Tag: Fraud

Democrat Activist Faces Decades in Prison After Virginia Jury Convicts on Fraud Charges

Tom Pappert
Derickson K Lawrence

The Department of Justice (DOJ) announced on Friday the conviction of Democratic activist and former congressional candidate Derickson Lawrence of fraud charges related lies he told to obtain over $25,000 in Paycheck Protection Program (PPP) loans and the misuse of over $230,000 entrusted to his company to process another firm’s payroll.

Despite his business operating in Virginia, Lawrence ran in the Democratic Party primary to represent New York’s 16th Congressional district in 2018, ultimately losing to former Representative Eliot Engel.

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Election Irregularities, Fraud Have Led Courts to Overturn, Order Several New Elections in 2023

Just the News

At least four elections in the U.S. have been overturned by courts this year after voting irregularities and fraud were discovered, prompting new balloting in most of those races. 

In 2020 and 2022 general elections, numerous lawsuits were brought challenging results amid alleged irregularities. This year, a few lawsuits have been decided on 2023 elections and on a 2022 election, which resulted in the initial results being overturned.

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Biden Energy Department Ill-Prepared to Combat Fraud as it Spends Billions on Infrastructure

Just the News

The U.S. Energy Department faces major management challenges ranging from hacking vulnerabilities to foreign espionage and could create “massive new risks to the taxpayer” as it spends tens of billions of dollars in new spending from President Joe Biden’s signature infrastructure initiative, the agency’s internal watchdog warns.

The Office of Inspector General offered a stark assessment of the department under Secretary Jennifer Granholm, pointedly warning losses from fraud in the current infrastructure spending could mirror that seen during the COVID pandemic, where taxpayers now lost an estimated $200 billion government wide.

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Dr. Malone: Pfizer and Moderna Committed Fraud by Not Disclosing to Regulators COVID Jabs Contaminated with DNA Fragments

Admin

Pfizer and Moderna’s lack of transparency regarding DNA contamination in its COVID-19 shots “meets the criteria for evidence of fraud,” according to the doctor who invented the mRNA vaccine technology upon which the products are based.

“They [Pfizer and Moderna] absolutely did know about the existence of SV40 sequences,” vaccinologist Dr. Robert Malone told Republican lawmakers during a livestream House hearing Monday. Rep. Marjorie Taylor Greene (R-Ga.) led the event to examine injuries and deaths caused by COVID-19 vaccinations.

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Arizona Gov. Katie Hobbs Vetoes More Bills Including Election Policies and School Safety

Neil Jones

Arizona Governor Katie Hobbs revealed another batch of legislative actions Tuesday, including four more vetoes for Republican-led legislation.

“Katie Hobbs just vetoed my bill that would have affirmed that courts are to interpret election laws in the interests of transparency – insane,” shared State Representative Alexander Kolodin (R-Scottsdale).

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Michigan Doctor Sentenced to More Than 16 Years for His Role in Healthcare Fraud, ‘Shots-for-Pills’ Scheme

The Center Square

A Michigan doctor was sentenced to 16.5 years in prison for his part in a health care fraud scheme that billed more than $250 million in fraudulent claims to Medicare, Medicaid, and health insurance programs and illegally distributed over 6.6 million doses of opioids.

In September 2021, Francisco Patino, M.D., 68, of Wayne County, was convicted at trial in the Eastern District of Michigan of conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to defraud the United States, and pay and receive health care kickbacks, conspiracy to commit money laundering, and money laundering.

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Trump Calls for ‘Termination’ of Election rules in Constitution after Release of the Twitter Files

Just the News

Former President Donald Trump called for the termination of the Constitution’s rules regarding elections after the release of information about the suppression of the Hunter Biden laptop story in 2020.

“So, with the revelation of MASSIVE & WIDESPREAD FRAUD & DECEPTION in working closely with Big Tech Companies, the DNC, & the Democrat Party, do you throw the Presidential Election Results of 2020 OUT and declare the RIGHTFUL WINNER, or do you have a NEW ELECTION?” Trump wrote on TRUTH Social.

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Former Minnesota AG Ellison Staffers Say His Office Could Have Done More to Stop ‘Feeding Our Future’ Fraud

Admin

Attorney General Keith Ellison scrambled to defend his oversight of Feeding Our Future after two of his former staff members spoke out in a Star Tribune article published Thursday night.

