A long scar on his left knee from one attack is a permanent reminder of why Stern decided to take the security and investigation skills he honed in the public sector into private industry 14 years ago.
Monday, December 29, 2008
Fraud Investigation Business Booms in Weak Economy
Scott Stern was shot once and stabbed four times during his 12-year military- and law-enforcement career.
A long scar on his left knee from one attack is a permanent reminder of why Stern decided to take the security and investigation skills he honed in the public sector into private industry 14 years ago.
A long scar on his left knee from one attack is a permanent reminder of why Stern decided to take the security and investigation skills he honed in the public sector into private industry 14 years ago.
Thursday, December 11, 2008
Fraud Investigator Discovers Lying Execs
Broadcom Corp. "terminated" a senior vice president whose resume listed degrees from UC Irvine that he never earned.
In a filing Tuesday with the Securities and Exchange Commission, Broadcom said the employment of Vahid Manian, senior vice president of global manufacturing operations "was terminated. A search has commenced to find his successor."
Manian, who has worked at Broadcom since 1996, earned $3.28 million in 2007, overseeing production of chips used in such products as the Apple iPhone, the Nintendo Wii and computer networking products.
In a filing Tuesday with the Securities and Exchange Commission, Broadcom said the employment of Vahid Manian, senior vice president of global manufacturing operations "was terminated. A search has commenced to find his successor."
Manian, who has worked at Broadcom since 1996, earned $3.28 million in 2007, overseeing production of chips used in such products as the Apple iPhone, the Nintendo Wii and computer networking products.
Friday, December 5, 2008
Crushing Bottle Deposit Fraud
The bottle and can return machines at Hi-Lite Super Market in Monroe are one target of a growing scam that's hitting Michigan and its beverage distributors with million-dollar losses: collecting 10-cent refunds on returnable containers for which no deposit was paid.
Conveniently just 12 miles north of the state line, the grocery is one of many shops in southern Michigan where free money is available through the "return" of nondeposit empties from beverages bought in Indiana, Ohio or other states without bottle deposit laws.
Conveniently just 12 miles north of the state line, the grocery is one of many shops in southern Michigan where free money is available through the "return" of nondeposit empties from beverages bought in Indiana, Ohio or other states without bottle deposit laws.
Monday, December 1, 2008
Scam Places "Skimmers" on ATMs
Bank card users should be cautious when using ATMs this holiday season.
The Cobb County Sheriff’s Office fraud department is investigating an ATM scam that netted two suspects $30,000.
Nikolov Nikoliy, 23, and Yordan Kavalov, 29, were arrested Nov. 6 at a Powers Ferry Road ATM location after using “skimmers” to tap into several bank card customer accounts, said Lt. Mike Reece, head of the fraud unit.
They are being held without bond.
The Cobb County Sheriff’s Office fraud department is investigating an ATM scam that netted two suspects $30,000.
Nikolov Nikoliy, 23, and Yordan Kavalov, 29, were arrested Nov. 6 at a Powers Ferry Road ATM location after using “skimmers” to tap into several bank card customer accounts, said Lt. Mike Reece, head of the fraud unit.
They are being held without bond.
Wednesday, November 26, 2008
Spam Leads $4900 Fraud
A local resident reported that she had been conned out of $4900. On November 15th, the resident made the report to Sheriff's Sgt Jason Williams.
The 47 year old female reported that she answered an e-mail about becoming a mystery shopper. She then received a package via fed-ex containing two checks, each for $2450. She was told to use $100 to shop at Wal-Mart, use $50 for gas, and keep $200 for her pay.
The 47 year old female reported that she answered an e-mail about becoming a mystery shopper. She then received a package via fed-ex containing two checks, each for $2450. She was told to use $100 to shop at Wal-Mart, use $50 for gas, and keep $200 for her pay.
Thursday, November 20, 2008
Security Firm Holding Competition for New Agents
He's all dressed up for a rumble in the jungle, or an ambush in the bush. Pretty exciting stuff for someone who works in insurance.
This fierce-looking fellow is actually an investigator of insurance fraud, a crime which costs the industry millions and leads to premium hikes for the rest of us.
He and his colleagues are called in by insurance companies to gather evidence, sometimes on video, against suspect claimants, such as those who say they are incapacitated by injury.
This fierce-looking fellow is actually an investigator of insurance fraud, a crime which costs the industry millions and leads to premium hikes for the rest of us.
He and his colleagues are called in by insurance companies to gather evidence, sometimes on video, against suspect claimants, such as those who say they are incapacitated by injury.
Friday, November 14, 2008
Mother, Daughter, and Accomplice in "Stolen" Car Scheme
Thanks to a tip from Yavapai Silent Witness and extensive follow-up by a Yavapai County Sheriff’s Office Detective, 3 suspects have been arrested for participating in an insurance fraud scheme involving the “stolen” vehicle and rims. The suspects include Chino Valley residents Tracey Tatum, age 39, Lacey Tatum, age 21, and Mayer resident Terrell Loomis, age 39.
Thursday, November 13, 2008
Washington Launches New Insurance Fraud Web Site
Washington Insurance Commissioner Mike Kreidler is using his office's Web site to help fight insurance fraud.
In an effort to protect consumers, the fraud section of the site has been expanded to educate people on how to recognize and avoid fraud, and to make reporting easier. It also features facts about fraud and examples of real cases.
"Insurance fraud is a widespread problem and many people never think about it or consider how it affects them," Kreidler said. "For example, people might think that padding an insurance claim is a victimless crime, but they're wrong. Every one of us pays more to make up for people who cheat the system.
In an effort to protect consumers, the fraud section of the site has been expanded to educate people on how to recognize and avoid fraud, and to make reporting easier. It also features facts about fraud and examples of real cases.
"Insurance fraud is a widespread problem and many people never think about it or consider how it affects them," Kreidler said. "For example, people might think that padding an insurance claim is a victimless crime, but they're wrong. Every one of us pays more to make up for people who cheat the system.
Monday, November 10, 2008
Possum Urine, Spent Syringes: Tools of Mortgage Scammers
Subprime loans are gone, but mortgage fraud is alive and well, a Freddie Mac mortgage fraud investigator says.
During the mortgage fraud boom, predatory borrowers overpriced properties, took out 100 percent financing, paid the seller a lower price and pocketed the rest. The scammer stopped paying the mortgage in a few months.
No longer, says Jenny Brawley, a mortgage fraud investigator at Freddie Mac.
“Most of my cases right now involve loans that are current,” she said this morning at the National Association of Realtors conference in Orlando
Monday, November 3, 2008
Insurance InvestigatorTip Helps Police Catch Major Fraud Ring
Asian-Americans in Flushing were targeted by an insurance fraud ring that staged fake car accidents and filed phony medical claims under the state's no-fault insurance law, Queens District Attorney Richard Brown said yesterday in announcing the indictments of 61 people across the city.
The 19-month investigation by at least 100 city police officers and FBI agents came after police received a tip from an insurance investigator in March 2007 that there was a pattern of accidents along Northern and Parsons boulevards dating back to 2005, the district attorney said at a news conference in Kew Gardens.
In "Operation Direct Hit," authorities also conducted surveillance in the Flushing area, listened in on telephone conversations between the alleged scammers and videotaped inside a Manhattan clinic where phony medical claims allegedly were filed, Brown said.
The fraud ring took advantage of the no-fault insurance law's provision that allows a person injured in an automobile crash to receive up to $50,000 for medical costs stemming from the crash. Those indicted are charged with bilking insurance carriers out of more than $1.6 million through allegedly fake medical claims, the district attorney said.
The 19-month investigation by at least 100 city police officers and FBI agents came after police received a tip from an insurance investigator in March 2007 that there was a pattern of accidents along Northern and Parsons boulevards dating back to 2005, the district attorney said at a news conference in Kew Gardens.
In "Operation Direct Hit," authorities also conducted surveillance in the Flushing area, listened in on telephone conversations between the alleged scammers and videotaped inside a Manhattan clinic where phony medical claims allegedly were filed, Brown said.
The fraud ring took advantage of the no-fault insurance law's provision that allows a person injured in an automobile crash to receive up to $50,000 for medical costs stemming from the crash. Those indicted are charged with bilking insurance carriers out of more than $1.6 million through allegedly fake medical claims, the district attorney said.
Monday, October 27, 2008
Insurance Car Crash Scam in England
An insurance-fraud gang racked up £8m by duping innocent motorists into crashing their cars.
Crooks cut their own car brake lights before stopping sharply at roundabouts - so helpless victims rammed them from behind.
The gang members then made hugely-insurance claims on the victims' policies.
They often invented whiplash injuries to fictional `passengers' and exaggerated the damage to their own cars. And hundreds of drivers across Greater Manchester and Lancashire fell victim to the `crash for cash' scam, police believe. The average claim was £20,000 per incident.
