September 30, 2010

COUPLE EAT GLASS PARTICLES, FILE INSURANCE CLAIMS

BOSTON - A Massachusetts woman admits that she and her husband intentionally ate glass particles, then submitted false insurance claims.

Mary Evano pleaded guilty Tuesday to a 23-count indictment charging her with fraud, conspiracy and other offenses.

The indictment alleged that between 1997 and 2005, the couple collected more than $200,000 in compensation after filing insurance claims that they had been injured by restaurants, hotels and grocery stores that had served them food containing glass particles.

Evano's husband, Ronald Evano, pleaded guilty in 2007 and was sentenced to more than five years in prison.

Mary Evano is scheduled to be sentenced Dec. 21.

Prosecutors say the couple incurred more than $100,000 in medical bills, which remain unpaid.


September 30, 2010

PASCO DUI SUSPECT FAKES DEAFNESS, DEPUTIES SAY

NEW PORT RICHEY — The deputy asked for his driver's license, and the driver motioned that he was deaf. It was about 1:30 a.m. Monday on U.S. 19 near Green Key Road. The deputy saw the car swerve all over the road, once going on the median, and pulled it over, according to the Pasco County Sheriff's Office. The driver was dazed and slurring, a report states.

The deputy knew sign language and asked the driver again. The driver didn't understand. Attempts to get information from the driver continued with the deputy asking him to read lips and then writing on a note pad, the report states.

The driver broke his silence.

"You guys were persistent," said Christopher O'Callaghan, 32, of Spring Hill, the report states. "I usually play the deaf card and get away with it."

O'Callaghan, a self-employed cable installer, said he lied because his license is revoked, the report states. He was charged with DUI, knowingly driving without a license, giving a false identification to a law enforcement officer and felony contempt of court. He was being held without bail Tuesday in the Pasco County jail.

September 30, 2010

FBI OFFICIAL: CASES OF CORPORATE, HIGH-YIELD SECURITIES FRAUD ON THE RISE

An FBI official told the U.S. Senate Judiciary Committee Wednesday the bureau has uncovered "massive frauds" in its ongoing effort to fight financial crime.

Assistant Director Kevin Perkins, who heads the FBI's Criminal Investigative Division, told the panel "the FBI has continued to uncover massive frauds, including newly identified Ponzi schemes." New corporate fraud cases are up by 111 percent, he said, while high-yield securities frauds have grown by more than 200 percent.

In June, he said, Lee Farkas, former chairman of Taylor, Bean, and Whitaker, a large mortgage origination company, was charged with a $1.9 billion fraud that contributed to the failure of Colonial Bank, one of the largest banks in the United States and the sixth-largest bank failure in the country.

On Sept. 15, "Nevin Shapiro, owner and former chief executive officer of Capitol Investments, (pleaded) guilty to an $880 million Ponzi scheme involving his firm in New Jersey," Perkins said. "In July, Paul Greenwood, a managing partner at both WG Trading and Westridge Capital Management, (pleaded) guilty to his role in a $700 million scheme that defrauded charitable and university foundations as well as pension and retirement plans."

Perkins said during the past six months, the prosecutions of the Galleon insider trading case in New York and the Tom Petters $3.9 billion Ponzi scheme in Minnesota included guilty pleas and significant sentences of top-level corporate executives.

"In the last three years alone, the FBI has seen the number of mortgage fraud cases steadily climb from 1,200 in 2007 to over 3,000 in 2010," Perkins said. "Nearly 70 percent of these pending cases represent losses to financial institutions and other victims exceeding $1 million. In many of these cases the loss far exceeds $1 million."

Operation Stolen Dreams, a take-down of mortgage fraud schemes throughout the country, "demonstrates just how rampant mortgage fraud is in this country," Perkins said. The sweep was organized by President Obama's interagency Financial Fraud Enforcement Task Force.

September 30, 2010

OMAHA WOMAN PLEADS GUILTY TO $3M PONZI SCHEME

OMAHA, Neb. -- An Omaha financial advisor, whose clients once included pro football quarterack Michael Vick defrauded investors of more than $3 million over a four-year period, according to the U.S. Attorney for Nebraska.

