Former Employee Sentenced To Prison For Embezzling $1.8 Million From Commercial Real Estate Company – June 29, 2020
Milan Capital employed Duy Duc Nguyen as an accounts payable clerk in its accounting department from July 2014 to December 2017. Beginning in January 2015 and continuing until March 2018, Nguyen stole the password of Milan Capital’s treasurer, then used it without permission to alter the bank account and routing information listed in certain vendor accounts in the company’s accounting system, replacing them with his own bank account and routing numbers. As a result, Nguyen fraudulently caused Milan Capital to make payments directly into his bank account while seemingly paying the actual invoices of legitimate vendors.
Nguyen also altered company records and lied to company executives when they asked about vendors’ complaints of non-payment of various invoices. The company ultimately paid the actual vendors in what amounted to a duplicate payment.
Ten Defendants (Hospital Managers And Others) Charged In $1.4 Billion Hospital Pass – Through Billing Scheme – June 29, 2020
Ten individuals, including hospital managers, laboratory owners, billers and recruiters, were charged for their participation in an elaborate pass-through billing scheme using rural hospitals in several states as billing shells to submit fraudulent claims for laboratory testing. The indictment alleges that from approximately November 2015 through February 2018, the conspirators billed private insurance companies approximately $1.4 billion for laboratory testing claims as part of this fraudulent scheme, and were paid approximately $400 million.
Former Cincinnati City Council President Pleads Guilty To Charge Of Wire Fraud / Accepting $15,000 Bribe Money – June 29, 2020
Former Cincinnati City Council president pro tem Tamaya Dennard, pleaded guilty to accepting $15,000 in bribe money she sought and accepted as payment in exchange for her vote on a proposal before Council.
Court documents filed with her plea say that in August 2019, Dennard contacted someone she knew who had business before the Cincinnati City Council and sought money, including by sending the individual a text message saying “If you are willing to meet with me, I’m sure that I will be able to help you.” Dennard received $10,000 on September 9, 2019 and $5,000 in cash about two weeks later in exchange for promising to provide and providing favorable official action. Her plea includes a $15,000 money judgment against her.
Former U.S. Postal Employee Sentenced To Prison For Drug Trafficking, Mail Theft – June 26, 2020
U.S. Postal Inspectors began investigating reports of drug trafficking between Ohio and California in 2017. They determined that Laquise Johnson, a processing clerk, had rented a post office box to facilitate the drug trafficking. They seized one parcel containing 1,438 grams of methamphetamine and seized another parcel with 493 grams of marijuana from Johnson after he retrieved it from the post office box at the Oakland Park post office.
Johnson also admitted that he had stolen mail containing a Bluetooth speaker and art supplies.
Former County Register Of Deeds Charged With Wire Fraud – June 26, 2020
John La Fave, who was the Milwaukee County Register of Deeds, devised and executed a scheme to defraud Milwaukee County and to obtain money by means of materially false and fraudulent pretenses and representations. The scheme concerned La Fave’s dealings with “Individual A,” who worked for “Business A,” a company that provided redacting and document indexing services for Milwaukee County. The essence of the scheme was that La Fave directed Individual A to create fraudulent invoices that made it appear that Business A had done specified work for the Milwaukee County Register of Deeds Office when, as La Fave knew, Business A had not actually performed that work. As alleged, Business A would hold the money “on account” for La Fave to direct to be paid to other, third-party vendors who actually performed the work. Most of those third-party vendors were not authorized to be paid through the Milwaukee County accounts payable process, and some were employees of the Milwaukee County Register of Deeds Office.
Former Software Engineer Sentenced To Prison For Stealing Trade Secrets From Employer – June 26, 2020
Between April and November 2018, Timothy Smith obtained private information valued at hundreds of thousands of dollars from StrikeLines, a Pensacola-based company that uses commercial side scan sonar equipment to locate fishing reefs in the Gulf of Mexico, sells reefs’ coordinates and provides the public with some coordinates marking valuable fishing spots in the Gulf for free.
