Fraud Headlines

2018 Articles

December 

New York Fines Barclays $15 Million Over C.E.O.’s Whistle-Blower Hunt 

New York's banking regulator ordered Barclays to pay $15 million in penalties after the British bank's chief executive officer attempted to unmask a whistle-blower. (New York Times)

Maldives Police Question Former President In Fraud Probe 

Police in the Maldives have questioned the country's former President Abdulla Yameen for the first time in an investigation into allegations of engaging in illicit financial transactions while in office. (Al Jazeera)

Goldman Sachs To Face Criminal Charges In Multibillion-Dollar Fraud Scheme 

Malaysia filed criminal charges against Goldman Sachs and two former executives Monday for their role in the alleged multibillion-dollar ransacking of state investment fund 1MDB. (New York Post) 

Cash ‘Sandwiches’: ‘Brazen’ Fraud By Bloomberg Executives Is Detailed In Charges 

Executives at both Bloomberg and Turner Construction routinely steered contracts to favored electrical contractors, vendors and others in exchange for cash, favors, or work on their homes, the indictments said. (New York Times)

AriseBank Execs Forced To Pay $2.7 Million To Settle SEC Charges Of Cryptocurrency Fraud 

The organization claimed to be "the first decentralized bank to offer the first and largest cryptocurrency banking platform in the world," and said that users could "serve as their own bank." (ZD Net)

Oversight Of U.S. Military’s Food Suppliers Called Into Question After Fraud Indictment 

Executives from a company responsible for providing food and water for deployed U.S. troops in Afghanistan have been charged with defrauding the government and creating a fake construction site to overstate progress on an $8 billion contract, the Justice Department said in a recently filed indictment. (Washington Post)

Huawei CFO Being Prosecuted For Fraud, Canada Says 

The U.S. alleges that Huawei used an unofficial subsidiary called Skycom to do business in Iran for Iranian telecom companies, breaching U.S. and European sanctions against the Middle Eastern country. (Bloomberg)

Two Tesco Directors Cleared Of Fraud As Judge Labels Case 'Weak' 

Two former Tesco executives accused of masterminding a fraud that triggered the biggest financial crisis in the supermarket chain’s 100-year history have been cleared after the judge threw out the case stating the prosecution case was “so weak” it should not be before a jury. (Guardian)

Israeli Police Urge Bribery And Fraud Charges Against Netanyahu. Again. 

The Israeli police recommended Sunday that Prime Minister Benjamin Netanyahu be indicted on bribery, fraud and other charges, accusing him of trading regulatory favors for fawning news coverage, in what is potentially the most damaging of a series of corruption cases against him. (New York Times)

Former Autonomy Executives Indicted On Criminal Conspiracy And Fraud Charges 

Former Autonomy CEO Mike Lynch and Finance VP Stephen Chamberlain allegedly engaged in fraudulent accounting practices to boost the company's value prior to its acquisition by HP in 2011. (CRN)

DJ Khaled, Floyd Mayweather Jr. Charged With Promoting Cryptocurrency Without Disclosing They Were Paid 

The SEC has said that cryptocurrency coins sold in initial coin offerings (ICOs) may be considered securities and subject to federal securities laws. (CNN)

November 

DOJ Unseals Charges In Alleged Massive Online Ad Fraud 

The Department of Justice on Tuesday unsealed charges against eight individuals in an alleged widespread digital advertising fraud that reportedly used botnets to give the appearance of billions of humans looking at online ads. (The Hill)

Nigeria Could Lose $6bn From 'Corrupt' Oil Deal Linked To Fraud 

A court in Milan is considering charges of corruption against Eni and Shell in a controversial oil deal that led to Nigeria losing an estimated $6bn. (BBC)

Why Aren’t Chip Credit Cards Stopping “Card Present” Fraud In The U.S.? 

