NY Jewelry Wholesaler Pleads Guilty in $200M Ponzi Scheme Targeting Police, Firefighters

“A suburban New York jewelry wholesaler pleaded guilty on Wednesday to fraud for running a $200 million Ponzi scheme targeting current and retired police officers and firefighters who were promised big profits from the resale of jewelry,” reports Jonathan Stempel in Reuters U.S. Legal News.

“Federal prosecutors said Gregory Altieri, 53, of Melville, New York, pleaded guilty to wire fraud and admitted to securities fraud at a hearing before U.S. District Judge Brian Cogan in Brooklyn.”

“The defendant faces up to 20 years in prison at his scheduled March 31, 2021, sentencing.”

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Receiver Settles $8M Case with Lawyers Close to Stenger in EB-5 Fraud Case

“After nearly three years of legal wrangling, 23 foreign investors in the scandal-plagued Jay Peak projects have settled with their former immigration attorneys, Carroll & Scribner,” reports Anne Galloway and Alan J. Keays in VT Digger’s Crime and Justice.

“The immigrant investors sued Ed Carroll and Mark Scribner, claiming the two attorneys gave the developers of Jay Peak the legal tools to hoodwink them.”

“The Burlington based firm had a built-in conflict of interest: Carroll & Scribner served both as corporate attorneys for Jay Peak and as immigration attorneys for the investors.”

“In a lawsuit filed in 2018, investors alleged negligence, breach of contract and breach of fiduciary duty.”

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Prominent Baltimore Lawyer Snared in Federal Racketeering Case Against Defense Attorney

“A federal grand jury has charged prominent attorney Joshua Treem and a private investigator in the racketeering case against defense attorney Kenneth Ravenell, alleging that they helped conceal Ravenell’s conduct by obtaining false statements to protect him,” reports Justin Fenton in The Baltimore Sun’s Crime.

“Ravenell, 61, has been under indictment since last fall, when he was charged with conspiracy to commit racketeering, money laundering and drug distribution for allegedly covering up and aiding the crimes of a Jamaican marijuana kingpin, Richard Byrd.”

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Disbarred Lawyer Arrested for Defrauding Clients out of $700K

“A former lawyer faces multiple charges of theft and fraud after investigators say he stole about $700,000 from clients over a period of three years,” reports 10 Tampa Bay in their Crime. section.

“According to FDLE, 52-year-old Moein Marashi from Clearwater was arrested after an investigation found he had ‘deprived clients of money entrusted to him for legal services.'”

“Marashi was a member of the Florida Bar Association from 2002 until he was disbarred in August 2019, FDLE reports. The investigation also began in 2019.”

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Insurance Lawyer’s Alleged Ripoff Scheme

“The Florida Bar has filed its fourth complaint against Miami-Dade County attorney Scot Strems, alleging that Strems and the Strems Law Firm (SLF) engaged in a pattern of duplicitous behavior and subterfuge to enroll property owners into legal services,” reports Michael Carroll in Florida Record’s Attorneys & Judges.

“In October, a court referee appointed by the state Supreme Court recommended that Strems be suspended from the practice of law for two years, as well as a one-year probationary period, over the filing of multiple property owner claims that critics say drive up premium costs for all the state’s homeowners.”

“The latest complaint, which was filed with the Florida Supreme Court on Nov. 24, alleges that Strems and his firm engaged in a series of actions involving deceit and solicitation through third parties, whom the Florida Bar refers to as “Strems Consultants.” Strems’ actions violated eight of the bar’s ethics rules, according to the complaint.”

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Longtime Leclairryan Attorney Disbarred Over Mishandling of $3M in Landamerica Case

“Bruce Matson, a prominent, longtime local bankruptcy attorney formerly of LeClairRyan, had his law license revoked last week by the Virginia State Bar after he admitted to inappropriately pocketing seven figures worth of funds from the long-dormant LandAmerica bankruptcy trust account,” reports Michael Schwartz in Richmond BizSense.

“The disbarment stems from an episode last year when it was discovered that Matson withdrew $2.8 million from the LandAmerica wind-down account and put the money into his own personal account and those of his associate Robert Smith, and their wives.”