Twenty-five arrests have already taken place after a three-year probe - with more expected in coming weeks.
Crooks cut their own car brake lights before stopping sharply at roundabouts - so helpless victims rammed them from behind.
The gang members then made hugely-insurance claims on the victims' policies.
They often invented whiplash injuries to fictional `passengers' and exaggerated the damage to their own cars. And hundreds of drivers across Greater Manchester and Lancashire fell victim to the `crash for cash' scam, police believe. The average claim was £20,000 per incident.
Twenty-five arrests have already taken place after a three-year probe - with more expected in coming weeks.
Thursday, October 23, 2008
Arizona Hosts Insurance Fraud Summit
The price tag of fraudulent property and casualty insurance claims nationally is about 10 percent of insured losses," said Ron Williams, executive director of the Arizona Insurance Council. That was one figure that resulted from the largest gathering of Arizona law enforcement, government agencies and insurance representatives.
The Arizona Insurance Fraud and Vehicle Theft Summit, co-sponsored by the National Insurance Crime Bureau (NICB) and the Arizona Insurance Council (AIC) representing property and casualty insurers, took place in Phoenix on Tuesday, Oct. 21, as part of a summit to discuss insurance fraud issues, prevention tactics and public policy solutions.
The Arizona Insurance Fraud and Vehicle Theft Summit, co-sponsored by the National Insurance Crime Bureau (NICB) and the Arizona Insurance Council (AIC) representing property and casualty insurers, took place in Phoenix on Tuesday, Oct. 21, as part of a summit to discuss insurance fraud issues, prevention tactics and public policy solutions.
University of BC Sues Former Employee for Fraud
The University of B.C. is suing a former employee, alleging he stole more than $34,000 worth of materials for his own use over a six-year period.
Jan Patocka was terminated May 21 after UBC hired a private investigator and conducted an audit of purchase orders, UBC said in a statement of claim filed this week in B.C. Supreme Court.
The university alleges that Patocka had worked at the university since 1997 and held the position of minor works site supervisor from 2000 until his firing.
Jan Patocka was terminated May 21 after UBC hired a private investigator and conducted an audit of purchase orders, UBC said in a statement of claim filed this week in B.C. Supreme Court.
The university alleges that Patocka had worked at the university since 1997 and held the position of minor works site supervisor from 2000 until his firing.
Tuesday, October 21, 2008
Vehicular Arson Becoming More Common
Burdened by debt and driving home from a night of gambling in West Virginia, Sergio Lopez launched a scheme that at the time must have seemed like a good idea.
He pulled his Volkswagen Jetta up to a random corner, doused the interior with petrol, set it on fire and walked away.
He later made a claim to Nationwide Insurance. He said that the car was missing and that someone could have stolen it.
But when his bluff was uncovered, Lopez found himself standing before the law. He pleaded guilty in his case this year.
Torching cars, especially if one can't meet payments, is set to become a trend.
The Washington Post said among the offenders were:
A police officer
A firefighter
And one man who did it as a favour to a friend.
Investigators say such crimes, which now number in the hundreds, are expected to increase.
He pulled his Volkswagen Jetta up to a random corner, doused the interior with petrol, set it on fire and walked away.
He later made a claim to Nationwide Insurance. He said that the car was missing and that someone could have stolen it.
But when his bluff was uncovered, Lopez found himself standing before the law. He pleaded guilty in his case this year.
Torching cars, especially if one can't meet payments, is set to become a trend.
The Washington Post said among the offenders were:
A police officer
A firefighter
And one man who did it as a favour to a friend.
Investigators say such crimes, which now number in the hundreds, are expected to increase.
Monday, October 13, 2008
Fraudsters Get Going As The Times Get Tough
White collar crime is on the rise as the global financial crisis puts the squeeze on struggling New Zealand businesses and their executives.
Police and private investigators confirm the credit crunch has led to an increase in business fraud and employee theft, while desperate property owners and motorists are torching houses and cars in insurance scams.
Dan Thompson, director of leading investigation firm Paragon NZ, said the recent rising trend of corporate crime was similar to the aftermath of the 1987 stockmarket crash - and he predicted fraud would increase further over the next 12 months.
As the Wall St meltdown hits the New Zealand markets, Thompson said cash-strapped employees, contractors, service providers and management were resorting to fraud.
"When times get tough, people start looking after themselves. We're definitely getting a rise in investigations of people feathering their own nest," said Thompson.
"With the financial crisis, it doesn't take long for people to get worried and say, 'I've got to grab what I can'."
Police and private investigators confirm the credit crunch has led to an increase in business fraud and employee theft, while desperate property owners and motorists are torching houses and cars in insurance scams.
Dan Thompson, director of leading investigation firm Paragon NZ, said the recent rising trend of corporate crime was similar to the aftermath of the 1987 stockmarket crash - and he predicted fraud would increase further over the next 12 months.
As the Wall St meltdown hits the New Zealand markets, Thompson said cash-strapped employees, contractors, service providers and management were resorting to fraud.
"When times get tough, people start looking after themselves. We're definitely getting a rise in investigations of people feathering their own nest," said Thompson.
"With the financial crisis, it doesn't take long for people to get worried and say, 'I've got to grab what I can'."
Air Bag Fraud: Unreported "Life and Death" Scam
The next time you buy a used car or go to an auto repair shop, will your car have working air bags when you drive it away?
Lynette Loretto, a mother of three who lives in an Indian pueblo in Jemez, N.M., didn't know that the shiny yellow Chevy Cavalier she bought from a used-car dealer was a potential death trap. When she found out later that the car had been in an accident and didn't have working air bags, she says it made her skin crawl.
"I went hysterical," Loretto says. "I drove my daughters in that car a couple of times. ... If something were to have happened to us ... that would have been awful."
A Weekend Edition investigation shows that some unscrupulous auto repair shops have victimized consumers by failing to replace air bags that had deployed in a crash. The investigation also reveals instances in which used-car dealers sold cars without working air bags.
In some cases, air bag compartments have been stuffed with beer cans, paper or packing peanuts. Sometimes the original, faulty air bag is just pushed back in. And sometimes the air bag isn't replaced at all, leaving the compartment empty.
Although the number of such victims is unknown, the consequences can be tragic.
Lynette Loretto, a mother of three who lives in an Indian pueblo in Jemez, N.M., didn't know that the shiny yellow Chevy Cavalier she bought from a used-car dealer was a potential death trap. When she found out later that the car had been in an accident and didn't have working air bags, she says it made her skin crawl.
"I went hysterical," Loretto says. "I drove my daughters in that car a couple of times. ... If something were to have happened to us ... that would have been awful."
A Weekend Edition investigation shows that some unscrupulous auto repair shops have victimized consumers by failing to replace air bags that had deployed in a crash. The investigation also reveals instances in which used-car dealers sold cars without working air bags.
In some cases, air bag compartments have been stuffed with beer cans, paper or packing peanuts. Sometimes the original, faulty air bag is just pushed back in. And sometimes the air bag isn't replaced at all, leaving the compartment empty.
Although the number of such victims is unknown, the consequences can be tragic.
Monday, October 6, 2008
PETTERS GROUP CEO ARRESTED IN FRAUD INVESTIGATION
Petters Group Worldwide founder Tom Petters was arrested Friday on federal counts of fraud, money laundering and other charges.
The U.S. Attorney's Office said Petters was charged Thursday in federal court in Minneapolis with mail fraud, wire fraud, money laundering and obstruction of justice.
Federal agents searched Petters Worldwide headquarters last week. A search warrant unsealed later included an FBI affidavit alleging the 51-year-old Petters was involved in schemes to defraud investors of as much as $100 million.
An attorney for Petters, Jon Hopeman, has said he denies any wrongdoing. Hopeman didn't immediately return a call Friday.
A second defendant was also charged with Petters. Sixty-seven-year-old Larry Reynolds of Las Vegas was arrested Friday in California. Another Petters associate, Robert White, was charged Tuesday.
Petters Group Worldwide's holdings include Sun Country Airlines and Polaroid.
The U.S. Attorney's Office said Petters was charged Thursday in federal court in Minneapolis with mail fraud, wire fraud, money laundering and obstruction of justice.
Federal agents searched Petters Worldwide headquarters last week. A search warrant unsealed later included an FBI affidavit alleging the 51-year-old Petters was involved in schemes to defraud investors of as much as $100 million.
An attorney for Petters, Jon Hopeman, has said he denies any wrongdoing. Hopeman didn't immediately return a call Friday.
A second defendant was also charged with Petters. Sixty-seven-year-old Larry Reynolds of Las Vegas was arrested Friday in California. Another Petters associate, Robert White, was charged Tuesday.