A security analysis firm called Gemini Advisory recently posted a report saying that credit card fraud is actually on the rise in the U.S. (Ars Technica)

'I Let It Go Too Far': Architect Of Pilot Flying J Fraud Scheme Sentenced To Prison 

"Our culture at the very top was to be hyper-competitive," former executive John "Stick" Freeman told a federal judge Wednesday. "You didn't succeed at our company by backing down or asking questions." (USA Today)

Malta's Pilatus Bank Shut Down Over Fraud Charges 

The European Central Bank has revoked the licence of Malta's Pilatus Bank after its chairman was arrested in the U.S. on money-laundering charges. (BBC)

Guilty Plea In $1B Money Laundering Scheme Allegedly Tied To SoFla Real Estate 

A former official with Venezuela’s state oil company PDVSA pleaded guilty on Wednesday for his role in a $1 billion money laundering scheme in which prosecutors allege some of the proceeds went into South Florida real estate. (Real Deal)

Goldman Sachs Ensnarled In Vast 1MDB Fraud Scandal 

Goldman Sachs is facing one of the most significant scandals in its history, a multibillion-dollar international fraud that investigators say was masterminded by a flamboyant financier with a taste for Hollywood and carried out with help from the Wall Street firm’s bankers. (New York Times)

October 

New Lawsuit Claims Trump, Children Made Millions Off Investment Scams 

President Donald Trump, his three eldest children and his company are accused in a class action lawsuit filed Monday in Manhattan federal court of using their brand to make millions by coaxing unsophisticated investors to participate in fraudulent schemes. (CNN)

Woman Charged With Witchcraft And Fraud In Alleged 'Evil Spirit Blessing Scam' 

A 27-year-old Canadian woman is facing witchcraft and fraud charges after allegedly conning a 67-year-old man of $450,000 in what authorities are calling an "evil spirit blessing scam." (USA Today)

UK's SFO Says Ex-Afren Executives Convicted Of Fraud, Money Laundering 

Two former executives of collapsed oil firm Afren were convicted on Wednesday of fraud and money laundering offences relating to a $300 million business deal, the UK’s Serious Fraud Office (SFO) said. (Reuters)

MoviePass Under Investigation For Fraud And Misleading Investors 

Helios and Matheson Analytics, the company behind the subscription-based movie ticket provider MoviePass, is under investigation by the office of the New York Attorney General for allegedly misleading investors about MoviePass’ financial sustainability. (Forbes)

7 Companies, 4 Men Charged In $1B Telemedicine Fraud Scheme 

According to prosecutors, the companies and the men associated with them created an "elaborate" scheme in which telemedicine firm HealthRight LLC fraudulently solicited insurance information and prescriptions from customers nationwide for pain creams and similar products. (ABC)

Fall River Mayor Arrested, Charged With Defrauding Investors 

Fall River Mayor Jasiel F. Correia II allegedly stole more than $230,000 from people who invested in his Internet startup, using their funds not for the business but for personal expenses including a Mercedes-Benz, designer clothes, and adult entertainment, according to a federal indictment. (Boston Globe)

Newsweek's Former Parent Company Indicted In Fraud And Money Laundering Case 

Etienne Uzac and IBT Media are accused of conspiring with two other companies to defraud lenders out of money that the media organization used to keep itself in business, according to an indictment. (CNN)

Former South Korean President Sentenced To 15 Years In Prison On Corruption Charges 

South Korea's former president, Lee Myung-bak, was sentenced Friday to 15 years in prison for bribery and embezzlement. He will also have to pay $11.5 million in fines. (NPR)

Elon Musk Agrees To Pay $20 Million And Quit As Tesla Chairman In Deal With SEC 

Separately, Tesla agreed Saturday to pay $20 million to settle claims it failed to adequately police Musk's tweet. (CNN)

Brazil's Petrobras To Pay $853 Million U.S. Fine In Car Wash Probe 

Petróleo Brasileiro SA will pay an $853.2 million fine to settle charges that former executives and directors of the state-run Brazilian oil company broke U.S. anti-corruption laws by bribing politicians and then seeking to conceal the payments. (Reuters)

September 

Inside Tesla CEO Elon Musk's Fraud Charges By The SEC: Texts, Emails, And Other Evidence 

The Securities and Exchange Commission sued Tesla CEO Elon Musk for violating securities fraud laws Thursday afternoon, alleging his Aug. 7 tweet about having “funding secured” to take Tesla private was “false and misleading.” (Fortune)

Inside A $13 Million Fraud And Bribery Scheme At The VA 

Ralph Tillman is a veteran himself. Yet, he admits to taking cash bribes for more than a decade — $286,000 — money that could have gone toward helping Southern California veterans. (ABC7)

Former Pilot Flying J president sentenced to more than 12 years in prison, fined $750K 

A federal judge on Wednesday ordered former Pilot Flying J President to serve more than 12 years in federal prison as the mastermind of a five-year fraud plot to grow the firm's market share. (Tennessean)