“Matson, who has spent a portion of his nearly 40-year law career as a bankruptcy trustee, acting as the main fiduciary on often complex corporate bankruptcy cases, oversaw the untangling of LandAmerica’s collapse. The once mighty Henrico-based title insurance firm went under in a heap in 2008 as the Great Recession was beginning.”

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Amazon Sues Two Influencers for Peddling Counterfeit Goods on Instagram and Tiktok

“Two influencers allegedly teamed up with nearly a dozen third-party sellers to advertise, promote and facilitate the sale of counterfeit luxury goods on Amazon, according to a lawsuit the company filed Thursday,” reports Annie Palmer in CNBC’s Tech.

“Amazon accused Kelly Fitzpatrick and Sabrina Kelly-Krejci of using Instagram, Facebook and TikTok accounts, as well as their personal websites, to promote counterfeit products being sold on Amazon. The suit, which was filed in U.S. District Court for the Western District of Washington, also names 11 individuals and businesses based in the U.S. and China that allegedly listed the counterfeit products on Amazon.”

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Husband and Wife Sentenced for International Elder Fraud Scheme

“A husband and wife were sentenced today to a combined 92 months in prison for their roles in a sophisticated fraud scheme that primarily targeted elderly Americans,” posts The U.S. Attorney’s Office in the Eastern District of Virginia.

“According to court documents, Chirag Choksi, 36, who was sentenced to 78 months in prison, and Shachi Majmudar, 36, who was sentenced to 14 months, were members of a criminal conspiracy in which members used a variety of schemes, including impersonating law enforcement officers and other government officials, to trick and coerce victims into mailing and shipping cash to other conspiracy members by convincing the victims, a disproportionate number of whom were elders, that it was in their best interests to do so.”

“These schemes generally started with automated “robocalls” from a call center in India that were designed to create a sense of urgency with unsuspecting recipients. The messages typically told the recipient that they had some sort of serious legal problem, and that if they did not immediately take a particular action demanded by the callers then there will be drastic consequences. Typically the recipients were threatened with arrest, significant financial penalties, or cessation of government benefits. The fraudsters almost invariably instructed the call recipient that, in order to prevent these dire consequences, the recipient must pay money, by wire transfer or cash, to some purported government entity. This conspiracy operated “money mule” cells in multiple states, including New Jersey, California, Indiana, Texas, Illinois and Minnesota. These money mules would receive parcels containing cash that had been sent by victims and then deposit the money in bank accounts controlled by conspirators.”

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Terminix $60M Settlement for Illegal Business Practices Targeting Alabama Customers

“Alabama Attorney General Steve Marshall announced on Thursday a historic $60 million state settlement with Terminix International in response to the company’s alleged illegal business practices targeting Alabama consumers,” reports Fox10 News.

“Officials say a statewide fund for consumer relief will be created to address Alabama consumer damages due to Terminix’s actions.”

“An investigation by the Alabama Attorney General’s office and the Alabama Department of Agriculture and Industries revealed that Terminix engaged in a pattern of collecting annual termite protection premiums from Alabama consumers, but failed to deliver or provide the termite protection services promised in the contracts consumers had with Terminix. As a result, many homes and businesses suffered termite infestation.”

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Two Men Indicted for Allegedly Operating Multimillion Dollar Sports Betting Pyramid Scheme in Las Vegas

“Two Las Vegas residents made their initial court appearances in U.S. District Court on Friday for charges in connection with a multimillion dollar investment fraud scheme,” reports the U.S. Attorney’s Office District of Nevada.

“A federal grand jury returned a 14 count indictment on Tuesday, charging John Frank Thomas III, 75, and Thomas Joseph Becker, 72, both of Las Vegas, with one count of conspiracy to commit wire fraud and 13 counts of wire fraud.”

“According to allegations in the indictment, from September 2010 to August 2019, Thomas and Becker maintained — and advertised to investors as supposed investment funds — the following entities: Sports Psychometrics; Vegas Basketball Club; Vegas Football Club; Einstein Sports Advisory; Quantum Sports Advisory; Wellington Sports Club; and Welscorp, Inc. Thomas and Becker made false representations to investors that they would use their sports betting skills and strategy to make sports bets with the investors’ money.”

