Fraud News From World

What is banking fraud? Common types of banking fraud How to protect yourself from banking fraud How banks can protect themselves from fraud The importance of fraud prevention in banking How to spot frauds in banks The importance of security measures to prevent fraud How to report and prevent banking fraud Courses on banking fraud prevention Conclusion Banking fraud is a serious issue that affects thousands of people around the world. It’s a type of financial fraud in which a person or a group of people manipulate or steal money from an individual or a financial institution. Banking fraud can ... Read more

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced that Barrie Osborne, 76, of Celebration, Florida, was charged by Indictment with with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering in connection with a scheme to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme. The Indictment alleges that, beginning in about January ... Read more

Home Health Agency and Former Owner to Pay $5.8 Million to Settle False Claims Act Allegations Doctor’s Choice Home Care, Inc. and its former owners, Timothy Beach and Stuart Christensen, have agreed to pay $5.15 million to resolve allegations that the home health agency provided improper financial inducements to referring physicians through sham medical director agreements and bonuses to physicians’ spouses who were Doctor’s Choice employees, the Department of Justice announced today. Timothy Beach and Stuart Christensen founded Doctor’s Choice and formerly served as its top executives. Doctor’s Choice is a home health agency based in Sarasota, Florida, with branches ... Read more

VA Employee Found Guilty Of Corruption Charges And Defrauding VA Of Nearly $19 Million In A Year United States Attorney Jason R. Dunn announced that yesterday a jury sitting in U.S. District Court in Denver found former Veterans Affairs (VA) employee Joseph Prince, age 60, of Aurora, Colorado guilty of felony health care fraud, conspiracy, payment of illegal kickbacks and gratuities, money laundering charges and conflict of interest. The verdict is the result of an eight-day jury trial before U.S. District Court Judge Raymond P. Moore. Prince’s bond was continued and he was ordered to home incarceration pending his sentencing. ... Read more

Federal Jury finds Defendants Guilty of Submitting False Claims to Medicare under Civil False Claims Act Jury verdict results in recovery of more than $10.85 million to the Medicare program Gulfport, Miss. – Following a nine week trial, a federal jury in Gulfport returned a guilty verdict yesterday against Ted and Julie Cain of Ocean Springs, Ted Cain’s companies, Stone County Hospital (Wiggins) and Corporate Management, Inc. (Gulfport), and Tommy Kuluz, Chief Financial Officer of Corporate Management, Inc. for violating the Civil False Claims Act, announced U.S. Attorney Mike Hurst and Derrick Jackson, Special Agent in Charge of the Office ... Read more

Former Senior Alstom Executive Sentenced to Prison for Role in Money Laundering Scheme to Promote Foreign Bribery A former senior executive with Alstom S.A. (Alstom), a French power and transportation company, was sentenced in federal court in New Haven, Connecticut, to 15 months in prison today for his role in a multi-year, multimillion-dollar money laundering scheme designed to promote violations of the Foreign Corrupt Practices Act (FCPA). Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s ... Read more

Westfield Woman Pleads Guilty To Stealing Thousands Of Dollars From Health Care Agency BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Alicia Raynor, 42, of Westfield, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to wire fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine. Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that the defendant was hired as a business manager for Compassion at Home, Inc. Her duties included, among other things, managing company finances ... Read more

Husband And Wife Plead Guilty to Social Security Fraud Scheme OAKLAND – Erick and Kimberly Dominguez pleaded guilty in federal court today to conspiracy to commit wire fraud in connection with their scheme to defraud the Social Security Administration (SSA), announced United States Attorney David L. Anderson and SSA Office of Inspector General Special Agent in Charge Robb Stickley. The plea was received by the Honorable Haywood S. Gilliam Jr., U.S. District Judge. According to the defendants’ plea agreements, Kimberly Dominguez, 37, of Vallejo, Calif., was an employee at the SSA’s Oakland Teleservice Center. From September 2015 until October 2019, ... Read more

Two Chinese Nationals Charged with Laundering Over $100 Million in Cryptocurrency from Exchange Hack Forfeiture Complaint Details Over $250 Million Stolen by North Korean Actors WASHINGTON – Two Chinese nationals were charged with laundering over $100 million worth of cryptocurrency from a hack of a cryptocurrency exchange. The funds were stolen by North Korean actors in 2018, as detailed in the civil forfeiture complaint also unsealed today. In the two-count indictment unsealed today in the District of Columbia, 田寅寅 aka Tian Yinyin, and 李家东aka Li Jiadong, were charged with money laundering conspiracy and operating an unlicensed money transmitting business. “The ... Read more

Two Connecticut Physicians Pay over $4.9 Million to Settle False Claims Act Allegations U.S. Attorney John H. Durham, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Brian C. Turner of the New Haven Division of the Federal Bureau of Investigation, and Connecticut Attorney General William Tong today announced that DR. CRISPIN ABARIENTOS and his wife, DR. ANTONIETA ABARIENTOS, have entered into a civil settlement agreement with the federal and state governments in which they will pay $4,927,903 to resolve allegations that they violated the federal ... Read more

