Latest Fraud and false statements News

Fraud plagues disaster relief efforts

Aug. 17, 2019 3:01 AM EDT

PANAMA CITY, Fla. (AP) — As the scale and frequency of major disasters escalate, millions of dollars in federal, state and insurance payments intended for recovery efforts are being stolen by fraudsters taking advantage of chaos and the pipeline of aid flowing into the stricken areas. Last year,...

Leader of largest US organic food fraud gets 10-year term

Aug. 16, 2019 9:24 PM EDT

CEDAR RAPIDS, Iowa (AP) — A judge on Friday sentenced the mastermind of the largest known organic food fraud scheme in U.S. history to 10 years in prison, saying he cheated thousands of customers into buying products they didn't want. U.S. District Judge C.J. Williams said Randy Constant orchestrated a...

Man pleads guilty to wire fraud, money laundering

Aug. 16, 2019 10:32 AM EDT

SEATTLE (AP) — A former Newcastle resident charged with defrauding Seattle-area residents and others of around $5.8 million while pretending to be a British billionaire, has pleaded guilty to wire fraud and money laundering. The Seattle Times reports a plea agreement Thursday between the U.S. Attorney's...

Police: Florida woman scams couple in adoption fraud

Aug. 16, 2019 9:31 AM EDT

CLEARWATER, Fla. (AP) — Authorities in Florida say a woman failed to follow through with an adoption agreement leaving the couple heartbroken and the woman back in jail. News outlets report 29-year-old Ceara Stowe was charged Wednesday with adoption deception. A Pinellas County police report says Stowe was...

3 former tribal officials plead guilty in embezzlement case

Aug. 15, 2019 7:54 PM EDT

SACRAMENTO, Calif. (AP) — Three former officials of an American Indian tribe that runs a Northern California casino pleaded guilty Thursday to conspiring to embezzle nearly $5 million from the tribe, using the money to fund luxurious lifestyles. John Crosby, his mother Ines Crosby and her sister, Leslie...

Alabama psychologist admits $1.5 million Medicaid fraud

Aug. 15, 2019 6:28 PM EDT

BIRMINGHAM, Ala. (AP) — A Birmingham psychologist has admitted to trying to defraud Medicaid by billing for counseling services that were never provided, state and federal prosecutors announced Thursday. Sharon Waltz has agreed to plead guilty to conspiracy to defraud Medicaid of at least $1.5 million,...

Whistleblower accuses GE of fraud, misleading investors

Aug. 15, 2019 6:11 PM EDT

NEW YORK (AP) — A whistleblower who warned regulators about Bernard Madoff's Ponzi scheme is now accusing General Electric of misleading investors, sending the company's stock on a downward spiral. Investigator Harry Markopolos accused GE on Thursday of engaging in accounting fraud worth $38 billion,...

Former Nebraska Medicaid worker gets prison time for fraud

Aug. 15, 2019 4:54 PM EDT

LINCOLN, Neb. (AP) — A former Nebraska Medicaid audit administrator who bilked the program and his father out of nearly $300,000 has been sentenced to 16 months in prison. The Lincoln Journal Star reports that Craig A. Barnett was also ordered Thursday to pay restitution of nearly $277,000 and serve three...

Michael Avenatti blames arrest on 'vindictive' prosecutors

Aug. 15, 2019 4:30 PM EDT

NEW YORK (AP) — Lawyer Michael Avenatti wants a judge to dismiss criminal charges that he extorted Nike, and he is blaming his arrest on what he calls vindictive prosecutors as he releases material his attorneys say support his claims the sportswear company was paying amateur athletes. Avenatti's attorneys...

UK judge sentences Schwimmer lookalike to 9 months in jail

Aug. 15, 2019 1:00 PM EDT

LONDON (AP) — A British judge has sentenced a lookalike of "Friends" actor David Schwimmer to nine months in prison for theft and fraud. Judge Sara Dodd sentenced Abdulah Husseni on Thursday for using a stolen bank card to make or attempt to make fraudulent purchases at four shops in Blackpool, northwest...