Fraud Headlines
2020 Articles
August
White-Collar Crime Prosecutions hit Lowest Level in 33 Years
White-collar prosecutions are down 8.5% from a year ago, to 4,973, and they are half what they were eight years ago, according to the Transactional Records Access Clearinghouse, a research center at Syracuse University that tracks federal data. (CBS)
Whistleblower Lawsuit Accuses Cigna of Medicare Advantage Fraud
A recently unsealed whistleblower case filed by the Department of Justice accuses Cigna of fraudulently overbilling for its Medicare Advantage plans. (Med City News)
New York Attorney General Moves To Dissolve The NRA After Fraud Investigation
The attorney general of New York took action Thursday to dissolve the National Rifle Association following an 18-month investigation that found evidence the powerful gun rights group is "fraught with fraud and abuse." (NPR)
Cash-Advance Tycoon Loses Control of Firm Amid Fraud Allegation
Joseph W. LaForte, a convicted scammer who went on to start a Philadelphia lending company that raised almost half a billion dollars from investors, lost control of the business last week after federal regulators accused him of securities fraud. (Bloomberg)
Around the World with $5bn – HMRC’s Allegations of Tax Fraud at General Electric Revealed
HMRC have alleged that General Electric fraudulently obtained a tax advantage in the U.K. worth US$1bn by failing to disclose documents relating to the group’s financing arrangements. (Tax Watch U.K.)
U.S. Coronavirus Fraud Losses Near $100 Million as COVID Scams Double
U.S. losses from coronavirus-related fraud and identity theft have reached nearly $100 million since the pandemic emerged in March, while complaints of COVID-19 scams have at least doubled in most states, a consumer protection group said on Tuesday. (Reuters)
Oversight: T&E Spending Down But Violations, Fraud Up
While the ongoing Covid-19 pandemic has scuttled much corporate travel and entertainment spending, the risk of expense violations and fraud has increased drastically, according to new data from Oversight. (Business Travel News)
How B2B Payments Fraud Hides Within The Enterprise
Paper checks are a particularly weak spot for organizations as check fraud balloons. (PYMNTS)
July
Scathing SBA Watchdog Report Details ‘Pervasive’ Fraud in Coronavirus Disaster-Loan Program
A federal watchdog reported Tuesday that it has identified $250 million in taxpayer-subsidized coronavirus loan funds given to “potentially ineligible recipients,” pointing to a strong likelihood of widespread fraud in an important but troubled economic
assistance program. (Washington Post)
Fraud, ID Theft in Colorado Have Shifted During Coronavirus
A flood of federal relief overwhelmed outdated government systems as fraudsters exploited cracks with data likely stolen long ago. (Colorado Sun)
This is What a Deepfake Voice Clone Used in a Failed Fraud Attempt Sounds Like
One of the stranger applications of deepfakes — AI technology used to manipulate audiovisual content — is the audio deepfake scam. (The Verge)
Goldman Sachs Agrees to $3.9 Billion Deal with Malaysia to Settle Criminal Probe into 1MDB Scandal
The bank will pay Malaysia $2.5 billion in cash for its central role in the 1MDB debacle and guarantee the country will receive at least $1.4 billion in proceeds from assets seized around the world. (CNBC)
Ex-Utility Exec Pleads Guilty to $1B Fraud in South Carolina
Nearly three years after leading a failed project to build two nuclear reactors in South Carolina, an executive in charge of the construction pleaded guilty Thursday to taking more than $1 billion from the pockets of ratepayers and investors. (ABC)
Mountain AI Startup's Founder Shaukat Shamim Accused of $17M Fraud Scheme
Federal law enforcement and securities regulators have accused the founder of a Mountain View-based startup of raising $17 million in funding under false pretenses. (Silicon Valley Business Journal)
IRS Unveils "Dirty Dozen" List of Tax Scams for 2020
The Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. (IRS)
Is “Fraud Tourism” The Next Big Thing? How U.S. Government Money Ends Up Abroad
Obtaining a PPP loan through false pretenses and material misrepresentations and then transferring those assets abroad is a crime and violates many federal statutes such as wire fraud, bank fraud, money laundering, and conspiracy, as some examples. (JD
Supra)
Check Fraud is Helping Drive up Financial Fraud