Two Blight Elimination Program Indictments Unsealed Two criminal indictments were returned today for criminal violations related to the U.S. Treasury Department’s Blight Elimination Program, announced U.S. Attorney Kirsch. Mahmoud Alshuaibi, 38, of Hickory Hills, Illinois, has been charged with wire fraud, theft from a local government receiving federal funds, and making a false and fraudulent statement. According to court documents, between January 2016 and March 2017, Alshuaibi, owner and officer of IESCO Construction, Inc., submitted false and fraudulent documents to support his claim for payment from the City of Hammond, Indiana, for demolition work through the Blight Elimination Program funded ... Read more

Ten Defendants Charged With Illegally Conducting Multi-Million Dollar Sports Gambling Business Ten defendants have been charged in federal court with conspiring to illegally conduct a multi-million dollar sports gambling business in the Chicago area. VINCENT DELGIUDICE, also known as “Uncle Mick,” directed an operation that accepted wagers from as many as 1,000 gamblers on the outcome of professional and amateur sporting events, according to a nine-count indictment returned Wednesday in U.S. District Court in Chicago. Delgiudice paid a service fee to a foreign sportsbook for use of its platform, and recruited gamblers to place wagers on a website, www.unclemicksports.com, according ... Read more

Man Charged with Defrauding Banks and Investors of $5 Million A Tulsa man was charged this week in U.S. District Court with defrauding five federally insured financial institutions and two investor families of more than $5 million dollars, announced U.S. Attorney Trent Shores William Brian Mulder, 61, is charged with 26 counts of Bank Fraud; 41 counts of Causing the Interstate Transmission of Moneys Taken by Fraud, and five counts of Engaging in Unlawful Monetary Transactions. According to a superseding indictment returned by a grand jury, Mulder is alleged to have repeatedly represented himself to banks and investors as a ... Read more

Construction Company Owner Charged With Fraudulently Obtaining More Than $2.75 Million in Chicago Housing Authority Contracts The owner of a construction company has been indicted for allegedly fraudulently obtaining more than $2.75 million in Chicago Housing Authority contracts designed to benefit minority-owned businesses. LESTER COLEMAN owned Coleman Development Corp., a Chicago-based construction company and certified minority-owned business. From 2010 to 2018, Coleman falsely represented to the CHA that his company would perform construction work sufficient to satisfy the agency’s minority-owned business requirements, which mandated that a certain percentage of work on CHA properties be performed by minority or women-owned enterprises, ... Read more

Pelham- And Bronx-Based Tax Preparer Pleads Guilty In White Plains Federal Court To Preparing And Filing False Income Tax Returns Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that MICHAEL MAGNALDI, a former Pelham resident and an owner and operator of a Bronx-based tax preparation business, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count ... Read more

Rap Artist “Chad Focus” Pleads Guilty to Federal Wire Fraud Conspiracy Used His Company Credit Card to Make More Than $4.1 Million in Unauthorized Purchases to Promote His Brand and Enrich Himself and His Co-conspirators Baltimore, Maryland – Chad Arrington, a/k/a “Chad Focus,” age 32, of Randallstown, Maryland, pleaded guilty today to a federal wire fraud conspiracy in connection with a scheme to use a company credit card to make over $4.1 million in unauthorized purchases. The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. ... Read more

Ex-Chairman of Christian Science Church in Los Angeles Pleads Guilty to Criminal Charges of Stealing $11 Million from Church LOS ANGELES – The former chairman of the board for the Fifth Church of Christ, Scientist, of Los Angeles pleaded guilty today to federal criminal charges that he stole more than $11 million in church money via bank accounts for phony companies and tried to cover his tracks by impersonating a real estate developer. Charles Thomas Sebesta, 55, of Huntington Beach, pleaded guilty to one count of wire fraud affecting a financial institution and one count of bank fraud. He has ... Read more

Iranian National Charged with Bank Fraud and Lying to Federal Agents in Connection with a Scheme to Use the U.S. Financial System to Send More Than $115 Million to Iranian Individuals and Entities The Department of Justice announced that Bahram Karimi was charged with conspiring to commit bank fraud, bank fraud, and making false statements in connection with his involvement in a joint project initiated by the Governments of Iran and Venezuela in which more than $115 million was illegally funneled through the U.S. financial system for the benefit of various Iranian individuals and entities. The case is assigned to ... Read more

Jury Convicts Ex-employee Of Transporting Stolen Property And Money Laundering After $390,000 Disappeared From Armored Truck HELENA – A jury on Thursday convicted a Helena man who worked for GardaWorld of multiple crimes after he was accused of taking money stolen from an armored truck and spending it gambling and shopping in Las Vegas, day trading and traveling to France, U.S. Attorney Kurt Alme said. The jury found John Gregory Alexander Herrin, 30, of Helena, guilty of one count of interstate transportation of stolen property and eight counts of money laundering. The jury acquitted Herrin on four counts of money ... Read more

ResMed Corp. to Pay $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and other Disorders SAN DIEGO – ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today. “Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of ... Read more