Mary Wong, 46, pleaded guilty to Securities Fraud in U.S. District Court.

According to a U.S. Attorney's news release, Wong acted as a financial advisor and solicited millions of dollars under false pretenses. Then she failed to invest the money as promised, instead spending the money on her "lavish lifestyle", and businesses under Wong's control.

Wong spent money to charter private aircraft, purchase expensive homes, and pay-off expensive personal and business-related credit card debt. Victims lost $3,035,000 between the years 2005, and 2009.

According to a 2008 ESPN.com report, Wong advised pro football quarterback Michael Vick in the wake of his dogfighting case and bankruptcy.

The report by ESPN.com's Lester Munson said Wong wrongfully removed at least $900,000 from accounts belonging to Vick, and Wong caused certain business entities owned by Vick to be transferred to her.

Wong was previously barred from contact with the New York Stock Exchange for taking $150,000 from two elderly widows.

The U.S. Attorney called it a "Ponzi-like" scheme. The fraud takes money from new investors to pay-off previous investors, creating an illusion of profit-making.

Wong told her investors their money was in Gallup bonds, and real estate, including a shopping mall in Arizona. The U.S. Attorney says most of those investments did not exist.

Wong will be sentenced in December, and could receive 20-years in prison, and a fine of up to $1 million.

September 30, 2010

VINCE NEIL GETS NEW COURT DATEIN DUI CASE

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A Las Vegas judge set a new court date for Vince Neil on misdemeanor drunken driving and speeding charges.

Lawyers for the Motley Crue singer appeared on his behalf in court on Monday. No plea was entered.

Judge Joe M. Bonaventure set an Oct. 11 status check for the case, according to a court clerk.

At the time of his arrest, the 49-year-old rocker allegedly had a blood-alcohol content of 0.08 percent, the state's legal limit for drivers.

A court document also says that Neil was driving his Lamborghini sports car 60 mph in a 45 mph zone when he was stopped June 27 near the Vegas Strip.

September 24, 2010

FACEBOOK FRAUD A “MAJOR ISSUE”

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Hacking of Facebook accounts to scam people out of money has become a "major issue" for the social networking site, its head of European public policy, Lord Richard Allan, has told the Guardian.

As a result the site is implementing new ways of detecting when its users' accounts have been hacked, and is adding warnings if it is accessed from unusual locations or by different methods than usual.

Allan said that hacking was a problem that would be countered by sophisticated methods of tracking unusual user behaviour.

"The latest thing you'll see that is a major issue is people hacking into accounts. Now, if you're logging in from an unusual location you'll get extra security questions and if you want to login by a new device [Facebook] notifies you by SMS or email," Allan said, adding that the company's "site integrity" project – which aims to track suspicious activity – is developing new ways to protect its 500 million users.

Ronald K Noble, secretary general of law enforcement agency Interpol, last week revealed that his Facebook identity was recently targeted by individuals seeking access to highly sensitive information on wanted criminals. On the most high-profile case of Facebook identity hacking to date, Noble said: "Just recently Interpol's information security incident response team discovered two Facebook profiles attempting to assume my identity as Interpol's secretary general. One of the impersonators was using this profile to obtain information on fugitives targeted during our recent Operation Infra Red."

Among the new security methods being employed by Facebook are "name verification" – where someone logging on from a new location is shown a number of photos of their friends and is asked to verify their names. Though that is simple for the real user, it is almost impossible for anyone else.

Malicious hacking continues to generate headlines for Facebook, which has 26 million monthly unique users in the UK, despite the company putting in place numerous methods of prevention. In a case recently noted in by the Sunday Times, Abigail Pickett, a British student travelling in Columbia, found that her account had been hacked and was being used to send requests for money to friends on the pretext that she was "stranded" in another country. Facebook told her that the account was in fact being accessed from Nigeria.

