Fraud Headlines

2021 Articles

September 

Crypto Kid Fraudster Gets 7 1/2-Years for Ponzi Scheme 

Stefan Qin’s investors thought they’d found a sure thing -- a hedge fund that was generating 500% returns by exploiting the price gaps between cryptocurrencies on 40 exchanges throughout the world. (Bloomberg)

App Annie And Co-Founder Charged With Securities Fraud, Will Pay $10M+ Settlement 

The U.S. Securities and Exchange Commission (SEC) has charged App Annie, a leading mobile data and analytics firm, as well as its co-founder and former CEO and Chairman Bertrand Schmitt, with securities fraud. (TechCrunch)

The DOJ Says A Data Mining Company Fabricated Medical Diagnoses To Make Money 

The Justice Department has accused an upstate New York health insurance plan for seniors, along with a medical analytics company the insurer is affiliated with, of cheating the government out of tens of millions of dollars. (NPR)

Former Amazon Employee Pleads Guilty to Involvement in Marketplace Fraud Ring 

Rohit Kadimisetty, who after leaving Amazon in 2015 launched a consulting firm for third-party sellers, admitted Wednesday that he conspired to commit bribery across state and national borders. (Seattle Times)

15 Ex-NFL Players Have Pleaded Guilty Over A Scheme To Steal From A Health Care Fund 

Three former NFL players have pleaded guilty to a health care fraud scheme, bringing the total number of retired players who've pleaded guilty to 15, the Department of Justice announced Tuesday. (NPR)

August 

Ex-CEO of Silicon Valley Mobile App Startup HeadSpin Charged With Fraud 

Manish Lachwani was accused of lying to HeadSpin investors from 2018 to early 2020 about the ability of his privately-held provider of mobile app testing services to attract and retain business, including from major Silicon Valley companies. (Reuters)

Cyberfraud Shifts to Gaming, Travel and Leisure, Report Finds 

As digital fraud attempts on consumers and businesses rise, cybercriminals have shifted their focus from financial services to the gaming and travel and leisure industries. (CNBC)

Nigerian Instagram Influencer Pleads Guilty to Million-Dollar Fraud 

Nigerian social media influencer Ramon Abbas, also known as Hushpuppi, admitted he was involved in a conspiracy to defraud a Qatari businessman of more than $1 million. (New York Post)

U.S. Sues Kaiser Permanente Over Alleged Medicare Fraud 

The federal government has sued Kaiser Permanente, alleging the health care giant committed Medicare fraud and pressured doctors to list incorrect diagnoses on medical records in order to receive higher reimbursements, officials said late last week. (Boston Herald)

July 

Grand Jury Indicts Trevor Milton, Founder of Electric Carmaker Nikola, on Three Counts of Fraud 

A federal grand jury charged Nikola founder Trevor Milton with three counts of criminal fraud for lying about “nearly all aspects of the business” to bolster stock sales of the electric vehicle start-up, according to an indictment unsealed Thursday. (CNBC)

Sentence More Than Doubled for Man Who Ran Second Fraud While on Trial in Multimillion-Dollar Cattle Scam 

A Texas man had his sentence more than doubled after he was caught running a $12 million invoice fraud while awaiting trial for a separate multimillion-dollar cattle scam. (MarketWatch)

EY Accused of Actively Concealing NMC Health Audit Fraud From Investors 

Ernst & Young faces accusations it “actively concealed” a six-year fraud from investors in a fresh lawsuit over its auditing work for the troubled NMC Health. (Bloomberg)

California Appoints Special Counsel for EDD Fraud 

California Gov. Gavin Newsom's administration on Tuesday tapped a former federal prosecutor to help investigate billions of dollars in fraudulent unemployment benefits paid by the state. (KCRA)

Vatican Indicts 10 People for Embezzlement, Extortion, Fraud 

A Vatican judge has indicted 10 people, including a once-powerful cardinal, on charges including embezzlement, abuse of office, extortion and fraud in connection with a 350 million-euro ($415m) investment in a London real estate venture. (Al Jazeera)

Trump Organization And Top Exec Charged With Tax Fraud Scheme 

Manhattan prosecutors charged the Trump Organization and its CFO Allen Weisselberg on Thursday with scheming to avoid paying taxes on more than $1 million worth of fringe benefits over 15 years, but both entities pleaded not guilty in court, the first set of criminal charges to target former President Donald Trump’s business. (Forbes)

June 

Police Bust $15 Million European Fraud Ring 

A year-long investigation by the French National Gendarmerie, under the direction of the investigating magistrate at the Judicial Court of Bergerac, led police to swoop on several addresses in Paris on June 23, according to Europol. (InfoSecurity)