Former Bankrate CFO Sentenced To 10 Years In Prison For Fraud 

Edward J. DiMaria, formerly the CFO of Bankrate, was sentenced to 10 years in prison for accounting fraud and securities fraud. (South Florida Business Journal)

Danske Bank Faces More Penalties From Regulator, Government Says 

Danske Bank A/S faces more penalties from the financial regulator as multiple probes into one of Europe’s biggest money laundering scandals get under way, according to Denmark’s government. (Bloomberg)

The Justice Department Is Investigating Tesla For Fraud 

Just one day after being sued by the cave diver to whom he referred to as “pedo guy,” Musk’s electric car company Tesla is now formally being investigated by the Justice Department. (Futurism)

SeaWorld Will Pay $5 Million To Settle Fraud Probe 

SeaWorld and its former CEO have agreed to pay more than $5 million to settle a federal probe into allegations of fraud at the marine animal park company. (CNN)

Leaders Of Sistine Chapel Choir Face Vatican Fraud Investigation 

The leaders of the Sistine Chapel Choir have landed in the cross hairs of an investigation by Vatican prosecutors into possible money laundering, fraud and embezzlement. (New York Times)

Hedge Fund Adviser Charged In ‘Short-and-Distort’ Scheme 

The Securities and Exchange Commission has charged hedge fund adviser Gregory Lemelson and his firm, Lemelson Capital Managemnet, of illegally profiting from a short-and-distort scheme to drive down the price of Ligand Pharmaceuticals. (CFO)

U.S. Securities Law Can Cover Cryptocurrencies, Judge Rules 

U.S. securities law can be used to prosecute fraud cases over cryptocurrency offerings, a New York federal judge ruled on Tuesday in what appeared to be the first court decision to address the issue. (Reuters)

Ex-Valley Metro CEO Stephen Banta Pleads Guilty To Fraud 3 Years After 'Republic' Inquiry 

Former Valley Metro Chief Executive Stephen Banta pleaded guilty to fraud in Maricopa County Superior Court on Monday, nearly three years after The Arizona Republic uncovered his extravagant personal spending with public funds at the regional transit agency. (AZ Central)

Pharma Billionaire Charged With Penny Stock Fraud 

Pharmaceutical billionaire Phillip Frost, 81, who parlayed stakes in small pharmaceutical companies into a $2.8 billion fortune, allegedly participated with “a group of prolific South Florida-based microcap fraudsters” in promoting two penny stocks, the Securities and Exchange Commission said. (Forbes)

Wells Fargo Shares Fall After DOJ Reportedly Examines Potential Fraud In Business Banking 

The Department of Justice is investigating a banking unit of Wells Fargo after the bank’s review found that employees’ altering of documents was a more pervasive practice than previously thought. (CNBC)

Walmart “Asset Protection Manager” From Aurora Convicted Of Fraud And Money Laundering 

A 40-year-old Aurora man who worked for Walmart has been sentenced to 22 months in federal prison for wire fraud and money laundering. (Denver Post)

August 

Grenfell Council Finance Worker Stole £60k From Victims' Fund To Spend On Holidays And Haircuts 

Jenny McDonagh, a former boss at Kensington and Chelsea borough council, pleaded guilty to two offences of fraud, one of theft and one of money laundering. (Telegraph)

Nirav Modi-Linked U.S. Firms Tied To India Fraud By Examiner 

Three bankrupt U.S. companies with links to Indian billionaire Nirav Modi were “directly involved” in transactions related to the alleged multibillion-dollar international fraud for which Modi has been charged by Indian authorities, according to an investigation by the court-appointed examiner. (Bloomberg)

Cohen Pleads Guilty To Tax Evasion, Bank Fraud & Campaign Finance Law Violations 

President Trump’s former personal lawyer, Michael Cohen, pleaded guilty today to a total of eight counts of tax evasion, making false statements, and campaign finance violations. (Forbes)

Trump Campaign Manager Paul Manafort Found Guilty On 8 Counts In Tax Fraud Case 

Manafort was found guilty on five counts of submitting false tax returns, one count of failing to report foreign bank and financial accounts, and two counts of bank fraud. (USA Today)

Cafeteria Workers Stole Nearly $500,000 In Lunch Money From Schools, Police Say 

For years, cash was disappearing from cafeteria registers at the high school and middle school, apparently unbeknown to school officials. Nearly $500,000 was pilfered from 2012 through 2017, the authorities said. (New York Times)