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Disbarred Attorney Pleads Guilty to Stealing 9/11 Victim Compensation Funds

“… a disbarred lawyer in Westchester County, pled guilty today in White Plains federal court to stealing government funds. VILA’s plea results from his theft of approximately $1 million that the Department of Justice’s 9/11 Victim Compensation Fund (VCF) had awarded to the defendant’s client, a 9/11 first responder,” released the Southern District of New York.

“VILA was arrested on September 3, 2020, and pled guilty today before U.S. District Judge Vincent L. Briccetti.”

“Acting U.S. Attorney Audrey Strauss said: ‘As he admitted today, Gustavo Vila stole money awarded by the 9/11 Victim Compensation Fund to his client, an NYPD officer and 9/11 first responder, and falsely told the client for more than three years that the stolen money had yet to be released by the Fund. Now Gustavo Vila awaits sentencing for his crime.'”

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R.I. Man Admits to Fraudulently Seeking $4.7M in COVID-19 Stimulus Loans

“A Middletown, R.I., man currently serving a term of federal supervised release having been convicted and incarcerated for robbing four banks, admitted in federal court in Providence today to fraudulently seeking more than $4.7 million in Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” released the District of Rhode Island U.S. Attorney’s Office.

“Michael C. Moller, 41, admitted that he applied for and received nearly $600,000 in PPP loans he claimed were to be used to pay employees for a Fall River, MA, businesses he operated, ‘Top Notch Tile.’ FBI and IRS Criminal Investigation agents determined that ‘Top Notch Tile’ was not incorporated with the Massachusetts Secretary of State, nor could investigators locate any tax or bank records for the company.”

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Portsmouth Lawyer Michael Mearan Arrested on Human Trafficking Charges

“Former Portsmouth, Ohio, city council member and attorney Michael Mearan was arrested today on human trafficking, racketeering and related charges,” reports staff in Cincinnati.com The Enquirer.

“Mearan, 74, is charged with nine counts of promoting prostitution, five counts of compelling prostitution, three counts of trafficking in person and one count of engaging in a pattern of corrupt activities.”

“All the charges are felonies … Mearan faces more than 70 years in prison if convicted.”

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Goldman Sachs Agrees to Record $2.9B DOJ Settlement

“The international investment bank Goldman Sachs agreed to pay $2.9 billion and admit wrongdoing for its involvement in the plundering of an economic development fund meant to benefit Malaysia, under the terms of a settlement announced Thursday by the U.S. Justice Department,” reports Pete Williams in NBC News’ U.S. News.

“Instead of helping develop Malaysia’s economy, the fund’s overseers embezzled roughly $4 billion and bought real estate in Beverly Hills and New York, yachts, a jet and works by Vincent Van Gogh and Claude Monet, prosecutors said. Some of the money, they said, was used to cover gambling debts at Las Vegas casinos and to help finance the hit movie, ‘The Wolf of Wall Street.'”

“Goldman agreed to pay a penalty and to give back the millions in fees it earned from its work in arranging bonds for the fund managers. Goldman admitted that two former executives participated in an agreement to pay $1.6 billion in bribes to help secure the business.”

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Coral Gables Attorney Accused of Multiple Bank Robberies

“A South Florida lawyer has been arrested for his involvement in at least five robberies or attempted robberies of local banks, FBI officials said Wednesday,” was reported in NBC South Florida’s Miami Dade County.

“Aaron Honaker, 41, was arrested Tuesday night as he was attempting to enter a bank in Coral Gables, officials said.

“According to allegations in the complaint affidavit, Honaker would follow a consistent approach during his robbery attempts and succeeded twice: Honaker would walk up to a teller and ask for assistance in making a withdrawal. He would then pass a handwritten note to the teller that would say messages like, ‘don’t touch the alarm or call the police,’ ’empty all of your $50s and $100s and put it in an envelope,’ and ‘keep calm, and give me all the money in the drawer, I have a gun.’ Honaker would take his note with him on the way out of the bank.

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Software CEO Robert Brockman Charged in $2B Tax Evasion Case

“Texas tech mogul Robert T. Brockman has been charged in a $2 billion tax evasion case, the largest ever tax charge in the United States,” reports Clare Duffy in CNN Business.