International Fraud Ring Steals Billions In EDD Money From California 

Experts say a large portion of that fraud has been perpetrated by a very sophisticated and organized fraud ring based out of Nigeria. (CBSLA)

U.S. Charges Former Olympic Figure Skater in COVID-19 Small Business Fraud 

A former Slovenian figure skater who competed in the 1992 Winter Olympics has been criminally charged in Manhattan with fraudulently raising $1.6 million meant to help small U.S. businesses cope with the COVID-19 pandemic. (Reuters)

Czech Police Ask for Prime Minister to be Charged With Fraud 

Czech police have asked for Prime Minister Andrej Babis to be charged with fraud, following an investigation into alleged misuse of European Union subsidies, according to a statement released on Monday. (CNN)

U.S. Convicts 'King of Fraud' 

A Russian cyber-criminal has been convicted of running a sophisticated digital advertising scam that defrauded American companies out of millions of dollars. (InfoSecurity)

May 

Over 200 Livestreaming Fraud Suspects Caught 

More than 200 suspects have been caught for allegedly running an Internet scam on a livestreaming app, Shanghai police said on Tuesday. (Shine)

Head of International Volleyball Federation targeted by Brazilian Fraud Probe 

Rio de Janeiro police and state prosecutors said in a statement that Ary Graça, who has headed FIVB since 2012, and nine other people are suspected of tax fraud, money laundering and identity fraud. (ESPN)

U.K. Targets Gupta's GFG Alliance in Fraud Probe Linked to Greensill 

Tycoon Sanjeev Gupta's commodities empire is being investigated by Britain's Serious Fraud Office in a probe that encompasses the conglomerate's links to collapsed lender Greensill Capital, the SFO said on Friday. (Reuters)

Fraud Shifts to Mobile, Loyalty in 2020 

“Fraud no longer happens in siloed events,” said Jane Lee, a trust and safety architect at Sift. (Payment Source)

Former Netflix Executive Convicted of Fraud After Orchestrating More Than $500,000 in Bribes and Kickbacks 

Ex-Netflix IT chief Michael Kail on Friday was convicted of 28 counts of fraud and money laundering. (Business Insider)

April 

Former Obama White House Adviser Arrested for Allegedly Stealing Over $200,000 From Charter Schools he Founded 

Seth Andrew was charged by prosecutors in the U.S. Attorney's Office for the Southern District of New York with wire fraud, money laundering, and making false statements to a bank. (CNN)

Watch Out Insurers: You’re in the Crosshairs of a New Form of Cyberattack 

Many insurers these days are touting themselves as being able to provide an online quote in mere minutes. Hackers are taking advantage of this quicker service to steal consumer information. (Canadian Underwriter)

$40,000 Swindle Puts Spotlight on Literary Prize Scams 

The organizers of at least five British awards received emails asking them to transfer prize money to a PayPal account. (New York Times)

Bernie Madoff, Mastermind of the Nation’s Biggest Investment Fraud, Dies at 82 

Madoff was serving a 150-year prison sentence for his scheme, which investigators said defrauded as many as 37,000 people in 136 countries over four decades. (CNBC)

Futures Trader Burns Tyson With $200 Million Loss on Fake Cattle 

It took a while to notice, but Tyson Foods Inc. eventually realized late last year that more than 200,000 of its cattle seemed to have gone missing on a Washington state ranch. (Bloomberg)

Italy Prosecutors Seek Mass Trial in Diamond Fraud Probe 

Milan prosecutors have asked for four Italian banks, diamond broker IDB and 105 individuals to be sent to trial in a probe into alleged fraudulent diamond sales, two sources with direct knowledge of the case said on Tuesday. (Nasdaq)

'Real Housewives' Star Jen Shah Pleads Not Guilty to Fraud, Bond Set at $1 Million 

Jen Shah, the "Real Housewives of Salt Lake City" star charged with running a nationwide telemarketing fraud scheme, pleaded not guilty Friday and will remain released from jail provided she sign a $1 million personal bond. (NBC)

March 

Supreme Court to Decide Whether Goldman Sachs Shareholders Can Bring Suit in Major Fraud Case 

The Supreme Court is set to hear arguments from Goldman Sachs in a long-running case that could have major implications for shareholders seeking to bring securities-fraud lawsuits. (CNBC)

DOJ Has Charged Nearly 500 With COVID-Related Fraud In The Past Year 

Call it a nasty side effect of the COVID-19 pandemic — the flare-up in fraud, scams and hoaxes as some people have tried to use the crisis to line their pockets illegally. (NPR)

