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Tag: Fraud

  • Reality TV star Julie Chrisley resentenced to 7 years in bank fraud and tax evasion case

    Reality TV star Julie Chrisley resentenced to 7 years in bank fraud and tax evasion case

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    ATLANTA (AP) — A federal judge on Wednesday resentenced Julie Chrisley to seven years in prison for her conviction on bank fraud and tax evasion charges, declining the reality TV star’s request for less time in prison than was originally imposed.

    Chrisley and her husband, Todd Chrisley, gained fame on their show, “Chrisley Knows Best,” which followed their tight-knit family and extravagant lifestyle. A jury in 2022 found them guilty of conspiring to defraud community banks out of more than $30 million in fraudulent loans. The Chrisleys were also found guilty of tax evasion by hiding their earnings.

    A three-judge panel of the 11th U.S. Circuit Court of Appeals in June upheld the Chrisleys’ convictions but found a legal error in how the trial judge had calculated Julie Chrisley’s sentence by holding her accountable for the entire bank fraud scheme. The appellate panel sent her case back to the lower court for resentencing.

    Julie Chrisley’s attorney, Alex Little, asked the judge to reduce his client’s sentence to no more than five years. He argued that she was a minor player in the crimes, that her “scattered offenses” were “dramatic mistakes.” He also noted that she has behaved well and taken advantage of enrichment opportunities during her 20 months in prison so far, receiving more than 70 certificates.

    In a court filing, Little had argued that Chrisley’s two youngest children are struggling with “day-to-day functioning” because of their mother’s absence.

    Federal prosecutor Annalise Peters urged the judge to reimpose the seven-year sentence. She argued that prosecutors had been conservative in charging the Chrisleys, that Julie Chrisley was a “core part” of a fraudulent scheme and that she had not apologized, shown remorse or admitted wrongdoing.

    Chrisley’s good behavior in prison does not cancel out an “11-year journey of fraud after fraud after fraud,” Peters said.

    Peters said she felt sympathy for Chrisley’s family but that their suffering was “a natural consequence of this defendant’s criminal choices.”

    Chrisley, dressed in a navy blue prison uniform and with her formerly blond hair now dark brown, addressed the judge.

    “I apologize for my actions and what led me to where I am today,” she said, later adding that her time in prison has been “the most difficult time in my life” and has been hard on her family.

    “I cannot ever repay my children for what they have had to go through, and for that I am sorry,” she said.

    Before the Chrisleys became reality television stars, they and a former business partner submitted false documents to banks in the Atlanta area to obtain fraudulent loans, prosecutors said during their trial. They accused the couple of spending lavishly on luxury cars, designer clothes, real estate and travel, and using new fraudulent loans to pay off old ones. Todd Chrisley then filed for bankruptcy, according to prosecutors, walking away from more than $20 million in unpaid loans.

    U.S. District Judge Eleanor Ross said that when she originally sentenced Chrisley she took into account her age, health and the fact that she was a caretaker for young children and elderly parents. Ross said she imposed a sentence that fell below the guidelines for Chrisley’s crimes and situation and below what prosecutors had requested. That departure from the guidelines was not based on the loss amount or the number of years that Chrisley was involved, so her sentence will not change, Ross said.

    The judge noted that many people she has sent to prison have children and most don’t have the resources or the support system the Chrisleys have.

    “It saddens me every time I see children going through that,” Ross said, later adding that she reminds herself, “I am not the one who made the choices to put the children in that situation.”

    Two of Chrisley’s adult children, Savannah and Chase, attended the hearing. Savannah Chrisley, who spoke in support of Donald Trump’s presidential candidacy at the Republican National Convention in July, told reporters outside the courthouse that the prosecution and sentencing of her parents was politically motivated.

    “That’s what you get with an Obama-appointed judge,” she said as her mother was led out of the courtroom by U.S. marshals. Ross was appointed to the bench by then-President Barack Obama and took the bench in November 2014.

