<h2 class="node-title">Junedale Couple Pleads Guilty To Four Armed Bank Robberies And The Armed Robbery Of A Store</h2>
<div class="field field--name-field-pr-body field--type-text-long field--label-hidden">
<div class="field__items">
<div class="field__item even">
<p>SCRANTON &#8211; The United States Attorney’s Office for the Middle District of Pennsylvania announced today that <strong>David Weaver</strong>, age 41, and <strong>Crystal Serfass</strong>, age 31, both of Junedale, Carbon County, Pennsylvania, <strong>pleaded guilty to the armed robberies of four banks and a store</strong>.</p>
<p>Weaver and Serfass pleaded guilty before Senior United States District Court Judge James M. Munley in Federal Court yesterday in Scranton. During the guilty plea hearing, each admitted to all charges contained in a five-count Criminal Information which alleges that they committed the following armed robberies:</p>
<ul>
<li><em>the robbery ofthe Jim Thorpe National Bank</em>, Penn Forest Township, on September 17, 2013;</li>
</ul>
<ul>
<li><em>the robbery of the National Penn Bank</em>, Drums, on August 8, 2014;</li>
</ul>
<ul>
<li><em>the robbery of Jim Thorpe Neighborhood Bank</em>, Penn Forest Township, on November 18, 2014;</li>
</ul>
<ul>
<li><em>the robbery of the ESSA Bank and Trust</em>, Brodheadsville, on December 26, 2014;</li>
</ul>
<ul>
<li><em>the robbery of the Dollar General</em>, Nesquehoning, on November 16, 2014.</li>
</ul>
<p>During each of the <strong><em>robberies</em></strong>, Weaver brandished a firearm to intimidate the employees. Serfass helped plan and acted as a driver for each of the crimes.</p>
<p>The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.</p>
<p>Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.</p>
<p>A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.</p>
<p>In this particular case, the maximum penalty under the federal statutes is up to 120 years’ imprisonment. Both face a term of supervised release following imprisonment, and a fine if convicted. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendants, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.</p>
</div>
</div>
</div>

Category Archives: Fraud News From World
A “Fraud News From World” directory is a collection of news articles about fraud and scams from around the world. These directories can be a valuable resource for staying informed about the latest scams and how to protect yourself from them. The directory typically includes information about the scam, such as the type of scam, the target audience, the location of the scam, and the date of the scam. It may also include information about how to protect yourself from the scam, such as how to identify a phishing email or how to report a scam to the authorities.
Wayne Simmons – Former Fox News Commentator Pleads Guilty to Fraud
<p>ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), pleaded guilty today to<em><strong> major fraud against the government, wire fraud, and a firearms offense</strong></em>.</p>
<p>“<strong>Wayne Simmons</strong> is a convicted felon with no military or intelligence experience,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons admitted he attempted to con his way into a position where he would have been called on to give real intelligence advice in a war zone. His fraud cost the government money, could have put American lives at risk, and was an insult to the real men and women of the intelligence community who provide tireless service to this country. This case is a prime example of this office’s ongoing commitment to vigorously prosecute government fraud and threats to national security.”</p>
<figure id="attachment_27844" aria-describedby="caption-attachment-27844" style="width: 334px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/wayne-simmons-former-fox-news-commentator-pleads-guilty-to-fraud/wayne-simmons-2/" rel="attachment wp-att-27844"><img class="wp-image-27844 size-medium" src="https://www.fraudswatch.com/wp-content/uploads/2016/05/Wayne-Simmons-2-334x315.jpg" alt="Wayne Simmons" width="334" height="315" /></a><figcaption id="caption-attachment-27844" class="wp-caption-text">Wayne Simmons</figcaption></figure>
<p>“Mr. Simmons lied about his criminal history and CIA employment in order to fraudulently obtain government contracts, and separately, defrauded a victim through a phony real estate investment deal,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “With these criminal actions, Mr. Simmons abused the trust of others, both in and outside of government, for his own personal <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="543">financial</a> gain. I commend the work of the talented FBI personnel and prosecutors who vigorously pursued this case and brought about today’s guilty plea.”</p>
<p>In a statement of facts filed with his plea agreement, Simmons admitted he defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team. Simmons admitted making false statements about his financial and criminal history, and admitted that there are no records or any other evidence that he was ever employed by or worked with the CIA, or ever applied for or was granted a security clearance by that agency. Simmons also admitted that in order to obtain the senior intelligence advisor position, he lied about work he had done a year earlier as a team leader on the Human Terrain Systems program. Simmons admitted to making similar false statements in 2009 as well, in an unsuccessful attempt to obtain work with the State Department’s Worldwide Protective Service.</p>
<p>As to the wire fraud charge, Simmons admitted to defrauding an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment. Simmons admitted to sending E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised, and to repeatedly lying to her about the whereabouts of her money in order to perpetuate the fraud. As Simmons admitted, he simply spent the funds on personal purposes and there was never any actual real estate investment project.</p>
<p>As to the firearms charge, Simmons admitted that at the time he was arrested in this case, he was unlawfully in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions, including a prior Maryland felony conviction and two prior federal felony firearms convictions.</p>
<p>Simmons was indicted by a federal grand jury on Oct. 14, 2015, and faces a maximum penalty of 10 years in prison on the major fraud against the government count, a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on the felon-in-possession of a firearm count when sentenced on July 15. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.</p>
<p>Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump, along with the assistance of Senior Trial Attorney Robert E. Wallace of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division are prosecuting the case.</p>
<p>A copy of this press release may be found on the website of the <a href="https://www.justice.gov/usao/vae"><u>U.S. Attorney’s Office</u></a> for the Eastern District of Virginia. Related court documents and information may be found on the website of the <a href="http://www.vaed.uscourts.gov/"><u>District Court</u></a> for the Eastern District of Virginia or on <a href="https://pcl.uscourts.gov/"><u>PACER</u></a> by searching for <strong>Case No. 1: 15-cr-293.</strong></p>

Banking Scam Security: GozNym Malware Steals Millions
<h3 class="article-headline ng-binding ng-scope"><em>Eastern European Cyber Crooks Raid US Banks For $4 Million In Just 3 Days <strong>A new banking trojan named GozNym is actively hitting U.S. and Canadian banks and has already taken about $4 million from two dozen North American banks.</strong></em></h3>
<p>IBM&#8217;s X-Power Research group reported that 24 banks in the two nations, 22 in the U.S., have so far lost about $4 million to assaults utilizing GozNym since the malware was found not long ago. Who directed the assaults is not known.</p>
<p>Limor Kessem, official security advisor for IBM, wrote in a web journal that GozNym was made by consolidating a percentage of the source code from the more seasoned Nymaim and Gozi IFSB saving money malware to make a much more perilous bit of programming. &#8220;From the Nymaim malware, it influences the dropper&#8217;s stealth and determination; the Gozi ISFB parts add the keeping money Trojan&#8217;s abilities to encourage misrepresentation by means of tainted Web programs,&#8221; said Kessem. &#8220;The final result is another managing an account Trojan in nature.&#8221;</p>
<p>Assaults are so far pretty uniformly part with business banks engrossing 28 percent of the assaults; credit unions, 27 percent; e-trade 22 percent; retail managing an account, 17 percent; and the staying six percent were in different sorts of foundations. GozNym utilizes its local Nymaim capacity to penetrate its objectives through an endeavor pack which drops a payload into the framework that utilizations two executables for the disease schedule, IBM said.</p>
<p>Giovanni Vigna, fellow benefactor and boss innovation officer of Lastline, told in an email Thursday that malware like GozNym is not out of the ordinary at this point. &#8220;While it is intriguing to see two strands of malware turning out to be nearly entwined, it is not astonishing. With respect to any product that must be adaptable and dependable, malware has been modularized for some time, so usefulness can be reused or stacked as-required.</p>
<p>One industry official said it was baffling that GozNym has been effective in light of the fact that, while this malware is new, the kind of assault has been seen before and the saving money industry was advised to be careful.</p>
<p>&#8220;When you see an assault like GozNym getting bits of past malware to swipe another $4 million, it stings in case you&#8217;re a security proficient. You know you told both IT and the business how they expected to respond to assaults of this write when the first dangers rose. This fair demonstrates to you that they didn&#8217;t generally listen then,&#8221; Jonathan Sander, VP at Lieberman Programming, told in an email Thursday. Sanders portrayed this absence of worry as like that of a home that continually torn into through an open window in light of the fact that the proprietor declines to recall to bolt it.</p>
<figure id="attachment_27633" aria-describedby="caption-attachment-27633" style="width: 1024px" class="wp-caption alignnone"><a href="https://www.fraudswatch.com/banking-scam-security-goznym-malware-steals-millions/goznym-malware/" rel="attachment wp-att-27633"><img class="size-large wp-image-27633" src="https://www.fraudswatch.com/wp-content/uploads/2016/04/GozNym-Malware-1024x439.png" alt="GozNym Malware" width="1024" height="439" /></a><figcaption id="caption-attachment-27633" class="wp-caption-text">GozNym Malware Report</figcaption></figure>