Petters Group Worldwide's holdings include Sun Country Airlines and Polaroid.
Friday, October 3, 2008
Beware of Voter Registration Fraud
With a record number of people expected to go to the polls this November, the Better Business Bureau is warning about voter registration fraud. Identity thieves are using the election to try to get your personal information.
The deadline to register is October 10 and the identity thieves know that many people are unfamiliar with the process and may be voting for the first time.
Record numbers of people are expected to go to the polls this Election Day and scammers are aware of the voter registration drives that are out there. So they're using it as an opportunity to try to steal your personal information.
The scams can come from phone calls or official-looking sign-up booths but primarily, the thieves have just put a different spin on the tried-and-true phishing scams.
You get an e-mail which appears to be from some government agency saying you need to click on a link to register to vote or resolve some registration issue. You're actually being linked to a bogus site where you are asked for sensitive information
The deadline to register is October 10 and the identity thieves know that many people are unfamiliar with the process and may be voting for the first time.
Record numbers of people are expected to go to the polls this Election Day and scammers are aware of the voter registration drives that are out there. So they're using it as an opportunity to try to steal your personal information.
The scams can come from phone calls or official-looking sign-up booths but primarily, the thieves have just put a different spin on the tried-and-true phishing scams.
You get an e-mail which appears to be from some government agency saying you need to click on a link to register to vote or resolve some registration issue. You're actually being linked to a bogus site where you are asked for sensitive information
Wednesday, October 1, 2008
"Biggest Loser" Contestant a Big Loser - Indicted on Fraud Charges
A former “Biggest Loser” TV contestant from Boston who won a cool $100,000 on the show was indicted today for allegedly trying to scam insurance companies by repeatedly taking out pricey policies on jewelry after reporting that bling as stolen.
David Fioravanti, 43, who flunked out of the first season of the NBC hit show, is charged with five counts of motor vehicle insurance fraud, two counts of insurance fraud, larceny over $250, attempted larceny over $250 and making a false statement on a motor vehicle registration, Attorney General Martha Coakley’s office announced today.
Fioravanti is accused of registering his car at his mother’s address in Marshfield, where insurance premiums are cheaper, while he continued to live in Boston.
David Fioravanti, 43, who flunked out of the first season of the NBC hit show, is charged with five counts of motor vehicle insurance fraud, two counts of insurance fraud, larceny over $250, attempted larceny over $250 and making a false statement on a motor vehicle registration, Attorney General Martha Coakley’s office announced today.
Fioravanti is accused of registering his car at his mother’s address in Marshfield, where insurance premiums are cheaper, while he continued to live in Boston.
Nordstrom Arrests Result of In-Depth Investigation
Seven women accused of stealing and returning thousands of dollars of merchandise at Nordstrom stores for cash escaped notice for months, according to law enforcement investigators.
But the tide began to turn in May.
Some of the alleged thieves were store security employees, called loss prevention agents in modern retail parlance, and had a leg up on how to avoid getting caught stealing.
In fact, the alleged ringleader of the theft scheme, 26-year-old Rozita Davani, had been loss prevention manager at the King of Prussia store until she quit last spring.
Though the suspected thieves operated under the radar beginning in January, by May a seasoned Nordstrom investigator, Melissa Bridge, discovered numerous customer orders were missing, and began to unravel the alleged fraud that involved not only the King of Prussia Plaza store, but also stores in New Jersey and Maryland, according to court papers.
But the tide began to turn in May.
Some of the alleged thieves were store security employees, called loss prevention agents in modern retail parlance, and had a leg up on how to avoid getting caught stealing.
In fact, the alleged ringleader of the theft scheme, 26-year-old Rozita Davani, had been loss prevention manager at the King of Prussia store until she quit last spring.
Though the suspected thieves operated under the radar beginning in January, by May a seasoned Nordstrom investigator, Melissa Bridge, discovered numerous customer orders were missing, and began to unravel the alleged fraud that involved not only the King of Prussia Plaza store, but also stores in New Jersey and Maryland, according to court papers.
Thursday, September 25, 2008
Scammer Takes $15,000 from 2 Elderly Victims
A scammer took a combined $15,000 from two elderly residents who thought they were aiding a fraud investigation, police said.
The victims were an 84-year-old woman and a 90-year-old man, 6News' Ericka Flye reported.
The woman, newly widowed, said the pain the scammer put her through is almost too much to bear.
"You wouldn't believe what I've been through now," said the woman, who didn't want to be identified. "I think sometimes I cannot stand anymore."
The woman said a man called her and said he was a bank fraud investigator. He told her that someone tried to withdraw $6,000 from her Chase account and that he needed help in the investigation.
The woman said that the man told her to write a voided check for $7,500 and that it would be cashed in marked bills.
The victims were an 84-year-old woman and a 90-year-old man, 6News' Ericka Flye reported.
The woman, newly widowed, said the pain the scammer put her through is almost too much to bear.
"You wouldn't believe what I've been through now," said the woman, who didn't want to be identified. "I think sometimes I cannot stand anymore."
The woman said a man called her and said he was a bank fraud investigator. He told her that someone tried to withdraw $6,000 from her Chase account and that he needed help in the investigation.
The woman said that the man told her to write a voided check for $7,500 and that it would be cashed in marked bills.
Sunday, September 21, 2008
INSURERS KEEP WATCH FOR FRAUD IN HOME REPAIRS
A violent, destructive storm such as the one that hit Ohio on Sunday can bring out the best in people: neighbors - even strangers - chipping in to help one another through tough times.
It also can bring out the worst: storm-chasing contractors who descend on hard-hit areas to scam homeowners and insurance companies; normally honest people tempted to wheedle a little more than they know they deserve from insurance companies.
"We have found cases of some (contractors) causing additional damage in order to write up bigger estimates," said Mary Jo Hudson, director of the Ohio Department of Insurance.
Insurance fraud from property and casualty claims runs about $30 billion a year, according to the National Insurance Crime Bureau. This adds an equivalent amount to the premiums paid by policyholders.
There are many different types. Home or business owners who knowingly work with a contractor to artificially inflate an estimate are committing insurance fraud.
"Our claims adjusters are trained to inspect damage and know the difference between damage from hail and wind versus damage mechanically done," said Jeff Henderson, assistant vice president of claims operations for Motorists Mutual Insurance.
Such fraud, he said, could lead to a policy being voided.
Also engaging in insurance fraud are contractors who charge a fee to represent a homeowner in discussions with their insurance company or persuade them to grant them power of attorney.
"These are criminal offenses," Hudson said. "We are a law-enforcement agency and work with local prosecutors to prosecute fraud cases."
It also can bring out the worst: storm-chasing contractors who descend on hard-hit areas to scam homeowners and insurance companies; normally honest people tempted to wheedle a little more than they know they deserve from insurance companies.
"We have found cases of some (contractors) causing additional damage in order to write up bigger estimates," said Mary Jo Hudson, director of the Ohio Department of Insurance.
Insurance fraud from property and casualty claims runs about $30 billion a year, according to the National Insurance Crime Bureau. This adds an equivalent amount to the premiums paid by policyholders.
There are many different types. Home or business owners who knowingly work with a contractor to artificially inflate an estimate are committing insurance fraud.
"Our claims adjusters are trained to inspect damage and know the difference between damage from hail and wind versus damage mechanically done," said Jeff Henderson, assistant vice president of claims operations for Motorists Mutual Insurance.
Such fraud, he said, could lead to a policy being voided.
Also engaging in insurance fraud are contractors who charge a fee to represent a homeowner in discussions with their insurance company or persuade them to grant them power of attorney.
"These are criminal offenses," Hudson said. "We are a law-enforcement agency and work with local prosecutors to prosecute fraud cases."
Saturday, September 20, 2008
DETROIT COP CHARGED WITH 4 FELONIES FOR AUTO FRAUD RING
A Detroit Police officer was charged today with four felony counts in connection with an auto fraud ring that the Michigan Attorney General’s Office and Michigan State Police busted in March 2007.
Kevin Schuh, 35, of Brown City was charged today in 36th District Court with one count each of misconduct in office, a five-year felony; forging a public document, a 14-year felony; uttering and publishing a forged document, a 14-year felony; and conspiracy to commit insurance fraud, a 10-year felony.
Schuh’s name was found on several fraudulent accident reports connected to Somerset Auto.
Attorney General Mike Cox said then that the suspects enhanced collision damage, sometimes with willing participants, to defraud various auto insurance companies. The suspects also damaged cars or stole air bags to report claims without a car owner’s knowledge.
Kevin Schuh, 35, of Brown City was charged today in 36th District Court with one count each of misconduct in office, a five-year felony; forging a public document, a 14-year felony; uttering and publishing a forged document, a 14-year felony; and conspiracy to commit insurance fraud, a 10-year felony.
