expenses such as luxury cars, a home and a boat, the Securities and Exchange Commission said in a civil complaint against her. (CNBC)
SEC Charges 11 Former Superior Bancorp Leaders With Fraud
The Securities and Exchange Commission has charged 11 executives and board members of the former Superior Bank and its holding company with fraud. (Birmingham Business Journal)
Retailers Estimate $2.2 Billion In 2015 Holiday Return Fraud, Up From 2014
On top of less than stellar holiday sales, retailers also are expected to see return fraud grow from $1.9 billion in the 2014 holiday cycle to $2.2 billion this year, according to the National Retail Federation. (Talk Business)
Princess Cristina Goes On Trial In Spain
A landmark fraud trial opened Monday for Spain's Princess Cristina, accused of helping bankroll a lavish lifestyle with funds her husband received from an alleged scheme to embezzle about 6 million euros ($6.5 million) in public contracts for conferences and sporting events. (U.S. News And World Report)
How An IRS Employee Allegedly Stole $1 Million From Taxpayers
Beginning in 2008, a small group of people–including an IRS employee who worked in the Taxpayer Advocate Service section–worked a simple and effective scam that involved fake tax returns, phony refunds, dozens of pre-loaded debit cards, and a web of lies. (On The Wire)
Former McKinsey, State Farm Workers Bilked Firms Of $890,00: Indictment
An ex-partner in the Chicago office of McKinsey and a former internal consultant at State Farm have been indicted on fraud charges for allegedly billing $890,000 in false consulting and travel expenses. (Chicago Business)
Nigerian Charged In Sophisticated Email Scam Is In Custody In Dallas
Amechi Colvis Amuegbunam, 28, of Lagos, Nigeria, was arrested in Baltimore in August and charged with scamming 17 North Texas companies out of more than $600,000. (Dallas Morning News)
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