Dating Scams: Australian Competition and Consumer Commission Report
<h2 class="page-header">$22.7 million lost to dating scams in 2015</h2>
<figure id="attachment_27617" aria-describedby="caption-attachment-27617" style="width: 436px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/dating-scams-australian-competition-and-consumer-commission-report/dating-romance-scams-infographic-2015/" rel="attachment wp-att-27617"><img class="size-large wp-image-27617" src="https://www.fraudswatch.com/wp-content/uploads/2016/04/dating-romance-scams-infographic-2015-436x1024.png" alt="Dating Romance Scams" width="436" height="1024" /></a><figcaption id="caption-attachment-27617" class="wp-caption-text">Dating Romance Scams</figcaption></figure>
<p>This Valentine’s Day, the Australian Competition and Consumer Commission is warning the online dating community to watch out for any love interest that asks for money.</p>
<p>Last year, 2,620 Australians reported losing almost $23 million to dating and romance scams to the ACCC.</p>
<p>“Romance scams continue to cause significant emotional and financial harm to the community. We know these figures are only the tip of the iceberg as many victims are reluctant to admit to friends, family or authorities that they fell for a scam,” ACCC Deputy Chair Delia Rickard said.</p>
<p>“Scammers are experts at preying on people’s weaknesses and will spend months and even years grooming victims and lowering their defences. Inevitably, the fraudster will spin a tall tale about why they suddenly need your <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="529">financial</a> help, ranging from medical emergencies to failed business ventures to needing to rebook flights to visit you.”</p>
<p>“Once victims realise that their admirer is actually a criminal, the emotional consequences can be devastating. This is why disrupting relationship scams continues to be a priority for the ACCC,” Ms Rickard said.</p>
<p>The <a class="ext" href="https://www.accc.gov.au/consumers/consumer-protection/protecting-yourself-from-scams/scam-disruption-project">ACCC&#8217;s Scam Disruption Project<span class="ext"><span class="element-invisible">(link is external)</span></span></a> has sent over 6,000 letters asking individuals who sent money to high risk juridictions to reconsider sending money offshore. 75 per cent of those people who received these letters ceased sending money for at least six weeks.</p>
<p>“Nearly one quarter of reported <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/romance-scammer/" title="romance scams" data-wpil-keyword-link="linked" data-wpil-monitor-id="3">romance scams</a> originate on social media, in particular Facebook. The ACCC is looking to work with social media platforms to keep romance scammers off their sites and to help users recognise when they are being scammed,” Ms Rickard said.</p>
<p>The ACCC has updated best practice guidelines to assist the online dating industry to combat scams. The revised version of the guidelines aims to address the evolving nature of online scams and provide the latest advice. Sites that take steps to implement these guidelines create a safer online environment for their customers.</p>
<p>“The ACCC now seeks the continued cooperation of industry in implementing the revised guidelines and encourages their adoption by any dating site that has not yet taken steps to protect their users from scammers,” Ms Rickard said.</p>
<p>“If online dating sites don’t have advice about safe dating practices, then consumers should carefully consider whether those sites have their best interests at heart.”</p>
<p><strong>Scamwatch tips</strong></p>
<ul>
<li>Never provide your financial details or send funds to someone you’ve met online. Scammers particularly seek money orders, wire transfers or international funds transfer as it’s rare to recover money sent this way.</li>
<li>Run a Google Image search to check the authenticity of any photos provided as scammers often use fake photos they’ve found online.</li>
<li>Be very wary if you are moved off a dating website as scammers prefer to correspond through private emails or the phone to avoid detection.</li>
<li>Don’t share photos or webcam of a private nature. The ACCC has received reports of scammers using this material to blackmail victims.</li>
<li>If you think you have fallen victim to a fraudster, contact your bank or financial institution immediately and report it to <a href="http://www.scamwatch.gov.au/">www.scamwatch.gov.au</a></li>
</ul>
<p>ACCC Media: 1300 138 917</p>
<p><a href="https://www.scamwatch.gov.au/news/227-million-lost-to-dating-scams-in-2015">Original Press Release &#8230;</a></p>

Health Care Fraud: Area Chiropractor
<h1 class="node-title">Area Chiropractor Sentenced to Prison for Health Care Fraud</h1>
<h2 class="node-subtitle center">Scheme Involved Billings to D.C. Medicaid Program</h2>
<div class="field field--name-field-pr-subtitle field--type-text field--label-hidden"></div>
<div class="field field--name-field-pr-body field--type-text-long field--label-hidden">
<div class="field__items">
<div class="field__item even">
<div class="element-invisible">
<p> WASHINGTON – Lewis J. Levine, 59, a chiropractor who practiced in Southeast Washington, was sentenced today to five months of incarceration, to be followed by two years of supervised release, including a curfew and five months of electronic monitoring, for his role in a scheme involving fraudulent claims to the District of Columbia Medicaid program.</p>
<p>The sentencing was announced by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.</p>
<p>Levine, of Laurel, Md., pled guilty in September 2014 to a federal charge of health care fraud. He was sentenced by the Honorable Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia. As part of his plea agreement, Levine must pay $50,260 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment.</p>
<p>The fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. The aides assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” propose the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, also to be signed by the physician.</p>
<p>In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid could pay between $16,952 and $23,732 for personal care services provided to one beneficiary.</p>
<p>According to a statement of offense, signed by the government as well as the defendant, Levine was licensed as a chiropractor in the District of Columbia, not as a physician. He worked at the Anacostia Neck &; Back Pain Center in Southeast Washington. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.</p>
<p>According to the statement of offense, Levine and others carried out their scheme to defraud the D.C. Medicaid program from approximately November 2012 through February 2014. Personal care aides, working for at least eight home care agencies, brought numerous beneficiaries to Levine, and he wrote prescriptions and plans of care, listing himself as the “ordering physician,” after brief examinations; sometimes, however, he never even met the beneficiary.</p>
<p>Levine initially was paid $75 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $150. Levine’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months.</p>
<p>During the course of the fraud scheme, Levine signed hundreds of prescriptions and plans of care, and in exchange collected at least $50,260 in cash payments from D.C. Medicaid beneficiaries and personal care aides. Home care agencies used Levine’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.</p>
<p>This investigation was conducted by the FBI’s Washington Field Office. This case was prosecuted by Assistant U.S. Attorney Ted Radway, with assistance from Assistant U.S. Attorney Thomas Swanton and former Special Assistant U.S. Attorney Dangkhoa Nguyen.</p>
<p>The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to <a class="mailto" href="mailto:HealthCareFraud@ic.fbi.gov"><u>HealthCareFraud@ic.fbi.gov</u></a></p>
</div>
<p><u></u> In addition to the FBI, numerous agencies are participating in broader investigations into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.</p>
<p>HHS-OIG also has a hotline that can be reached at 800-HHS-TIPS or by visiting their website link at<a href="http://oig.hhs.gov/fraud/report-fraud/index.asp"><u>http://oig.hhs.gov/fraud/report-fraud/index.asp</u></a></p>
<p><a href="https://www.justice.gov/usao-dc/pr/area-chiropractor-sentenced-prison-health-care-fraud" target="_blank" rel="noopener">Original PressRelease&#8230;</a></p>
</div>
</div>
</div>

Senator Sentenced For $1.8 Million in Wire Fraud and Tax Evasion
<h2 class="node-title">Former Oklahoma State Senator Sentenced to Over 3 Years For $1.8 Million in Wire Fraud and Tax Evasion</h2>
<figure id="attachment_27398" aria-describedby="caption-attachment-27398" style="width: 183px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/senator-sentenced-for-1-8-million-in-wire-fraud-and-tax-evasion/brinkley/" rel="attachment wp-att-27398"><img class="size-full wp-image-27398" src="https://www.fraudswatch.com/wp-content/uploads/2016/03/brinkley.jpg" alt="Ricky L. Brinkley" width="183" height="275" /></a><figcaption id="caption-attachment-27398" class="wp-caption-text"><em><strong>Ricky L. Brinkley</strong></em></figcaption></figure>
<p>TULSA, Okla.—Former Oklahoma State Senator Ricky L. Brinkley was sentenced today to serve 37 months in federal prison for fraudulently obtaining over $1.8 million dollars from the Better Business Bureau and for tax evasion. In addition to the prison term, United States District Court Judge Claire V. Eagan ordered Brinkley to pay $1,829,033.86 representing proceeds of the wire fraud scheme.</p>
<p>United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma; FBI Special Agent in Charge Scott L. Cruse of the Oklahoma City Division; IRS-Criminal Investigation Special Agent in Charge R. Damon Rowe of the Dallas Field Office; and Oklahoma State Bureau of Investigation Director Stan Florence made the announcement.</p>
<p>“Today’s sentencing is the result of a joint effort by the U.S. Attorney’s Office, the FBI, the IRS-CI, and the OSBI, to ensure that justice was served. The former senator will now face the consequences of his actions for betraying the public’s trust that was placed in him,” said U.S. Attorney Williams. “My office will vigorously pursue and hold public officials accountable by seeking criminal charges when the facts and the law support it. I commend our law enforcement partners for their investigative work, and the Assistant U.S. Attorneys who successfully prosecuted the case.”</p>
<p>“I am pleased with the final result in the sentencing of Ricky L. Brinkley and want to express my sincere gratitude to U.S. Attorney Danny Williams and his team of prosecutors whose professionalism and hard work ensured that justice was served in this matter. I also want to thank Director Stan Florence of the Oklahoma State Bureau of Investigation as well as SAC R. Damon Rowe of the Criminal Investigation Division of the Internal Revenue Service for the cooperative spirit in which they joined with the FBI in the investigation of this important case,” stated FBI Special Agent in Charge Cruse. “It is our hope that Ricky Brinkley’s sentencing will serve as a warning to anyone who may be thinking about padding their income by stealing from their employer. There are consequences for criminal activities of this nature and we will continue to work closely with all of our law enforcement partners to catch these criminals and bring them to justice.”</p>
<p>“Unfortunately, we continue to see the public’s confidence in the tax system shaken by individuals such as Mr. Brinkley, who apparently feel they can operate above the law, and skip out on paying their fair share of income taxes,” stated IRS-CI Special Agent in Charge Rowe. “Investigating and prosecuting cases involving fraudulent income tax return filing is a vital part of IRS’ enforcement strategy. All income, including embezzled money, is taxable. The Better Business Bureau was not Mr. Brinkley’s personal piggy bank, and today&#8217;s sentence sends a positive message to honest taxpayers—a reminder that the justice system works, and that filing a false tax return is a crime that will be punished.”</p>
<p>On August 20, 2015, Brinkley, 54, of Owasso, Oklahoma, pleaded guilty to five-counts of wire fraud and one-count of subscribing to a false tax return. Brinkley represented the 34<sup>th</sup> District, including Owasso, Collinsville, Skiatook, Sperry, Turley, and Tulsa.</p>
<p>From August 2, 1999 to April 26, 2015, Brinkley was employed as the President and Chief Executive Officer and then the Chief Operations Officer of the Better Business Bureau. During his employment, Brinkley was responsible for the operation, accounting, and <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="525">financial</a> management including paying bills and signing checks on behalf of the Better Business Bureau.</p>
<p>From November 2005 to February 2015, Brinkley diverted in excess of $1.2 million dollars through the creation of fraudulent invoices for services not rendered, and improperly represented these invoices as reimbursement for legitimate expenses. He fraudulently signed checks, transferred, used, and disbursed funds to pay personal expenses and debts including <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="40">mortgage</a> payments, expenses for pool cleaning services at his home, and his personal American Express, Discover, and Visa cards.</p>
<p>Furthermore, Brinkley used his employer’s credit card to make cash withdrawals at automated teller machines located within casinos to support his gambling habit and he would also create and process for payment false invoices using company funds for payment.</p>
<p>In addition, Brinkley failed to report approximately $165,625 in income for tax year 2013 to the Internal Revenue Service.</p>
<p>The case was investigated by the FBI, the IRS-Criminal Investigation, and the OSBI; and prosecuted by Assistant United States Attorneys Clinton J. Johnson, Shannon Cozzoni, and Catherine Depew.</p>
<p><a href="https://www.justice.gov/usao-ndok/pr/former-oklahoma-state-senator-sentenced-over-3-years-18-million-wire-fraud-and-tax" target="_blank" rel="noopener">Original PressRelease &#8230;</a></p>
<p> ;</p>