A Facebook spokeswoman told the Guardian that the site has "complex automated systems that work behind the scenes to detect and flag Facebook accounts that are likely to be compromised", adding that once "phony" messages are detected then all instances of that message are deleted.

Fraudsters have been hacking into the accounts of Facebook users and duping their friends out of relatively large sums of money, a trick about which the FBI and other authorities had previously raised concerns. The site's international law enforcement efforts are overseen by a former FBI agent who worked on cyber-crime before joining Facebook in 2005.

"It is unfortunate that some people use the internet to maliciously target people either via scams or by compromising accounts on Facebook, over email or on fake websites," the spokeswoman said. "However, unlike other websites, or email, or even the phone, we provide our users with robust reporting tools to report any content they are unsure of and anything which violates our terms, will be removed quickly."

• Facebook has declined to say when its location-sharing service Places will be rolled out to the rest of Europe. Although it was announced in the US last month and launched in the UK last week, Michael Sharon, product manager for Places, would only say: "We are taking it slow to make sure we have a high-quality experience [in all localities]."

The impact of technology on privacy is currently at the fore of public debate in Germany, with calls for regulation intensifying around Google's planned Street View rollout in the country. Despite this, Allan told the Guardian that the privacy settings on Facebook Places will "stay the same across all of our major markets", adding: "We follow all developments on privacy across Europe and we're confident that [Places] suits the requirements of all the major markets we operate in.

"Places is comparable to being able to mention people in status updates. The critical thing to note is that Places is about individual users. Everything is done by the users, nothing is done without the user's knowledge. So while we're sensitive to the privacy debate around Europe we believe our products fit the requirements of the countries we operate in."

Facebook has an ongoing relationship with child safety organisations and NGOs, as well as having a safety advisory board to compose its privacy settings which at one point ran into the hundreds for individual users. Allan said: "We're trusting the common sense of our users and finding [Facebook products] are valuable and useful in everyday lives."

September 24, 2010

GROUP PUSHES FOR DWI CHECKPOINTS IN TEXAS

SAN ANTONIO - News 4 WOAI is looking into what's being done to stop DWI drivers. Mother's Against Drunk Driving (MADD) is trying to get lawmakers to allow DWI checkpoints in Texas.
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A recent study shows Texas continues to lead the nation in alcohol-related traffic deaths. MADD Executive Director Jennifer Northway says it's time for Texas to join the rest of the country. Right now 39 states have sobriety checkpoints. 11 states, including Texas, do not.

"The point of a checkpoint isn't to arrest more people, the point and the success behind one is the deterrence factor," said Northway.

And studies show it works. The Centers for Disease Control looked at 23 studies of regular sobriety checkpoints and found they cut the number of crashes involving alcohol by 20%.

MADD has been pushing for checkpoints for years and so has District Attorney Susan Reed, but some lawmakers just don't like it, saying they're concerned about racial profiling.

"Part of the problem is the concept of having probable cause to stop someone and not profiling," said District Attorney Susan Reed.

MADD is now recruiting advocates to head to Austin in February. They would like you to write to lawmakers. If you would like to get more involved, give MADD a call at 210.349.0200.

September 24, 2010

PARIS HILTON DENIED ENTRY TO JAPAN FOR COCAINE OFFENSES

Paris Hilton is not big in Japan. The socialite and entrepreneur was denied entry into the country by immigration officials because of her very fresh conviction for cocaine possession, and flew home to the United States yesterday, the Associated Press reports. She also canceled her appearances in Malaysia and Indonesia, but told reporters she hoped to return soon.
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"Paris is very disappointed and fought hard to keep her business commitments and see her fans, but she is forced to postpone her commitments in Asia," her rep says. "Paris understands and respects the rules and laws of the immigration authorities in Japan and fully wishes to cooperate with them. Paris looks forward to returning in the future to a country she loves and has been coming to for the past 10 years.”

Hilton, who was detained and grilled by immigration officials for hours Tuesday, pleaded guilty to misdemeanor cocaine possession and obstructing a police officer after she and her boyfriend were busted in Las Vegas by a motorcycle cop who smelled marijuana coming from their car.