Smith used “sophisticated cyber techniques in order to gain the trade secrets and decrypt information of the company from its website. During the same period that he was stealing secrets, Smith also tried to extort the two owners of StrikeLines for more valuable information.
Former Director Of Union IT Department Charged With Defrauding Union Of $4.5 Million Over 6 Years – June 26, 2020
Scott Wilson, was the director of the union’s information technology department, where he had authority to purchase goods and services. Wilson allegedly set up a front company called OST. Wilson allegedly used OST to receive funds from the union, at first directly and then through two other front companies set up by a friend and a relative under Wilson’s direction. Between 2011 and 2017, Wilson allegedly used these front companies to fraudulently invoice the union for IT-related goods and services that were never to be delivered, taking some funds directly through OST, and others through kickbacks paid by his friend and relative. Wilson used the front companies to conceal payments made with union funds to his own family members, primarily for work that was never done. Wilson arranged for the union funds to be withdrawn from the front companies’ accounts and delivered to him at various restaurants around the Bay Area in the form of cash, wrapped in the shape of bricks and placed in silver bags.
Wilson used the allegedly embezzled funds to, among other things, purchase land in Corsicana, Texas, and build himself a house there
Intensive Care Nurse Sentenced To Prison for Stealing Patient’s Pain Medication – June 26, 2020
Kelly Postel was a nurse who stole fentanyl and morphine, both pain medications, from an unconscious patient by withdrawing the drugs from his IV line while he was in the hospital’s intensive care unit. Postel admitted she went into an unconscious patient’s room, used a syringe to remove fentanyl and another drug from the patient’s IV line, and then used the substances in the employee restroom at the hospital while she was still on duty.
She obtained fentanyl and morphine by getting an excess amount of those pain meds from the hospital pharmacy and administering only the prescribed amount of medication to patients. She then used the rest of the pain medication while she was still working as a registered nurse caring for patients in the hospital.
Former Army Civilian Employee Pleads Guilty To Stealing $124,000 – June 25, 2020
Between 2012 and November 2018, Darryl Gale was employed as a civilian employee at the Army-Ten Miler office. The Army Ten-Miler is an annual race and exposition that is held in the District of Columbia by the U.S. Army Military District of Washington.
Gale’s main responsibilities included selling exposition booth rentals and managing logistics on the day of the exposition and race. Gale devised a scheme to defraud the Army Ten-Miler by making false representations to exposition vendors in order to obtain vendor fees. Gale cashed and deposited into his own personal bank accounts checks, money orders, and payments through third-party payment processors from vendors who had purchased booths for an Army Ten-Miler exposition. Gale stole at least $124,758.21 in vendor fees between January 2017 and November 2018.
Assistant Manager Retail Store Arrested For $100,000 In Credit Card Fraud – June 24, 2020
Alena George was an assistant manager at a retail store. George obtained the personally identifiable information (PII) of individuals with names similar to her own name, and obtained credit cards in those individuals’ names. For one such credit card, George made at least $100,000 in fraudulent purchases and cash advances.
Supermarket Employee Arrested For Stealing Customers’ Credit Card Information To Buy $93,000+ Of Airline Tickets – June 24, 2020
A Chinese 16 year old male, in his second year of high school, residing in the city of Yokohama south of Tokyo has been arrested on suspicion of purchasing airplane tickets by using stolen credit card information.
The 16-year-old male student in his second year of high school was arrested on suspicion of computer fraud and had allegedly stolen credit card information of customers at a supermarket where he worked part time.
Between November 2019 and February 2020 this year, the teen is suspected to have boarded airplanes nearly 80 times.
Former CEO Arrested After $2 Billion Scandal – June 23, 2020
Markus Braun, the Austrian tech entrepreneur who built Wirecard into one of Germany’s biggest companies, has been arrested after a $2.1 billion hole exploded in its accounts.
