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The financial crisis of 2007 and 2008 occurred almost a decade ago. The fall out, however, continues. Many people lost their homes. Americans were asked to pony up hundreds of billions of dollars to bail out the banks. In the following years, whistleblowers and prosecutors worked hard to go after the banks that caused the mess.
Cyberhacking and the FDIC (FIRREA Whistleblower Post) December 25, 2016 by Brian Mahany Usually the FDIC Pursues Banks with Cybersecurity Issues… A New Report Says that this Time, It Was the FDIC that Was the Victim of Cyberhacking We post many stories about the need for banks to increase their defenses against cyberhacking.
A basic first aid and CPR course from the American Red Cross costs just $95 and a few hours of time. Instead of making sure his personal care workers were properly trained in CPR, Dwaine and Dynetta Woods decided to save a few bucks by simply forging CPR cards. That stunt earned Dwaine Woods a lengthy year sentence in a Louisiana state prison.
What do the Foreign Corrupt Practices Act (FCPA) and the recent “pay to play” indictment of a former New York state pension system portfolio manager have in common? Plenty! The details of the indictments offer a window of how public officials can be corrupted and the steps taken to cover up the evidence.
Wells Fargo, PNC Hit with Huge Fines for Cybersecurity Lapses December 23, 2016 by Brian Mahany The Financial Industry Regulatory Authority (FINRA) fined several financial services firms a total of $14.4 million for failure to properly safeguard customer records. Fourteen securities dealers received fines including the brokerage arms of two major banks, PNC Capital Markets ...
SandRidge Energy agreed to pay $1.4 million to settle charges that it fired an engineer for blowing the whistle on how the company calculated its oil and gas reserves. The company also settled claims that it improperly forbid workers from cooperating with the SEC. Since the SEC’s investigation began, the company has since filed for bankruptcy protection.
Two former billing supervisors have accused the Florida Eye Clinic of a massive Medicare fraud scheme. William Lovell and Rochelle Mendez say the clinic billed Medicare for services never rendered. They say the clinic also overcharged for other services. According to the lawsuit, Florida Eye Clinic is owned by eight physicians. It employs 12 ophthalmologists and 14 optometrists.
A Greenville, North Carolina medical biller was sentenced to 108 months in federal prison after pleading guilty to Medicaid fraud and identity theft charges. Donnie Lee Phillips II will be eligible for early release after 7 years and 8 months. U.S. Senior District Court Judge James Fox also ordered Phillips to serve an additional 3 years of supervised release and pay $5,722,364 in restitution.
Platinum Partners hedge fund is beginning to look like a Ponzi scheme. A very large Ponzi scheme. The New York Times says it could be one of the largest since Bernie Madoff. As much as $1 billion may be missing. On the heels of so many losses, the FBI moved in this week and arrested 7 people they say are behind the scheme.
Clayton Homes… by far the biggest player in the mobile home industry. Along with Vanderbilt Mortgage and 21st Mortgage and 25+ other companies, the Clayton Home empire is huge. And it just may be the most predatory mobile home seller and lender in the nation. Clayton Homes was purchased by billionaire Warren Buffett’s Berkshire Hathaway in 2003.
A Greenville, North Carolina medical biller was sentenced to 108 months in federal prison after pleading guilty to Medicaid fraud and identity theft charges. Donnie Lee Phillips II will be eligible for early release after 7 years and 8 months. U.S. Senior District Court Judge James Fox also ordered him to serve an additional 3 years of supervised release and pay $5,722,364 in restitution.
Last week the Justice Department indicted six executives of Insys Therapeutics, a publicly traded pharmaceutical company. All are charged with criminal violations of the federal RICO statute (Racketeer Influenced and Corrupt Organizations Act). That law carries a sentence of up to 20 years in prison.
Universal Health Services is the largest psychiatric services provider in the nation. Last year the company treated approximately 450,000 patients. With 200 facilities, the company serves patients in all but a handful of states. Despite its huge size (the company has 72,000 employees), most people have never heard of the name Universal Health Services.
Cyberhacking Update – IBM Says Banks Won’t Discuss Details December 14, 2016 by Brian Mahany It’s hard to fight an enemy you can’t see. Cyberhacking is often carried out by computer geniuses operating halfway across the world. They operate in the darknet and collaborate in chatrooms. Often they compromise other people’s computers so that if a hacking attempt is detected, it ...
Nuclear Reactors, Foreign Steel and Whistleblowers December 14, 2016 by Brian Mahany U.S. regulations require projects built with federal dollars to be built with American made steel. Every piece of steel made in the U.S. or imported here comes with a certification. Not only does that document indicate where the steel was made or “rolled,” it describes the characteristics of the metal.
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