Check fraud may not receive the media attention that credit/debit card, tax fraud and Social Security fraud do, but it is a big problem for U.S. companies. (Tri-Cities Business Journal)
What a Utah Prison Inmate Has to Say About Uncovering Alleged State Government Fraud
A Utah prison inmate whose claims initiated a federal investigation and lawsuit against several state criminal justice agencies accusing them of illegally accepting millions of dollars in grant and stimulus money defended his actions from his cell. (Deseret
News)
$16 Million in Hawaii Unemployment Benefits Possibly Lost to Fraud
Nearly $16 million in Pandemic Unemployment Assistance benefits in Hawaii may have been lost to fraud and identity theft, the state Department of Labor and Industrial Relations reported. (Star Advertiser)
June
French Ex-Prime Minister Fillon, Wife Found Guilty of Fraud
Former French Prime Minister Francois Fillon was found guilty Monday in a fraud case of having used public funds to pay his wife and children more than 1 million euros ($1.13 million) since 1998 for work they never performed. (ABC)
10 Charged in $1 Billion Medical Insurance Fraud
Ten people have been indicted in a complex scheme to allegedly defraud private insurance companies of more than $1 billion for medical testing. (Voice of America)
Wirecard Auditors say ‘Elaborate’ Fraud led to Missing Billions
Wirecard AG’s long-time auditors, Ernst & Young, accused their client of “an elaborate and sophisticated fraud” that allowed more than $2 billion to go missing. (Accounting Today)
SEC Charges Lobbying Kingpin Jack Abramoff With Fraud For Promotion of 2018 ICO
Abramoff and the founder of AML Bitcoin face charges for fraud in misrepresenting the token’s compliance, with the founder himself facing jail time for money laundering. (Cointelegraph)
Watchdogs Warn Government Faces Difficulties Stopping Fraud in Coronavirus Relief
More than three dozen inspectors general across the federal government summarized the biggest challenges Covid-19 poses to their agencies in the first report released by the Pandemic Response Accountability Committee, the council of inspectors general
tasked with coronavirus oversight. (CNN)
U.S. Regulators Boast Coordination in Addressing Coronavirus Fraud
Collectively, the June 9 testimonies described several similar threats the agencies are observing, including hoarding and price-gouging of personal protective equipment; frauds related to the CARES Act’s Paycheck Protection Program (PPP); antitrust violations,
like price-fixing and bid-rigging; and more. (Compliance Week)
Crypto Exchange Quadriga was a Fraud and Founder was Running Ponzi Scheme, OSC Report Finds
The Quadriga cryptocurrency exchange that saw millions of dollars disappear just as its founder died was a "fraud" and Ponzi scheme, according to the Ontario Securities Commission. (CBC)
FTC Warns 16 Multi-Level Marketing Companies About Coronavirus Fraud
The Federal Trade Commission sent warning letters to 16 multi-level marketing companies over claims made by their representatives on social media, saying the products they’re selling can treat or prevent coronavirus, or about earnings participants can
make by investing in the business after losing income due to the pandemic, as the agency works to protect consumers from scams related to Covid-19. (Forbes)
FTC Warns of ‘Large Scale’ Unemployment Fraud Scam Amid Coronavirus Pandemic
The Federal Trade Commission (FTC) is warning of a “large-scale scam erupting in the midst of the coronavirus pandemic” involving impostors who are filing claims for unemployment benefits using the personal information of people who have not filed any
claims. (Fox 6)
Washington’s Unemployment Fraud May Have Hit $650 Million; State Recovers $333 Million
Two weeks after revelations of a massive fraud scheme that briefly shut down Washington’s unemployment system, state officials have acknowledged that the scale of theft was probably between $550 million to $650 million, or as much as one of every $8 paid
in benefits during the pandemic. (Seattle Times)
Fraudsters Exploit COVID-19 To Scam $5.6m From Victims
Fraud victims have lost more than $5.6m (£4.6m) in coronavirus-related scams in the U.K. during the lockdown. (Forbes)
May
COVID-19 Online Fraud Trends: Industries, Schemes and Targets
From a consumer perspective, Millennials have been most targeted by fraudsters using COVID-19 scams. (HelpNet Security)
SEC Charges Companies With COVID-19-Related Fraud
The United States Securities and Exchange Commission (SEC) announced it has filed complaints against two companies and one chief executive officer (CEO), alleging they released misleading claims regarding the coronavirus.. (Voice of America)