    She said her mother will appeal the new sentence.

    Todd Chrisley is serving a sentence of 12 years behind bars. The couple was originally ordered to pay $17.8 million in restitution, but Ross said Wednesday that the amount now stands at $4.7 million.

    Todd Chrisley, 56, is at a minimum security federal prison camp in Pensacola, Florida, with a release date in September 2032, according to the federal Bureau of Prisons website. Julie Chrisley, 51, had been held at a facility in Lexington, Kentucky, and is expected to return there.

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  • Tearful Caroline Ellison gets 2 years in prison over her role in FTX fraud

    Tearful Caroline Ellison gets 2 years in prison over her role in FTX fraud

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    NEW YORK — Caroline Ellison, a former top executive in Sam Bankman-Fried ’s fallen FTX cryptocurrency empire, was sentenced to two years in prison on Tuesday after she apologized to everyone hurt by a fraud that stole billions of dollars from investors, lenders and customers.

    Ellison, 29, could have faced a much tougher sentence, but both the judge and prosecutors said she deserved credit for talking extensively with federal investigators, pleading guilty and ultimately testifying against Bankman-Fried for three days at his trial last November.

    U.S. District Judge Lewis A. Kaplan said Ellison’s cooperation was “very, very substantial” and “remarkable.”

    But he said a prison sentence was necessary because she had participated in what might be the “greatest financial fraud ever perpetrated in this country and probably anywhere else” or at least close to it.

    Ellison was ordered to report to prison Nov. 7.

    FTX was one of the world’s most popular cryptocurrency exchanges, known for its Superbowl TV ad and its extensive lobbying campaign in Washington, before it collapsed in 2022.

    U.S. prosecutors accused Bankman-Fried and other top executives of looting customer accounts on the exchange to make risky investments, make millions of dollars of illegal political donations, bribe Chinese officials and buy luxury real estate in the Caribbean.

    Ellison was chief executive at Alameda Research, a cryptocurrency hedge fund controlled by Bankman-Fried.

    “I’m deeply ashamed with what I’ve done,” she said at the sentencing hearing, fighting through tears to say she was “so so sorry” to everyone she had harmed directly or indirectly.

    She did not speak as she left Manhattan federal court, surrounded by lawyers.

    In court Tuesday, Assistant U.S. Attorney Danielle Sassoon called for leniency, saying Ellison’s testimony was “devastating and powerful proof” against Bankman-Fried, 32, who was found guilty of fraud and sentenced to 25 years in prison.

    Attorney Anjan Sahni asked the judge to spare his client from prison, citing “unusual circumstances,” including her off-and-on romantic relationship with Bankman-Fried and the damage caused when her “whole professional and personal life came to revolve” around him.

    Judge Kaplan agreed that Ellison’s willingness to work with prosecutors was extraordinary.

    “I’ve seen a lot of cooperators in 30 years here. I’ve never seen one quite like Ms. Ellison,” he said.

    But he said that in such a serious case, he could not let cooperation be a get-out-of-jail-free card, even when it was clear that Bankman-Fried had become “your kryptonite.”

    Bankman-Fried also testified at the trial, portraying himself to the jury as inexperienced and bumbling but not a criminal. He acknowledged making mistakes, but said he didn’t defraud anyone and wasn’t aware that Alameda Research had amassed billions of dollars in debt.

    Sassoon, the prosecutor, described that testimony in court Tuesday as “evasive, even contemptuous.”

    As the business began to falter, Ellison divulged the massive fraud to employees who worked for her even before FTX filed for bankruptcy, trial evidence showed.

    Ultimately, she also spoke extensively with criminal and civil U.S. investigators.

    Sassoon said prosecutors were impressed that Ellison did not “jump into the lifeboat” to escape her crimes but instead spent nearly two years fully cooperating.

    Since testifying at Bankman-Fried’s trial, Ellison has engaged in extensive charity work, written a novel and worked with her parents on a math enrichment textbook for advanced high school students, according to her lawyers.