Braun, Wirecard’s former CEO, was arrested on suspicion of having inflated the digital payment company’s balance sheet and sales through fake transactions in order to make it more attractive to investors and customers. Prosecutors said that Braun may have acted in cooperation with other perpetrators.
Wirecard acknowledged $2.1 billion in cash included in financial statements — or roughly a quarter of its assets — probably never existed in the first place. The scandal erupted last week when Wirecard said that its auditor, EY, could not locate the funds in trust accounts and refused to sign off on the company’s financial results.
Ex-FBI Agent Charged With Hoarding Top Secret Government Documents In His Home – June 23, 2020
Yen Cham was an FBI Special Agent who worked for years in Chicago’s organized crime division. He been charged with stealing hundreds of sensitive government documents and hoarding them in his home after retirement.
The materials were first uncovered in August after Yung’s wife filed an order of protection against him and she began searching their Colorado Springs home for “documents related to their separation,” according to the complaint. The FBI later executed several search warrants at the home and other locations and found dozens of digital storage devices that are believed to have sensitive government information on them, according to the complaint.
Former Accountant Sentenced To Prison For Stealing $9 Million Over 20 Years – June 23, 2020
Edward Cooper worked as an accountant with the Osborn & Osborn accounting firm and handled a number of financial affairs for Roach Manufacturing Corporation, a family business in Trumann. Beginning in approximately 1996, when he prepared dividend distribution checks and tax checks for Roach Manufacturing, he requested extra checks and then made them payable to himself.
Cooper deposited these checks into his own account without the permission or knowledge of Roach Manufacturing. He took approximately 138 unauthorized checks from 1996 through 2018, totaling over $9 million. In the fall of 2017, Roach Manufacturing hired a financial manager who detected the fraud, leading to the criminal case.
Form Credit Manager Pleads Guilty To Embezzlement Of $645,000 – June 24, 2020
Johnnie Harrell served as branch manager of a credit union. From 2008 to 2019, Harrell exploited his position to steal and embezzle at least $645,000 in funds belonging to the credit union and its customers. Among Harrell’s victims were individuals convinced by Harrell to rollover existing retirement accounts into annuities. Harrell never purchased the annuities, but instead converted the funds to personal use. Harrell prepared fraudulent annuity account statements that were periodically presented to victims to preclude detection of the theft.
Hospital Investigates Medical Records Theft, Suspends Employees – June 23, 2020
Landmark Hospital of Athens (GA) is investigating the theft of medical records and has suspended three employees who may have been involved. The three employees are accused of violating the hospital’s policy against possessing, using, copying, reading or disclosing information on hospital records.
L.A. County Public Official Sentenced To Prison For Accepting $300,000 In Bribes – June 23, 2020
Mohammad Tirmazi worked for the county, first as a supervising telecom engineer and then in 2016 as a section manager for the voice video and application division of the county’s Internal Services Department. He accepted bribes from Enrique Contreras, 40, of Newbury Park, the owner of Tel-Pro Voice & Data, Inc., a vendor that performed low voltage electrical wiring for the county. From late 2014 to 2016, the owner of Tel-Pro paid Tirmazi with cash, checks and gifts. In sum, the bribes totaled $299,707. In exchange for the bribes, Tirmazi approved change orders requested by Contreras for, among other things, work that did not occur and materials that were not used on county projects.
Healthcare Worker Sentenced To Prison For Opioid Distribution Conspiracy – June 23, 2020
As an employee of a Jacksonville Beach physician’s office, Rhiannon Rader had access to her employer’s prescription pad. Without her employer’s knowledge, Rader sold fraudulent prescriptions for controlled substances, including oxycodone, hydrocodone, and Xanax, to drug dealers. She also filled fraudulent prescriptions for drugs in her own name.
