Fraud Headlines
2017 Articles
August
Poland Spring Water Is Committing 'Colossal Fraud,' Lawsuit Says
The legal complaint filed in federal court in Connecticut claims that parent company Nestle Waters North America is bottling common groundwater that doesn’t meet the U.S. Food and Drug Administration's definition of spring water. (USA Today)
Cambodia Arrests Nearly 400 From China And Taiwan Over Telecoms Fraud
The move is part of a regional crackdown as China battles telephone and internet scams that have cost billions of dollars in losses, with fraudsters posing as government officials to target everyone from the elderly to businessmen with legal woes. (Reuters)
Ingalls Whistleblower Uncovers Millions In Fraud, But Says He Suffers For His Deed
Fraud on Navy and Coast Guard contracts at Ingalls Shipbuilding cost taxpayers up to $11.3 million dollars, prosecutors have said, but the whisteblower who brought the wrongdoing to light paid with his health, according to his lawsuit. (Sun Herald)
Financial Fraud: It Takes Two
Schemes need more than just a schemer. They depend on willing customers as well. (The Atlantic)
Study Examines Social Connections And Impacts Of Financial Fraud
The infamous Bernie Madoff financial fraud scandal between 1980 and 2008 influenced far more than the 10,000 directly affected investors who lost billions. (Science X)
Martin Shkreli Convicted Of Securities Fraud, Conspiracy
Martin Shkreli, who gained national notoriety two years ago for jacking up the price of an AIDS drug, was convicted of securities fraud for mismanaging two investment funds. (CNN)
Benjamin Netanyahu Suspected Of Bribery, Fraud, Israeli Police Say
Prime Minister Benjamin Netanyahu is suspected of crimes involving fraud, breach of trust and bribes in two corruption cases, Israeli police revealed. (CBS)
July
VW Executive To Plead Guilty To Charges Related To Emissions Fraud
Oliver Schmidt, the company's top emissions compliance official, will plead guilty during an Aug. 4 hearing in Detroit, according to the Detroit News. (Washington Examiner)
When Thieves Strike, Cryptocurrency Investors Tremble
German firms have lost millions of euros to organized crime in a scam dubbed "CEO Fraud" that uses faked memos from top executives to entice accounting personnel to transfer funds. (U.S. News)
Harvard-Grad Financier Gets Prison For "Staggering" Fraud
A Harvard-educated financier promised she was providing returns of almost 50 percent, but in reality, she was flunking out and resorting to fraud to cover her losses. (CBS Moneywatch)
German Firms Lost Millions Of Euros In 'CEO Fraud' Scam: BSI
German firms have lost millions of euros to organized crime in a scam dubbed "CEO Fraud" that uses faked memos from top executives to entice accounting personnel to transfer funds. (U.S. News)
Detectives Stumble Upon Banking Fraud While Investigating Arson
A Canberra man has been jailed for four years over the torching of a Weston cafe and his role in an international banking scam worth more than half-a-million dollars based out of Greece. (Canberra Times)
U.S. Charges 412, Including Doctors, In $1.3 Billion Health Fraud
Hundreds of people nationwide, including dozens of doctors, have been charged in health care fraud prosecutions, accused of collectively defrauding the government of $1.3 billion. (New York Times)
Harvard-Grad Financier Gets Prison For 'Staggering' Fraud
A Harvard-educated financier promised she was providing returns of almost 50 percent, but in reality, she was flunking out and resorting to fraud to cover her losses. (CBS)
German Firms Lost Millions Of Euros In 'CEO Fraud' Scam: BSI
German firms have lost millions of euros to organized crime in a scam dubbed "CEO Fraud" that uses faked memos from top executives to entice accounting personnel to transfer funds, Germany's federal cyber agency said. (U.S. News And World Report)
Metals Trading Has A Paper Fraud Problem
For all the high-tech wizardry of modern financial markets, there’s one corner of the commodity world that still depends almost entirely on printed paper — making it an easy target for crooks. (Bloomberg)
U.K. Dealer Charged In U.S. Over Multimillion-Dollar Fake Bitcoin Site Scam