The article highlights the state’s shortcomings in preventing the fraud and culminates with the analysis of two former senior members of Ellison’s team, both of whom asked to remain anonymous “for fear of retribution.”

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Ohio Secretary of State Pushes Prosecutions for Illegal Voters

Hannah Poling

Ohio Secretary of State Frank LaRose referred 75 people to the Ohio attorney general and county prosecutors for additional investigation and potential prosecution based on accusations that they illegally voted during the 2020 general election.

LaRose’s office states that individuals who allegedly voted in one state and then cast an additional vote in Ohio, violating state law, have been identified.

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Florida AG, FTC Taking Legal Action to Shut Down COVID-19 Scam Targeting Minority-Owned Small Businesses

The Center Square

Florida Attorney General Ashley Moody and the Federal Trade Commission have taken legal action to shut down what they say was a fraudulent scheme perpetrated by a company targeting minority-owned small businesses.

They filed a joint complaint in the U.S. District Court for the Middle District of Florida where Judge Marcia Morales Howard issued a temporary restraining order against the company, preventing it from doing any more business.

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Michigan GOP Gubernatorial James Craig Short on Signatures, May Not Qualify for Ballot

Cooper Moran

Michigan GOP gubernatorial candidate James Craig did not submit enough valid signatures and should not be on the state’s primary ballot, Michigan’s Bureau of Elections contended in a report.

According to the group, Craig, in addition to multiple other candidates running for various office, allegedly turned in signatures that were forged by paid circulators.

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Two Georgia Physicians Forced to Pay Millions Over Allegations of Kickback Scheme

Cooper Moran

Two physicians, and the company they manage, agreed to pay millions to settle allegations of a healthcare kickback arrangement with other doctors, according to a release from the Department of Justice.

Specifically, Paul D. Weir, John R. Morgan, and Care Plus Management will distribute $7.2 million to solve the complaint over potential violations of the Anti-Kickback Statute and False Claims Act.

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Arizona Consumers Mistreated by Predatory Lender to Receive Refunds

Kaitlin Housler
Mark Brnovich

Arizona Attorney General Mark Brnovich announced Wednesday a proposed consent judgment that will require CashCall, Inc., its owner J. Paul Reddam, and a wholly-owned subsidiary, WS Funding LLC, to pay $4.8 million in restitution to Arizona consumers who took out personal loans with interest rates as high as 169 percent, greatly exceeding that allowed under Arizona law, according to a press release by Brnovich’s office.

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Middle Tennessee Man Charged in Million-Dollar Investment Fraud Scheme

Morgan Nicole Veysey

A Middle Tennessee man was charged in a million dollar investment scheme aimed to defraud unsuspecting investors, the Department of Justice said in a recent press release.

The Hendersonville man who also lived in Gallatin – known as Gregory Michael Vogel and Gregory Michael Schneider – was charged on eight counts of wire fraud and one count of money laundering in relation to an investment scheme. 

According to the statement, Vogel was arrested Wednesday morning by federal agents after a join investigation by the IRS-Criminal Investigation and the United States Postal Inspection Service. 

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State Labor and Industry Department Addresses Unemployment Fraud for Pennsylvania House Committee

The Center Square

Representatives from the Pennsylvania Department of Labor & Industry and the Office of Administration discussed ongoing fraud and other issues in the commonwealth’s unemployment system Thursday during a House hearing.

Pennsylvania Secretary of Labor & Industry Jennifer Berrier told the House Labor and Industry Committee that “overall the (unemployment compensation) system is in a good place,” but acknowledged a raft of ongoing issues, from hundreds of millions of dollars stolen through fraud to large backlogs of unresolved claims and fraud cases.

Berrier said the unemployment compensation system has processed more than 611,000 claims since the modernized system went live in June, paying out about $3.4 billion in benefits. During the height of the pandemic, the department faced a backlog of 300,000 nonmonetary determinations, or those involving eligibility, that since has been whittled down to 95,000, she said.

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Ohio Attorney General Yost to Hold Forum on Elder Abuse After Esther’s Law Passed

Peter D'Abrosca

Attorney General Dave Yost (R) is holding a series of forums to spread awareness about elder abuse in the state. 