Virus Unleashes Wave of Fraud in U.S. Amid Fear and Scarcity
Christopher A. Parris started pitching himself as a broker of surgical masks amid the nationwide scramble for protective equipment in the first desperate weeks of the outbreak, federal authorities said. (ABC)
Feds Announce First Arrests In Country Linked To PPP Loan Fraud
David A. Staveley (a/k/a Kurt D. Sanborn) of Andover, Massachusetts, and David Butziger of Warwick, Rhode Island, have been accused of conspiring to illegally obtain funds through the Paycheck Protection Program (PPP). (Forbes)
DOJ Finds Evidence Of PPP Loan Fraud
Amid rising criticism over the loan effort, the Department Of Justice has reportedly discovered potential fraud among companies seeking relief with the Paycheck Protection Program (PPP). (PYMNTS)
3M Sues 5 Vendors for Fraud, Price Gouging N95 Masks
3M has filed five legal actions in federal courts in Florida, Wisconsin and Indiana as part of its global effort to protect the public and combat fraud and counterfeiting. (Manufacturing)
April
China Cracks Down on Fraud and Tries to Clean Up Image With Luckin Probe
In a period fraught with tensions with the U.S., China is trying to show it’s being serious about tackling fraud. (CNBC)
An Uptick in Fraud Is Complicating Airline Refunds for Canceled Flights
The surge in requests for refunds on canceled flights has given cover for con artists to commit a few types of fraud. (Skift)
Coronavirus Fuels Explosive Growth in Telehealth — and Concern About Fraud
“There are unscrupulous providers out there, and they have much greater reach with telehealth,” said Mike Cohen, an operations officer with the Health and Human Services Inspector General’s Office, which investigates health care fraud. (GCN)
Fraudsters Are Selling Fraudulent Fraud Guides to Wannabee Fraudsters
Almost half of the listings on the most popular underground marketplaces are guides on how to commit fraud, as aspiring cyber criminals look to find out how to conduct business email compromise and other online scams. But there's a twist – many of the
how-to guides are useless fakes. (ZD Net)
Americans Have Lost $13.4 Million to Fraud Linked to Covid-19
Americans have lost $13.4 million to coronavirus-related fraud since the beginning of the year, according to the Federal Trade Commission. (CNBC)
Feds Sue Utah Criminal Justice Officials, Alleging Multimillion Dollar Grant Fraud
Federal authorities are suing some of Utah’s top public safety officials, alleging they committed fraud by misusing millions of dollars in grants that were part of stimulus programs during the Great Recession. (Salt Lake Tribune)
Two Accounting Scandals in China in One Week Burn Investors
China’s second accounting scandal in less than a week is underscoring concern over lax corporate governance at some of the country’s fastest-growing companies. (Bloomberg)
DOJ: Man Tried to Sell Nonexistent Face Masks to VA in Multi-Million-Dollar Fraud Scheme
A man is facing a federal wire fraud charge for trying to sell nonexistent face masks to the Department of Veteran Affairs in a massive fraud scheme that would have cost the agency more than $750 million, officials said Friday. (USA Today)
Luckin Coffee’s Board Initiates Investigation into $300M Potential Fraud
In a filing with the SEC this morning, the company’s board announced that it has initiated an internal investigation into the activities of its former COO, Jian Liu, who may have inflated revenues by the company by an early estimate of more than $300
million (RMB2.2 billion). (Tech Crunch)
Fraud Follows Coronavirus Spread; Fake Vaccines, Testing, Investment Scams are Exacting a Toll
For more than a year, a 49-year-old Georgia man allegedly ran a thriving scheme in which he referred patients to medical testing facilities in return for lucrative kickbacks. (USA Today)
The Cybersecurity 202: Coronavirus Pandemic Unleashes Unprecedented Number of Online Scams
Coronavirus has inspired an unprecedented number of online scams targeting people and businesses – and researchers say the wave of attacks is just getting started. (Washington Post)
March
Major Tech Platforms Say They’re ‘Jointly Combating Fraud and Misinformation’ About COVID-19
A group of the biggest technology companies in the US say they have banded together in a commitment to fight coronavirus-related fraud and misinformation. The group includes Facebook, Google, LinkedIn, Microsoft, Reddit, Twitter, and YouTube.