U.S. authorities charged a British businessman with securities fraud, accusing him of deceiving investors over what turned out to be a fake trading platform for the cryptocurrency Bitcoin. (Guardian)
More Than £150 Billion Was Lost To Fraud In 2016
Individuals lost an estimated £10 billion to fraud in 2016 while the private sector lost around £144 billion, according to the Annual Fraud Indicator. (Business Insider)
Founder Of Disastrous Fyre Festival Arrested, Charged With Fraud
One of the organizers of the disastrous Fyre Festival has been arrested and charged with wire fraud, according to the U.S. Attorney’s Office for the Southern District of New York. (Washington Post)
June
Poland's Anti-Government Leader Kijowski Charged With Fraud
Poland's prosecutors said they have charged the former leader of a massive anti-government movement with misappropriation of the movement's funds and false statements in its financial documents. (News Tribune)
FBI Informant Accused Of Running Fraud While Undercover For Feds
The last time Mohammed Agbareia was accused of fraud, he pleaded guilty, got a break on his punishment, moved to Palm Beach County and worked as an informant for the FBI providing information on “national security investigations.” (Sun Sentinel)
Mishandle A Fraud Search, And All That Fine Evidence Could Be For Nothing
Judge Alison J. Nathan of the Federal District Court in Manhattan delivered a stern warning to prosecutors when she granted a motion by Benjamin Wey, a New York City financier, to suppress everything seized during searches of his office and home in 2012. (New York Times)
Portugal Investigating Fraud Linked To Venezuela PDVSA Funds, PDVSA Says
Portugal is investigating alleged appropriation of funds belonging to Venezuelan state oil company PDVSA that were channeled through now-defunct Portuguese bank Banco Espirito Santo between 2009 and 2014, PDVSA said. (Reuters)
Barclays And Former CEO Charged With Fraud Over 2008 Rescue By Qatar
British prosecutors have filed criminal charges against Barclays and four former bank executives over cash injections from Qatar that helped save the bank during the global financial crisis. (CNN)
One Nomura Trader Convicted, One Cleared At Bond Fraud Trial
A former Nomura Holdings Inc. trader was found guilty of conspiring to lie to clients about mortgage-bond prices, while another was cleared of all charges in a verdict that highlights the challenge of policing fraud in the market. (Bloomberg)
Real Madrid Soccer Star Ronaldo Charged With Tax Fraud By Spanish Prosecutors
State prosecutors accused global soccer star Cristiano Ronaldo of defrauding Spain's revenue offices of $16.5 million in unpaid taxes. (NBC News)
Kentucky Psychologist Convicted In $600 Million Benefits Fraud
Alfred Adkins, 45, was found guilty by a federal jury in Lexington, Kentucky, on four counts including conspiracy, mail fraud and wire fraud following a one-week trial. (Reuters)
CEO Of Defunct Silicon Valley Startup Indicted For Allegedly Defrauding Employees
The CEO and founder of Silicon Valley-based WrkRiot was charged with wire fraud for allegedly duping employees into working without pay. (Silicon Valley Business Journal)
No One Has Ever Made A Corruption Machine Like This One
By late summer 2015, the men running bribery at the Brazilian construction giant Odebrecht SA were plotting another operation—not to rig a contract, which was their bread and butter, or to meddle in the politics of a sovereign nation, as they’d done on many occasions, but this time to save themselves. (Bloomberg)
Supreme Court Rules To Limit SEC Power To Recover Profit From Fraud
Justice Sonia Sotomayor wrote that the Securities and Exchange Commission must abide by a five-year statute of limitations in seeking “disgorgement” from those whose fraudulent actions resulted in illegal profits. (Washington Post)
‘Bernie Madoff Of Landlords’ Pleads Guilty To Fraud
Mr. Croman, 50, whose companies own more than 150 buildings citywide, mainly Manhattan apartment complexes with rent-regulated units, pleaded guilty to three felonies, for fraudulently refinancing loans and committing tax fraud. (New York Times)
Why Whistleblowers Get Paid In the U.S. But Not In Britain
U.K. regulators have rejected the idea of rewarding people who expose fraud at their companies. (Bloomberg)