Advance Fee Scheme: OCTAVIO LOMBARDO Sentenced In Manhattan Federal Court
<h2 class="node-title">Brooklyn Man Sentenced In Manhattan Federal Court In Connection With Advance Fee Scheme</h2>
<div class="field field--name-field-pr-body field--type-text-long field--label-hidden">
<div class="field__items">
<div class="field__item even">
<p> Preet Bharara, the United States Attorney for the Southern District of New York, announced today that <strong>OCTAVIO LOMBARDO</strong>, a/k/a “Otto Lombardo,” was sentenced today in Manhattan federal court to two years in prison for<em><strong> wire fraud stemming from his scheme to defraud small business owners</strong></em> of more than $1 million through an advance fee scheme. LOMBARDO lied to small business owners by claiming to have the ability and expertise to <em>structure investment loans</em> for their businesses through LOMBARDO’s exclusive relationships with small community banks across the United States, when in fact he did not have the ability to obtain such financing. In connection with the scheme, LOMBARDO induced over 30 business owners to pay an upfront fee that was purportedly to pay for expenses incurred during the due diligence process prior to the loan’s closing. Instead, LOMBARDO used the vast majority of the money he received from the business owners – over $1 million in total – on his own personal expenses, including rental payments, club dues, food, and other personal items. LOMBARDO pled guilty on September 21, 2015, before United States District Judge Jesse M. Furman, who also imposed today’s sentence.</p>
<p>U.S. Attorney Preet Bharara said: “<em>Octavio Lombardo</em> lied to dozens of <em>small business owners</em> who looked to him for help in obtaining financing. Lombardo purported to have expertise and relationships with community banks that would facilitate <em>investment loans</em> at favorable terms. But in fact, he had no such expertise or relationships, just the gumption to <strong>steal his clients’ money</strong>. Today he has been held to account for his crime.”</p>
<p><strong> According to the Complaint, the Indictment, and other statements made in open court:</strong></p>
<p>From at least in or about 2007 through in or about 2013, LOMBARDO engaged in a fraudulent scheme to mislead small business owners into paying an upfront due diligence fee, typically in the amount of $25,000, in connection with loans that LOMBARDO promised to obtain for the small business owners. During this period, LOMBARDO held himself out to the business owners as having the ability and expertise to structure investment loans for their businesses through LOMBARDO’s purported exclusive relationships with small community banks across the United States. In truth and in fact, LOMBARDO had no ability to provide such financing, and none of the businesses at issue received a <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="186">loan</a> through LOMBARDO during this period of time.</p>
<p>In connection with the scheme, LOMBARDO made a series of false and misleading misrepresentations to the business owners, including: (i) that LOMBARDO could obtain interest-only loans in amounts ranging from $1 million to $75 million by consolidating the lending power of several small community banks into a trust, which he would manage through his holding company, Lombardo &; Company; (ii) that, in order to structure the loan appropriately, LOMBARDO needed to conduct due diligence of the businesses, including by obtaining corporate and <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="523">financial</a> documentation, and by conducting site visits; (iii) that LOMBARDO required a non-refundable upfront payment – generally in the amount of $25,000 – to cover the expenses incurred during the due diligence process, including legal and other professional fees, taxes, appraisals, and the like; and (iv) that this fee would be incorporated into the final loan agreement, so that the business owners would ultimately “get back” the upfront payment once the financing was in place.</p>
<p>As a result of these misrepresentations, LOMBARDO obtained over $1 million in so-called due diligence payments from more than three dozen business owners. LOMBARDO spent the vast majority of the due diligence payments on his own personal expenses, including, among other things, rental payments, club dues, food, and other personal items. For example, LOMBARDO spent more than $300,000 on rental payments for his residence in Brooklyn, more than $100,000 on membership dues for a private gun club located in Manhattan, and more than $50,000 on restaurants and purchases of wine and liquor.</p>
<p>Once he received the due diligence payments, LOMBARDO made a variety of excuses to the business owners – including, among others, that he was having health problems and had been hospitalized, that he was traveling, and that he had a new grandchild – in order to explain the delay in closing the loans.</p>
<p><strong>Ultimately, LOMBARDO did not provide any of the loans to the business owners as promised.</strong></p>
<p>In addition to his prison sentence, LOMBARDO, 68, of Brooklyn, New York, was sentenced to three years of supervised release. The Court further ordered LOMBARDO to pay $1,038,500 in restitution.</p>
<p><strong>Mr. Bharara praised the work of the Federal Bureau of Investigation. </strong></p>
<p>The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit <a href="http://www.stopfraud.gov/"><u>www.StopFraud.gov</u></a>.</p>
<p>This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Amy Lester and Damian Williams are in charge of the prosecution.</p>
<p><a href="https://www.justice.gov/usao-sdny/pr/brooklyn-man-sentenced-manhattan-federal-court-connection-advance-fee-scheme" target="_blank" rel="noopener">Original PressRelease &#8230;</a></p>
</div>
</div>
</div>

Healthcare Fraud: Medical Equipment Company – Scheme to Pay Kickbacks to Doctors and Hospitals
<h2 id="node-title">Medical Equipment Company Will Pay $646 Million for Making Illegal Payments (Healthcare Fraud) to Doctors and Hospitals in United States and Latin America</h2>
<p><strong><em>Olympus Corp. of the Americas, Nation’s Largest Distributor of Endoscopes, Also Agrees to Reforms and Subsidiary Admits to Foreign Bribery</em></strong></p>
<p>The United States’ largest distributor of endoscopes and related equipment will pay $623.2 million to resolve criminal charges and civil claims relating to a<em> scheme to pay kickbacks to doctors and hospitals</em>, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division announced today. U.S. Attorney Fishman and Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division also announced that a subsidiary of the distributor will pay $22.8 million to resolve criminal charges relating to the Foreign Corrupt Practices Act (FCPA) in Latin America.</p>
<p><strong><u>Anti-Kickback Statute Violations</u></strong></p>
<p>Olympus Corp. of the Americas (OCA) was charged in a criminal complaint filed today in Newark, New Jersey, federal court with conspiracy to violate the Anti-Kickback Statute (AKS), which prohibits payments to induce purchases paid for by federal health care programs. OCA has entered into a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction if it complies with the reform and compliance requirements outlined in the agreement.</p>
<p>“For years, Olympus Corporation of the Americas and Olympus Latin America dropped the compliance ball and failed to have in place policies and practices that would have prevented the substantial kickbacks and bribes they paid,” said U.S. Attorney Fishman. “It is appropriate that they be punished for that. At the same time, the deferred prosecution agreement takes into account the companies’ cooperation and commitment to fully functional corporate compliance.”</p>
<p>As a result of the conduct outlined in the government’s criminal complaint and DPA, OCA has agreed to pay a $312.4 million criminal penalty and an additional $310.8 million to settle civil claims under the federal and various state False Claims Acts, the largest total amount paid in U.S. history for violations involving the AKS by a medical device company.</p>
<p>“The Department of Justice has longstanding concerns about improper <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="522">financial</a> relationships between medical device manufacturers and the health care providers who prescribe or use their products,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships can improperly influence a provider’s judgment about a patient’s health care needs, result in the use of inferior or overpriced equipment, and drive up health care costs for everybody. In addition to yielding a substantial recovery for taxpayers, this settlement should send a clear message that we will not tolerate these types of abusive arrangements, and the pernicious effects they can have on our health care system.”</p>
<p>In a separate DPA, Olympus Latin America Inc. (OLA), a subsidiary of OCA, will pay a $22.8 million criminal penalty for violations of the FCPA.</p>
<p>The criminal complaint against OCA, which OCA agrees is true, charges that OCA won new business and rewarded sales by giving doctors and hospitals kickbacks, including consulting payments, foreign travel, lavish meals, millions of dollars in grants and free endoscopes. For example:</p>
<ul>
<li>OCA gave a hospital a $5,000 grant to facilitate a $750,000 sale;</li>
<li>OCA held up a $50,000 research grant until a second hospital signed a deal to purchase Olympus equipment;</li>
<li>OCA paid for a trip for three doctors to travel to Japan in 2007 as a quid pro quo for their hospital’s decision to switch from a competitor to Olympus; and</li>
<li>a doctor with a major role in a New York medical center’s buying decisions received free use of $400,000 in equipment for his private practice.</li>
</ul>
<p>These and other kickbacks helped OCA obtain more than $600 million in sales and realize gross profits of more than $230 million.</p>
<p>The criminal complaint alleges that the improper payments happened while Olympus lacked training and compliance programs. Unlike other medical and surgical products companies, Olympus did not create the position of compliance officer until 2009 and did not hire an experienced compliance professional until August 2010.</p>
<p>The DPA requires OCA to adopt several compliance measures to remedy its problems:</p>
<ul>
<li>OCA must enhance its compliance training and maintain an effective compliance program;</li>
<li>OCA must maintain a confidential hotline and website for OCA employees and customers to report wrongdoing;</li>
<li>OCA’s chief executive officer and board of directors must certify annually that the program is effective; and</li>
<li>OCA must adopt an executive financial recoupment program requiring executives who engage in misconduct or fail to promote compliance to forfeit up to three years of performance pay.</li>
</ul>
<p>Larry Mackey, a former federal prosecutor best known for trying the Oklahoma City bombing cases, has been selected as an independent monitor to evaluate and oversee Olympus’ compliance with the DPA. He was selected by U.S. Attorney Fishman under department guidelines and approved by the Deputy Attorney General. The DPA and monitor will remain in place for three years and can be extended for another two years if Olympus violates the DPA.</p>
<p>In the civil settlement, Olympus agrees to pay $310.8 million to the federal government and the states to resolve claims that Olympus’s payment of kickbacks caused false claims to be submitted to federal health care programs Medicare, Medicaid and TRICARE, and thus violated not only the AKS but also the federal and various state False Claims Acts. The federal share of the civil settlement is $267,288,323, and Olympus will pay $43,512,053 million to participating states that contributed to the falsely claimed Medicaid payments at issue.</p>
<p>The civil settlement resolves a lawsuit filed by John Slowik, the former chief compliance officer of OCA, in the District of New Jersey, under the federal and various state False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. Mr. Slowik will receive $44,102, 573 million from the federal share and $7 million from the state share of the civil settlement amount.</p>
<p><strong><u>FCPA Violations</u></strong></p>
<p>In a separate criminal complaint filed today in Newark federal court, OCA’s Miami-based subsidiary OLA was charged with FCPA violations in connection with improper payments to health officials in Central and South America, and OLA entered into a separate three-year DPA. According to court documents, from 2006 until August 2011, OLA implemented a plan to increase medical equipment sales in Central and South America by providing payments to health care practitioners at government-owned health care facilities. These payments included cash, money transfers, personal grants, personal travel and free or heavily discounted equipment. The primary method to deliver these illicit benefits was through “training centers,” nominally set up to educate and train doctors, but which OLA used to provide benefits to pre-selected practitioners. OLA and its conspirators paid nearly $3 million to practitioners to induce the purchase of Olympus products and recognized more than $7.5 million in profits as a result.</p>
<p>“Olympus Latin America admitted to bribing publicly employed health care providers and hospital officials across Central and South America so that it could illegally win business and sell its products,” said Principal Deputy Assistant Attorney General Bitkower. “OLA’s illegal tactics in Central and South America mirrored Olympus’s conduct in the United States. The FCPA resolution announced today demonstrates the department’s commitment to ensuring the integrity of the health-care equipment market, regardless whether the illegal bribes occur in the U.S. or abroad.”</p>
<p>OLA entered into the DPA with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the District of New Jersey. The agreement requires OLA to pay a criminal penalty of $22.8 million, retain the same compliance monitor as for OLA (Mr. Mackey) for a period of three years and implement a number of compliance measures. The department reached this resolution based on a number of factors, including that OLA did not voluntarily disclose the misconduct in a timely manner, but OLA did receive credit of a 20 percent reduction on its penalty for its cooperation, including its extensive internal investigation, translation of numerous foreign language documents and collecting, analyzing and organizing voluminous evidence.</p>
<p><strong><u>Corporate Integrity Agreement</u></strong></p>
<p>In addition to the criminal and civil resolutions, Olympus executed a corporate integrity agreement (CIA) with the Department of Health and Human Services-Office of Inspector General (HHS-OIG). The CIA details the compliance program OCA must maintain, which must include:</p>
<ul>
<li>compliance responsibilities for OCA management and the board of directors;</li>
<li>a health care compliance code of conduct that includes certain standards;</li>
<li>training and education that includes specified standards;</li>
<li>requirements for consulting arrangements, grants and charitable contributions, management of field assets and review of travel expenses;</li>
<li>risk assessment and mitigation process; and</li>
<li>review procedures for testing the compliance program.</li>
</ul>
<p>“Olympus Corp. of the Americas’ and its subsidiaries’ greed-fueled kickback scheme threatened the impartiality of medical decision-making and the financial integrity of Medicare and Medicaid,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we remain vigilant and committed to protecting beneficiaries and taxpayers from those seeking to unlawfully enrich themselves.”</p>
<p class="rtecenter">* * *</p>
<p>The U.S. Attorney’s Office of the District of New Jersey prosecuted the criminal case under the AKS against Olympus and, with the Civil Division’s Commercial Litigation Branch, reached the civil settlement. The U.S. Attorney’s Office of the District of New Jersey and the Criminal Division’s Fraud Section prosecuted the criminal case under the FCPA against OLA. The HHS Office of Counsel to the Inspector General, the FBI, HHS-OIG Office of Criminal Investigations and the National Association of Medicaid Fraud Control Units provided assistance.</p>
<p>The FBI’s Newark Field Office, HHS-OIG and the FBI Allentown, Pennsylvania, Field Office investigated the case.</p>
<p>Assistant U.S. Attorneys R. David Walk Jr. and Deborah J. Gannett of the District of New Jersey’s Health Care and Government Fraud Unit in Newark represented the government in the AKS criminal prosecution. Assistant U.S. Attorney David E. Dauenheimer of the District of New Jersey and Senior Trial Counsel David T. Cohen of the Civil Division’s Commercial Litigation Branch represented the government in the prosecution of the civil case. Mary Riordan and Nicole Caucci of the HHS-OIG negotiated the CIA.</p>
<p>Fraud Section Trial Attorney James P. McDonald and Assistant U.S. Attorneys Walk and Gannett prosecuted the FCPA case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.</p>
<p>U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office of the District of New Jersey, including creating a stand-alone Health Care and Government Fraud Unit, which handles both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.</p>
<p>This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.</p>
<p><a href="https://www.justice.gov/opa/pr/medical-equipment-company-will-pay-646-million-making-illegal-payments-doctors-and-hospitals">Original PressRelease &#8230; </a></p>