Schuh’s name was found on several fraudulent accident reports connected to Somerset Auto.
Attorney General Mike Cox said then that the suspects enhanced collision damage, sometimes with willing participants, to defraud various auto insurance companies. The suspects also damaged cars or stole air bags to report claims without a car owner’s knowledge.
MAN WHO FAKED DEATH GETS 2 YEARS FOR FRAUD
CHRISTCHURCH, New Zealand, Sept. 19 (UPI) -- A New Zealand man who faked his death in 2002 and used a name taken from a gravestone to build a new life was sentenced Friday to more than two years.
Bruce James Dale, 43 was convicted of insurance fraud, the New Zealand Herald reported. His estranged wife and their sons received a large life insurance payment after he was declared dead in 2004.
After leaving his car in a coastal area near Auckland, Dale adopted the name Michael Francis Peach, which belonged to a baby who had died years before 10 days after birth. He moved to Christchurch on the South Island and built up a business.
Dale was arrested this year after he applied for a passport using his real name.
In an interview, Dale said that police would have found him if anyone had made a serious effort.
"You could do what I did in a week. The police stated that I went to extreme lengths. Well, they are going to think that because they want to make it sound as if they did their job properly," he told the Herald.
At the time of his disappearance, he said, he was dealing with financial problems as well as the breakdown of his marriage. He said that he also did not get on well with most of his family, although he missed his children.
Bruce James Dale, 43 was convicted of insurance fraud, the New Zealand Herald reported. His estranged wife and their sons received a large life insurance payment after he was declared dead in 2004.
After leaving his car in a coastal area near Auckland, Dale adopted the name Michael Francis Peach, which belonged to a baby who had died years before 10 days after birth. He moved to Christchurch on the South Island and built up a business.
Dale was arrested this year after he applied for a passport using his real name.
In an interview, Dale said that police would have found him if anyone had made a serious effort.
"You could do what I did in a week. The police stated that I went to extreme lengths. Well, they are going to think that because they want to make it sound as if they did their job properly," he told the Herald.
At the time of his disappearance, he said, he was dealing with financial problems as well as the breakdown of his marriage. He said that he also did not get on well with most of his family, although he missed his children.
Tuesday, September 16, 2008
PHONY AAA EMPLOYEES TRY TO DUPE ELDERLY COUPLE IN SANTA CRUZ
Two men posing as AAA employees tried to scam an elderly couple out of almost $4,000 by telling them their car had a wobbly wheel.
Sheriff's Sgt. Fred Plageman said the Thursday afternoon incident was attempted elder abuse and credited a vigilant bank manager for scaring off the would-be thieves.
The couple, from Scotts Valley, had just finished a shopping trip to Costco in Santa Cruz and were driving out of the parking lot around 2 p.m. Thursday when a man flagged them down, according to the Sheriff's Office. He identified himself as a AAA employee, said there were mechanical problems with the couple's 1997 Toyota Camry, then shook the right rear tire and told the couple it wobbled, Plageman said.
The man then told the couple he could fix it for them but that they had to go elsewhere because he couldn't perform car repairs in the Costco parking lot. He said it would cost $3,800 up front and said that the couple could get a rebate later, according to the Sheriff's Office.
The "mechanic" then introduced a second man as his son, who drove the 84-year-old Scotts Valley man to Liberty Bank in Felton while the mechanic stayed behind in the parking lot with the man's wife, the Sheriff's Office reported.
At the bank, the manager got involved when the elderly man tried to make a large withdrawal.
"It looks like the victim and the bank manager came to the conclusion that he was being scammed," Plageman said.
When she walked toward the front of the bank and tried to write down the suspect's license plate number, he sped away so fast he nearly hit another vehicle, Plageman said.
About the same time, the mechanic told the elderly man's wife he wanted to get a drink, walked away and didn't come back. Both the mechanic and his son had been talking on their cell phones since they parted ways in the Costco parking lot, the Sheriff's Office reported.
No theft occurred and an inspection of the couple's car revealed there were no mechanical problems, Plageman said.
Sheriff's Sgt. Fred Plageman said the Thursday afternoon incident was attempted elder abuse and credited a vigilant bank manager for scaring off the would-be thieves.
The couple, from Scotts Valley, had just finished a shopping trip to Costco in Santa Cruz and were driving out of the parking lot around 2 p.m. Thursday when a man flagged them down, according to the Sheriff's Office. He identified himself as a AAA employee, said there were mechanical problems with the couple's 1997 Toyota Camry, then shook the right rear tire and told the couple it wobbled, Plageman said.
The man then told the couple he could fix it for them but that they had to go elsewhere because he couldn't perform car repairs in the Costco parking lot. He said it would cost $3,800 up front and said that the couple could get a rebate later, according to the Sheriff's Office.
The "mechanic" then introduced a second man as his son, who drove the 84-year-old Scotts Valley man to Liberty Bank in Felton while the mechanic stayed behind in the parking lot with the man's wife, the Sheriff's Office reported.
At the bank, the manager got involved when the elderly man tried to make a large withdrawal.
"It looks like the victim and the bank manager came to the conclusion that he was being scammed," Plageman said.
When she walked toward the front of the bank and tried to write down the suspect's license plate number, he sped away so fast he nearly hit another vehicle, Plageman said.
About the same time, the mechanic told the elderly man's wife he wanted to get a drink, walked away and didn't come back. Both the mechanic and his son had been talking on their cell phones since they parted ways in the Costco parking lot, the Sheriff's Office reported.
No theft occurred and an inspection of the couple's car revealed there were no mechanical problems, Plageman said.
Friday, September 12, 2008
DID ANNE HATHAWAY SQUEAL ON RAFFAELLO FOLLIERI?
Anne Hathaway’s former boyfriend, Italian entrepreneur Raffaello Follieri has pleaded guilty to all 14 counts of conspiracy, wire fraud and money laundering in a real estate investment venture this morning, saying, "I knew what I was doing was wrong," according to Access Hollywood. And Anne Hathaway is finally talking about the breakup in the October issue of W magazine.In the W interview, conducted just three weeks after Follieri's arrest, she talks about Follieri's troubles, saying, “It’s a situation where the rug was pulled out from under me all of a sudden."
But according to a story in the new issue of Vanity Fair, Anne Hathaway was still talking to Follieri just six hours before he was arrested.
She reportedly called him on his cellphone at midnight. He put her on speaker phone. When he asked her to come to his 30th birthday party on Capri, she fell silent, finally saying, “You were the love of my life. I’ll always love you. You know that, baby.”
The article poses the question: Did Hathaway -– or her advisors and/or family -– help the FBI in their investigation of Follieri? It's something Follieri is also wondering.
Vanity Fair writes that after his arrest in April, the Italian businessman believed that Hathaway’s camp was planting negative stories in the press. And Hathaway even told Follieri that her father had hired a private investigator.
Her dad, Jerry Hathaway, admitted to having a PI check him out and e-mailed Vanity Fair: “I regard my involvement in this situation, regardless of its dimensions and level of interest, as fundamentally a private matter between a daughter and her father.”
One source tells Vanity Fair that Follieri’s arrest would not have happened without the promise of a publicity prize due to his famous actress girlfriend. But who cooperated with the FBI?
But according to a story in the new issue of Vanity Fair, Anne Hathaway was still talking to Follieri just six hours before he was arrested.
She reportedly called him on his cellphone at midnight. He put her on speaker phone. When he asked her to come to his 30th birthday party on Capri, she fell silent, finally saying, “You were the love of my life. I’ll always love you. You know that, baby.”
The article poses the question: Did Hathaway -– or her advisors and/or family -– help the FBI in their investigation of Follieri? It's something Follieri is also wondering.
Vanity Fair writes that after his arrest in April, the Italian businessman believed that Hathaway’s camp was planting negative stories in the press. And Hathaway even told Follieri that her father had hired a private investigator.
Her dad, Jerry Hathaway, admitted to having a PI check him out and e-mailed Vanity Fair: “I regard my involvement in this situation, regardless of its dimensions and level of interest, as fundamentally a private matter between a daughter and her father.”
One source tells Vanity Fair that Follieri’s arrest would not have happened without the promise of a publicity prize due to his famous actress girlfriend. But who cooperated with the FBI?
Wednesday, September 10, 2008
FEDS INDICT 10 IN ALLEGED INSURANCE-FRAUD SCHEME
The owner of a Denver company and nine of his employees plotted in weekly meetings to rip off insurance companies by getting subcontractors to turn in fake, inflated bids, according to a 60-count federal indictment announced Tuesday.
Disaster Restoration Inc. routinely submitted bills to insurers that were 20 to 30 percent higher than what the company paid subcontractors, the indictment says.