May
UN Refugee Agency Cites 5 For Fraud, Threats At Kenya Camp
The U.N. refugee agency said it has turned to Kenyan police for possible criminal prosecution of three staffers for allegedly carrying out threats, intimidation and fraud against refugees and other personnel at a camp in northwest Kenya. (Miami Herald)
Wyoming Psychologist Charged With 234 Counts Of Fraud
A Wyoming psychologist accused of submitting about $6.8 million in fraudulent health care bill has been indicated by a federal grand jury. (US News And World Report)
Madoff Fund Has Paid Zero To Fraud Victims So Far
Victims of Bernard Madoff's huge Ponzi scheme have so far received no repayments from the company the Department of Justice tapped to distribute $4 billion recovered from the notorious fraud. (USA Today)
Airbus hires outside monitors amid fraud investigations
Airbus has appointed an independent panel including two former ministers to examine its anti-corruption practices after Britain and France launched fraud and bribery investigations into the sale of jetliners. (Reuters)
VW Engineers Wanted O.K. From The Top For Emissions Fraud, Documents Show
Even after Volkswagen pleaded guilty to a nine-year conspiracy to dupe regulators and consumers, the carmaker has continued to insist that top executives played no role in the emissions fraud. (New York Times)
Two Found Guilty Of Fraud After U.K.'s Longest Criminal Trial
Edwin McLaren, from Quarriers Village in Renfrewshire, was found guilty of property fraud totalling about £1.6m. (BBC)
Former U.S. Representative Found Guilty Of Fraud
Corrine Brown was convicted of stealing funds from a fake charity masquerading as a scholarship service. (The Atlantic)
‘Stupid Us’: How U.S. Retirees Lost Thousands To Fraud Linked To Ex-E.U. Official
When Regina L. Hayes transferred $75,000 from her savings to an investment Fund, she thought she was helping Christian miners in Africa fend off competition from conglomerates. (New York Times)
Investigation Of Fraud Scheme Unravels Man’s Illegal Bitcoin Exchange
The beginning of the end of an Ohio man’s venture into the murky world of cryptocurrencies can be traced back to the moment investigators linked the 29-year-old to a ticket-fraud scheme nearly 2,000 miles away in California. (FBI)
FBI Warns Of Surge In Wire-Transfer Fraud Via Spoofed Emails
Attempts at cyber wire fraud globally, via emails purporting to be from trusted business associates, surged in the last seven months of 2016, the U.S. Federal Bureau of Investigation said in a warning to businesses. (Reuters)
U.K. Investigates KPMG For Rolls-Royce Audits
The investigation covers KPMG’s audits of Rolls-Royce's financial statements for 2010 through 2013. (FCPA Blog)
Fyre Festival Organizers Face Fraud Lawsuit After Cancellation
The lawsuit, which seeks $100 million and class-action status, was filed by Mark J. Geragos on behalf of Daniel Jung, a Los Angeles man who, according to the suit, paid $2,000 for a ticket and airfare to the festival. (New York Times)
April
Olympus Scandal: Former Bosses To Pay $529m Over Fraud
Six executives sacked by Japan's Olympus have been ordered to pay more than half a billion dollars in damages after a massive accounting fraud. (BBC)
Salvation Army executive guilty of massive toy-for-profit fraud
The former executive director of a Salvation Army donation storage and distribution centre has been found guilty of a massive fraud involving selling donated items meant for shelters and food banks. (MSN)
Airbus Chief In Eurofighter Fraud Probe
Vienna prosecutors have named Airbus chief executive Tom Enders as one of the targets of a fraud investigation. (BBC)
Volkswagen Ordered To Pay $2.8B For Cheating On Diesel Emissions
Volkswagen must pay a $2.8-billion criminal fine for purposely building a diesel engine equipped with software to cheat on greenhouse gas emissions tests. (Detroit Free Press)
New Study Links Corporate Fraud, Earnings Performance To Glassdoor Reviews
The report found that companies with higher ratings for job satisfaction, “culture and values,” senior leadership were less likely to be involved in SEC fraud enforcement or corporate fraud class action lawsuits. (ValueWalk)
Theranos Reaches $4.65M Fraud Settlement With Arizona