FBI Announcement: Preliminary 2015 Crime Stats
<h2>Preliminary 2015 Crime Stats Released</h2>
<p><span class="blackgraphtx"><a href="https://www.fraudswatch.com/fbi-announcement-preliminary-2015-crime-stats/ucr-2015-250/" rel="attachment wp-att-27352"><img class="alignright size-full wp-image-27352" src="https://www.fraudswatch.com/wp-content/uploads/2016/02/UCR-2015-250.jpg" alt="UCR-2015-250-FBI Crime Stats" width="250" height="150" /></a>The FBI’s latest <em>Preliminary Semiannual Uniform Crime Report</em>, which contains data from January to June of 2015, revealed overall declines in the number of property crimes and overall increases in the number of violent crimes reported by law enforcement when compared to figures from the same time in 2014. According to the report, property crime was down 4.2 percent overall from 2014, and violent crime was up 1.7 percent overall.</span></p>
<p><span class="blackgraphtx">The publication features four tables—three which detail the percent change in offenses reported to law enforcement by population group, by region of the country, and by consecutive years back to 2011. The fourth table contains the number of offenses reported to law enforcement, by state, in cities with populations of more than 100,000.</span></p>
<p><span class="blackgraphtx">The full <em>Crime in the United States, 2015</em> report will be released later this year.</span></p>
<h2 id="parent-fieldname-title" class="documentFirstHeading">FBI Releases Preliminary Semiannual Crime Statistics for 2015</h2>
<p>Statistics released today in the FBI’s <em>Preliminary Semiannual Uniform Crime Report</em> revealed overall declines in the number of property crimes reported and overall increases in the number of violent crimes reported for the first six months of 2015 when compared with figures for the first six months of 2014. The report is based on information from 12,879 law enforcement agencies that submitted three to six months of comparable data to the FBI’s Uniform Crime Reporting (UCR) Program for the first six months of 2014 and 2015.</p>
<h4><em>Violent Crime</em></h4>
<ul>
<li>All of the offenses in the violent crime category—murder and non-negligent manslaughter, rape (revised definition), rape (legacy definition), aggravated assault, and robbery—showed increases when data from the first six months of 2015 were compared with data from the first six months of 2014. The number of rapes (legacy definition) increased 9.6 percent, the number of murders increased 6.2 percent, aggravated assaults increased 2.3 percent, the number of rapes (revised definition) rose 1.1 percent, and robbery offenses were up 0.3 percent.</li>
<li>Violent crime increased in all but two city groupings. In cities with populations from 50,000 to 99,999 inhabitants, violent crime was down 0.3 percent, and in cities with 500,000 to 999,999 in population, violent crime decreased 0.1 percent. The largest increase in violent crime, 5.3 percent, was noted in cities with 250,000 to 499,999 in population.</li>
<li>Violent crime decreased 3.3 percent in non-metropolitan counties but rose slightly, 0.1 percent, in metropolitan counties.</li>
<li>Violent crime increased in all but one of the nation’s four regions. These crimes were down 3.2 percent in the Northeast but increased 5.6 percent in the West, followed by rises of 1.6 percent in the South and 1.4 percent in the Midwest.</li>
</ul>
<h4><em>Property Crime</em></h4>
<ul>
<li>In the property crime category, burglary offenses dropped 9.8 percent, and larceny-theft offenses decreased 3.2 percent in the first six months of 2015 compared with the same months from 2014. Only motor vehicle theft showed an increase (1.0 percent).</li>
<li>Each of the city population groups had decreases in the overall number of property crimes. Law enforcement agencies in cities with populations under 10,000 inhabitants reported the largest decrease, 7.1 percent.</li>
<li>Property crime decreased 12.3 percent in non-metropolitan counties and 6.0 percent in metropolitan counties.</li>
<li>The West was the only region to show an increase (2.4 percent) in property crime. Reports of these offenses declined 8.0 percent in the Northeast, 7.0 percent in the Midwest, and 6.4 percent in the South.</li>
</ul>
<h4><em>Arson</em></h4>
<p>In the UCR Program, arson offenses are collected separately from other property crimes. The number of arson offenses decreased 5.4 percent in the first six months of 2015 when compared with figures for the first six months of 2014. Three of the nation’s four regions reported decreases in the number of arsons. Arsons were down 14.6 percent in the Northeast, 7.1 percent in the South, and 4.4 percent in the West. However, in the Midwest, arson offenses rose 0.5 percent.</p>
<p>Arson offenses were down 14.0 percent in cities with populations under 10,000, the largest decrease within the city groupings. The only city grouping to experience an increase was in those cities with populations from 500,000 to 999,999, where arson offenses rose 11.9 percent. Arsons decreased 16.4 percent in non-metropolitan counties and 4.7 percent in metropolitan counties.</p>
<h4><em>Revised Definition of Rape</em></h4>
<p>In 2013, the FBI’s UCR Program initiated the collection of rape data under a revised definition within the Summary Based Reporting System. The term “forcible” was removed from the offense name, and the definition was changed to “penetration, no matter how slight, of the vagina or anus with any body part or object, or oral penetration by a sex organ of another person, without the consent of the victim.”</p>
<p>The number of rape incidents reported using the revised definition, as well as the number of rapes submitted using the legacy definition, are both included in this report in separate columns in each table. The rape figures for those agencies that changed from reporting rape under the legacy definition in 2014 to the revised definition in 2015 are not included in the trend calculations for Tables 1-3, but they are included in Table 4. Please note: Rape data reported for 2014 and 2015 cannot be aggregated by all agencies. Instead, two distinct groups of agencies (those reporting using the legacy definition and those reporting using the revised definition) are used for calculating trends. Therefore, the percent changes from one year to the next within each group are calculated with fewer agencies than in recent years. Offenses with fewer counts are often sensitive to minor differences when calculating trends. More information about this subject is presented in footnotes and data declarations for each table.</p>
<p>Caution against ranking: When the FBI publishes crime data via its UCR Program, some entities use the information to compile rankings of cities and counties. Such rankings, however, do not provide insight into the numerous variables that shape crime in a given town, city, county, state, tribal area, or region. These rankings lead to simplistic and/or incomplete analyses that can create misleading perceptions that adversely affect communities and their residents. Only through careful study and analyses into the range of unique conditions affecting each local law enforcement jurisdiction can data users create valid assessments of crime. The data user is, therefore, cautioned against comparing statistical data of individual reporting units from cities, metropolitan areas, states, or colleges or universities solely on the basis of their population or student enrollment.</p>
<p><a href="https://www.fbi.gov/news/pressrel/press-releases/fbi-releases-preliminary-semiannual-crime-statistics-for-2015" target="_blank" rel="noopener">Original FBI PressRelease &#8230;</a></p>

