Latest Fraud and false statements News

Real estate developer gets 1 month in college bribery case

Oct. 18, 2019 2:05 PM EDT

BOSTON (AP) — A California real estate developer was sentenced Friday to one month in prison for paying $75,000 to cheat on his daughter's college entrance exam. Robert Flaxman, 63, of Los Angeles, was sentenced in Boston's federal court after pleading guilty in May to a single count of fraud and...

Marshallese president applauds arrest in adoptions case

Oct. 17, 2019 3:40 PM EDT

PHOENIX (AP) — The president of the Republic of the Marshall Islands on Thursday applauded U.S. authorities for arresting an Arizona elected official accused of running an illegal adoption scheme involving pregnant Marshallese women. President Hilda Heine spoke out a week after Maricopa County Assessor...

Business owner gets 3 weeks for rigging son's ACT exam

Oct. 16, 2019 4:37 PM EDT

BOSTON (AP) — The owner of a California jewelry business was sentenced Wednesday to three weeks in prison after she was accused of paying $15,000 to rig her son's ACT exam and of falsely listing him as a racial minority on college applications. Marjorie Klapper, 51, of Menlo Park, California, pleaded...

Convicted ex-Honolulu police chief files for divorce

Oct. 16, 2019 3:49 PM EDT

HONOLULU (AP) — A retired Honolulu police chief convicted of conspiracy in Hawaii's biggest corruption case wants a divorce from his wife and co-defendant, a former deputy city prosecutor. Louis Kealoha filed for divorce Tuesday, according to court records. A jury in June convicted him and Katherine...

Pain MD owner, employees accused of $38M health care fraud

Oct. 16, 2019 4:30 AM EDT

NASHVILLE, Tenn. (AP) — The majority owner of Pain MD and three employees are charged with more than $38 million in health care fraud. The charges are part of an indictment filed Tuesday by the U.S. Attorney's Office in Nashville. It charges that between 2010 and May 2018, Michael Kestner, Brian Richey,...

Lawyer says Arizona official miscast as human smuggler

Oct. 15, 2019 8:06 PM EDT

PHOENIX (AP) — A lawyer for an Arizona elected official charged in three states in an international adoption scheme said Tuesday prosecutors have miscast his client as a human smuggler. Attorney Matt Long said Maricopa County Assessor Paul Petersen cares deeply for the mothers from the Marshall Islands...

'Chrisley Knows Best' stars sue Georgia tax official

Oct. 15, 2019 2:27 PM EDT

ATLANTA (AP) — Reality television personalities Todd and Julie Chrisley on Tuesday accused a Georgia tax official of abusing his office to pursue "bogus tax evasion claims" against them. The "Chrisley Knows Best" stars filed a federal lawsuit Tuesday against Joshua Waites, the director of the Georgia...

Florida judge: $1.3B scam nets Californian 25 years' prison

Oct. 15, 2019 1:41 PM EDT

MIAMI (AP) — A California man has been sentenced by a Florida judge to 25 years in prison for orchestrating a $1.3 billion fraud scheme that stole money from at least 7,000 investors nationwide. Court records show 61-year-old Robert Shapiro was sentenced Tuesday in Miami federal court after previously...

Liz Weston: In 'SIM swap,' criminals really have your number

Oct. 14, 2019 11:21 AM EDT

If you're not familiar with SIM swap fraud, prepare to be terrified. This scam, also known as port-out or SIM splitting fraud, allows criminals to hijack your cell phone number. Once they have your number, the bad guys can clean out your financial accounts, confiscate your email, delete your data and take over...

Agency eyes big revamp of Wall Street whistleblower program

Oct. 12, 2019 10:48 AM EDT

WASHINGTON (AP) — A federal agency is moving with little fanfare to revamp one of the most successful whistleblower programs in the government, alarming advocates who warn the changes will set back efforts to police Wall Street and punish corporate fraud. Much like the whistleblower system for intelligence...