Theranos will pay Arizona consumers $4.65 million under a consumer-fraud settlement Arizona Attorney General Mark Brnovich negotiated with the embattled blood-testing company. (USA Today)
Vijay Mallya, Once India’s ‘King of Good Times,’ Is Arrested In London
Vijay Mallya has spent a lifetime building a reputation as India’s professed King of Good Times, a flamboyant tycoon with investments in alcohol, an airline and an auto racing team. But his freewheeling, free-spending ways ended last year when he fled India under an avalanche of unpaid bills and accusations of fraud. (New York Times)
How Illegal Schemes Were Used To Pad Wells Fargo’s Profits
A report issued by Wells Fargo is no bodice-ripper, but it does have moments of guile, intrigue and betrayal to match the seediest pulp fiction. (Modesto Bee)
Interbank Messaging Service SWIFT Launches New Tool To Prevent Fraud
The new fraud-prevention tool is a “direct response to our community’s request for additional services to complement and strengthen existing fraud controls,” Yawar Shah, the company’s chairman, said in a statement. (The Hill)
Barclays’ CEO Is Under Investigation After He Tried To Identify A Whistleblower
The investigation by the Financial Conduct Authority and the Prudential Regulation Authority relates to an attempt by Staley last year to identify the author of a letter that was treated by Barclays Bank as a whistleblowing incident, Barclays said in a statement. (Fortune)
Feds Raid Suspected $50M Visa Fraud Ring Near Los Angeles
Filings in federal court allege that the California Investment Immigration Fund sought money from more than 100 Chinese investors, and in the process helped many of them to obtain U.S. green cards through a visa program called EB-5. (NPR)
Feds Order Wells Fargo To Rehire Whistleblower Who Reported Fraud
The Department of Labor has ordered Wells Fargo to rehire a whistleblower the bank fired in 2010 after he reported suspected fraud — and to cough up $5.4 million. (CNN)
March
Even With More Chip Cards Out There, Fraud At ATMs Soared 70% Last Year
The number of debit and credit cards that were compromised at U.S. ATMs and stores rose 70% in 2016, according to an analysis by the analytics and data company Fair Isaac Corporation (FICO). (MarketWatch)
U.K. E-Commerce Fraud Jumps 18% In 2016
E-commerce payment fraud soared by 18% from 2015 to 2016, while online banking fraud dropped as cyber-criminals changed tactics to target users directly, according to Financial Fraud Action UK. (InfoSecurity)
British Banks Handled Vast Sums Of Laundered Russian Money
Britain’s high street banks processed nearly $740m from a vast money-laundering operation run by Russian criminals with links to the Russian government and the KGB. (Guardian)
Massachusetts Man Gets Six Years In Prison For $3 Billion Fraud
A Massachusetts man was sentenced to six years in prison after pleading guilty to helping to run what prosecutors called a global pyramid scheme that bilked its victims out of more than $3 billion. (U.S. News And World Report)
A Lithuanian Phisher Tricked Two Big U.S. Tech Companies Into Wiring Him $100 Million
The Department of Justice unsealed an indictment against a Lithuanian scammer who managed to trick two American tech companies into wiring him $100 million. (The Verge)
UBS To Face French Tax Trial After Settlement Talks Fail
UBS Group AG will stand trial in France in a tax-fraud case that may leave the Swiss bank open to a fine of as much as 4.9 billion euros ($5.3 billion). (Bloomberg)
Airbus Probed By French Authorities As U.K. Fraud Case Widens
French authorities joined the U.K. in a corruption probe of Airbus Group SE centered on allegations of fraudulent practices related to selling planes and arranging aircraft financing. (Bloomberg)
How Poor Management Helped An ABB Employee Steal $103 Million
A major European conglomerate has admitted that an employee took advantage of serious management failings to disappear with $103 million of the firm's cash. (CNN)
Former CEO Sentenced To Prison For Nationwide Coupon Fraud
The former CEO of the nation's largest coupon clearinghouse has been sentenced to 10 years in prison and more than $65 million in restitution on wire fraud and conspiracy charges. (US News And World Report)