Business Email Crime: $2bn in Two Years From Scam and Fraud
<p>&#8220;<em><strong>Email scam</strong></em>&#8221; has become a widely used form of the fraudster, who made many victims in personal or business sector.</p>
<p>A scam termed &#8220;CEO fraud&#8221; or &#8220;business email crime&#8221; has proven costly for businesses across the globe. According to the FBI, losses incurred from this scam have cost companies more than $2bn (£1.43bn, €1.81bn) over the past two years.</p>
<p>Under their modus operandi, criminals impersonate email accounts of chief executives and ask employees to transfer money to an overseas bank account, which results in the money being lost by the time the company realises it has been duped.</p>
<p>According to FBI, there has been a sharp rise <a href="https://www.fraudswatch.com/category/email-scams-examples/">in such scams</a>. While $1.2bn was lost between October 2013 and August 2015, through the scam globally, the losses increased by an additional $800m over the last six months. More than 12,000 companies have fallen prey to this scam.</p>
<figure id="attachment_27347" aria-describedby="caption-attachment-27347" style="width: 300px" class="wp-caption alignleft"><img class="wp-image-27347 size-medium" src="https://www.fraudswatch.com/wp-content/uploads/2016/02/business-email-crime-2-1-1-300x236.jpg" alt="Business Email Crime" width="300" height="236" /><figcaption id="caption-attachment-27347" class="wp-caption-text">Business Email Crime</figcaption></figure>
<p>US authorities estimate the average amount a company has been duped of is $120,000. However, there are companies who have been defrauded by as much as $90m. The scam has been allegedly reported in as many as 108 countries. &#8220;Criminals don&#8217;t have borders and this is a global problem. It&#8217;s easy. All you need is a computer&#8221;, James Barnacle, chief of the FBI&#8217;s money laundering unit said.</p>
<p>It has been understood that offshore banks in Asia and Africa are primary places where most of the money ends up. This is because the US finds it harder in these regions to get assistance of local authorities.</p>
<p>With regards to how the FBI was working on the case, Barnacle said, &#8220;We&#8217;re working with our criminal investigation resources, our cyber resources, our international operations divisions — which is all our legal attachés overseas — and we&#8217;re working with foreign partners around the world to try to tackle this crime problem.&#8221;</p>
<p>While the FBI has found similarities between various frauds, it is yet to conclude if it is being run by one single dominant global ring. &#8220;We&#8217;re putting more resource to it. We&#8217;re trying to find those patterns,&#8221; Barnacle claimed.</p>
<p>Both large and small companies have been subjected to this racket. However, according to reports, real estate firms have become the latest to fall prey to the fraud. Criminals are trying to steal closing fees on housing sales. Apart from this, some scam emails have even requested for details of employee wages and tax statements.</p>
<p>The FBI has asked companies to take simple cost-effective steps to safeguard information in an efficient manner, such as calling the executive over the phone to confirm a transfer. <a href="http://www.ft.com/cms/s/0/83b4e9be-db16-11e5-a72f-1e7744c66818.html#axzz418uGZiNP" rel="nofollow">This follows police</a> from Italy, Spain and other European countries arresting more than 60 members of an alleged criminal group in 2015 over an email scam that duped hundreds of individuals and numerous companies, The Financial Times reported.</p>

Cross-County Insider Trading Scheme
<h2 class="node-title">Florida Man Admits Making Over $1.2 Million As Part Of Three Year, Cross-County Insider Trading Scheme</h2>
<p>TRENTON, N.J. &#8211; A professional day trader today admitted personally making more than $1.2 million in illicit profits by repeatedly trading on inside information divulged to him in violation of confidentiality agreements, U.S. Attorney Paul J. Fishman announced.</p>
<p>Paul Petrello, 54, of Boca Raton, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud.</p>
<p><strong>According to documents filed in this case and statements made in court:</strong></p>
<p><a href="https://www.fraudswatch.com/cross-county-insider-trading-scheme/cross-county-insider-trading-scheme/" rel="attachment wp-att-27328"><img class="alignright size-medium wp-image-27328" src="https://www.fraudswatch.com/wp-content/uploads/2016/02/Cross-County-Insider-Trading-Scheme-336x237.jpg" alt="Cross-County Insider Trading Scheme" width="336" height="237" /></a>On numerous occasions between May 2010 and August 2013, Petrello and others, using inside information obtained by Petrello’s friend and business associate, Steven Fishoff, 58, of Westlake Village, and Fishoff’s employees, short sold securities of at least 13 public companies.</p>
<p>For each of these offerings, Fishoff or one or more of the day traders that he employed —including his friend, Ronald Chernin, 67, of Oak Park, California, and his brother-in-law, Steven Costantin, 55, of Farmingdale, New Jersey — entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities, whereby they agreed not to disclose or trade on inside information concerning the offerings and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities.</p>
<p>In breach of the wall-crossing agreements, Fishoff tipped Petrello about the confidentially marketed offerings by advising Petrello of the stock trading symbols of the companies, as well as the timing and sometimes the pricing of the upcoming offerings. Fishoff generally provided Petrullo with the inside information in code: first, text messaging Petrello only the first two letters of the company’s stock trading symbol; and second, calling Petrello and telling him the last two letters of the symbol.</p>
<p>In addition, Fishoff also directed Petrello to pass inside information related to the stock offerings to an individual identified as “CC-1” in the information. At other times, Fishoff directly tipped CC-1 about an upcoming offering.</p>
<p>At Fishoff’s recommendation, Petrello short sold the stock of the public companies in anticipation of a drop in the stocks’ price when the stock offerings were disclosed to the public. Petrello and his conspirators traded through the accounts of their respective trading entities or through related accounts that they controlled.</p>
<p>By trading on the nonpublic information, Petrello and his conspirators gained more than $3.9 million in profits over the course of the three-year scheme, with Petrello personally making more than $1.2 million. Petrello split his profits with Fishoff, generally on a 50-50 basis, as compensation for the inside information that Fishoff provided.</p>
<p>The conspiracy count to which Petrello pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for May 25, 2016.</p>
<p>Fishoff has been indicted, and Chernin and Costantin have been charged by complaint for their own involvement in the insider trading scheme. The charges and allegations contained in the indictment and complaint are merely accusations, and defendants are presumed innocent unless and until proven guilty.</p>
<p>U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Sanjay Wadhwa.</p>
<p>The government is represented by Assistant U.S. Attorney’s Shirley U. Emehelu and Nicholas P. Grippo of the Criminal Division of the U.S. Attorney’s Office in Newark, as well as Acting Chief Barbara Ward and Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.</p>
<p>Today’s plea is part of efforts underway by President Obama’s <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="Financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="519">Financial</a> Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit <a href="http://www.stopfraud.gov/">www.StopFraud.gov</a><u>.</u></p>
<p>Defense counsel: David M. Rosenfield Esq. and Howard R. Elisofon Esq., New York</p>
<p><a href="http://www.justice.gov/usao-nj/pr/florida-man-admits-making-over-12-million-part-three-year-cross-county-insider-trading">Original PressRelease &#8230;</a></p>

Laundering in Connection with Costa Rica-Based Telemarketing Fraud Scheme
<h2 id="node-title">Ohio Man Sentenced to 108 Months in Prison for Money Laundering in Connection with Costa Rica-Based Telemarketing Fraud Scheme</h2>
<p> ;</p>
<p>An Ohio man was sentenced to 108 months in prison for his role in laundering money for a Costa Rica-based “sweepstakes fraud” scheme that victimized U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.</p>
<p>Paul R. Toth Jr., 41, of Wintersville, Ohio, was sentenced yesterday by U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina. In addition to imposing the prison sentence, Judge Conrad ordered Toth to pay $307,702 in restitution and to forfeit the same amount.</p>
<p><a href="https://www.fraudswatch.com/laundering-in-connection-with-costa-rica-based-telemarketing-fraud-scheme/ohio-man-sentenced-to-108-months-in-prison-for-money-laundering-in-connection-with-costa-rica-based-telemarketing-fraud-scheme/" rel="attachment wp-att-27324"><img class="alignright size-medium wp-image-27324" src="https://www.fraudswatch.com/wp-content/uploads/2016/02/Ohio-Man-Sentenced-to-108-Months-in-Prison-for-Money-Laundering-in-Connection-with-Costa-Rica-Based-Telemarketing-Fraud-Scheme-336x252.jpg" alt=" Laundering On Telemarketing Fraud Scheme" width="336" height="252" /></a>Toth was convicted on Aug. 4, 2015, following a two-day jury trial, of one count of conspiracy to commit money laundering and six counts of international money laundering stemming from his role in laundering money for a scheme to defraud two U.S. residents over the age of 55 out of more than $300,000 in savings. The evidence at trial showed that telemarketers in Costa Rica, who were the defendant’s co-conspirators, posed as federal agents and deceived the two victims, who were husband and wife, into believing that they had won a large monetary prize in a sweepstakes contest. The co-conspirators falsely told the victims that in order to receive the “prize,” the victims had to wire thousands of dollars to Costa Rica for a “refundable insurance fee.”</p>
<p>The evidence at trial showed that, between approximately November 2009 and November 2010, Toth was a U.S.-based “smasher,” an individual who arranges to pick up victims’ money and take it to the fraudulent telemarketing organization, who facilitated the laundering of funds received from the elderly victims. Specifically, according to trial evidence, Toth and others he recruited and supervised received more than $300,000 from victims and, using various individuals as senders and recipients to conceal the fraudulent nature of the transactions, wired more than $200,000 to co-conspirators in Costa Rica. The evidence further demonstrated that Toth kept the remainder as his profit.</p>
<p>The U.S. Postal Inspection Service, Internal Revenue Service, FBI, Federal Trade Commission and Department of Homeland Security investigated the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorneys William H. Bowne and Anna Kaminska of the Criminal Division’s Fraud Section prosecuted the case.</p>