Kenya Charges Top Officials With Fraud Over New $3 Bln Railway 

A Kenyan court on Monday charged the heads of the agency that manages public land and of the state railway with fraud over land allocation for a new $3 billion train line linking the capital with East Africa’s biggest port. (Reuters)

Oracle Accused Of Defrauding Investors On Cloud Sales Growth 

The investor leading the case, the City of Sunrise Firefighters’ Pension Fund, claimed Oracle engaged in coercion and threats to sell its cloud-computing products, creating an unsustainable model that fell apart. (Bloomberg)

Financial Damage From Special Fraud Cases Down In Japan But More Juveniles Implicated 

A significant increase in juvenile offenders involved in so-called special fraud cases inflicted ¥17.49 billion in financial damage in the first half of 2018, National Police Agency data showed Thursday, although financial losses stemming from such cases dropped for the fourth consecutive year over the January-June period. (Japan Times)

Paul Manafort Fraud Trial: Manafort Accused Of Amassing "Secret Income" 

Paul Manafort orchestrated a multimillion-dollar conspiracy to evade U.S. tax and banking laws, leaving behind a trail of lies as he lived a lavish lifestyle, prosecutors said as they laid out their case against the former Trump campaign chairman Tuesday. (CBS)

July 

How an Ex-Cop Rigged McDonald’s Monopoly Game and Stole Millions 

Jerome Jacobson and his network of mobsters, psychics, strip-club owners, and drug traffickers won almost every prize for 12 years, until the FBI launched Operation ‘Final Answer.’ (Daily Beast)

SEC Data Analysis Tool Uncovers Insider Trading By Executive 

A senior executive at Alliance Fiber Optic Products agreed to settle charges that he made nearly $200,000 in illicit profits by trading on inside information in advance of three disappointing earnings announcements by the company. (Compliance Week)

Canada Housing Agency Pushes For Better Income Checks To Catch Fraud 

Canada’s housing agency has asked the country’s tax authority to take a “more direct and formal role” verifying income claimed on mortgage applications, part of a two-year plan to tackle mortgage fraud. (Reuters)

Who Pays When Indonesian Ride-Sharing Fraud Goes Full Throttle? 

Drivers are using various techniques, including fake GPS apps found on the dark web, to inflate their numbers and get undeserved bonuses. (South China Morning Post)

Samsung Biologics To Face Criminal Probe On Accounting Fraud 

South Korea’s top financial regulator said it had found intentional breaches of accounting rules at Samsung Biologics, the contract drugmaking unit once seen as Samsung’s future growth engine. (The Seattle Times)

Investors Flee Danske Bank Following Money Laundering Allegations 

Danske Bank is facing backlash from a money laundering scandal that has now resulted in it losing client Unity Technologies, a video game startup that is valued at $2.6 billion. (PYMNTS.com)

Najib Razak, Malaysia’s Ex-Prime Minister, Is Arrested Amid Corruption Inquiry 

Najib Razak, the former prime minister of Malaysia who was ousted in an election two months ago, was arrested by anticorruption officials on Tuesday, amid an investigation involving billions of dollars diverted from a state investment fund. (New York Times)

PwC Must Pay FDIC $625M For Failing To Uncover Fraud Scheme 

A federal judge on Monday said PricewaterhouseCoopers must pay the Federal Deposit Insurance Corp. $625.3 million in damages for failing to uncover a fraud scheme between its client Colonial Bank and the mortgage lender Taylor, Bean & Whitaker. (New York Post)

Hitachi Affiliate Discovers Data Fraud Of 60,000 Batteries 

An affiliate of Japanese electronics giant Hitachi admitted Friday it had falsified data for 60,000 industrial batteries, the latest in a series of similar scandals that has battered the country's reputation for quality. (Industry Week)

Con Artists Are Fleecing Uber Drivers 

Apparently the scam has hit thousands of ride-hail drivers, and millions of dollars have been diverted from their accounts, according to a lawsuit brought by the U.S. Attorney's Office in New York's federal court last November. (CNET)

June 

U.S. Charges Hundreds In Major Healthcare Fraud, Opioid Crackdown 

The U.S. Justice Department on Thursday announced charges against 601 people including doctors for taking part in healthcare frauds that resulted in over $2 billion in losses and contributed to the nation’s opioid epidemic in some cases. (Reuters)

TCI, Axon Accuse India Real Estate Fund Of $1.5 Billion Fraud 

Two high-profile hedge funds accused one of India’s biggest real estate developers of defrauding its foreign investors out of as much as $1.5 billion, potentially one of the largest private equity scams ever. (Bloomberg)