South Korean Ppresident Removed From Office Over Corruption Scandal
South Korean President Park Geun-hye was removed from office, as the country’s Constitutional Court unanimously upheld a parliamentary vote to impeach her for her role in a corruption and influence-peddling scandal. (Washington Post)
Caterpillar Shares Fall After Tax, Accounting Fraud Report
Shares of Caterpillar fell 2% Wednesday after a report commissioned by the government accuses the manufacturer of tax and accounting fraud. (USA Today)
U.K. Faces €2bn Fine Over Chinese Imports Scam, Say EU Investigators
Customs officials are accused of negligence for failing to crack down on criminal gangs flooding Europe with illegal goods. (The Guardian)
Suit Filed Against State Fraud Detection Vendor
A proposed class-action lawsuit was filed in Detroit against the Colorado company that supplied the state's Unemployment Insurance Agency with the automated detection system used to falsely accused tens of thousands of Michigan claimants of committing fraud. (Detroit Free Press)
Takata pleads guilty to fraud in air bag case involving 16 deaths
Japanese auto parts maker Takata Corp. has pleaded guilty to a criminal charge and agreed to pay $1 billion for a scheme to conceal a deadly defect in millions of its air bag inflators. (LA Times)
February
Man Behind India's $4 Smartphone Arrested For Fraud
The man who made headlines a year ago with his promise of a $4 smartphone has been arrested on suspicion of fraud. (CNN)
Switzerland's ABB Hit By $100 Million South Korean Fraud
Swiss engineering group ABB said it fell victim to a "sophisticated criminal scheme" at its South Korean subsidiary, with the chief suspect an executive responsible for ethics training. (Reuters)
How Two Anonymous Tips Dismantled An Alleged Credit Fraud Ring In Stoughton
It started with an anonymous email to the police chief, then a video to the department's Facebook page. It ended with three arrests. (Patriot Ledger)
Why Older People Are Vulnerable To Fraud, And How To Protect Them
Older people who are active investors and who prefer unregulated investments may be more susceptible to investment fraud, a report published by the AARP Fraud Watch Network found. (New York Times)
Samsung Boss Arrested In South Korea’s Explosive Corruption Scandal
Samsung’s de facto head, Lee Jae-yong, was arrested in Seoul on charges of bribery over his alleged role in an explosive corruption scandal that has riveted South Korea. (Washington Post)
Austria Sues Airbus Over Alleged Eurofighter Fraud
Austria sued Airbus and the Eurofighter consortium on Thursday, alleging wilful deception and fraud linked to a near 2 billion euro ($2.1 billion) jet order in 2003. (Reuters)
U.S. Charges Hong Kong Fund Exec With Fraud In Comcast-DreamWorks Insider Trading Probe
The U.S. Securities and Exchange Commission said it obtained an emergency court order freezing brokerage accounts holding more than $29 million of profits gained from insider trading in advance of the April 2016 acquisition of DreamWorks Animation by Comcast. (Forbes)
Former AIG head admits role in $500M accounting fraud
Maurice “Hank” Greenberg, the former chief executive of American International Group, is admitting to fraud under a settlement of a long-running lawsuit against the insurance giant filed by New York prosecutors. (CBS)
Sophisticated Shoplifting Gangs Are Costing U.S. Retailers $30 Billion A Year
It may not have the grit and the glamour of film noir, but one of today’s most elaborate strains of organized crime drains about $30 billion from U.S. retailers annually, and without much consequence. (Quartz)
Fraud’s $50B Identity Crisis
The use of fake or synthetic identities is actually scarier than it may sound, in fact, the fraud perpetrated by the cybercriminals behind these identities is costing the U.S. nearly $50 billion per year. (PYMNTS)
How To Get Back A Lost $10B
One Bank's Tale In Europe's Biggest Alleged Fraud. (Forbes)
Panasonic Says Its Avionics Business Being Probed By U.S. Authorities
Panasonic Corp said its avionics unit is being investigated by U.S. authorities under the Foreign Corrupt Practices Act (FCPA) and that it has recently begun talks with U.S. officials to resolve the matter. (Reuters)