    They said she also now has a healthy romantic relationship and has reconnected with high school friends she had lost touch with while she worked for and sometimes dated Bankman-Fried from 2017 until late 2022.

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  • State uncovers $2.3M in welfare, food stamp fraud

    State uncovers $2.3M in welfare, food stamp fraud

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    BOSTON — Investigators uncovered more than $2.3 million in welfare fraud in the most recent quarter, according to state Auditor Diana DiZoglio’s office.

    The office’s Bureau of Special Investigations looked into more than 1,235 cases during the final quarter of the fiscal year, from April 1 to June 30, and identified at least 176 instances of public assistance fraud, about 80% of which was in the Supplemental Nutrition Assistance Program, previously known as food stamps.

    The bureau, which has the power to investigate welfare fraud, said benefits paid from the food stamp program amounted to more than $1.9 million of the fraudulent activity in the previous quarter. At least $245,858 in fraudulent activity was related to MassHealth, the state’s Medicaid program, the agency said.

    Another $138,081 was uncovered in the state’s primary cash assistance program, known as Transitional Aid to Families with Dependent Children, DiZoglio’s office reported.

    Of the $2 million in welfare fraud, federal and state courts have so far recovered only $103,142 in restitution, the auditor’s office said.

    In the previous fiscal year, the auditor’s office uncovered more than $12.3 million worth of welfare fraud from about 780 cases that were looked into by investigators.

    DiZoglio said the bureau’s investigations are “making government work better by identifying fraud, waste, and abuse of tax dollars so that residents actually in need have access to support and services.”

    In fiscal 2022, the auditor’s office uncovered more than $13.5 million worth of welfare fraud from about 600 cases that were investigated.

    That was a 120% increase in the dollar value from a year earlier, when investigators uncovered about $6.1 million in fraud.

    Demand for food stamps and other public assistance has risen amid the economic fallout of the COVID-19 pandemic, and has remained high amid inflationary costs.

    As of April, more than 111,000 people in Massachusetts were receiving basic welfare benefits from the state’s main cash assistance program, according to the latest state data.

    Meanwhile, an additional 1 million people were getting food stamps as of March, according to the latest federal data. That’s more than double the pre-pandemic average of about 450,000 recipients.

    Under current law, a recipient is limited to receiving welfare for two years in any five-year period. A family of three in the program collects roughly $593 per month.

    In the fiscal year that gets underway July 1, the state plans to spend more than $300 million on cash assistance programs for welfare recipients.

    The state has tightened its welfare fraud rules in recent years following previous audits showing widespread abuse, including the names of dead people being used to claim benefits. The penalty for welfare fraud is up to 10 years in prison, in addition to repayment of the money.

    Advocates for the benefits programs point out that welfare fraud only accounts for a fraction of the cash assistance the state provides every year. They argue that the money devoted to investigating fraud would be better spent on expanding benefits for the needy.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Former FTX executive Caroline Ellison faces sentencing

    Former FTX executive Caroline Ellison faces sentencing

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    NEW YORK — Caroline Ellison, a former top executive in Sam Bankman-Fried ’s fallen FTX cryptocurrency empire, faces the possibility of years in prison when she is sentenced Tuesday for fraud, but prosecutors said she deserves leniency for her “extraordinary cooperation” as they investigated the company.

    Ellison, 29, pleaded guilty nearly two years ago and testified against Bankman-Fried for nearly three days at a trial last November.

    In a court filing, prosecutors said said her testimony was the “cornerstone of the trial” against Bankman-Fried, 32, who was found guilty of fraud and sentenced to 25 years in prison.

    Asking the court for a lighter sentence, Ellison’s own lawyers cited both her testimony at the trial and the trauma of her off-and-on romantic relationship with Bankman-Fried — though they also stressed that she wasn’t trying to evade responsibility for her crimes.