Sara Netanyahu Charged With Fraud And Breach Of Trust 

Israeli Prime Minister Benjamin Netanyahu’s wife, Sara, was served a slew of fraud charges Thursday in the so-called “Prepared Food Affair,” for misusing public funds to order catered meals at their official Jerusalem residence, officials said. (New York Post)

West Virginia Supreme Court Justice Charged With Fraud 

West Virginia Supreme Court of Appeals Justice Allen Loughry was arrested on Wednesday and charged with 22 federal criminal counts including fraud, witness tampering and misuse of government property. (Reuters)

Theranos Founder Elizabeth Holmes Indicted On Fraud Charges 

Elizabeth Holmes, the disgraced founder of Theranos, the lab testing company that promised to revolutionize health care, and its former president, Ramesh Balwani, were indicted on Friday on charges of defrauding investors out of hundreds of millions of dollars as well as deceiving hundreds of patients and doctors. (New York Times)

Fyre Festival Founder Billy McFarland Has Been Arrested Again On Additional Fraud Charges 

The promoter of a failed music festival in the Bahamas who is awaiting sentencing on fraud charges was arrested on new fraud charges Tuesday, leading a judge to order his detention. (Time)

FBI Busts International Email Fraud Ring That Stole Millions 

The alleged email scammers, spread across seven countries, would target midsize businesses, looking to trick employees who had access to company finances. (CNET)

Philippine Police Arrest Nearly 500 In Alleged Online Fraud 

Philippine police arrested nearly 500 people, including eight Israeli nationals, who they say were involved in an online investment fraud that victimized people overseas, including in Australia and South Africa, police said. (ABC)

Australia's Biggest Bank Hit With Record Fine For Money-Laundering Scandal 

Austrac, a regulator that focuses on financial crime, said Monday that CBA would pay $700 million Australian dollars ($534 million) to settle a lawsuit after the bank admitted it failed to observe laws to prevent money laundering and financing of terrorism. (CNN)

Former State Street Executive Faces U.S. Fraud Trial 

A former executive at State Street Corp went on trial on Monday on U.S. charges that he participated in a scheme to defraud the bank’s clients by charging them secret commissions on billions of dollars in trades. (Reuters)

Bumble Bee Tuna Price-Fixing Case, Like Starkey Fraud Prosecution, Could Change White-Collar Prosecutions 

The Lischewski indictment is what elevates the Bumble Bee investigation into a special category of white-collar crime cases, for he’s one of the rare CEOs to be brought to book in recent years for corporate wrongdoing. (Star Tribune)

May 

A Record $340 Million Lost To Fraud In Australia, Says Latest ACCC Report 

More than A$340 million was reported lost by Australian victims of fraud schemes in 2017, up A$40 million on the previous year. (Conversation)

Buyer Beware: Hundreds Of Bitcoin Wannabes Show Hallmarks Of Fraud 

A Wall Street Journal analysis of 1,450 cryptocurrency offerings reveals rampant plagiarism, identity theft and promises of improbable returns. (Wall Street Journal)

Malaysia Premier Says 1MDB Fund Wrongdoing Larger Than Thought 

Malaysian Prime Minister Mahathir Mohamad said more wrongdoing occurred at state fund 1MDB than was publicly known, as he accelerates efforts to reopen a probe into the scandal-plagued company and the actions of his predecessor. (Bloomberg)

Indian Police Charge Former PNB Boss And 10 Staff In Fraud Case 

Indian police on Monday charged the former head of Punjab National Bank (PNB) and 10 other officials at the state-run lender in the country’s largest-ever bank fraud case, two sources familiar with the matter told Reuters. (Reuters)

Chinese Tycoon Gets 18 Years In Prison For $10 Billion Fraud 

Wu Xiaohui, the Chinese tycoon who rose to international prominence to buy the Waldorf Astoria Hotel, was sentenced to 18 years in prison after having pleaded guilty to defrauding investors. (New York Times)

BSO Detective Follows Trail From Squatter Complaint To $11.8 Million Fraud Case 

What began in June 2016 as a complaint of squatters living in a Weston home culminated Tuesday in the arrest of six people in what police call an $11.8 million scheme to defraud. (NBC Miami)

Ex-Volkswagen C.E.O. Charged With Fraud Over Diesel Emissions 

The Volkswagen emissions scandal reached the highest echelons of the company on Thursday after its former chief executive was charged with conspiracy in the company’s rigging of diesel vehicles to feign compliance with federal pollution standards. (New York Times)