IRS: Scam Blends CEO Fraud, W-2 Phishing
According to the U.S. Internal Revenue Service, scammers are now combining CEO fraud and W2 phishing schemes and targeting a far broader range of organizations than ever before. (Krebs On Security)
Credit-Card Thieves Move Online As Chips Thwart In-Store Fraud
The adoption of credit-card chip technology by U.S. retailers is having an unintended consequence: Criminals are moving from brick-and-mortar stores to the internet. (Bloomberg)
January
These Are The World's Most Corrupt Countries
Somalia, South Sudan, North Korea and Syria are perceived to be the most corrupt countries in the world, according to Transparency International's latest annual review that draws on a mix of business and government sources for its rankings. (CNBC)
Italian prosecutors are investigating BT's £530 million accounting scandal
Italian prosecutors have opened an investigation into an accounting scandal at BT's Italian branch, which knocked £7 billion off the British telecoms giant's share price. (Business Insider)
When Making A Fraud Claim, Choose Your Filing Date Wisely
The adage that timing in life is everything can be especially important when there is a claim of fraud, because the window to bring a case can close quickly and decisively under the applicable statute of limitations. (New York Times)
Cybercrime And Fraud Scale Revealed In Annual Figures
There were an estimated 3.6 million cases of fraud and two million computer misuse offences in a year, according to an official survey. (BBC)
Western Union To Pay $586 Million Over Failure To Stop Fraud
Western Union Co. agreed to pay $586 million and admitted to lapses in anti-money laundering controls that allowed hundred of millions of dollars in prohibited transactions to be processed by the company. (Bloomberg)
Takata To Pay $1 Billion Over Air Bag Fraud; 3 Executives Criminally Charged
The Japanese air bag manufacturer Takata has reached a $1 billion settlement with the U.S. Justice Department over a deadly defect in its air bags that led to a massive recall. (NPR)
Wells Fargo Struggling In Aftermath Of Fraud Scandal
Wells Fargo continues to struggle with the fallout from a phony accounts scandal that engulfed it last year. (New York Times)
Fraud In Hollywood: Stealing From Media Companies Has Never Been Easier
Choi’s case is a prime example of the alarming number of incidents of criminal fraud prosecutions and fraud-related litigation roiling the entertainment industry. (Variety)
F.B.I. Arrests Volkswagen Executive On Conspiracy Charge In Emissions Scandal
The F.B.I. has arrested a Volkswagen executive in Florida, accusing him of playing a central role in a broad conspiracy to keep United States regulators from discovering that diesel vehicles made by the company were programmed to cheat on emissions tests. (New York Times)
Stolen Passwords Fuel Cardless ATM Fraud
Some financial institutions are now offering so-called “cardless ATM” transactions that allow customers to withdraw cash using nothing more than their mobile phones. But as the following story illustrates, this new technology also creates an avenue for thieves to quickly and quietly convert stolen customer bank account usernames and passwords into cold hard cash. (Krebs On Security)
Deutsche Bank To Pay $95 Million To End U.S. Tax Fraud Case
Deutsche Bank AG agreed to pay $95 million to resolve a U.S. government lawsuit accusing the German bank of tax fraud for using "insolvent" shell companies to hide significant tax liabilities from the Internal Revenue Service in 2000. (Reuters)
India’s Call-Center Talents Put To A Criminal Use: Swindling Americans
Though India had no reputation as a large-scaleexporter of fraud in the past, it is now seen as a major center for cyberfraud, said Suhel Daud, an F.B.I. agent who serves as assistant legal attaché at the embassy in New Delhi. (Voice of India)
Doctors, Pharmacists Indicted In $100M Fraud Case
A dozen doctors, pharmacy owners and marketing pros have been accused of a kickback scheme that prosecutors allege involved a sham medical study used to bilk up to $102 million from the publicly funded federal health program for military family members. (USA Today)
Back to top