Case Of The Stolen U.S. Treasury Checks and Identity Theft Ring
<h1 class="node-title">Eighteen Individuals Sentenced for Running Stolen U.S. Treasury Checks and Identity Theft Ring</h1>
<div class="field field--name-field-pr-body field--type-text-long field--label-hidden">
<div class="field__items">
<div class="field__item even">
<p> <a href="https://www.fraudswatch.com/case-of-the-stolen-u-s-treasury-checks-and-identity-theft-ring/u-s-treasury-checks-and-identity-theft-ring/" rel="attachment wp-att-27318"><img class="alignright size-full wp-image-27318" src="https://www.fraudswatch.com/wp-content/uploads/2016/02/U.S.-Treasury-Checks-and-Identity-Theft-Ring.jpg" alt="U.S. Treasury Checks and Identity Theft Ring" width="294" height="171" /></a>Eighteen defendants have been sentenced in a large, stolen U.S. Treasury check and identity theft ring. The defendants ran an elaborate scheme that obtained stolen checks, manufactured fake Georgia driver’s licenses to use in cashing the stolen checks, and opened credit card accounts in the names of unsuspecting victims.</p>
<p>“Fraud and identity theft crimes are a growing problem in our community,” said U.S. Attorney John Horn. “These crimes have long-lasting effects on the victims, destroy credit ratings and deprive victims of benefit checks they often desperately need. For many, it can take years to undo the damage caused by these schemes.”</p>
<p>“The federal prison sentences handed down to this aggressive and organized theft ring are the direct result of the efforts of a large group of committed and dedicated investigators and prosecutors that clearly saw the level of victimization to individuals, corporations, and even the U.S. government. The FBI is proud of the role that it played in bringing this case forward for the successful prosecution that now holds these individuals fully accountable for their criminal actions,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.</p>
<p>According to U.S. Attorney Horn, the charges and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to obtain and cash U.S. Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/military-scammer/" title="military" data-wpil-keyword-link="linked" data-wpil-monitor-id="373">military</a> families, and Social Security beneficiaries receiving Social Security and disability payments.</p>
<p>The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, Sayeed Valdez and Antonio Slatton sold stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta metropolitan area, such as Wal-Mart and Publix.</p>
<p>As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications. During the investigation, the government reimbursed the stores that agreed to help in the investigation by cashing the stolen checks, thus aiding law enforcement in identifying the members of the scheme.</p>
<p>In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, Sayeed Valdez and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.</p>
<p>In total, the defendants defrauded the federal government, WalâMart, and Sam’s Club of close to $1,000,000.</p>
<p>The defendants were indicted by a federal grand jury on September 11, 2014. All were convicted by either guilty plea or trial, and all but one has been sentenced. The defendants, and their charges and sentences are as follows:</p>
<p> ;</p>
<ul>
<li>Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud. He pleaded guilty and was sentenced to seven years, eight months in months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $72,182.12</li>
</ul>
<p> ;</p>
<ul>
<li>Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. She was convicted at trial and was sentenced to three years in months in prison to be followed by three years of supervised release. ;</li>
<li>Hussain Abdullah, 34, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, eight months, followed by three years supervised release and 100 hours of community service. ;</li>
<li>Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $7,325.00. ;</li>
<li>Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,684.30. ;</li>
<li>Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, seven months in prison to be followed by three years of supervised release.</li>
</ul>
<p> ;</p>
<ul>
<li>Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, ten months in prison to be followed by three years of supervised release. ;</li>
<li>Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft after pleading guilty. He was sentenced to three years, seven months in prison to be followed by three years of supervised release.</li>
</ul>
<p> ;</p>
<ul>
<li>Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another after pleading guilty. He was sentenced to three years, two months in prison to be followed by three years of supervised release.</li>
</ul>
<p> ;</p>
<ul>
<li>Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after he pleaded guilty. He was sentenced to two years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $55,623.17.</li>
</ul>
<p> ;</p>
<ul>
<li>Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to one year in prison to be followed by three years of supervised release. ;</li>
<li>Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three months in prison to be followed by three years of supervised release. ;</li>
<li>Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after entering a guilty plea. His sentencing is scheduled for April 8, 2016. ;</li>
<li>Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to five years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $118,199.16 ;</li>
<li>JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. She was sentenced to three years’ probation. ;</li>
<li>Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three years of probation.</li>
</ul>
<p> ;</p>
<ul>
<li>Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud after pleading guilty. She was sentenced to four months of a combination of community and home confinement, three years of probation and ordered to pay restitution in the amount of $5,635.47.</li>
</ul>
<p> ;</p>
<ul>
<li>Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft after pleading guilty. He was sentenced to three years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $50,929.34.</li>
</ul>
<p> ;</p>
<ul>
<li>Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail after pleading guilty. She was sentenced to 18 months of probation.</li>
</ul>
<p>This case was investigated by the Federal Bureau of Investigation. Investigative assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.</p>
<p>Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans Miller prosecuted the case.</p>
<p><a href="http://www.justice.gov/usao-ndga/pr/eighteen-individuals-sentenced-running-stolen-us-treasury-checks-and-identity-theft">Original PressRelease &#8230;</a></p>
</div>
</div>
</div>

Adult Adoption Scheme to Defraud Undocumented Immigrants
<h2 style="text-align: center;">Elk Grove Man Arrested, Charged for Adult Adoption Scheme to Defraud Undocumented Immigrants</h2>
<p><em><strong>Americans Helping America Chamber of Commerce Promised Citizenship to Members of Its “Migration Program” for a Price</strong></em></p>
<p>SACRAMENTO, Calif. — Helaman Hansen, 63, of Elk Grove, was arrested today after a federal grand jury returned a 13-count indictment charging him with conspiracy to commit mail fraud and wire fraud, 11 counts of mail fraud, and one count of wire fraud for operating a fraudulent adult-adoption program that targeted undocumented aliens, United States Attorney Benjamin B. Wagner announced.</p>
<p>According to court documents, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell members of immigrant communities memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for annual fees of $150, but that fee gradually grew and eventually was as high as $10,000.</p>
<p>According to the indictment, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their sixteenth birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and his co-conspirators induced approximately 500 victims to pay more than $500,000 to join the fraudulent program.</p>
<p>“The indictment returned today alleges a particularly predatory and manipulative type of fraud that takes advantage of the hopes and dreams of undocumented immigrants to extract fees based on false promises,” stated U.S. Attorney Wagner. “The adoption of adult aliens is not a legitimate path to U.S. citizenship. While the charges against this defendant are only allegations at this point, no one should pay fees to anyone making false promises of citizenship through adult adoption.”</p>
<p>“This alleged crime victimized vulnerable, would-be immigrants seeking a legitimate pathway to U.S. citizenship. The victims trusted an individual who misrepresented the success of adult adoption in such matters,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The Federal Bureau of Investigation is committed to work with its law enforcement partners to investigate and disrupt fraudulent schemes that exploit vulnerable people for <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="515">financial</a> gain.”</p>
<p>“It is very unfortunate that some in our communities would choose to misrepresent the American immigration system to deceive and hurt those who are trying only to make a better life for themselves and their families,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “It is our entrusted duty to hold these criminals accountable for their actions – and so we shall.”</p>
<p>This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney André M. Espinosa is prosecuting the case.</p>
<p>If convicted, Hansen faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.</p>
<p>Victims are encouraged to call the FBI at 916-977-2479.</p>
<p> ;</p>
<p>Original PressReleases From <a href="http://www.justice.gov/usao-edca/pr/elk-grove-man-arrested-charged-adult-adoption-scheme-defraud-undocumented-immigrants" target="_blank" rel="noopener">justice.gov</a> &#8230;</p>

Department of Justice Western District of Texas: $1.4 Million Ponzi Scheme
<h2 class="node-title" style="text-align: center;">Former Austin Resident Sentenced tо Federal Prison іn Connection wіth аn Estimated $1.4 Million Ponzi Scheme</h2>
<div class="field field--name-field-pr-body field--type-text-long field--label-hidden">
<div class="field__items">
<div class="field__item even">
<p>In Austin today, Rose Marie O’Reilly, 63, оf La Grange, TX, wаѕ sentenced tо 48 months іn federal prison fоr hеr role іn аn estimated $1.4 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau оf Investigation Special Agent іn Charge Christopher Combs, San Antonio Division, Internal Revenue Service-Criminal Investigation Special Agent іn Charge William Cotter, аnd Texas State Securities Board Commissioner John Morgan.</p>
<p>In addition tо thе prison term, United States District Judge Sam Sparks ordered thаt O’Reilly pay $1,463,128.50 restitution аnd tо bе рlасеd оn supervised release fоr а period оf thrее years аftеr completing hеr prison term.</p>
<figure id="attachment_21262" aria-describedby="caption-attachment-21262" style="width: 336px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/department-of-justice-western-district-of-texas-1-4-million-ponzi-scheme/ponzi-scheme/" rel="attachment wp-att-21262"><img class="wp-image-21262" src="https://www.fraudswatch.com/wp-content/uploads/2016/01/Ponzi-Scheme.jpg" alt="Ponzi Scheme" width="336" height="188" /></a><figcaption id="caption-attachment-21262" class="wp-caption-text"><em><strong>$1.4 Million Ponzi Scheme</strong></em></figcaption></figure>
<p>“O&#8217;Reilly ran а classic con wіth а dazzling twist&#8211;offering thе allure оf collectible silver antiques аnd pink diamonds. Lіkе аll Ponzi schemes, аt іtѕ core wаѕ а simple scheme tо defraud investors аnd uѕе thеіr money fоr hеr оwn gain,” ѕаіd United States Attorney Richard L. Durbin, Jr.</p>
<p>On September 23, 2015, O’Reilly pleaded guilty tо оnе count оf money laundering. Bу pleading guilty, O’Reilly admitted thаt frоm August 2007 tо August 2012, ѕhе stole money frоm investors thrоugh аn antiques аnd jewelry acquisition scheme аnd engaged іn monetary transactions wіth criminally derived property. Aссоrdіng tо court documents, O’Reilly convinced investors thаt vаrіоuѕ antiques аnd jewelry items purchased wіth thеіr investment funds соuld bе resold fоr profit. Sоmе оf thе antiques аnd jewelry pieces іn hеr scheme included thе Spratling Silver Banquet Set purportedly commissioned bу deceased Country аnd Western singer Marty Robbins. O’Reilly convinced investors thаt оnсе thе “lost” pieces wеrе reunited wіth thе set, thеу соuld thеn sell thе complete collection fоr thе anticipated price оf $21 million. O’Reilly аlѕо convinced investors thаt ѕhе соuld acquire, аnd thеn resell fоr profit, аn assortment оf pink diamond jewelry fоrmеrlу owned bу alleged Nеw Orleans mob boss Carlos Macello.</p>
<p>“The FBI wіll continue tо vigorously pursue scam artists, lіkе thе defendant, whо convince оthеrѕ tо entrust thеm wіth thеіr hard-earned money, but іnѕtеаd uѕе thаt money fоr personal gain,” ѕаіd FBI Special Agent іn Charge Christopher Combs. “This sentence ensures thаt Mrs. O’Reilly іѕ punished аnd sends thе strong message thаt investment schemes don’t pay.”</p>
<p>“The role оf IRS Criminal Investigation bесоmеѕ еvеn mоrе important іn Ponzi scheme investigations ѕuсh аѕ thіѕ due tо thе complex <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="512">financial</a> transactions thаt muѕt bе unraveled. Honest аnd law abiding citizens аrе fed uр wіth greedy individuals, ѕuсh аѕ Ms. O’Reilly, whо abuse thе trust thеу аrе granted аnd uѕе deceit аnd fraud tо line thеіr pockets wіth оthеr people’s money,” ѕаіd IRS Criminal Investigation Special Agent іn Charge William Cotter. “Today’s sentencing demonstrates thе ѕеrіоuѕ consequences оf financial crimes ѕuсh аѕ thіѕ аnd thе collective focus оf IRS-CI аnd оur partners tо holding thе perpetrators оf ѕuсh nefarious investment schemes accountable fоr thеіr actions.”</p>
<p>Thіѕ case іѕ thе result оf а joint investigation conducted bу thе FBI, IRS-Criminal Investigation, аnd thе Texas State Securities Board. Assistant United States Attorney Sharon Pierce prosecuted thіѕ case оn behalf оf thе Government.</p>
</div>
</div>
</div>