Covid-Related Fraud has Cost Americans $382 Million 

As of Tuesday, more than 217,000 people had filed a coronavirus-related fraud report with the agency since January 2020, according to federal data. (CNBC)

SF Poop-Testing Startup, Once Compared to Theranos, Charged in $60M Fraud Scheme 

Zachary Schulz Apte and Jessica Sunshine Richman, co-founders of defunct microbiome testing company uBiome, are accused of bilking their investors and health insurance providers, federal prosecutors said. (SF Gate)

Greensill Sued by West Virginia Governor Over Mining Loans 

Bluestone claims it was defrauded by Greensill in an $850 million financing deal. (Bloomberg Quint)

Trader Gets Painted Stones Instead of $36m of Copper 

Geneva-based Mercuria Energy Group says it's been the victim of cargo fraud following its purchase of 10,000 tons of copper blister. (BBC)

McAfee Faces Decades Behind Bars After Fraud Indictment 

Famed anti-virus pioneer John McAfee has been indicted on charges of cryptocurrency fraud, money laundering and more. (Info Security)

Responses Matter: Securities Fraud Sentence Shows the Value of a Sound Response to a Government Investigation 

Conduct during an investigation can matter as much as the conduct under investigation – sometimes even more. (JD Supra)

February 

How Billions in Pandemic Aid Was Swindled by Con Artists and Crime Syndicates 

Government aid programs have long been fertile ground for scammers. But the scale of the fraud in the unemployment program created by the CARES Act has reached a staggering level, state and federal officials say. (CNBC)

EDD Had Fraud Detection in 2016, Then Turned it Off 

The technology likely would have prevented most of the $10 billion in fraud. (KCRA)

Diners Devour Made-to-Order Fraud 

Restaurants and food delivery services are being ripped off by a new made-to-order fraud scheme taking place on the messaging app Telegram. (Info Security)

Romance Fraud on Rise in Coronavirus Lockdown 

According to U.K. Finance, there was a 20% increase in bank transfer fraud linked to romance scams in 2020 compared to 2019. (BBC)

Surprise Tax Forms Show Extent of Unemployment Fraud in U.S. 

Unemployment agencies across the country were bombarded with so many claims during the pandemic that many struggled to distinguish the correct from the criminal. (WCVB)

SEC Hunts for Fraud in Social-Media Posts Hyping GameStop 

U.S. Securities and Exchange Commission investigators are combing social media and message board posts for signs that fraud played a role in dizzying stock swings for GameStop Corp., AMC Entertainment Holdings Inc. and other companies, according to people familiar with the matter. (Bloomberg)

January 

California Officials Confirm Over $11 Billion in Unemployment Fraud During Pandemic 

The state paid at least $11.4 billion, which is approximately 10 percent of benefits paid during the pandemic, in funds that involved fraud. (The Hill)

Fraud Epidemic 'is Now National Security Threat' 

Fraud has reached epidemic levels in the UK and should be seen as a national security issue, says think tank the Royal United Services Institute. (BBC)

Procurement Fraud Recoveries Substantial for DOJ in FY 2020 

The Department of Justice (DOJ) recently announced that it obtained more than $2.2 billion in False Claims Act (FCA) settlements and judgments in the fiscal year ending September 29, 2020. (JD Supra)

Pandemic Fires Up Insurance Fraud, Here’s What To Watch For 

Insurance fraud (non-health insurance) is a $40 billion dollar a year criminal enterprise that costs the average U.S. family between $400 and $700 per year in increased insurance premiums, according to the FBI. (Forbes)

NRA Files For Bankruptcy Amid Fraud Suit In New York 

The National Rifle Association filed for Chapter 11 bankruptcy in Texas on Friday as its current home, New York, pursues a fraud case against the organization. (NPR)

Boeing To Pay $2.5 Billion Over 737 Max Fraud, Faces No Other Charges 

Boeing will pay more than $2.5 billion to settle criminal charges that it repeatedly concealed and lied about the 737 Max's engineering problems that led to two catastrophic crashes claiming hundreds of lives. (NPR)

FBI Warns of COVID-Related Fraud Schemes as Vaccines Distributed Across the Country 

"We've been concerned about fraud schemes regarding the vaccine as soon as the vaccine went from an idea to reality. … The one thing that we've learned throughout this pandemic is that when there's money to be made, criminals will figure out how to do it," said FBI Financial Crimes Section Chief Steven Merrill. (USA Today)

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