Why Friendly Fraud Is on the Rise at Full-Service Restaurants
“Friendly fraud” as it’s called, occurs when a cardholder disputes legitimate charges with their credit card provider, forcing a refund under the false pretense that the merchant made an error. (Modern Restaurant Management)
Coronavirus Fraud: U.K. Victims Lose 800,000 Pounds in Scams
Victims in the United Kingdom have lost more than 800,000 pounds ($1 million) to coronavirus-linked scams since last month, with criminals tricking fearful people who wanted to buy protective masks, police said on Friday. (Reuters)
Banks Accuse Singapore Commodity Trader Agritrade of "Massive" Fraud
At least 20 banks facing losses running into hundreds of millions of dollars from the collapse of Singapore-based Agritrade International Pte Ltd (AIPL) have accused the commodity trader of fraud, court documents show. (NASDAQ)
Department of Justice Charges Record High Number of Elder Fraud Cases
Attorney General William P. Barr was joined by U.S. Attorney Billy J. Williams, FBI Director Christopher A. Wray and Chief Postal Inspector Gary R. Barksdale Tuesday, March 3 to announce its largest coordinated sweep of elder fraud cases in history as
prosecutors this year have charged more than 400 defendants. (The World)
Sweden Calls for Action Over Ukraine Crypto ‘Fraud Factory’
The so-called "fraud factory," working from two floors of plush offices in Kyiv, was exposed after an investigation by Swedish daily Dagens Nyheter (DN) published Monday. (CoinDesk)
Former Jet Airways Director Accused Of Fraud Amounting To $7 Million
The former owner of Jet Airways and his wife have been accused defrauding Mumbai-based travel agency Akbar Travels for a total of 500 million rupees ($6.9 million). (Simple Flying)
Former Barclays bosses cleared of fraud
A jury took less than six hours on Friday to clear three former Barclays bosses of fraud charges surrounding deals made with Qatar during the global financial crisis. (Al Jazeera)
February
Jury: Former Microsoft Engineer Stole $10 Million in Digital Fraud Scheme
A former Microsoft software engineer was convicted Tuesday of 18 federal felonies related to his scheme to defraud Microsoft of more than $10 million, said U.S. Attorney Brian T. Moran. (KOMO News)
Mexico Investigating Ex-President Pena Nieto for Fraud: Report
Pena Nieto has become embroiled in the investigation of Emilio Lozoya, the former chief executive of Mexico's state oil firm Petroleos Mexicanos, or Pemex. (Al Jazeera)
City Workers Reporting More Instances Of Fraud, Abuse And Waste
More than 33,000 L.A. city workers got some new training in the past year about how to report fraud, waste and abuse — and it seems to have worked. Complaints to an internal hotline jumped by 58%. (LAist)
Puerto Rico Falls Prey To $4M Online Fraud
An online scam targeted $4 million in retirement funds from at least four Puerto Rico agencies, according to reports on Thursday (Feb. 14). (PYMNTS)
DOJ Indictment Alleges Huawei Fraud, Trade Secrets Theft
The charges, which Huawei strongly denied, included allegations that Huawei stole intellectual property from six unnamed U.S. tech firms and defrauded four international banks as the company violated U.S. sanctions against Iran and North Korea. (Compliance
Week)
Feds: Ex-Mobster Used Toby Keith and Rascal Flatts Restaurants in Nationwide Fraud Scheme
Capri enlisted his mother and other associates to funnel money meant to pay for restaurant construction at malls into their own accounts, according to indictments made public on Thursday. (USA Today)
Mississippi's Ex-Welfare Director, 5 Others Arrested Over 'Massive' Fraud
Mississippi's former welfare director, four colleagues and a former pro wrestler have been charged with carrying out a multimillion-dollar embezzlement scheme to siphon public money from needy families for their own personal use — from business investments
to a luxury rehab stay in California. (NPR)