In a press release announcing the next event in the series of forums, called  “Responding to Financial Exploitation, Scams and Fraud in Facility Settings,” Yost told the following story of an Ohio senior who was bilked out of his own money:

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Smyrna, Tennessee Man Allegedly Used Paycheck Protection Program Fraud Gains to Buy a Maserati Sports Car, Semi-Trailer Truck, and More

Morgan Nicole Veysey
several $100 bills

The Department of Justice announced this week a man from Smyrna, Tennessee was charged for Paycheck Protection Program (PPP) fraud. Shawn Palmer, who is the sole owner of Palmers Transportation, Inc. was charged with a criminal information which alleges he applied for and received a PPP loan of $514,370.

According to the charging document, in June of 2020 Palmer sent documents to an individual who assisted him to apply for a PPP loan. The documents were then sent to Kabbage, Inc. which was “a lender approved by the Small Business Administration to provide funds under the program which was designed to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 pandemic.”

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Knoxville Man Sentenced to Prison for Defrauding COVID-19 Economic Relief Programs

Morgan Nicole Veysey

The Department of Justice announced this week a Knoxville, Tennessee man was arrested for defrauding COVID-19 economic relief programs. James Waylon Howell pled guilty to “engaging in more than $150,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and to committing money laundering.” He was sentenced to 18 months in prison.

“This prosecution highlights the Department of Justice’s commitment to aggressively prosecute those who have defrauded these important programs enacted to provide economic relief to those who have suffered financially as a result of the COVID-19 pandemic,” said United States Attorney Francis M. Hamilton III.  “Fortunately, the quick and capable work of our federal partners permitted the recovery of a substantial amount of stolen funds.”

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Elizabeth Holmes Guilty on Four Counts of Fraud and Conspiracy

Admin

Former Theranos CEO Elizabeth Holmes was found guilty Monday on four counts: three of wire fraud and one of conspiracy to commit wire fraud.

The jury remained deadlocked on three charges and found her not guilty on four other felony charges.

The former entrepreneur reportedly remained emotionless as the verdicts were read, The Associated Press stated. Her partner, Billy Evans, reacted similarly.

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Fraudsters Used Paycheck Protection Program Loans for Bentleys, Diamonds, Luxury Homes: Watchdog

Admin
woman on laptop with eye glasses and mug next to her

This week’s Golden Horseshoe goes to the Small Business Administration for millions in Paycheck Protection Program loans it issued to fraudsters who used the money to purchase luxury homes, high-priced jewelry and expensive cars, including a Bentley and two Lamborghinis, according to a watchdog report.

The Paycheck Protection Program had the highest percentage of cases of criminal activity of all the pandemic relief programs, according to the Pandemic Response Accountability Committee’s recent Semiannual Report to Congress.

“A total of 14 OIGs have indictments/complaints, arrests, and/or convictions from April 1, 2021, through September 30, 2021, related to the federal government’s COVID-19 pandemic response,” PRAC reported.

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In Another Viral Speech, Rep. Schweikert Says It’s About Time to Declare the Pandemic over, and Exposes Fraud and Budget Gimmicks in ‘Build Back Better’

Rachel Alexander

Just two weeks after his House floor speech on financial fraud in Congress went viral, Arizona Rep. David Schweikert (R-Ariz.) delivered another epic speech, this time focusing on COVID-19 and President Joe Biden’s Build Back Better bill. Schweikert said the country is about at the point to declare the pandemic over, and he slammed Biden’s “social spending plan” for “economic violence” against the working poor and “laced with budget gimmicks.”

Schweikert explained how the combination of several factors now means the pandemic is about over. Pfizer’s new antiviral medication, which is about to be approved by the FDA, is 89% effective and will be available to millions by January. There are at-home COVID-19 tests and multiple vaccines. He will be putting forth legislation shortly to address this developing situation.

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Arizona Rep. Schweikert’s House Speech on Fraud, Spending, and Running Out of Money Goes Viral

Rachel Alexander

Rep. David Schweikert (R-06-AZ), known as the wonky numbers member of Congress, gave a speech on the House floor a few days ago about runaway spending in Congress that has gone viral with over 1.2 million views. It’s on Social Security and Medicare running out of money and how the U.S. is headed for a dystopian future if it’s not fixed. He addressed several myths and offered solutions.