    “Caroline blames no one but herself for what she did,” her lawyers wrote in a court filing. “She regrets her role deeply and will carry shame and remorse to her grave.”

    FTX was one of the world’s most popular cryptocurrency exchanges, known for its Superbowl TV ad and its extensive lobbying campaign in Washington, before it collapsed in 2022.

    U.S. prosecutors accused Bankman-Fried and other top executives of looting customer accounts on the exchange to make risky investments, make millions of dollars of illegal political donations, bribe Chinese officials and buy luxury real estate in the Caribbean.

    Ellison was chief executive at Alameda Research, a cryptocurrency hedge fund controlled by Bankman-Fried that was used to process some customer funds from FTX.

    Her work relationship with Bankman-Fried was complicated by her romantic feelings for him, her lawyers wrote in a court filing.

    “From the start, Mr. Bankman-Fried’s behavior was erratic and manipulative. He initially professed strong feelings for Caroline and suggested their liaison would develop into a full relationship. But after a few weeks, he would ‘ghost’ Caroline without explanation, avoiding her outside of work and refusing to respond to messages that were not work-related,” her lawyers said.

    As the business began to faulter, Ellison divulged the massive fraud to employees who worked for her even before FTX filed for bankruptcy, her lawyers wrote.

    Ultimately, she also spoke extensively with U.S. investigators.

    “Ellison cooperated at great personal and professional cost, enduring harsh media and public scrutiny and attempted witness tampering by Bankman-Fried,” prosecutors wrote.

    They said she was forthcoming about her own misconduct and was “uniquely positioned to explain not only the what and how of Bankman-Fried’s crimes, but also the why.”

    “In her many meetings with the Government, Ellison approached her cooperation with remarkable candor, remorse, and seriousness,” they wrote. “She dedicated herself to extensive document review that helped identify key corroborating documents in an investigation hamstrung by Bankman-Fried’s systematic destruction of evidence.”

    Her testimony at the trial, they said, was credible and compelling.

    Judge Lewis A. Kaplan will decide the sentence.

    Since testifying at Bankman-Fried’s trial, Ellison has engaged in extensive charity work, written a novel and worked with her parents on a math enrichment textbook for advanced high school students, according to her lawyers.

    They said she also now has a healthy romantic relationship and has reconnected with high school friends she had lost touch with while she worked for and sometimes dated Bankman-Fried from 2017 until late 2022.

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  • Grasshopper reduces manual reviews with Alloy risk solution

    Grasshopper reduces manual reviews with Alloy risk solution

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    Grasshopper Bank has reduced manual reviews in its onboarding process by 57% through fintech Alloy’s risk-management solution.   The bank implemented Alloy’s Identity Risk Solution in March 2022. At the time, 20% of its applications were reviewed manually to monitor for fraud, Lauren McCollom, head of embedded finance at Grasshopper, told Bank Automation News.  With Alloy’s […]

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    Whitney McDonald

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  • Ohio Supreme Court clears ballot language saying anti-gerrymandering measure calls for the opposite

    Ohio Supreme Court clears ballot language saying anti-gerrymandering measure calls for the opposite

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    COLUMBUS, Ohio (AP) — The Ohio Supreme Court let stand late Monday ballot language that will describe this fall’s Issue 1 as requiring gerrymandering, when the proposal is intended to do the opposite.

    In a 4-3 ruling, the high court ordered two of eight disputed sections of the ballot description rewritten, while upholding the other six the issue’s backers had contested. The court’s three Democratic justices dissented. The ballot language was approved by the Republican-controlled Ohio Ballot Board.

    Citizens Not Politicians, the group behind the Nov. 5 amendment, brought the lawsuit last month, asserting the language “may be the most biased, inaccurate, deceptive, and unconstitutional” the state has ever seen.