Scammers Charged In Manhattan Federal Court With Multimillion-Dollar Scheme
<h2 class="node-title">Three Individuals Charged In Manhattan Federal Court With Multimillion-Dollar Scheme To Deceive Homeowners Into Selling Their Homes</h2>
<figure id="attachment_15853" aria-describedby="caption-attachment-15853" style="width: 336px" class="wp-caption alignleft"><a href="https://www.fraudswatch.com/manhattan-federal-court-2/" rel="attachment wp-att-15853"><img class="wp-image-15853" src="https://www.fraudswatch.com/wp-content/uploads/2016/01/Manhattan-Federal-Court-1-1.jpg" alt="Manhattan Federal Court" width="336" height="209" /></a><figcaption id="caption-attachment-15853" class="wp-caption-text"><em><strong>Manhattan Federal Court</strong></em></figcaption></figure>
<p>Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and Shirin Emami, Acting Superintendent of Financial Services for the New York State Department of Financial Services (“DFS”), announced that SAMANTHA BOUBERT, CHRISTINE MAHARAJ, and OWEN REID were taken into custody this week for participating in a scheme to fraudulently induce distressed homeowners to sell their homes to a company associated with the defendants. BOUBERT was presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Henry Pitman. MAHARAJ and REID were presented yesterday afternoon in Manhattan federal court, also before U.S. Magistrate Judge Henry Pitman.</p>
<p>Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants preyed upon distressed homeowners and, through lies and front companies, tricked people into giving up their homes. The damage allegedly caused by these defendants went far beyond <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="511">financial</a> harm; as charged, their schemes often resulted in victims being evicted from their homes.”</p>
<p>FBI Assistant Director Diego Rodriguez said: “All too often, desperate homeowners fall prey to elaborate homeowner relief schemes. As alleged, the defendants knowingly exploited the vulnerabilities of their victims, making it their goal to capitalize on the misfortune of others. This behavior caused serious damage to a number of struggling families who were forced out of their homes. The FBI continues to support partnerships within the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="38">mortgage</a> industry and law enforcement as we work together to combat this serious crime.”</p>
<p>SIGTARP Inspector General Christy Goldsmith Romero said: “As part of TARP, the government implemented the Making Home Affordable (MHA) program which contains many free mortgage assistance programs for distressed homeowners. For homeowners seeking mortgage modifications, the Home Affordable Modification Program (HAMP) is available and, like the other government programs, it is free to apply. Homeowners need to avoid anyone asking to take the title to their home, or selling their home as part of a <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="183">loan</a> modification or assistance program.”</p>
<p>DFS Acting Superintendent of Financial Services Shirin Emami said: “As alleged in these charges, these arrests shut down an elaborate scheme that preyed on innocent people seeking to save their homes from foreclosure. Victimizing financially distressed homeowners is a despicable crime and the Department of Financial Services will continue to aggressively investigate cases such as this. We thank the U.S. Attorney’s office for their cooperation and diligent work pursuing this matter.”</p>
<p>According to the allegations in the Complaint unsealed yesterday in Manhattan federal court:</p>
<p>From January 2013 through May 2015, SAMANTHA BOUBERT, CHRISTINE MAHARAJ, OWEN REID, and others, (collectively, the “Hillside Fraud Team”) targeted distressed homeowners in the New York City area, including the Bronx, Brooklyn, and Queens. The Hillside Fraud Team, which primarily operated from a Hillside Avenue address, tricked and coerced homeowners into selling or deeding their properties to a Hillside business they controlled.</p>
<p>The Hillside Fraud Team sent mailings to the owners of distressed properties on the letterhead of the Homeowners Assistance Services of New York (“HASNY”), inviting the homeowners to seek assistance from HASNY to avoid foreclosure and save their homes. The Hillside Fraud Team also hired telemarketers to contact homeowners and to invite them to meet with HASNY representatives to learn more about avoiding foreclosure.</p>
<p>REID and others trained and directed the telemarketers to appeal to the emotions of the owners of distressed properties. They developed a script for telemarketers to use in their calls, which included, in substance, a statement that a short sale would be a means for homeowners to lower their monthly payments and still remain in their homes.</p>
<p>Many of the homeowners who sought assistance from HASNY met with a member of the Hillside Fraud team, who typically advised the homeowner that HASNY could assist him or her with a loan modification. In other cases, homeowners were advised that a loan modification could not be completed, but a particular type of short sale could be arranged in which the homeowner would sell the property to a third party, Launch Development, and then a relative of the homeowner could repurchase the property from Launch Development within 90 days. Homeowners typically were told they could remain in their homes throughout the entire process. REID and MAHARAJ both participated in these meetings.</p>
<p>After an initial meeting with homeowners, a closing typically was scheduled during which the homeowner would meet with another co-conspirator who was described as the homeowner’s attorney for the transaction. The homeowners, who had been led to believe that they were about to receive a loan modification or would be able to transfer their property to a trusted relative, were encouraged to sign documents, which in some cases were blank. Unbeknownst to the homeowners, by signing some of those documents, they were agreeing to sell their homes to a Hillside Business – often Launch Development – and would be forced to vacate their homes soon thereafter.</p>
<p>As part of the fraud, the Hillside Fraud Team often used Uniform Commercial Code liens to coerce victims into participating in these deals. BOUBERT filed liens on homeowner properties, even when those homeowners owed no debt to a Hillside Business.</p>
<p>After purchasing a property from a homeowner, members of the Hillside Fraud Team typically appeared at the homeowner’s residence and demanded that the homeowner vacate the premises, or commenced eviction proceedings against the homeowner, or both.</p>
<p>The Hillside Fraud Team generated millions of dollars as a result of their fraudulent scheme.</p>
<p>BOUBERT, MAHARAJ, and REID are each charged with one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum term of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.</p>
<p>Amir Meiri, Mario Alvarenga, and Rajesh Maddiwar have previously been charged in connection with the Hillside Fraud, in the case United States v. Alvarenga, et al., 15 Cr. 627 (ER).</p>
<hr />
<p> ;</p>
<p>Mr. Bharara praised the outstanding work of the FBI, SIGTARP, and the New York State Department of Financial Services for their investigative efforts and ongoing support and assistance with the case.</p>
<p>The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jaimie L. Nawaday and Andrew M. Thomas are in charge of the case.</p>
<p>The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.</p>
<p>Original <a href="http://www.justice.gov/usao-sdny/pr/three-individuals-charged-manhattan-federal-court-multimillion-dollar-scheme-deceive" target="_blank" rel="noopener">PressRelease</a></p>

Ukrainian National: $10 Million Cyber Money Laundering Operation
<h3 id="parent-fieldname-title" class="documentFirstHeading">Ukrainian National Extradited from Poland to Face Charges Related to $10 Million Cyber Money Laundering Operation</h3>
<p>WASHINGTON—A Ukrainian national made his initial appearance today in federal court in Charlotte, North Carolina, after being extradited from Poland to face charges relating to a $10 million international money laundering operation, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Division.</p>
<figure id="attachment_15842" aria-describedby="caption-attachment-15842" style="width: 320px" class="wp-caption alignleft"><a href="https://www.fraudswatch.com/viktor-chostak-2/" rel="attachment wp-att-15842"><img class="wp-image-15842 size-full" src="https://www.fraudswatch.com/wp-content/uploads/2015/12/Viktor-Chostak-1-1.jpg" alt="Viktor Chostak" width="320" height="384" /></a><figcaption id="caption-attachment-15842" class="wp-caption-text"><em><strong>Viktor Chostak</strong></em></figcaption></figure>
<p><strong>Viktor Chostak</strong>, 34, of Ukraine, along with three other individuals, are charged in a 25-count indictment with conspiracy to commit money laundering, eleven counts of money laundering, conspiracy to commit computer fraud, conspiracy to transport stolen property, conspiracy to commit access device fraud, four counts of transporting stolen property and six counts of aggravated identity theft.</p>
<p>According to a redacted version of the indictment unsealed today, beginning in September 2007, Chostak and three other conspirators were members of an international money laundering organization. The organization created and operated a sophisticated online infrastructure that allowed hackers to obtain and conceal stolen money, primarily from U.S. companies’ bank accounts, and transfer it to countries outside the United States. The organization created seemingly legitimate websites for fake companies, then sent spam e-mails advertising employment opportunities. When an individual responded to the spam solicitations, the organization put the applicant through what appeared to be a legitimate hiring process. The organization falsely represented that the individual’s job was to receive payments from businesses into their personal bank accounts, withdraw the money, then wire the funds to the company’s partners overseas. In reality, the individuals merely acted as money mules, processing hackers’ stolen proceeds and wiring them out of the country to other conspirators. The organization allegedly laundered at least $10 million in stolen money from the United States overseas.</p>
<p>According to the indictment, Chostak recruited, hired and managed others who oversaw the money mule operations. Chostak also allegedly worked with computer programmers to meet the needs of the organization’s online infrastructure.</p>
<p>An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.</p>
<p>The case is being investigated by the FBI’s Charlotte Division. The Criminal Division’s Office of International Affairs also provided assistance. The case is being prosecuted by Trial Attorneys Jocelyn Aqua and Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.</p>
<p>Original Post <a href="http://www.justice.gov/usao-wdnc/pr/ukrainian-national-extradited-poland-face-charges-related-10-million-cyber-money" target="_blank" rel="noopener">PostRelease</a></p>

Ashley Mote Convicted of Counts of False Accounting and Fraud
<p><strong>A court in the United Kingdom has today sentenced former Member of European Parliament <em>Ashley Mote</em> to five years in prison. Mr Mote was found guilty of several fraud-related offences committed to the detriment of the European Parliament&#8217;s budget. The court case was triggered by an investigation of the European Anti-Fraud Office (OLAF) of 2010 and a subsequent investigation by British authorities.</strong></p>
<figure id="attachment_15832" aria-describedby="caption-attachment-15832" style="width: 336px" class="wp-caption alignleft"><a href="https://www.fraudswatch.com/ashley-mote-2/" rel="attachment wp-att-15832"><img class="wp-image-15832" src="https://www.fraudswatch.com/wp-content/uploads/2015/12/Ashley-Mote-1-1.jpg" alt="Ashley Mote" width="336" height="210" /></a><figcaption id="caption-attachment-15832" class="wp-caption-text"><em><strong>Ashley Mote</strong></em></figcaption></figure>
<p>The OLAF investigation focused on the expenditure of a part of Mr Mote&#8217;s allowances for hiring parliamentary assistance through a specific service provider. OLAF gathered evidence showing that the MEP, by presenting false and misleading documents to the European Parliament, diverted EUR 355,000 into private accounts.</p>
<p>OLAF&#8217;s investigation was closed at the end of 2010. The OLAF final report was sent to the European Parliament with a recommendation for <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="509">financial</a> recovery of the unduly claimed expenses, and to the UK judiciary with the recommendation to consider criminal proceedings.</p>
<p>The subsequent, extended, UK police investigation did not only confirm OLAF&#8217;s findings, but also revealed that more payments of the MEP&#8217;s parliamentary assistance allowance were paid on the basis of false and misleading documents which Mr Mote submitted to the Parliament.</p>
<p>On the basis of the OLAF and the UK police investigations, the trial at London&#8217;s Southwark Crown started on 20 April. The jury also heard an OLAF investigator as a witness. Mr Mote was found guilty of 11 offences in May. Today, the court sentenced Mr Mote to five years in prison.</p>
<p><em>For further details please see also:</em></p>
<ul>
<li><em>the Hampshire Constabulary&#8217;s press release: &#8220;<a title="Former MEP Ashley Mote sentenced for fraud offences" href="http://www.hampshire.police.uk/internet/news-and-appeals/2015/july/130715-opcolby-hampshire-44130073334" target="_blank" rel="noopener">Former MEP Ashley Mote sentenced for fraud offences</a>&#8220;</em></li>
<li><em>the Crown Prosecution Service&#8217;s press release on the sentence: &#8220;<a title="Ex-UKIP MEP Ashley Mote convicted of 11 counts of false accounting, fraud and related offences" href="http://www.cps.gov.uk/news/latest_news/ashley_mote_convicted/" target="_blank" rel="noopener">Ex-UKIP MEP Ashley Mote convicted of 11 counts of false accounting, fraud and related offences</a>&#8220;</em></li>
</ul>
<p>Zoë Martin, specialist prosecutor at the Crown Prosecution Service said, &#8220;Ashley Mote purported to expose fraud and promote accountability within the European Parliament. However, these values were not applied to his own blatantly dishonest actions as an MEP.</p>
<p>&#8220;Over a period of five years, Mr Mote misused his allowances as a member of the European Parliament to fund his personal expenses. This included paying off part of a bridging loan and the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="37">mortgage</a> on his home. He also used the European Parliament funds to pay his legal bills in connection with his previous fraud trial and a related civil action.&#8221;</p>