It also claims that the chief operating officer, Charles "Chip" Homer Sharp, of Broomfield, threatened at least two subcontractors with violence or economic harm if they didn't go along with the scam.
DRI owner Michael Griggs said the company will defend itself against the allegations, then referred questions to his attorney, Michael Axt.
Disaster Restoration Inc. routinely submitted bills to insurers that were 20 to 30 percent higher than what the company paid subcontractors, the indictment says.
It also claims that the chief operating officer, Charles "Chip" Homer Sharp, of Broomfield, threatened at least two subcontractors with violence or economic harm if they didn't go along with the scam.
DRI owner Michael Griggs said the company will defend itself against the allegations, then referred questions to his attorney, Michael Axt.
Monday, September 8, 2008
HIRE A PRIVATE INVESTIGATOR TO PERFORM A FRAUD INVESTIGATION
A fraud investigation might be conducted in order to determine:whether or not there has been a sale of assets that were either misrepresented or fictitious;whether or not improper payments – kickbacks, illegal political donations, bribes, or payoffs – have been made from within the company;whether or not there has been some sort of intentional misrepresentation or assets, liabilities, transactions or income;whether or not there have been intentional pricing changes created to benefit the business financially;whether or not items have been deliberately left off the books; or fraud investigation may be handled by a private investigator. A private investigator may be brought in to conduct a fraud investigation to determine which asset was transferred improperly or to establish which employee may have defrauded the organization.
This can be done through deeper background checks to determine whether there are employees who had access to the assets upholstery cleaning tampa also have a criminal record. A private investigator can also conduct background checks into employees' credit histories, judgments and liens, even federal and civil records to determine whether or not red flags are present.
Often, a private investigator is called in to perform a fraud investigation after fraud has been discovered. He or she will be hired by the business to conduct full background searches upholstery cleaning service employees who may have been involved in misrepresenting assets, making improper payments, leaving items off the books or even embezzling.
In addition to a fraud investigation, a private investigator is likely to work with the business' executives to determine a plan for preventing fraud in the future. This may involve examining the policies and procedures that are currently in upholstery cleaners It may also involve implementing surveillance through cameras or by tracking programs installed on office computers.
By creating a fraud prevention strategy and by conducting a fraud investigation, a private investigator can help to put your business back on the right track.
Perhaps your business has not always taken the time to conduct thorough background investigations of applicants before hiring. Perhaps you are hoping that your business still has the opportunity to prevent fraud. Maybe you've been unfortunate memory foam air mattress and fraud has already taken place. Regardless of your situation, a fraud investigation can help to ensure that you are fully aware of what is taking place.
When that fraud investigation is conducted by a private investigator, you can also take measures to protect your business from future instances of fraud.
This can be done through deeper background checks to determine whether there are employees who had access to the assets upholstery cleaning tampa also have a criminal record. A private investigator can also conduct background checks into employees' credit histories, judgments and liens, even federal and civil records to determine whether or not red flags are present.
Often, a private investigator is called in to perform a fraud investigation after fraud has been discovered. He or she will be hired by the business to conduct full background searches upholstery cleaning service employees who may have been involved in misrepresenting assets, making improper payments, leaving items off the books or even embezzling.
In addition to a fraud investigation, a private investigator is likely to work with the business' executives to determine a plan for preventing fraud in the future. This may involve examining the policies and procedures that are currently in upholstery cleaners It may also involve implementing surveillance through cameras or by tracking programs installed on office computers.
By creating a fraud prevention strategy and by conducting a fraud investigation, a private investigator can help to put your business back on the right track.
Perhaps your business has not always taken the time to conduct thorough background investigations of applicants before hiring. Perhaps you are hoping that your business still has the opportunity to prevent fraud. Maybe you've been unfortunate memory foam air mattress and fraud has already taken place. Regardless of your situation, a fraud investigation can help to ensure that you are fully aware of what is taking place.
When that fraud investigation is conducted by a private investigator, you can also take measures to protect your business from future instances of fraud.
Wednesday, September 3, 2008
POLICE WARN OF NEW SCAM
The old adage “if it sounds too good to be true, it probably is,” holds as true today as it ever has, probably more so.
For that reason, the Chickasha Police Department wants to warn citizens to be aware of a new type of scam being perpetrated on unsuspecting victims by unscrupulous individuals.
According to Chickasha Police Chief Lynn Williams, individuals using the name of legitimate companies such as Consumer Impressions, Inc., a mystery shopper company, have cheated, or have attempted to cheat, unwary consumers out of thousands of dollars across the U. S.
“They’re ripping off people all over the country through e-mail, phone calls and the U.S. Mail,” said Williams.
The ruse is to send people a letter and a cashiers check for amounts ranging from $1,000 to $4,500 and then instructing them to cash the check and transfer all but about $300 of the money from a wire transfer facility, typically a Wal-Mart store, to an international address, often in Canada. The $300 the victim is allowed to “keep” is said to be payment for completing an assignment and/or training, according to the National Association of Mystery Shoppers.
However, within a few days, victims are notified that the check has bounced. Unfortunately, because both the check and the company that issued it are bogus, victims have no recourse and are unable to recover any of their money, leaving them liable for the entire amount, including bank fees.
Other similar scams involve mailing victims unsolicited letters and cashiers checks issued in their name for around $5,000, with instructions to call the company’s office upon receipt of the letter for further instructions. Victims are told to deposit the check into their bank account.
The company then requests that the victim wire most of the money back to them via Western Union or Money Gram, usually several thousand dollars to cover “administrative taxes,” “government taxes,” or “certificates of clearance and insurance.”
Some letters claim to be from “mystery shopper” companies, while others claim the victim has been “randomly selected by computer” and that they have won tens of thousands or even hundreds of thousands of dollars in the “2008 Power Pay Stake,” the “North American Lottery Game,” or other bogus sweepstakes. Some even make references to legitimate sweepstakes like the Publisher’s Clearing House or Reader’s Digest Sweepstakes, but are not affiliated with either organization.
One letter, for example, which included a check for $4,900 made out in the victim’s name, asked her to deposit the entire amount into her bank account and then wire $3,950 back to the company “to facilitate the delivery of (her) won large lump sum.”
According to the letter, once the “tax payment” was “processed,” a final check lump-sum payment would be delivered to her by UPS or FedEx.
However, these checks are fraudulent, leaving the victims poorer but, hopefully, wiser, after being cheated out of hundreds or even thousands of dollars, often on top of large bank fees.
In addition, these bogus companies sometimes attempt to reassure their victims about their legitimacy by advising them about their “security protocol” which will “avoid any fraudulent activity that might hinder or delay the processing and remittance “ of their prizes.
For that reason, the Chickasha Police Department wants to warn citizens to be aware of a new type of scam being perpetrated on unsuspecting victims by unscrupulous individuals.
According to Chickasha Police Chief Lynn Williams, individuals using the name of legitimate companies such as Consumer Impressions, Inc., a mystery shopper company, have cheated, or have attempted to cheat, unwary consumers out of thousands of dollars across the U. S.
“They’re ripping off people all over the country through e-mail, phone calls and the U.S. Mail,” said Williams.
The ruse is to send people a letter and a cashiers check for amounts ranging from $1,000 to $4,500 and then instructing them to cash the check and transfer all but about $300 of the money from a wire transfer facility, typically a Wal-Mart store, to an international address, often in Canada. The $300 the victim is allowed to “keep” is said to be payment for completing an assignment and/or training, according to the National Association of Mystery Shoppers.
However, within a few days, victims are notified that the check has bounced. Unfortunately, because both the check and the company that issued it are bogus, victims have no recourse and are unable to recover any of their money, leaving them liable for the entire amount, including bank fees.
Other similar scams involve mailing victims unsolicited letters and cashiers checks issued in their name for around $5,000, with instructions to call the company’s office upon receipt of the letter for further instructions. Victims are told to deposit the check into their bank account.
The company then requests that the victim wire most of the money back to them via Western Union or Money Gram, usually several thousand dollars to cover “administrative taxes,” “government taxes,” or “certificates of clearance and insurance.”
Some letters claim to be from “mystery shopper” companies, while others claim the victim has been “randomly selected by computer” and that they have won tens of thousands or even hundreds of thousands of dollars in the “2008 Power Pay Stake,” the “North American Lottery Game,” or other bogus sweepstakes. Some even make references to legitimate sweepstakes like the Publisher’s Clearing House or Reader’s Digest Sweepstakes, but are not affiliated with either organization.
One letter, for example, which included a check for $4,900 made out in the victim’s name, asked her to deposit the entire amount into her bank account and then wire $3,950 back to the company “to facilitate the delivery of (her) won large lump sum.”
According to the letter, once the “tax payment” was “processed,” a final check lump-sum payment would be delivered to her by UPS or FedEx.