Pharmacy records show that between March and September 2016, in Duval County and Nassau County, 44 different pharmacies filled approximately 116 fraudulent prescriptions for 46 individuals who were not actually patients of Rader’s employer. Records from multiple pharmacies show that on certain occasions, when pharmacy employees called the physician’s office to confirm whether such prescriptions were genuine, Rader falsely represented that the prescriptions were legitimate. As part of her guilty plea, Rader admitted that her actions resulted in the illegal distribution of nearly 7,000 doses of controlled substances.
Los Angeles City Councilman Arrested For Accepting At Least $1.5 Million In Bribers – June 23, 2020
Special agents with the FBI arrested Jose Huizar, an elected member of the Los Angeles City Council, on a federal racketeering charge that alleges he led a criminal enterprise that used his powerful position at City Hall to solicit and accept lucrative bribes and other financial benefits to enrich himself and his close associates in exchange for Huizar taking official actions favorable to the developers and others who financed and facilitated the bribes.
Former Transit Union Official / Finance Officer Admits To $117,000 Of Embezzlement From Labor Union – June 22, 2020
Angel Garcia was a bus driver who held a part-time position at Local 1614. Garcia was elected by the membership, every three years, as the union’s financial secretary, and served in that position from June 2014 through May 2019. As such, Mr. Garcia was a fiduciary who occupied a position of trust and was obligated to act solely in the interests of the membership. As the financial secretary, he alone was responsible for maintaining the check book and other financial documents of the union. However, without executive board approval, Garcia withdrew approximately $117,000 from the union’s three bank accounts to pay for his rent, utilities, telephone and other personal goods and services.
Former Employee Pleads Guilty To Defrauding Employer’s Charity Gift Program Of $600,000 – June 22, 2020
Steven Strange was employed by Collins Aerospace, which, at the time, was a business unit of United Technologies Corporation (UTC). UTC had a Matching Gift Program, through which the company matched an employee donation, up to $25,000 annually, to a charity. In 2008, Strange established the Housing Development Foundation (HDF) of North Carolina, Inc. and listed his residence at the principal office for the charity. Strange began working for Collins Aerospace in 2014.
Between approximately 2015 and September 2019, Strange defrauded UTC’s Matching Gift Program by submitting to UTC fraudulent records of donations purportedly made by him and by certain employees that worked with him at Collins Aerospace. The records included fabricated cashiers checks of payments supposedly made to the HDF, when no such payments had been made. As a result, UTC transferred approximately $585,000 in matching funds to the HFD, and an additional $5,257 to third party vendors to process the requests. A review of the HFD bank records reveal that a large portion of the HDF expenditures appears to be Strange’s personal expenditures.
Former City Of Atlanta Commissioner Indicted For Allegedly Accepting Bribes From Contractor – June 19, 2020
Former City of Atlanta Commissioner of the Department of Watershed Management Jo Ann Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb Jafari. In March 2019, Jafari was charged in a 51 count indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. Jafari was separately charged with one additional count of bribery and tampering with a witness in connection with bribes he paid to Macrina.
Former Treasurer Indicted For Stealing Money To Pay Her Bills – June 19, 2020
Erin Hossler took hundreds of thousands of dollars between 2015 and 2018 from the Borough of Cressona, where she used to work as the Secretary / Treasurer. It is alleged that Hossler had numerous checks issued to herself, forged signatures on checks, and used online banking for the borough’s bank accounts to pay her personal bills. Hossler concealed her activities by altering federal records, withholding payment of federal employment taxes for Cressona Borough employees, and altering an audit from an independent accounting firm to make it appear that the firm approved of the borough’s finances.
Former Employee Who Deliberately Deleted Company’s Dropbox Cloud Storage Is Sentenced – June 19, 2020
Danielle Bulley was a director of a business called Property Press that produced a weekly property newspaper. At some point things turned sour, and Bulley resigned her position at the firm before the company went into liquidation. A fellow director Alan Marriott started a new business venture – without Bulley’s involvement – using the assets of the old firm.