How Criminals Steal $37 Billion A Year From America’s Elderly 

Telephone pitchers, online scammers and even family members target the most vulnerable among us. (Bloomberg)

Former Autonomy Executive Convicted Of Fraud Over Role In $10.3bn Takeover By Hewlett Packard 

Sushovan Hussain was convicted of 16 counts of wire and securities fraud for artificially inflating Autonomy’s valuation before it was bought out by Hewlett Packard. (Independent)

April 

European Union Suspects Tax Fraud At China's New Gateway To Europe 

European Union and Italian authorities are investigating suspected wide-scale tax fraud by Chinese criminal gangs importing goods via Greece's largest port of Piraeus, a trade gateway between China and Europe, officials said. (Economic Times)

Lance Armstrong Settles Federal Fraud Case For $5 Million 

Lance Armstrong agreed to pay $5 million to settle claims that he defrauded the federal government by using performance-enhancing drugs when the United States Postal Service sponsored his cycling team. (New York Times)

Ex-UBS Trader Accused Of Spoofing Robots Fights Charges Of Fraud 

In science fiction, the machines are usually out to get the people. In the case of former UBS Group AG trader Andre Flotron, it’s the other way around. (Bloomberg)

Former Congressman Stockman Convicted Of Fraud In Texas 

A federal jury in Houston on Thursday found former Republican U.S. Representative Steve Stockman guilty of fraud and siphoning off hundreds of thousands of dollars in campaign funds for his personal use. (Reuters)

Two Goans, Living In Dubai, Sentenced To 517 Years Jail For Running Ponzi Scheme 

Two Goans have been sentenced to 517 years in jail for running a fake investment racket worth more than $13 million in Dubai. (Indian Express)

Cryptocurrency Fraud Widespread, Warns Regulator 

Of 32 cryptocurrency investment promoters investigated in four weeks, at least five failed to tell would-be investors about the risks while guaranteeing returns of up to 40 percent a month, the Texas State Securities Board cautioned. (Forbes)

China Injects $9.7 Billion Into Anbang After Fraud Alleged 

China is injecting 60.8 billion yuan ($9.7 billion) into Anbang Insurance Group Co. as it attempts to contain the fallout after the company’s former chairman was accused of masterminding a multibillion dollar fraud. (Bloomberg)

Founders Of A Cryptocurrency Backed By Floyd Mayweather Charged With Fraud By SEC 

Two founders of a cryptocurrency firm that was endorsed by champion boxer Floyd Mayweather have been charged with carrying out a fraudulent initial coin offering (ICO) by the U.S. Securities and Exchange Commission. (CNBC)

Indian Banks Reported At Least One Fraud Every Hour In 2017 

Between April 2016 and March 2017, Indian lenders reported 12,533 cases of fraud, totaling Rs18,170 crore ($2.79 billion), according to a report by Institutional Investor Advisory Services, a proxy advisory firm. (Quartz India)

Megachurch Pastor With Ties To George W. Bush Indicted On $3.5 Million Fraud 

Pastor Kirbyjon Caldwell and a business partner, Gregory Smith, sold millions of dollars of worthless Chinese bonds, telling investors to "remain faithful and that they would receive their money," according to documents obtained by ABC Houston station KTRK. (ABC)

March 

Barclays Agrees To Pay $2bn To Settle U.S. Fraud Case 

The settlement follows a three-year investigation into allegations that the bank caused billions of dollars of losses to investors by “engaging in a fraudulent scheme” to sell Residential Mortgage-Backed Securities (RMBS) between 2005 and 2007. (Guardian)

Angola: Ex-President's Son Charged With Fraud 

Jose Filomeno dos Santos accused of the illegal transfer of $500m while head of the country's sovereign wealth fund. (Al Jazeera)

Nicolas Sarkozy, Ex-President Of France, Faces Corruption Charges Over Libyan Cash 

Mr. Sarkozy, 63, faces charges of passive corruption, illegal campaign financing and misappropriation of Libyan public funds. (New York Times)

Trump Organization’s Real Estate Partner In India Accused Of $147 Million Fraud 

A real estate investment company that partnered with the Trump Organization on an office tower project in India has been accused of defrauding its foreign investors of at least $147 million, according to documents obtained by The Washington Post. (Washington Post)

Former South African President Jacob Zuma Charged With Fraud, Corruption, Graft And Racketeering 