    The bipartisan coalition’s proposal calls for replacing Ohio’s troubled political map-making system with a 15-member, citizen-led commission of Republicans, Democrats and independents. The proposal emerged after seven different versions of congressional and legislative maps created after the 2020 Census were declared unconstitutionally gerrymandered to favor Republicans.

    In Monday’s opinion, the court’s majority noted that it can only invalidate language approved by the ballot board if it finds the wording would “mislead, deceive, or defraud the voters.” The majority found most of the language included in the approved summary and title didn’t do that, but merely described the extensive amendment in detail.

    The two sections that justices said were mischaracterized involve when a lawsuit would be able to be filed challenging the new commission’s redistricting plan and the ability of the public to provide input on the map-making process.

    In a statement, Citizens Not Politicians said they disagreed with much of the decision, but agreed with justices’ conclusions that portions of the language were “inaccurate,” “defective” and amounted to “argumentation” against Issue 1.

    “The Ohio Supreme Court ruled seven times that politicians broke the law with unconstitutional gerrymanders, and the Ohio Supreme Court ruled today that politicians broke the law with lies about our Issue 1 amendment to end the gerrymandering they hold dear,” the campaign said.

    The group added: “Politicians are lying and doing everything they can to confuse voters.”

    Chief Justice Sharon Kennedy and Justices Patrick Fischer, Patrick DeWine and Joseph Deters joined the majority opinion, while Justices Michael Donnelly, Melody Stewart and Jennifer Brunner dissented.

    Fischer wrote a separate concurring opinion in which he defended language voters will now see in November. The measure’s description will say that the commission created by Issue 1 is “required to gerrymander the boundaries of state legislative and congressional districts to favor the two largest political parties.” He said the language, proposed at the last minute by Republican state Sen. Theresa Gavarone, is accurate because the panel will have to create maps that ensure certain political outcomes.

    Republican Secretary of State Frank LaRose, who chairs the ballot board, praised Monday’s ruling.

    “This decision is a huge win for Ohio voters, who deserve an honest explanation of what they’re being asked to decide,” he said in a statement, adding that the approved description will help voters sort out what’s actually being proposed amid a barrage of expected television advertising.

    What to know about the 2024 Election

    The exact language of the constitutional amendment also will be posted at polling locations.

    LaRose has reconvened the ballot board for Wednesday morning to rewrite the two sections ruled unconstitutional, just as it had to do last year with portions of an amendment that enshrined access to abortion in Ohio’s state constitution. That issue passed easily, despite the ballot language dispute.

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  • Change-of-plea hearings set in fraud case for owners of funeral home where 190 bodies found

    Change-of-plea hearings set in fraud case for owners of funeral home where 190 bodies found

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    DENVER (AP) — A federal judge has canceled an October trial date and set a change-of-plea hearing in a fraud case involving the owners of a Colorado funeral home where authorities discovered 190 decaying bodies.

    Jon and Carie Hallford were indicted in April on fraud charges, accused of misspending nearly $900,000 in pandemic relief funds on vacations, jewelry and other personal expenses. They own the Return to Nature Funeral Home based in Colorado Springs and in Penrose, where the bodies were found.

    The indictment alleges that the Hallfords gave families dry concrete instead of cremated ashes and buried the wrong body on two occasions. The couple also allegedly collected more than $130,000 from families for cremations and burial services they never provided.

    The 15 charges brought by the federal grand jury are separate from the more than 200 criminal counts pending against the Hallfords in state court for corpse abuse, money laundering, theft and forgery.

    Carie Hallford filed a statement with the court Thursday saying “a disposition has been reached in the instant case” and asking for a change-of-plea hearing. Jon Hallford’s request said he wanted a hearing “for the court to consider the proposed plea agreement.”

    The judge granted their request to vacate the Oct. 15 trial date and all related dates and deadlines. The change-of-plea hearings were set for Oct. 24.