Things clearly didn’t sit well with Bulley after her departure from the business, and several months after her resignation she managed to gain unauthorised access to the new company’s Dropbox account. More than 5,000 documents were permanently erased, and the company claimed that the damage to business was so great that it could no longer operate, and people lost their jobs. The Dropbox account had been remotely accessed from an IP address associated with Danielle Bulley.
FEMA IT Specialist Charged in ID Theft, Tax Refund Fraud Conspiracy – June 18, 2020
An IT Specialist at the Federal Emergency Management Agency (FEMA) was arrested on suspicion of hacking into the human resource databases of University of Pittsburgh Medical Center (UPMC) in 2014, stealing personal data on more than 65,000 UPMC employees, and selling the data on the dark web.
In 2013 and 2014 Johnson hacked into the Oracle PeopleSoft databases for UPMC, a $21 billion nonprofit health enterprise that includes more than 40 hospitals.
Johnson stole employee information on all 65,000 then current and former employees, including their names, dates of birth, Social Security numbers, and salaries.
Former Treasurer Charged With $250,000 Of Fraud – June 18, 2020
From at least June 2016 through July 2019, Francis Fritzky was the treasurer of the Moraga Community Foundation and also on the Foundation’s board of directors. He also had signatory authority on the Foundation’s bank accounts and had access to the money contained within those bank accounts. According to the information, from June 23, 2016, and continuing through July 24, 2019, Fritzky allegedly made unauthorized withdrawals of more than $250,000 from the Foundation’s bank accounts to himself, to a company in which he held majority ownership interest, and to a foundation he founded and controlled. He also allegedly provided false financial reports to the Foundation’s board of directors.
Former Veteran’s Affairs Respiratory Therapist Charged With Stealing COVID-19 Related Medical Supplies And Selling Them On eBay – June 17, 202
Gene Wamsley was employed as a Respiratory Therapist at the Veterans Affairs Medical Center (VAMC).
In January 2020 when the VAMC reported two bronchoscopes missing from the hospital. A third bronchoscope was reported missing in April 2020. Staff at the VAMC had noticed bronchoscopes listed for sale on eBay from a seller in Bonney Lake, Washington. The investigation linked the sale of three bronchoscopes to Wamsley. A further review of eBay records revealed Wamsley had sold five ventilators in March and April 2020. Three ventilators were found to be missing from VMAC during the same time period. EBay records reveal a variety of other respiratory support equipment sold by the account linked to Wamsley. Administrators at VAMC confirmed the items were used in the respiratory therapy department.
Former Hospital Director Of Security Pleads Guilty To Buying Firearms With Hospital Funds And Then Selling Guns For Profit – June 17, 2020
Russell Richardson, was the Director of Security at DeKalb Medical Center. He was authorized to submit purchase requests and to approve purchases made on behalf of the Security Department. Richardson abused his position when, beginning in March 2016, he submitted purchasing requests to the hospital for firearms he intended to sell for his personal benefit. Since Richardson also approved the requests, the hospital paid for the firearms that Richardson subsequently took and sold for profit.
Nine Pharmacists Charged For Role In $12.1 Million Health Care Fraud Scheme – June 17,2020
The indictments allege that, using the pharmacies, the defendants billed Medicare, Medicaid, and Blue Cross Blue Shield (BCBS) for prescription medications that were neither purchased nor dispensed. The indictments further allege that the defendants billed Medicare and Medicaid for medications that were often medically unnecessary and for some medications that were purportedly dispensed to deceased beneficiaries after their dates of death.
The indictments allege that the defendants received over $12.1 million due to fraudulent claims they submitted to Medicare, Medicaid, and BCBS. In particular, the indictments allege that, from 2010 to 2019, Medicare and Medicaid paid for approximately $6.9 million for drugs that the pharmacies did not have sufficient inventory to dispense.