South Africa’s National Prosecuting Authority said it’s pursuing 16 charges against former President Jacob Zuma including graft and racketeering that were shelved nine years ago amid allegations of political interference. (Time)

Theranos Chief Executive Elizabeth Holmes Charged With Massive Fraud 

Elizabeth Holmes, founder and chief executive of the blood-testing company Theranos, has been charged by the Securities and Exchange Commission with an “elaborate, years-long fraud” in which she and former company president Ramesh “Sunny” Balwani “allegedly deceived investors into believing that its key product — a portable blood analyzer — could conduct comprehensive blood tests from finger drops of blood,” the SEC said. (Washington Post)

CFTC Moves To Cement Authority Over Crypto Fraud Cases 

Just two days after U.S. Judge Jack B. Weinstein of the Eastern District of New York ruled in favor of the CFTC, affirming its definition of cryptocurrency as a commodity, the regulator gave notice of "supplemental legal authority" to My Big Coin Pay Inc - a crypto services company it charged with fraud and misappropriation of funds in January. (CoinDesk)

'Pharma Bro' Martin Shkreli Cries In Court, Is Sentenced To 7 Years For Securities Fraud 

Martin Shrkeli, the smirking "Pharma Bro" vilified for jacking up the price of a lifesaving drug, was sentenced to seven years in prison for defrauding investors in two failed hedge funds. (Chicago Tribune)

Organizer Of Failed Fyre Festival Pleads Guilty To Fraud 

The festival’s main organizer, William McFarland, pleaded guilty to two counts of wire fraud related to the festival and to his media company that prosecutors said had cost investors $26 million in losses. (New York Times)

Missed Warnings: How Watchdogs Failed To Spot $2 Billion Indian Bank Fraud 

The room where Shetty worked was visited on a quarterly basis by external auditors approved by the central bank, who sifted through documents but failed to spot any problem, according to interviews with two bank employees with first-hand knowledge of the department’s operations. (Reuters)

Wells Fargo Accused Of Harming Fraud Victimes By Closing Accounts 

Matthew Valles, a former fraud investigator for Wells Fargo in Portland, Ore., said the bank fired him in January in retaliation for his internal complaints about “hundreds” of mishandled fraud investigations. (New York Times)

Crackdown On Cryptocurrency Fraud Widens With SEC subpoenas 

Expanding a broad crackdown on fraudulent initial coin offerings, U.S. regulators have sent a number of subpoenas to firms they suspect might be violating securities laws, said a person with direct knowledge of the matter. (American Banking)

February 

India Federal Police File Fraud Case Against Simbhaoli Sugar Executives 

India’s federal police said it had filed a fraud case against executives of Simbhaoli Sugar for causing alleged losses of 1.09 billion rupees ($16.85 million) to state-run Oriental Bank of Commerce. (Reuters)

How A $1.8 Billion Indian Bank Fraud Lasted Seven Years 

The story of how India’s biggest bank fraud went undetected for seven years includes an $81 million cyber-heist in neighboring Bangladesh, penny-pinching lenders and a series of missed opportunities. (Bloomberg)

Unpublished Data Shows India's Fraud Problems Extend Far Beyond PNB 

Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by a billionaire jeweler, but the central bank has recorded data that shows the problem runs far deeper and wider. (Reuters)

Billionaire Diamond Dealer Suspected Of Huge Bank Fraud 

A senior government official named Nirav Modi as a leading suspect at a news conference after investigators raided properties belonging to the celebrity jeweler and seized assets worth more than $200 million. (CNN)

Israeli Police Push For Prime Minister Netanyahu's Indictment On Corruption Charges 

Isreali police are urging the attorney general to indict Prime Minister Benjamin Netanyahu in two corruption cases involving bribery, fraud and breach of trust. (NPR)

Barclays Bank Charged Again By SFO Over £2.2bn Qatar Loan 

The Serious Fraud Office has charged Barclays for a second time over a $3bn (£2.2bn) loan the bank made to Qatar when Middle East investors bought shares in the bank to prop it up at the peak of the financial crisis. (Guardian)

Former Pilot Flying J Sales Exec Ordered Up Fraud 'Manual' To Keep Track, Trial Reveals 

It was getting tough to keep up with the cheating, and getting caught had proven expensive for the nation’s largest diesel fuel retailer. But Pilot Flying J sales executive Arnie Ralenkotter had a solution: A fraud “manual.” (Knox News)

