Tag Archives: fraud

From the Justice Department: A federal district judge in Miami has sentenced each of three South Florida residents to 220 months in prison after a jury found them guilty of orchestrating an elaborate fraud scheme that cheated U.S. manufacturers of infant formula, eye-care products, and other FDA-regulated items out of more than $100 million. Between 2013 and 2018, Johnny Grobman, …

Via press release from the Justice Department: A Florida man pleaded guilty today in the Southern District of Florida to a $6.9 million conspiracy to defraud Medicare by paying kickbacks and bribes to obtain doctors’ orders for medically unnecessary lab tests that were then billed to Medicare. The defendant exploited the COVID-19 pandemic by bundling COVID-19 testing with other forms …

The Oregonian reports: An Oregon man who created several hundred employees out of thin air and then fraudulently obtained $3.4 million in COVID-19 relief funds has been sentenced to four years in prison. Andrew Aaron Lloyd invested his ill-gotten gains and won big — eventually purchasing more than 15,000 shares of Tesla stock and 25 rental properties in Oregon and …

“I am not going to back down. This is a political hit job. Everybody knows I love a fight. I was called ‘honey badger’ for many years. You know, ‘Honey badger doesn’t give.’ “So, I’m in this for the long haul. I’m in this for the fight. I’m going to continue to fight.  This was to stop and intimidate people …

Buzzfeed News reports: Stephen Bannon, a former top aide to President Donald Trump, and Brian Kolfage, the leader of the crowdfunded “We Build The Wall” effort, have been charged with conspiracy to commit wire fraud and money laundering, federal prosecutors said Thursday. Kolfage, the criminal complaint said, “covertly took more than $350,000 in funds that has been donated to “We …

The Washington Post reports: The state of Maryland on Saturday terminated a $12.5 million contract for personal protective equipment with a firm started this spring by two well-connected Republican operatives. State officials said the company, Blue Flame Medical, failed to deliver masks and ventilators as promised and that the matter has been referred to Maryland Attorney General Brian E. Frosh …

Politico reports: In one of the first Justice Department cases of its kind, Maryland political consultant Kelley Rogers pled guilty to wire fraud today for operating multiple fraudulent political action committees that raised money from donors for conservative causes but kept much of the funds for Rogers and his associates. Rogers’ arrest and indictment took place shortly after Politico and …

From the Department of Justice: The owner and chief executive officer (CEO) of a telemedicine company pleaded guilty today for his role in one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which resulted …

The Miami Herald reports: Golfers who quit their memberships at Trump National Doral after the property’s namesake became president were aiming to lose their link to a man they do not support. Turns out they could be waiting for Trump to pay them back for the rest of their lives. Two long-time golf members who resigned weeks after Trump won …

The Detroit News reports: Donald Trump’s three eldest children were deeply involved in their father’s alleged scheme to rip off tens of thousands of Americans with bogus marketing opportunities in the years before he was elected president, according to a revised lawsuit by four would-be entrepreneurs. The group, which sued in October, filed an amended complaint Thursday that expanded claims …

Bloomberg reports: Wells Fargo will pay $575 million to settle claims made by U.S. states that the bank created phony accounts and committed other customer abuses, according to a statement by the Iowa attorney general’s office. Two years ago, Wells Fargo agreed to pay $190 million to settle federal government claims that the bank created phony customer account, and improperly …

Courthouse News reports: California is on the verge of shunning treatments that promise to “cure” patients of homosexuality through hypnosis, counseling and even electric shock sessions. The state Senate on Thursday cleared a proposal to list so-called conversion therapy as a fraudulent business practice, bringing it under the umbrella of state consumer-protection laws and opening the door for victims to …

The New York Times reports: Members of a special team at the Education Department that had been investigating widespread abuses by for-profit colleges have been marginalized, reassigned or instructed to focus on other matters, according to current and former employees. The unwinding of the team has effectively killed investigations into possibly fraudulent activities at several large for-profit colleges where top …

The Christian Post reports: Focus on the Family is defending its decision to have the Internal Revenue Service officially reclassify the Christian nonprofit as a “church,” denouncing the efforts of some to ascribe “sinister” intentions to the change. An article published in February by the liberal group People for the American Way’s Right Wing Watch site documenting Focus on the …

Miranda Blue reports at Right Wing Watch: We reported in February that Focus on the Family, the influential Religious Right organization founded by James Dobson, is now classified as a church by the IRS, meaning that it does not have to file publicly available tax documents like most nonprofits do. In response to our request, the IRS sent us copies …

Arkansas Online reports: Oren Paris III, former president of Ecclesia College in Springdale, pleaded guilty Wednesday morning to a fraud charge in a kickback scheme involving state grants for his school. Paris was scheduled to go to trial Monday alongside former state Sen. Jon Woods (R) of Springdale and consultant Randell G. Shelton Jr., formerly of Alma but currently of …

Politico reports: Florida Gov. Rick Scott is set to make a “major announcement” on April 9 amid long-running rumors he will run for U.S. Senate, according to Jackie Schutz Zeckman, Scott’s outgoing chief of staff. If Scott runs for Senate, it will set up what will be a nationally-watched race in a state with notoriously razor thin statewide election results. …

It’s been another stellar week for the Catholic Church. Here’s a roundup of just five of the separate crimes that hit my inbox in the last few days. From the National Catholic Reporter: A Saginaw, Michigan, diocesan priest, previously cleared of accusations of sexual abuse of a minor, has been caught in a police sting operation and charged with criminal …

A federal judge in Manhattan just sentenced infamous pharma douche Martin Shkreli to seven years in prison. Before the judge issued the sentence, Shkreli sobbed and begged for mercy. The Associated Press reports: “Pharma Bro” Martin Shkreli cried in court Friday as he apologized for defrauding investors while being sentenced by a federal judge. Shkreli, his cocky persona nowhere to …

CNBC reports: Convicted fraudster Martin Shkreli will have to forfeit $7.36 million to the federal government as part of his upcoming criminal sentence, a judge ruled Monday. Judge Kiyo Matsumoto said that in order to satisfy that award amount Shkreli — who was said to be completely cash-broke last year by his lawyer — must forfeit his interest in a …