However, these checks are fraudulent, leaving the victims poorer but, hopefully, wiser, after being cheated out of hundreds or even thousands of dollars, often on top of large bank fees.
In addition, these bogus companies sometimes attempt to reassure their victims about their legitimacy by advising them about their “security protocol” which will “avoid any fraudulent activity that might hinder or delay the processing and remittance “ of their prizes.
POLICE WATCHDOG UNDER FIRE OVER MISCONDUCT CASES
The Victorian watchdog charged with investigating crooked police has come under fire over its handling of misconduct within its own ranks.
The Office of Police Integrity (OPI) has been rocked by allegations a sacked investigator was forced to sign statutory declarations to cover up thousands of dollars worth of dubious expense claims.
The former OPI employee alleges his boss forced him to sign the claims to account for OPI expenses spent on meals and entertainment.
He also declared hundreds of dollars allegedly lost by his boss on poker machines as expenses for an OPI operation, code-named Uranium.
The boss at the centre of the allegations has been suspended on full pay.
The OPI has employed a private investigator to probe the claims, which will be reviewed by Victorian ombudsman George Brouwer.
The Office of Police Integrity (OPI) has been rocked by allegations a sacked investigator was forced to sign statutory declarations to cover up thousands of dollars worth of dubious expense claims.
The former OPI employee alleges his boss forced him to sign the claims to account for OPI expenses spent on meals and entertainment.
He also declared hundreds of dollars allegedly lost by his boss on poker machines as expenses for an OPI operation, code-named Uranium.
The boss at the centre of the allegations has been suspended on full pay.
The OPI has employed a private investigator to probe the claims, which will be reviewed by Victorian ombudsman George Brouwer.
Tuesday, September 2, 2008
SUV Insurance Fraud on Rise Along With Gas Prices
Insurance fraud is surging as record-high fuel prices spur cash-strapped New Yorkers to fake thefts of their gas-guzzling cars and SUVs.
Investigators from the state Insurance Department have busted 88 alleged scammers in New York City so far this year, compared to 77 during all of last year.
And nearly two dozen of this year's arrests involved fuel-hungry SUVs, four of which were found in flames.
Former NYPD detective Larry Milanesi, who has extensive experience investigating insurance fraud, said the trend was reminiscent of the 1970s, when the gas shortage led many owners to torch large cars along the Belt and Cross Island parkways.
But while gas is widely available now, the deep discounts and generous financing available on new SUVs means motorists who want to unload their gas guzzlers can't find buyers, he said.
Investigators from the state Insurance Department have busted 88 alleged scammers in New York City so far this year, compared to 77 during all of last year.
And nearly two dozen of this year's arrests involved fuel-hungry SUVs, four of which were found in flames.
Former NYPD detective Larry Milanesi, who has extensive experience investigating insurance fraud, said the trend was reminiscent of the 1970s, when the gas shortage led many owners to torch large cars along the Belt and Cross Island parkways.
But while gas is widely available now, the deep discounts and generous financing available on new SUVs means motorists who want to unload their gas guzzlers can't find buyers, he said.
Sales of Fake Auto Insurance Cards Rising
Connecticut regulators say complaints they've received signal an increase in the sale of fake auto insurance cards, and they're warning consumers not to break the law by using them.
Drivers who buy legitimate policies receive cards showing they're insured, and they're required by Connecticut law to present a card when registering a car and to keep one in their car at all times. Auto insurance is mandatory.
Fake cards have surfaced in past years, but hard economic times may be leading more people, who feel they can't afford insurance, to buy the much cheaper bogus insurance cards, the Connecticut Insurance Department says.
"While legitimate insurance coverage provides protection for you, your family, and other people injured in a motor vehicle accident, trying to use fake insurance leads only to trouble," the department says.
Bogus insurance cards can be detected because of computerized information-sharing between the Department of Motor Vehicles and insurance companies. If you let your policy lapse, for instance, your insurer will notify the state agency.
Drivers who buy legitimate policies receive cards showing they're insured, and they're required by Connecticut law to present a card when registering a car and to keep one in their car at all times. Auto insurance is mandatory.
Fake cards have surfaced in past years, but hard economic times may be leading more people, who feel they can't afford insurance, to buy the much cheaper bogus insurance cards, the Connecticut Insurance Department says.
"While legitimate insurance coverage provides protection for you, your family, and other people injured in a motor vehicle accident, trying to use fake insurance leads only to trouble," the department says.
Bogus insurance cards can be detected because of computerized information-sharing between the Department of Motor Vehicles and insurance companies. If you let your policy lapse, for instance, your insurer will notify the state agency.
Consumers Face More Insurance Fraud Schemes
A rising number of consumers are dealing with insurance-related fraud schemes on a number of fronts -- from drivers who stage low-speed crashes, to unscrupulous agents who pocket premiums, to rings of medical providers who fabricate large volumes of fake injury claims, according to experts.
The Washington-based Coalition Against Insurance Fraud is trying to alert consumers about those and other scams involving vehicle airbags, auto repair shops, windshield repairs and workers' comp.
James Quiggle, spokesman for the coalition, said agent and insurer scams are among the largest average day-to-day scams targeting consumers.
"We're seeing a growing trend of agents who steal their clients' premiums and then issue fake insurance policies to create the illusion that the client has coverage," he said.
The Washington-based Coalition Against Insurance Fraud is trying to alert consumers about those and other scams involving vehicle airbags, auto repair shops, windshield repairs and workers' comp.
James Quiggle, spokesman for the coalition, said agent and insurer scams are among the largest average day-to-day scams targeting consumers.
"We're seeing a growing trend of agents who steal their clients' premiums and then issue fake insurance policies to create the illusion that the client has coverage," he said.
Wednesday, August 27, 2008
Most People Wouldn't Report False Insurance Claim
Less than a quarter of people quizzed on their attitudes to insurance fraud would report someone for making a false claim, according to new figures.
Just 23% would report the fraud and one in seven, or 14%, believe that it is acceptable to exaggerate a claim.
More than half, 56%, of the 2,700 people questioned for a survey by researchers at ITV said they could understand why someone might make up a claim in order to clear their debts. And 22% said they would have sympathy for someone who did.
The majority of those surveyed, 89%, said that insurance companies are out to make as much money as they can from people.
But even though 13% of people said that they had thought of exaggerating a claim, only 3% admitted to actually doing it.
Just 23% would report the fraud and one in seven, or 14%, believe that it is acceptable to exaggerate a claim.
More than half, 56%, of the 2,700 people questioned for a survey by researchers at ITV said they could understand why someone might make up a claim in order to clear their debts. And 22% said they would have sympathy for someone who did.
The majority of those surveyed, 89%, said that insurance companies are out to make as much money as they can from people.
But even though 13% of people said that they had thought of exaggerating a claim, only 3% admitted to actually doing it.
Monday, August 25, 2008
Shopping offer likely a scam
Dear Troubleshooter: Thought this might be of interest to readers. Of course, I did not initiate this offer. It just appeared in my junk mail! - J. H.
For the benefit of my readers, let's explain this mailing. It is an offer to become a mystery shopper. As indicated, the letter arrived unsolicited and stated the recipient was selected to be a mystery shopper .
In addition to the letter, the mailing includes a cashier's check in the amount of $4,998 "to assist you with your assignment." The letter provides instructions for the recipient to follow with regard to their "probational training." It further says they absolutely must contact the company office immediately upon receipt.
Among the tasks the recipient is required to perform include making small purchases at two well-known retailers. However, the crux of the transaction instructs the addressee to arrange money transfers at two different financial wire services.
There's only one way to accomplish this...the recipient will have to deposit the $4998 check. Though the letter doesn't state this, there's a likelihood he'll be told to do so when he makes that required call to the company office.
There is little doubt in my mind the check is fraudulent. This opinion is re-enforced by several postings on various rip-off Web sites. Unfortunately, once the check is deposited and the "employee" carries out his mission, the money will almost surely be gone...never to be seen again. In a week or two, the bank will notify the recipient that the check was fake.
Here are some tell-tale red flags to support my opinion. The envelope contains a Canadian postmark. The company address is in South Dakota but the telephone and fax numbers contain the area code for Ontario, Canada. And finally, the check is drawn on a bank in Wyoming.
Cross-border fraud is an ever-growing problem. Unfortunately, criminals working out of Canada have often been the source for various scams. There are several cooperating government agencies on both sides of the border who work side-by-side in an effort to track down these con artists and bring them to justice.
According to the Federal Trade Commission, many mystery shopping ads promise so-called lucrative jobs but don not deliver real opportunities.
While legitimate companies do in fact hire individuals to evaluate quality of service at particular businesses, the FTC indicates it is unnecessary to pay money to someone to get into the mystery shopping business.
