Category: Fraud

Couple’s Homeless Man Generosity Story is an Alleged Fraud

After raising nearly $400,000 in donations on popular charitable giving site GoFundMe with an inspiring story of a homeless man who gave his last $20 to help a stranded woman motorist, the story is now alleged to be a fraud perpetuated by a couple in conspiracy with him.  The three have been charged with second-degree theft …

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Permanent link to this article: https://betweenthenumbers.net/2018/11/gofundme-couples-homeless-man-generosity-story-is-an-alleged-fraud/

The Many Forms of Elder Financial Abuse

American seniors, holding trillions in wealth, are increasingly targeted by fraudulent schemes to separate them from their hard earned savings.  This epidemic of elder financial abuse takes on many forms, including: Predatory Lending, often using reverse mortgage loans Pyramid or Ponzi schemes with promises of unreasonably high returns Internet/Email phishing to obtain access to bank …

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Permanent link to this article: https://betweenthenumbers.net/2018/10/the-many-forms-of-elder-financial-abuse/

SEC Charges San Diego Duo in Alleged Ponzi Scheme

The Securities and Exchange Commission (“SEC”) charged Jonny Ngo, Donato “Mick” Baca, Jr., and NL Technology, LLC with defrauding hundreds of investors by running a Ponzi scheme. A Ponzi scheme is a type of investment fraud that sustains itself by paying claimed returns to existing investors with fresh money from new investors, while also enriching …

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Permanent link to this article: https://betweenthenumbers.net/2018/10/sec-charges-san-diego-duo-in-alleged-ponzi-scheme/

Alleged Kickback Scheme at Popular Pharmacy

A universal risk to companies that employ individuals and engage outside vendors are vendor billing schemes.  The most recent instance to hit the news is an alleged kickback scheme involving advertising services provided to Rite Aid. The Central Penn Business Journal (“CPBJ”) reports that a former Rite Aid Vice President of Advertising has tentatively agreed …

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Permanent link to this article: https://betweenthenumbers.net/2018/09/alleged-kickback-scheme-at-popular-pharmacy/

After The Storms Come the Scams

While natural disasters bring out the worst elements of nature, it can bring out the best in humanity.  There is often a tremendous outpouring of support and generosity toward those affected.  Unfortunately there is also a darker underside, as the opportunity arises to take advantage of the good intentions of others or the desperation of …

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Permanent link to this article: https://betweenthenumbers.net/2018/09/after-the-storms-come-the-scams/

Tax Deduction Available for Ponzi Scheme Related Theft

The current tax season brings some small consolation to victims of Ponzi schemes and certain other financial fraud, with the Internal Revenue Service (“IRS”) allowing duped investors to obtain partial relief in the form of a theft loss tax deduction.  Internal Revenue Code (“IRC”) 165(a) provides that a theft loss incurred in a transaction entered …

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Permanent link to this article: https://betweenthenumbers.net/2018/03/tax-deduction-available-for-ponzi-scheme-related-theft/

HBO Executive Admits $1 Million Fake Vendor Fraud

A former talent relations executive at HBO has admitted to diverting nearly $1 million in production funds to a fake company she created.  The type of fraudulent billing scheme using a shell company can be accomplished with nothing more than a fictitious name and a payment destination.  In this case, the executive used the name …

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Permanent link to this article: https://betweenthenumbers.net/2016/02/hbo-executive-admits-1-million-fake-vendor-fraud/

$26 Million Settlement to Hollywood Filmmakers Over Home Video Royalties

The $26 million settlement between Universal City Studios and a class of Hollywood filmmakers has been tentatively approved.  The filmmakers believed they had been underpaid based on miscalculated royalties associated with profits from home-video sales. Unfortunately underpayment of royalties is all too common and many fail to properly manage their agreements.  One critical tool against …

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Permanent link to this article: https://betweenthenumbers.net/2015/08/26-million-settlement-to-hollywood-filmmakers-over-home-video-royalties/

Another Whistleblower Gets Multi-Millions

The Securities & Exchange Commission (“SEC”) has announced an approximately $3 million whistleblower award to an unnamed company insider who provided information to the SEC regarding a complex fraud that would otherwise been difficult to uncover. Whistleblowers who provide the SEC such information are eligible for awards of 10 to 30 percent of the money …

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Permanent link to this article: https://betweenthenumbers.net/2015/07/another-whistleblower-gets-multi-millions/

Ninth Circuit Invites More Qui Tam Cases

The US Court of Appeals for the Ninth Circuit has opened the door significantly wider for those who wish to pursue qui tam False Claims Act suits by reversing a dismissal of two such matters.  Ruling en banc in United States ex rel. Hartpence v. Kinetic Concepts, Inc., the Ninth Circuit has removed a prior …

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Permanent link to this article: https://betweenthenumbers.net/2015/07/ninth-circuit-invites-more-qui-tam-cases/