Investment Banker Arrested on Bank Fraud Charge
Prosecutors have charged New York investment banker Hassan Nemazee, a major fundraiser for President Obama and Hillary Rodham Clinton, with bank fraud. He allegedly provided false account numbers, references, and other information in order to obtain a $74 million loan from Citibank. Although there seems to be no connection between the alleged fraud and the fundraising, Democrats are trying to distance themselves from Nemazee by returning or donating contributions. After posting a $25 million bond, Nemazee was placed under house arrest. If he is convicted, Nemazee could face up to 30 years in prison. (Quadrino Schwartz)
Restitution to Victims Might Be Coming Soon
The victims of Bernard Madoff’s Ponzi scheme, the largest in history, may finally receive some restitution from the proceeds of the sale of three houses seized from Madoff. The first of the three houses, located in Montauk, New York, has just been placed on the market and is said to be worth $7 million. The four-bedroom, 3,000 square-foot house is constructed so that every room has a panoramic view of the Atlantic Ocean. There are also plans to sell Madoff’s former penthouse in Manhattan and his other home in Palm Beach, Florida. (Quadrino Schwartz)
Individuals in Business Opportunity Scams Sentenced
Two more individuals have been sentenced in connection with business opportunity scams in South Florida. Stewart Pope was sentenced to 27 months in prison and ordered to pay $4.3 million in restitution to victims of his business opportunity scams. According to the U.S. Attorney for the Southern District of Florida, this is the eighth conviction in connection with the Miami-based Global Resources Company, which victimized more than 200 people. Jeffery H. Sloman, acting U.S. Attorney for the Southern District of Florida, said that even though business opportunity schemes are difficult to detect, “business opportunity promoters need to realize that this type of fraud will be detected by law enforcement” and will result in serious jail time. (Quadrino Schwartz)
Woman Sentenced to 8 Years in Prison for Insurance Scam Involvement
A California woman has been sentenced in connection with what is believed to be the largest health insurance fraud in the nation. Lilia Toscano pocketed $770,000 through a scam that involved recruiting patients to undergo unnecessary surgeries. According to court documents, 19 people have been charged in the $154 million scam, including three doctors and a lawyer. So far, six of those charged have pleaded guilty, and the remaining are awaiting trial. According to Farrah Emami, a spokeswoman for Orange County District Attorney Tony Rackauckas, “the ultimate victims in this case are the consumers. They’re the ones who have to pay higher insurance rates.” (Quadrino Schwartz)