For the benefit of my readers, let's explain this mailing. It is an offer to become a mystery shopper. As indicated, the letter arrived unsolicited and stated the recipient was selected to be a mystery shopper .
In addition to the letter, the mailing includes a cashier's check in the amount of $4,998 "to assist you with your assignment." The letter provides instructions for the recipient to follow with regard to their "probational training." It further says they absolutely must contact the company office immediately upon receipt.
Among the tasks the recipient is required to perform include making small purchases at two well-known retailers. However, the crux of the transaction instructs the addressee to arrange money transfers at two different financial wire services.
There's only one way to accomplish this...the recipient will have to deposit the $4998 check. Though the letter doesn't state this, there's a likelihood he'll be told to do so when he makes that required call to the company office.
There is little doubt in my mind the check is fraudulent. This opinion is re-enforced by several postings on various rip-off Web sites. Unfortunately, once the check is deposited and the "employee" carries out his mission, the money will almost surely be gone...never to be seen again. In a week or two, the bank will notify the recipient that the check was fake.
Here are some tell-tale red flags to support my opinion. The envelope contains a Canadian postmark. The company address is in South Dakota but the telephone and fax numbers contain the area code for Ontario, Canada. And finally, the check is drawn on a bank in Wyoming.
Cross-border fraud is an ever-growing problem. Unfortunately, criminals working out of Canada have often been the source for various scams. There are several cooperating government agencies on both sides of the border who work side-by-side in an effort to track down these con artists and bring them to justice.
According to the Federal Trade Commission, many mystery shopping ads promise so-called lucrative jobs but don not deliver real opportunities.
While legitimate companies do in fact hire individuals to evaluate quality of service at particular businesses, the FTC indicates it is unnecessary to pay money to someone to get into the mystery shopping business.
Detroit Piston Lindsay Hunter Investigated in Mortgage Fraud
The FBI and Wayne County are investigating a fraud case that involves Lindsey Hunter and a company Hunter is a partner in.
Crain's Detroit Business: So far, Wayne County investigators consider [Hunter] a victim, with
someone else serving as what they describe as "a mastermind." The FBI, on the other hand,
according to sources close to its investigation, has him as its main focus and as a leading
participant in at least two possibly fraudulent deals that went awry.
To Bruce McClellan of Waterford Township, a boiler operator with the Pontiac Schools, there is no doubt about Hunter's role.
McClellan was duped by people claiming to represent Lindsey Hunter and talked into purchasing a home in Bloomfield Hills for 1.25 million dollars, even though Mr. McClellan made only about $35,000 a year.
Crain's Detroit Business: So far, Wayne County investigators consider [Hunter] a victim, with
someone else serving as what they describe as "a mastermind." The FBI, on the other hand,
according to sources close to its investigation, has him as its main focus and as a leading
participant in at least two possibly fraudulent deals that went awry.
To Bruce McClellan of Waterford Township, a boiler operator with the Pontiac Schools, there is no doubt about Hunter's role.
McClellan was duped by people claiming to represent Lindsey Hunter and talked into purchasing a home in Bloomfield Hills for 1.25 million dollars, even though Mr. McClellan made only about $35,000 a year.
Friday, August 22, 2008
Foreclosures Open Door to Fraud
At The Barber's Chair, in the small, quiet community of Accokeek at the far end of Prince George's County, Md., the talk often turns to the foreclosure crisis -- for good reason. Here, in the nation's most affluent majority black jurisdiction, a remarkable example of the growing wealth of the new black middle class, foreclosures are growing at one of the fastest rates in the country, and foreclosure fraud is increasing right along with it.
With locals constantly in and out, Leo Harrington, the owner, hears it all. How people who bought homes once valued at $800,000 down the the road at upscale subdivisions like The Preserves or at the one- and two-acre homesites of St. James have friends and relatives living in their basements to help pay the mortgage.
How lenders pushed deceptive and high-cost loans on first-generation homeowners, without disclosing the consequences, assuring them that home values only go up. How people bought expensive cars, timeshare vacations and boats -- and put their homes at risk. How lenders continue to target the community and push loans. And how homeowners, with years of mistrust in mainstream lenders, wait too long to get help when they fall behind on their loans, wary of trying for a short sale or a loan workout, and so fall prey to foreclosure scams.
With locals constantly in and out, Leo Harrington, the owner, hears it all. How people who bought homes once valued at $800,000 down the the road at upscale subdivisions like The Preserves or at the one- and two-acre homesites of St. James have friends and relatives living in their basements to help pay the mortgage.
How lenders pushed deceptive and high-cost loans on first-generation homeowners, without disclosing the consequences, assuring them that home values only go up. How people bought expensive cars, timeshare vacations and boats -- and put their homes at risk. How lenders continue to target the community and push loans. And how homeowners, with years of mistrust in mainstream lenders, wait too long to get help when they fall behind on their loans, wary of trying for a short sale or a loan workout, and so fall prey to foreclosure scams.
Wednesday, August 20, 2008
Man charged with insurance fraud
A Rochester man was arrested Monday for allegedly defrauding a local insurance company after claiming new damage to his vehicle that proved to be old, say police.As a result, Brian Vespa, 39, of Western Avenue has been charged with a Class A misdemeanor for insurance fraud, alleging that he defrauded his insurance agency out of $345.79.
Following his arrest, Vespa was released on $1,000 personal recognizance bail and is scheduled to be arraigned in Portsmouth District Court on Sept. 29.
Following his arrest, Vespa was released on $1,000 personal recognizance bail and is scheduled to be arraigned in Portsmouth District Court on Sept. 29.
Thursday, August 14, 2008
CREDIT CARD FRAUD
Two Buellton residents are charged with fraudulent use of a credit card, among other things, after a sheriff’s department investigation. Karen Peterson, 47, and Debra Mangino, 49 were arrested August 6.
Deputies began the investigation in early July when a Buellton resident reported that someone had used a credit card that belonged to him. Deputies learned that the person who opened accounts in Buellton and Lompoc had the victim’s social security number for verification, the sheriff’s department said in a press release.
Use of the credit card led deputies to view surveillance video of a Buellton gas station which showed the suspects using the fraudulently obtained credit card, officials said. At some point the women were neighbors of the victim, stealing his mail to get the personal information that was used in the fraud, according to deputies.
Mangino was released on a $20,000 bond after her arrest; however Peterson was unable to post her bail and remained in custody. The two appeared before Judge James Rigali in Santa Maria on Aug. 8. At that time the judge said he intended to raise the bail amount for Mangino because she had pending charges from an arrest in May for forgery and grand theft.
Mangino asked Judge Rigali for permission to make a call to a bondsman after she heard that her bail was to be raised. Rigali said she could leave the courtroom but had to stay on the courthouse grounds for her phone call. Five minutes later, when her public defender went outside to find Mangino, she had fled.
Counterfeit Scam Leaves Erwin Couple $10,000 Poorer
The Dunn Police Department is investigating two cases of counterfeit check scams, one of which has left an Erwin couple more than $10,000 in the hole.
When Kimberly Spell saw a classified ad in The Daily Record for a clerical job, she thought it was right up her alley, so she called.
The voice at the other end of the line told Mrs. Spell she had the opportunity to participate in a mystery shopper program, evaluating the customer service and efficiency of Wal-Mart's wire transfer service.
Mrs. Spell was sent a money order for $2,775, along with a checklist of criteria on which to evaluate the Wal-Mart employee. She was told to cash the money order at her own bank, keep $300 for payment and use the rest to evaluate the wire transfer service, sending it back to a fictitious relative named Tracy Spell.
When Mrs. Spell went to her bank, State Employees Credit Union in Dunn, the money order raised eyebrows only because of the unusually high amount. The branch manager was called over to inspect the check. He verified it as authentic and Mrs. Spell was given the cash.
She successfully sent the $2,475 to Laura Spell in Ontario, Canada, all the while paying careful attention to her checklist criteria and the attitude of the Wal-Mart employees.
Following the transaction, Mrs. Spell called the mystery shopper company to confirm the job was complete.
The next day, promptly at 10 a.m., a second package arrived via overnight delivery and the same routine took place again. On the third day, two checks were enclosed in the overnight envelope. On the fourth day, the company in Canada sent Mrs. Spell four checks, bringing the grand total to $23,055.
When Mrs. Spell went to her bank to start the day's work with these four checks, she was told they, along with the first four she had cashed, were all fakes. All of the checks bounced, and Mrs. Spell and her husband, Howard Spell, will be held responsible for the more than $10,000 they wired away to an unknown person in Canada.
The advertisement is no longer running in The Daily Record.
When Kimberly Spell saw a classified ad in The Daily Record for a clerical job, she thought it was right up her alley, so she called.
The voice at the other end of the line told Mrs. Spell she had the opportunity to participate in a mystery shopper program, evaluating the customer service and efficiency of Wal-Mart's wire transfer service.