Treasurer Of Union Pleads Guilty Of $22,000 In Wire Fraud – June 17, 2020
Cathy Byers betrayed the trust given to her by using the union’s bank account as her own to pay personal expenses. The union members’ hard earned money was her personal piggy bank,” said United States Attorney Mike Stuart.
Byers used her position as the treasurer of a local union to defraud the union of approximately $22,000 by using the union’s bank card to make numerous purchases of personal items.
CIA Cyber Hacking Tools Stolen By CIA Employee Were A Result Of Lax Security According To Internal Report – June 16, 2020
The largest theft of data in CIA history happened because a specialized unit within the agency was so focused on building cyber weapons that an employee took advantage of “woefully lax” security and gave secret hacking tools to WikiLeaks, according to an internal report released on Tuesday.
The CIA’s lax cybersecurity practices were also highlighted in federal court earlier this year during the trial of Joshua Schulte, the ex-CIA employee who is accused of handing over reams of classified data to WikiLeaks in 2016. The October 2017 CIA report was introduced as evidence during the trial and Schulte’s attorneys argued that the system’s security was so poor that the information could have been accessed by a large number of employees.
Employee Retirement Benefit Plan Administrators Plead Guilty In $15 Million Embezzlement Scheme – June 16, 2020
Vantage Benefits Administrators co-owner Wendy Richie and her husband co-owner Jeffrey Richie served as third party administrator for dozens of pension and retirement funds.
Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian. Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account, then into personal bank accounts.
Even after a Vantage employee confronted Mr. Richie about Ms. Richie’s conduct, Ms. Richie continued to embezzle money from the funds. At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, he admitted. In total, the pair admitted to submitting more than 90 unauthorized distribution requests from 13 pension plans and 7 retirement plans from 2014 and 2017.
Six Former Senior eBay Employees Charged With Cyberstalking Campaign Targeting Publisher Of Newsletter – June 15, 2020
Six former employees of eBay, Inc. have been charged with leading a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company. The alleged harassment included sending the couple anonymous, threatening messages, disturbing deliveries – including a box of live cockroaches, a funeral wreath and a bloody pig mask – and conducting covert surveillance of the victims.
According to the charging documents, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay, a multinational ecommerce business that offers platforms for consumer-to-consumer and business-to-consumer transactions. Members of the executive leadership team at eBay followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories.
Former CEO Pleads Guilty To Embezzling $8 Million Intended For Injured Children – June 15, 2020
Joseph Gargan was the Chief Executive Office of the Pension Company, Inc., an Arlington business that would execute settlement agreements entered into between civil litigants. Specifically, the Pension Company was hired to transfer money from civil defendants to plaintiffs and to purchase annuities on behalf of minor plaintiffs.
From December 2015 to August 2019, the United States transferred a total of $15,925,000 to the Pension Company to purchase the annuities and execute the six settlement agreements. Gargan embezzled $6,925,000 of this money.
Engineers Found Guilty Of Stealing Micron Secrets For China – June 12, 2020
A Taiwanese court ruled Friday that current and former engineers from United Microelectronics Corp. stole trade secrets from U.S. chipmaker Micron Technology Inc. and shared them with a government-backed mainland Chinese company.
The district court of Taichung fined UMC NT$100 million ($3.4 million) after finding three engineers guilty of theft or assisting in the alleged theft. The trio was jailed for periods ranging from 4.5 to 6.5 years and fined between NT$4 million and NT$6 million.
Chinese Military Officer Arrested After Trying to Leave U.S. With California University Research – June 12, 2020
A Chinese military officer is accused of trying to leave the United States with a cache of scientific research conducted at a California university. Xin Wang, a high-ranking member of the People’s Liberation Army, was arrested Monday and charged with making false claims on his visa application. Wang arrived in the U.S. in March 2019 for a postdoctoral fellowship at the University of California in San Francisco, where he researched the metabolic function of adipose tissue and worked on projects funded by grants from the Department of Health and Human Services and the National Institutes of Health, according to court documents filed Thursday.