Ex-Credit Suisse Banker Guilty As Fraud Tops $150 Million 

A former Credit Suisse Group AG wealth manager was found guilty of orchestrating a scheme that resulted in damages of 143 million Swiss francs ($152 million) as he diverted cash from client accounts to cover bad trades in one of the biggest financial crimes in Swiss history. (Bloomberg)

‘They Exaggerated Figures’: Ugandan Aid Officials Suspended Over Alleged Fraud 

The Ugandan government has suspended four officials at the start of an investigation into alleged mismanagement of funds meant to support refugees. (Guardian)

¥39 Bil. Stolen In Special Fraud In 2017 

A total of ¥39.03 billion was stolen in bank transfers and other special fraud in Japan last year, down ¥1.74 billion, or 4.3 percent, from 2016, police data showed. (Japan News)

More Than 11,000 Americans Targeted In India Call Center Tax Fraud 

Three men in India were arrested this week after police uncovered a huge scheme that targeted more than 11,000 people in the United States. (Washington Post)

Federal Reserve Shackles Wells Fargo After Fraud Scandal 

The Federal Reserve imposed unusually harsh penalties on Wells Fargo, punishing it for years of misconduct and barring it from future growth until the bank fixes its problems. (New York Times)

China Fines 19 Banking Institutions Over Loan Fraud 

China's banking regulators have imposed a fine of 52.5 million yuan (about 8.33 million U.S. dollars) on 19 banking institutions over a pledge loan fraud case in the country's central Shaanxi and Henan provinces. (Xinhua Net)

January 

Prosecutors: Reputed Mob Boss Orchestrated Insurance Fraud 

Joseph "Skinny Joey" Merlino was a tough-talking "fixer" in a widespread scheme to collect insurance payments by bribing doctors to write bogus prescriptions for a pain cream, Assistant U.S. Attorney Max Nicholas told Manhattan jurors. (U.S. News And World Report)

New Broker Rules Aim To Curb Elder Fraud 

Brokers will be allowed to temporary halt a requested disbursement from an account if they suspect financial exploitation. (CNBC)

China Fines 12 Banks Over Bill Trading, Fraud 

China’s banking regulator said on Saturday that it had fined 12 Chinese lenders after uncovering illegal trading of 7.9 billion yuan ($1.25 billion) of bank bills.(Reuters)

Ex-KPMG Exec Arrested In Cobb For Alleged Role In Audit Fraud Scheme

A former leader at one of the world’s largest accounting firms was arrested on Monday as part of a sweeping fraud investigation, according to the Department of Justice. (Atlanta Jousrnal-Constitution)

Retailers Are So Wary Of Fraud They’re Rejecting Real Customers

Retailers are so worried about fraudulent purchases online, many say they’re rejecting legitimate transactions out of fear that they may be fake. (Bloomberg)

How Nigerians Beat Bitcoin Scams

The country’s embrace of the cryptocurrency has led to some old-school precautions against fraud. (Bloomberg)

CFTC Files Charges In Two Cryptocurrency Fraud Cases

The Commodity Futures Trading Commission (CFTC) filed charges against two companies for fraud involving the sale of and advice on cryptocurrency investments. (The Hill)

Billionaire-Owned Hearing Aid Manufacturer's Former Executives On Trial For Embezzlement, Fraud

Federal prosecutors allege that, among other charges, Ruzicka “orchestrated a scheme” to steal more than $20 million from Starkey between 2006 and 2015. (Forbes)

India Bans Price Waterhouse For 2 Years In Corporate Fraud Case

The Securities and Exchange Board of India (SEBI) issued the order after its probe found Price Waterhouse guilty in a decade-old fraud case of over one billion U.S. dollars, involving software firm Satyam Computers, often described as "India's Enron." (Xinhua Net)

Former AFLAC Employees Allege Fraud And Abuse In Nearly Every Aspect Of Company

THE insurance firm AFLAC has exploited workers, manipulated its accounting, and deceived shareholders and customers, according to nine former employees. (Intercept)

‘Nigerian Prince’ Scammer Alleged To Be 67-Year-Old American Man

Michael Neu, of Slidell, 50km north of New Orleans, is facing 269 counts of wire fraud and one count of money laundering. (News Corp Australia)

PwC Found Liable For $2B Colonial Bank Fraud

PricewaterhouseCoopers has been found liable in an accounting malpractice case that alleged it failed to detect the $2 billion fraud that led to one of the biggest bank collapses in history. (CFO)

  

  

  

  

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