Mrs. Spell was sent a money order for $2,775, along with a checklist of criteria on which to evaluate the Wal-Mart employee. She was told to cash the money order at her own bank, keep $300 for payment and use the rest to evaluate the wire transfer service, sending it back to a fictitious relative named Tracy Spell.
When Mrs. Spell went to her bank, State Employees Credit Union in Dunn, the money order raised eyebrows only because of the unusually high amount. The branch manager was called over to inspect the check. He verified it as authentic and Mrs. Spell was given the cash.
She successfully sent the $2,475 to Laura Spell in Ontario, Canada, all the while paying careful attention to her checklist criteria and the attitude of the Wal-Mart employees.
Following the transaction, Mrs. Spell called the mystery shopper company to confirm the job was complete.
The next day, promptly at 10 a.m., a second package arrived via overnight delivery and the same routine took place again. On the third day, two checks were enclosed in the overnight envelope. On the fourth day, the company in Canada sent Mrs. Spell four checks, bringing the grand total to $23,055.
When Mrs. Spell went to her bank to start the day's work with these four checks, she was told they, along with the first four she had cashed, were all fakes. All of the checks bounced, and Mrs. Spell and her husband, Howard Spell, will be held responsible for the more than $10,000 they wired away to an unknown person in Canada.
The advertisement is no longer running in The Daily Record.
Monday, August 4, 2008
Louisiana Man Found Guilty on 8 Counts of Insurance Fraud
Arthur Copes of Baton Rouge has been found guilty on eight counts of insurance fraud, according to the Louisiana Attorney General's Office. Judge Anthony Marabella rendered the verdict following testimony from former patients who flew in from all over the country to testify against him.
Copes runs a clinic in Baton Rouge which provides braces for Scoliosis patients. David Caldwell, co-prosecutor, along with Butch Wilson, presented evidence showing Copes fraudulently billed Blue Cross Blue Shield of Louisiana of more than $88,000. The AG's office said Copes billed the insurance company for services he was not licensed to render and he expected upfront payments from clients who thought they were seeing a licensed medical doctor, which Copes was not.
Copes runs a clinic in Baton Rouge which provides braces for Scoliosis patients. David Caldwell, co-prosecutor, along with Butch Wilson, presented evidence showing Copes fraudulently billed Blue Cross Blue Shield of Louisiana of more than $88,000. The AG's office said Copes billed the insurance company for services he was not licensed to render and he expected upfront payments from clients who thought they were seeing a licensed medical doctor, which Copes was not.
Friday, July 25, 2008
800 Suspect Auto Claims in Sacramento County, CA
More drivers on the road during summer months means more car crashes, but not all of them may be for real.
More than 800 insurance claims in Sacramento County in the fiscal year ended June 30 are suspect and may have involved staged collisions, Insurance Commissioner Steve Poizner announced Thursday. The 802 suspected fraudulent claims in 2007-08 is down from 856 a year earlier, but up from 788 in 2005-06, the state insurance regulator announced.
This translates to potential losses of $5.6 million in the last fiscal year alone.
Statewide, 14,623 out of 23,734 — 61 percent — of the insurance fraud referrals received by the state agency in the last fiscal year were suspected automobile insurance fraud.
People who create pre-planned accidents are known as “stagers.” They look for high-value targets such as commercial vehicles, expensive luxury cars or vehicles owned by cities or counties. They are considered high value because of the virtual guarantee of insurance coverage.
Wednesday, July 23, 2008
Canoe Man and Wife Jailed For Six Years
John and Anne Darwin were each jailed for more than six years today for carrying out a £250,000 insurance con by faking his death in a canoeing accident.
John Darwin was jailed for six years and three months. His wife Anne was sentenced to six years and six months after she was found guilty of her role in the fraud.
The couple tricked the police, insurance companies and even their two sons Mark, 32, and Anthony, 29, into believing he drowned in the North Sea in 2002 - only for Mr Darwin to turn up at a London police station last year.
They were undone by a photograph of the grinning couple taken in Panama four years after he disappeared.
Wednesday, July 16, 2008
Plastic Surgeon's Perfect Life Marred
His plastic-surgery training in hand, Lawrence Saks left the Canadian winters he hated in the early 1980s and headed for what may be the world's most welcoming market for such medical specialists: esthetically obsessed southern California.
It was a profitable move. The product of a hardscrabble Quebec City upbringing, Dr. Saks built a fortune in the millions of dollars and forged a reputation as a generous philanthropist.
But that enviable life is suddenly on the brink of collapse. The 56-year-old doctor has been charged with US$4-million in insurance fraud and other crimes, allegedly for claiming handsome disability benefits for himself while continuing to do tummy tucks, facelifts and other surgery. As it turns out, the fraud case is only the latest and most damning in a string of brushes with the law and medical regulators.
Monday, July 14, 2008
Why Is Car Insurance Fraud On The Increase?
If ever there was a self fulfilling prophecy then the car insurance market may well be it!
A recent report by the Association of British Insurers (ABI) claims that car insurance fraud in the UK has increased by 70% over the last 3 years. As the cost of running a car continues to spiral upwards many drivers are being left with very few ways of paying off their debts. The fact that one such car insurance fraudster was found to have literally pushed his car off a cliff may be a little over the top (literally!), but there are also many other examples of drivers becoming desperate.
A recent report by the Association of British Insurers (ABI) claims that car insurance fraud in the UK has increased by 70% over the last 3 years. As the cost of running a car continues to spiral upwards many drivers are being left with very few ways of paying off their debts. The fact that one such car insurance fraudster was found to have literally pushed his car off a cliff may be a little over the top (literally!), but there are also many other examples of drivers becoming desperate.
Woman Pleads Guilty In Fraud
A Paulsboro woman pleaded guilty Friday for stealing more than $190,000 from an insurance company, Attorney General Anne Milgram said.
Julia Daniels Anderson, 41, pleaded guilty before Superior Court Judge Robert Becker to a criminal accusation which charged her with theft by deception.
Daniels Anderson admitted that between Aug. 3, 2004, and March 8, 2007, she stole $190,802 from Cigna Insurance Co. by submitting false health care claims.
Cash-Strapped Citizens Fake Break-ins
Many South Africans are reporting false hijackings, housebreakings and other theft claims in order to get rid of their monthly repayments and be paid out by insurance companies.
Insurance investigators report that there has been an increase in the number of people staging housebreakings to make money from insurance policies or claiming their vehicles were hijacked or stolen because they could no longer afford them.
Marius Heystek, a senior partner at AM Heystek and Associates, which specialises in insurance fraud, said the problem of false insurance claims had "always been there", but had now increased. "It is very clear when a house has not been broken into as the owner claims," he said.
Insurance investigators report that there has been an increase in the number of people staging housebreakings to make money from insurance policies or claiming their vehicles were hijacked or stolen because they could no longer afford them.
Marius Heystek, a senior partner at AM Heystek and Associates, which specialises in insurance fraud, said the problem of false insurance claims had "always been there", but had now increased. "It is very clear when a house has not been broken into as the owner claims," he said.
Friday, June 27, 2008
New Consortium Plans Strategies to Combat Medical Fraud
The newly formed Consortium to Combat Medical Fraud, a joint project of the Coalition Against Insurance Fraud, the National Health Care Anti-Fraud Association and the National Insurance Crime Bureau, along with participation from the Federal Bureau of Investigation and Department of Justice, announced on June 24 its national agenda to pursue the perpetrators of medical fraud.
The Consortium is designed to create a more open and collaborative environment between different segments of the insurance industry to heighten the detection and prevention of health care fraud.
The Consortium is designed to create a more open and collaborative environment between different segments of the insurance industry to heighten the detection and prevention of health care fraud.
North Plainfield Man Charged With Insurance Fraud
A North Plainfield man who works as a guidance counselor at a middle school in Newark was indicted Wednesday on charges he torched his own car two years ago to collect insurance.
Kenyatta O'Bryant, 36, was indicted on charges of aggravated arson, attempted theft by deception and insurance fraud.
If convicted of the charges, O'Bryant faces up to 10 years in prison.
Kenyatta O'Bryant, 36, was indicted on charges of aggravated arson, attempted theft by deception and insurance fraud.
If convicted of the charges, O'Bryant faces up to 10 years in prison.
Private Investigators Examine House Explosion
A team of private investigators converged Monday at the site of a home destroyed in an apparent natural gas explosion.
Last Thursday’s blast at 410 Wellingford Street, near West Sugar Creek Road and North Tryon, killed 4-month-old Synora Coleman and injured her parents.
Last Thursday’s blast at 410 Wellingford Street, near West Sugar Creek Road and North Tryon, killed 4-month-old Synora Coleman and injured her parents.
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