New Trier Grad Pleads Guilty to $10 Million Fraud to Finance Gambling and Lavish Las Vegas Lifestyle
Gorodetsky, who once touted himself as the next big thing in sports gambling, pleaded guilty to stunning federal fraud charges alleging he stole nearly $10 million in a fraud scheme and blew it on outrageous bets and a high-end Las Vegas lifestyle. (Chicago
Tribune)
Prosecutors: Owner of Shuttered Organic Dairy Ran $60M Fraud
Philip Riehl, the majority owner of Trickling Springs Creamery, ran a long-running fraud scheme that preyed on hundreds of Amish and Mennonite investors, according to federal prosecutors. (Magic Valley)
January
Fraud at Airbus: US, European Courts Weigh $4 bln Settlement
Courts in Britain, France and the U.S. are considering Friday whether to accept a settlement that could cost Airbus up to $4 billion and end years of corruption investigations. (Associated Press)
Lawyer: Businessman was Used by Polygamists in Fraud Scheme
A California businessman accused of leading a nearly $500 million biodiesel fraud scheme was actually being used by a Utah polygamist who didn’t want to share the proceeds with his community, a defense attorney said Thursday. (Seattle Times)
Credit Suisse Ignored Warning on $2 Billion Deal With Tycoon
Credit Suisse Group AG ignored warnings from its outgoing regional chief executive officer on the risks of lending $2 billion to Mozambique in a scandal that has landed the Swiss bank in a lawsuit and opened up questions about its due diligence. (Bloomberg)
Solar Firm Owners Charged With ‘Massive’ Fraud
A California couple have been charged with orchestrating a “massive” Ponzi scheme that collected nearly $1 billion from investors in their solar company. (CFO)
Isabel dos Santos: Africa's Richest Woman Accused of Fraud
Africa's richest woman, Isabel dos Santos, has been accused of embezzlement and money laundering by prosecutors in Angola. (BBC)
‘The Wolf of Wall Street’ Told the Story of His Fraud. Now He’s Suing for Fraud
Belfort is suing Red Granite Pictures, which bankrolled the 2013 epic, in Los Angeles Superior Court, saying he has been damaged by the Malaysian financial scandal that engulfed the company in 2017. (Los Angeles Times)
Dentist Who Pulled Teeth While Riding Hoverboard Convicted of Fraud
Seth Lookhart was convicted Friday of 46 counts, including felony medical assistance fraud and scheming to defraud, and misdemeanor counts of illegally practicing dentistry and reckless endangerment, prosecutors said. (USA Today)
Man Charged With $1.5 Million Fraud For Allegedly Filing False Damage Claims On Items Shipped Through USPS
Miami resident Edwin Jim Garcia-Albarracin, 45, allegedly filed fraudulent claims for "purportedly damaged packages" sold through his online business, Rambos Market, stating that they were damaged when they were shipped through the U.S. Postal Service,
according to a federal indictment filed in the Southern District of Florida earlier this month. (ABC)
'Heinous' Texas Doctor Who Falsely Diagnosed Patients to Commit $325M in Fraud is Found Guilty
A Texas doctor who falsely diagnosed patients with lifelong illnesses and needlessly subjected some to chemotherapy drugs as part of a $325 million healthcare fraud case was convicted by a jury Wednesday. (Fierce Healthcare)
Lekoil Shares Plunge As Company Launches Loan Scam Investigation
Shares in Nigerian oil company Lekoil Ltd plunged more than 70% on Tuesday following a suspension of trading after the firm discovered that a $184 million loan it had announced was fraudulent. (Reuters)
Feds Amassed $2.6 billion From 2019 Healthcare Fraud Cases
The department's recoveries from healthcare fraud cases have inched higher in recent years from roughly $2.5 billion in 2018 and $2.1 billion in 2017. (Modern Healthcare)
New York Wealth Manager to Plead Guilty in ‘Wild’ Spending Case of Fraud
Prosecutors in Manhattan said he misused his position as manager of the firm’s payroll and billing to divert about $6 million to his own account. (Bloomberg)
Back to top