OLAF Host Training: Fraud Deterrent
<h2>OLAF and Luxembourg customs host training on communication as a fraud deterrent</h2>
<figure id="attachment_15822" aria-describedby="caption-attachment-15822" style="width: 336px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/olaf-host-training-fraud-deterrent-3/" rel="attachment wp-att-15822"><img class="wp-image-15822" src="https://www.fraudswatch.com/wp-content/uploads/2015/12/OLAF-Host-Training-Fraud-Deterrent-1-1.png" alt="OLAF Host Training Fraud Deterrent" width="336" height="234" /></a><figcaption id="caption-attachment-15822" class="wp-caption-text"><em><strong>OLAF Host Training Fraud Deterrent</strong></em></figcaption></figure>
<p><strong>With fraudulent activities costing European taxpayers several hundred million euros every year, it is crucial that the public is kept constantly informed on how to fight fraud throughout European Union (EU) Member States. That is why some 80 anti-fraud communicators from OLAF&#8217;s partner services across Europe will meet in Luxembourg from 2-4 December for the 13th training seminar of the OLAF Anti-Fraud Communicators’ Network (OAFCN). The seminar entitled &#8220;How best to communicate to deter fraud&#8221; is hosted by the European Anti-Fraud office (OLAF), in cooperation with Luxembourg Customs and Excise. It will focus on providing training on the most used communication vehicles, such as written press, TV and radio, as well as on the use of new media. Luxembourg’s Minister of Finance will open the event, which will take place during the country&#8217;s Presidency of the EU.</strong></p>
<p>The programme will open with a panel engaging representatives from various EU Institutions, national administrations and media experts in an active dialogue on communicating fraud in Europe, which will be open to the press. A second roundtable amongst anti-fraud stakeholders will address the challenges of data protection when communicating about fraud. Practical workshop sessions will equip press and communication experts with the tools to develop successful anti-fraud campaigns and to use effective media techniques and strategies to quickly and efficiently convey deterrent messages.</p>
<p>“At a time when the EU budget is facing constraints, getting anti-fraud messages across to the public is of crucial concern,” OLAF Director-General, Giovanni Kessler said. “OLAF and its partners are committed to exploiting all communication channels available to ensure European citizens know and understand our work,” he added.</p>
<p>Head of Luxembourg Customs and Excise, Pierrot Reding, said: “Informing the public about the increasing amount of fraud committed encourages citizens to denounce it, which in turn enables national law enforcement agencies to better combat fraud.”</p>
<p><strong>Background</strong></p>
<p>The <a title="OAFCN" href="http://ec.europa.eu/anti_fraud/media-corner/anti-fraud-comunicators-network/index_en.htm">OAFCN</a> was created over a decade ago and is a unique cross-European network of communication experts working on anti-fraud issues. The Network brings together Communication Officers and Spokespersons from OLAF&#8217;s operational partners in the Member States (i.e. customs, police, law enforcement agencies, Member States&#8217; Anti-Fraud Coordination Services (AFCOS) and prosecutors&#8217; offices). It plays a pivotal role in communicating the threat of fraud to the public across 28 Member States, as well as the joint efforts made by national and European authorities to combat it. It is a key platform for raising awareness and reaching out to various audiences on fraud issues. The training seminar is a biennial event hosted by OLAF together with an OAFCN partner service.</p>
<p>Original <a href="http://ec.europa.eu/anti_fraud/media-corner/press-releases/press-releases/2015/20151203_01_en.htm" target="_blank" rel="noopener">PressRelease</a></p>

ALONZO KNOWLES: Against For Unlawfully Accessing Celebrities’ Email Accounts
<h2 class="node-title">Manhattan U.S. Attorney Announces Charges Against Bahamas Man For Unlawfully Accessing Celebrities’ Email Accounts To Steal And Sell Upcoming Movie And Television Show Scripts, Personal Identification Information, And Private Videos</h2>
<p>Preet Bharara, the United States Attorney for the Southern District of New York, and Glenn Sorge, acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (“HSI”) New York, announced today the filing of a criminal complaint against ALONZO KNOWLES in connection with KNOWLES’s scheme to sell stolen scripts of upcoming movies and television shows, and the personal identification information and private, sexually explicit videos of celebrities and other professionals in the entertainment, professional sports, and media industries (the “Victims”), all of which KNOWLES obtained by gaining unlawful access to the Victims’ personal e-mail accounts. KNOWLES was arrested in New York, New York, on December 21, 2015, and charged with one count of <em><strong>criminal copyright infringement</strong></em> and one count of <em><strong>identity theft</strong></em>. He will be presented later today in Manhattan federal court in the before United States Magistrate Judge Henry B. Pitman.</p>
<p> ;</p>
<figure id="attachment_15817" aria-describedby="caption-attachment-15817" style="width: 336px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/accessing-celebrities-email-accounts-2/" rel="attachment wp-att-15817"><img class="wp-image-15817" src="https://www.fraudswatch.com/wp-content/uploads/2015/12/Accessing-Celebrities’-Email-Accounts-1-1.jpg" alt="Accessing Celebrities’ Email Accounts" width="336" height="224" /></a><figcaption id="caption-attachment-15817" class="wp-caption-text"><em><strong>Accessing Celebrities’ Email Accounts</strong></em></figcaption></figure>
<p>Manhattan U.S. Attorney Preet Bharara stated: “This case has all of the elements of the kind of blockbuster script the defendant, Alonzo Knowles, is alleged to have stolen: hacks into celebrities’ private emails, identity theft, and attempts to sell victims’ information to the highest bidder. Unfortunately, these circumstances are all too real. I want to thank HSI for their quick work to stop Knowles’s alleged intrusions and his efforts to profit from the information he stole.”</p>
<p>Acting Special Agent in Charge Glenn Sorge stated: “This arrest brings down an alleged email hacking scheme that targeted many individuals including some in the entertainment industry. As cyber-crime becomes more pervasive, this operation embodies HSIs commitment to target those who use the cyber world for illegal <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="508">financial</a> gain.”</p>
<p><strong>According to the Complaint filed today in Manhattan federal court:</strong></p>
<p>In early December 2015, representatives of an American premium cable and satellite television network (“TV Network-1”) were informed by the executive producer (the “Executive Producer”) of a popular drama television series airing on TV Network-1 (“TV Series-1”) that an individual may have obtained unauthorized access to scripts of the upcoming season of TV Series-1. In particular, a popular radio host (“Witness-1”) had contacted the Executive Producer because Witness-1 had received an unsolicited offer, by email, from an individual who offered to sell Witness-1 scripts of upcoming episodes of TV Series-1. That individual was later identified as KNOWLES. Thereafter, at the direction of law enforcement, Witness-1 introduced KNOWLES to an undercover law enforcement agent (the “UC”) who expressed interest in purchasing the scripts.</p>
<p>In videoconference calls in December 2015, KNOWLES claimed to the UC that he had “exclusive content” that was “really profitable” and worth “hundreds of thousands of dollars.” KNOWLES stated that he obtained the material directly from the Victims without their knowledge, and claimed to be able to acquire additional material from other celebrities and entertainment, sports, and media industry professionals. KNOWLES showed the UC a list of the e-mail addresses and phone numbers of at least 130 such individuals that he had in his possession.</p>
<p>KNOWLES also offered to sell the UC sexually explicit images and videos that KNOWLES had stolen from the personal e-mail accounts of such individuals, certain of whom KNOWLES specifically identified to the UC. As an example, KNOWLES provided the UC with images and a video clip that he had stolen from the personal email account of another radio host (“Victim-5”) that had been sent to Victim-5 by another individual. In addition, after the UC inquired whether KNOWLES could obtain the personal identification information of celebrities, KNOWLES provided the UC with a copy of the passport, Social Security Number, and other personal identification information of a particular film actor. In addition, KNOWLES offered to sell the UC “a very popular A list celebrity ssn along with 30 unreleased tracks towards their upcoming album.”</p>
<p>On December 21, 2015, during a meeting with the UC in New York, New York, KNOWLES claimed to use two different methods to gain unlawful access to Victims’ email accounts. One method, according to KNOWLES, involved sending a “virus” to the Victim’s computer which enabled KNOWLES to access it. The other method involved KNOWLES emailing a false notification to the Victim stating that the Victim’s email account had been hacked, and asking for the Victim’s passcodes. Either way, once KNOWLES had successfully accessed the Victim’s e-mail account, KNOWLES, unbeknownst to the Victim, changed the settings in the Victim’s e-mail account in order to maintain ongoing access to it.</p>
<p>During the December 21, 2015, meeting, KNOWLES attempted to sell to the UC, in exchange for $80,000, approximately 15 movie and television scripts that he had unlawfully obtained from the Victims, and KNOWLES also provided the UC with the Social Security Numbers of three professional athletes and a movie actress, whereupon KNOWLES was arrested.</p>
<hr />
<p>KNOWLES, 23, of Freeport, Bahamas, is charged with one count of felony criminal copyright infringement, which carries a maximum sentence of five years in prison, and one count of identity theft, which carries a maximum sentence of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.</p>
<p>Mr. Bharara praised the outstanding investigative work of the HSI. Mr. Bharara also noted that the investigation remains ongoing.</p>
<p>The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Kristy J. Greenberg is in charge of the prosecution.</p>
<p> ;</p>
<p>Original Post <a href="http://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-charges-against-bahamas-man-unlawfully-accessing-0" target="_blank" rel="noopener">PressRelease</a></p>