“A federal grand jury returned an indictment alleging that Brockman, the CEO of software company Reynolds & Reynolds, engaged in tax evasion, wire fraud, money laundering and other crimes as part of a nearly 20-year scheme to conceal around $2 billion in income from the Internal Revenue Service and defraud investors in his software firm’s debt securities, federal authorities said in a release.”

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Chester County Judge Misused Campaign Contributions for Gambling and Personal Benefit

“The 45th Investigating Statewide Grand Jury announced charges against a Chester County magisterial district judge for using $4,000 in campaign contributions for personal benefit, which included gambling at various casinos in Pennsylvania, New Jersey and Delaware, and violating campaign reporting requirements,” reported via a press release on Josh Shapiro Attorney General’s website.

“In 2016, Cabry established the ‘Citizens for Cabry’ political action committee (PAC) in order to collect and spend campaign donations in compliance with Pennsylvania campaign finance law. Cabry submitted several campaign finance reports related to this PAC, all of which were filed, sworn to, signed, and filed by Cabry in his capacity as a magisterial district judge.”

“Cabry failed to file campaign finance reports during the fall of 2017, despite dozens of purchases being made on the PAC’s debit card for groceries, laundry services, hotel stays, and more cash withdrawals at casinos. The Grand Jury’s review of Cabry’s campaign finance records also revealed that, in 2017 alone, Cabry visited the Delaware Park Casino at least once per week, and withdrew campaign funds on several of those visits. Many reports failed to include cash withdrawals used by Cabry to gamble at various casinos.”

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Broward Attorneys Face Charges in Scheme to Steal Foreclosure Surplus Checks

“Two Broward attorneys were arrested this week for their involvement in a nearly $750,000 fraud scheme to rip off unsuspecting victims of foreclosure surplus checks, according to the Broward Sheriff’s Office,” report Brooke Baitinger Eileen Kelley in South Florida Sun Sentinel’s Crime News.

“The attorneys, Rashisa Overby and Ria Sankar-Balram, worked with Illya and Patricia Tinker, a married couple nicknamed ‘tomb raiders’ for another multimillion-dollar scheme in which they stole properties across South Florida, some of which belonged to the dead.”

“The Broward Sheriff’s Office arrested Overby and Sankar-Balram Monday. Balram was released from jail after posting a $57,000 bond. Overby who faces significantly more charges — 29 counts of fraud, money laundering and grand theft among other charges, had bond set at $140,000.”

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Baltimore Attorney Facing Federal Indictment for Attempted Extortion

“A federal grand jury has indicted Stephen L. Snyder, age 72, of Miami Beach, Florida, on the federal charges of attempted extortion and interstate travel and use of an interstate facility to carry on unlawful activity, also known as the Travel Act. Snyder was the senior partner at a Baltimore-based law firm specializing in plaintiff-side medical malpractice litigation,” released in the The United States Attorney’s Office District of Maryland.

According to the indictment “between January and October 2018, Snyder attempted to obtain $25 million from the University of Maryland Medical System (UMMS) for himself, separate and apart from any claim by one of his clients, by using threats of economic and reputational harm to UMMS and its organ transplant program. Specifically, the indictment alleges that Snyder threatened that if UMMS did not pay him $25 million, Snyder would launch a public relations campaign against UMMS that alleged, among other things, that UMMS transplanted diseased organs into unsophisticated patients without informing them of the quality of the organs they were receiving in order to generate revenue. According to the indictment, Snyder told UMMS officials that the campaign would include: a front-page article in the Baltimore Sun; other national news stories; a press conference; advertisements on the Internet, including one that would run every time someone accessed the UMMS transplant site; and at least two videos Snyder produced and would air if his demand for a $25 million payment were not met.”

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Three Defendants Charged in Multi-Million Dollar Medicare Fraud Scheme

“Three individuals were charged today in connection with a multi-million dollar Medicare fraud scheme, bringing the total number of defendants to six,” reports the Department of Justice in The United States Attorney’s Office District of Massachusetts.

The three “were each charged by Information with one count of receiving kickbacks in connection with a federal health care program.” Two “were also charged by Information with violating the HIPAA statute.”

The papers claim defendants “sold Medicare patients’ personal and medical data … worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces ‘at little to no cost.’ The call centers collected demographic and insurance information from Medicare patients.” The defendants “received more than $1.6 million… for the patient data.”

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