He began saying he’s about to say some things most people don’t want to hear, “We call it math.” The biggest threat over the next couple decades facing the country is demographics. “Getting older isn’t Democrat or Republican, it’s going to happen to everyone.” But he says he’s been booed for telling people the truth. “You don’t raise money telling people the truth about what’s going on.” Referring to Congress, he said, “We live in a financial fantasy world in this place … there’s a fraud around here.” 

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Tennessee Department of Commerce and Insurance Hosts Event That Educates People on How to Be Aware of Financial Fraud Schemes

Morgan Nicole Veysey

The Tennessee Department of Commerce and Insurance (TDCI) held a FaceBook Live where they discussed how to be aware of financial fraud schemes. The group, hosted by PBS Book’s Fred Nahhat, discussed how to spot scammers, 

From 2020, Donna Lowry said that “the federal trade commission recorded more than 3.3 billon dollars lost to financial fraud schemes. It was up almost double from the year before.”

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Two Corporate Executive Parents Found Guilty in First College Admissions Scandal Trial

Admin

Two corporate executive parents whose children attend prestigious universities were found guilty in federal court Friday for bribing university staff to rig the admissions process, The Wall Street Journal reported.

Gamal Abdelaziz, former chief operations officer of Wynn Resorts Development and John Wilson, a private-equity financier and former chief financial officer of Staples, who were tried together in federal court, each spent hundreds of thousands of dollars to falsify their childrens’ academic and athletic records to gain admission to the University of Southern California (USC), Stanford and Harvard as athletic recruits with the help of scandal ringleader and admissions consultant Rick Singer.

The two men were found guilty of conspiracy to commit fraud and conspiracy to commit bribery involving a school that receives federal funds, the WSJ reported. The jury also found Wilson guilty of aiding and abetting in fraud and bribery and filing a false tax return.

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Georgia Psychologist Indicted for Medicaid Fraud

The Center Square
Doctor with arms folded, holding stethescope

A Georgia man is facing a fraud charge after law enforcement officials said he stole more than $99,000 from the state’s Medicaid program.

The Georgia attorney general’s office said Gainesville psychologist Dr. Guy Jordan filed claims for therapy sessions that never happened. Jordan was indicted on Medicaid fraud and false statements charges by a Hall County Grand Jury.

“We will not stop protecting taxpayer dollars, and we thank the Hall County Grand Jury for their work on this case,” Attorney General Chris Carr said in a statement. “We hope this indictment sends a clear message that tax dollars will not be abused.”

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Two Taxpayer-Funded Feeding Sites Not Feeding Children, Tennessee Officials Say

Bradley Vasoli

Open Door, Inc. and Alumni Music, Inc., both based in Shelby County, have been determined to not be using their federal Summer Food Service Program (SFSP) funds to provide meals to children, the Tennessee Comptroller’s Office asserted Wednesday.

A probe was conducted cooperatively by the Comptroller of the Treasury and the Tennessee Department of Human Services (DHS) during summer 2020 to ascertain what nourishment the two companies were providing to minors. 

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Judge Stymies Feds’ Plan to Keep $85 Million in Raid Without Filing Criminal Charges

Admin

The feds faced another setback in their quest to keep $85 million in assets seized in a raid without charging hundreds of safe deposit box renters with a crime.

U.S. District Judge R. Gary Klausner issued a preliminary injunction July 16 in a lawsuit by several customers of Los Angeles-based U.S. Private Vaults (USPV), who alleged the FBI denied them due process by providing civil forfeiture notices that lacked “any legal basis” for seizing the contents of each box.

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Ohio May Forgive Overpaid, Fraudulent Unemployment Payments

The Center Square
Woman on computer

Ohioans victimized by unemployment fraud or were overpaid unemployment benefits during the COVID-19 pandemic could be off the hook for repaying those funds, according to the Ohio Department of Job and Family Services.

ODJFS Director Matt Damschroder said late last week if a waiver is approved, claimants will not have to repay money previously labelled as an overpayment and also could receive benefits that have been withheld because of an overpayment status.

Claimants should be notified soon of how to apply for a waiver and processing could begin later in the summer, Damschroder said.

“We understand the hardships that overpayments caused during what is already a very stressful time.” Damschroder said. “Our unemployment program is in a much better position than it was a year ago.”

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