Fraud News

Wirecard Exposes Big 4 Accounting Lapses Endure Post-Enron

Two decades of financial disasters from Enron Inc.’s collapse in 2001 to Wirecard AG’s meltdown have left the Big Four accounting firms facing a major cultural problem that regulators may struggle to resolve. The 1.9 billion euros ($2.1 billion) missing …

Virus Unleashes Wave of Fraud in US Amid Fear and Scarcity

WASHINGTON — A 39-year-old former investment manager in Georgia was already facing federal charges that he robbed hundreds of retirees of their savings through a Ponzi scheme when the rapid spread of COVID-19 presented an opportunity. Christopher A. Parris started …

Coronavirus-Related Crimes Capitalize on Global Fear, Panic

WASHINGTON — Thieves steal surgical masks. A clinic sells fake COVID-19 tests. Hate groups encourage sick members to infect law enforcement officers. Imposters pose as public health officials. Con artists peddle fake cures and financial scams. As the coronavirus pandemic …

Toys ‘R’ Us Creditors Sue Directors and Private-Equity Owners

Toys “R” Us Inc. creditors filed a lawsuit accusing the defunct retailer’s executives and private-equity owners of fraud and breach of fiduciary trust. Former Chief Executive Officer David Brandon and other directors misrepresented the toyseller’s ability to repay creditors after …

Former Sequoia Partner Wins Extortion Suit Against Ex-Mistress

A salacious three-year legal battle involving a former partner at Sequoia Capital, a onetime exotic dancer and a promised $40 million hush money payment has come to an end. A California Superior Court judge ruled in favor of venture capitalist …

11th Circuit Dismisses Suit Alleging Conspiracy to Deflate Auto Body Repair Changes

A federal appellate court affirmed a decision to throw out a racketeering lawsuit brought by a group of 126 auto body collision repair shops against seven of the largest U.S. insurers. The 11th Circuit Court of Appeals in Atlanta agreed …

Adjuster’s Comment About ‘Homeys’ Enough to Allow Discrimination Claim to Proceed

A claims adjuster’s comments about “homeys” and “you people” when talking to a South Chicago property owner were enough to merit further proceedings on a discrimination claim against State Farm Fire & Casualty Co. However, several counts that alleged a …

Greek Shipowner Torched Tanker in $77 Million Fraud, Judge Says

A Greek shipowner orchestrated a plan for men posing as pirates to attack and set fire to his tanker, in an elaborate fraud to seek $77 million in insurance money, a London judge found. In 2011, Marios Iliopoulos lured the …

Maryland Pet Stores Sue to Block State Ban on Dog, Cat Sales

SILVER SPRING, Md. — Pet stores are suing to block a Maryland law that will bar them from selling commercially bred dogs and cats, a measure billed as a check against unlicensed and substandard “puppy mills.” The stores’ federal lawsuit, …

Study Links Cheating on Spouse with Professional Misconduct

People who cheat on their spouses are a lot more likely to engage in misconduct in the workplace, according to a new academic study. The researchers looked at the records of police officers, financial advisers, white-collar criminals and senior executives …