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  • Idiots Who Tried TikTok’s Viral ‘Free Money Glitch’ at ATMs Are Getting Reported for Fraud

    Idiots Who Tried TikTok’s Viral ‘Free Money Glitch’ at ATMs Are Getting Reported for Fraud

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    Last weekend, TikTok videos went viral that purported to show how to receive free money from Chase Bank ATMs across the country. The technique involved depositing a check for a large amount of money the user didn’t actually have and withdrawing a smaller but substantial amount before anything officially cleared. In reality, the “glitch” was better known as fraud. And now, JP Morgan Chase has confirmed the bank is reporting the people who committed the crimes to authorities.

    “As with any fraud-related issue, we review internally and refer to law enforcement as appropriate,” a Chase spokesperson told the Wall Street Journal on Friday. “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”

    It’s not entirely clear how many people may have tried this scheme, but the Journal describes it as “thousands.” The viral meme got so popular that tens of millions of people have watched TikTok videos about the “glitch” at this point, according to the Journal.

    One popular video on TikTok features a woman on the phone trying to explain to her mother that they’re letting people get between $40,000 and $50,000 for nothing with this infinite money “glitch.” The mother is rightly skeptical and says she doesn’t want her bank account closed, while her daughter insists her account won’t be closed since it’s just a glitch.

    Some videos on TikTok even showed people throwing money they’d ostensibly gotten through this method into the air in celebration. But Chase told the Journal they’ve frozen some accounts who tried it, though, again, the exact numbers haven’t been disclosed. And the bank is giving “surveillance footage and other information related to individuals” to police.

    While there were far too many people who believed that this was a “glitch” that wouldn’t get them into any trouble, the tide has certainly turned at this point, with most new videos about the ATM scam ridiculing people who thought it was just a loophole rather than check fraud.

    “Only TikTok would transform grand larceny into a ‘life hack’ and rename check fraud as ‘a glitch,’” one user on X wrote after the videos had started to go viral.

    The U.S. Postal Inspection Service also tweeted “unlimited money glitch” with a monocle inspection emoji earlier this week, expressing skepticism.

    “Don’t believe the TikTok trend, check fraud is a serious crime. You will be prosecuted. If it sounds too good to be true…” the account continued.

     

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    Matt Novak

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  • 100% of Amex fraud models tap AI, ML

    100% of Amex fraud models tap AI, ML

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    American Express’ credit and fraud models completely use machine learning and AI.  “In fact, the first time American Express used machine learning in the company was back in 2010 in our fraud models,” Anna Mars, group president of global commercial services and credit and fraud risk at the financial giant, said Sept. 4 during the […]

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    Whitney McDonald

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  • Indonesia arrests a fugitive former Filipino town mayor wanted for illegal online gaming scams

    Indonesia arrests a fugitive former Filipino town mayor wanted for illegal online gaming scams

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    JAKARTA, Indonesia (AP) — A dismissed town mayor who fled the Philippines after being accused of helping establish an illegal online gaming and scam center catering mostly to clients in China has been arrested near Indonesia’s capital, officials said Wednesday.

    Indonesian authorities arrested Alice Guo at a house in Jakarta’s satellite city of Tangerang just before midnight on Tuesday, according to Khrisna Murti, chief of the international division of the National Police.

    Guo was in custody and awaiting deportation to the Philippines, Murti said, adding that her arrest was the result of “cooperation between Indonesian and Filipino’s police.”

    Filipino President Ferdinand Marcos Jr. thanked the Indonesian authorities.

    “Let this serve as a warning to those who attempt to evade justice,” Marcos said and added that arrangements were being made to bring Guo back to the Philippines where she faces a slew of criminal charges.

    After Guo fled the Philippines in July, she was tracked in Malaysia and Singapore before turning up in Indonesia. Two companions, who reportedly slipped out of the Philippines with her without going through normal immigration and clearing procedures, were recently arrested in Indonesia.

    Guo ran as a Filipino candidate in 2022 elections and won as mayor of the rural town of Bamban in Tarlac province north of Manila. She was accused of helping establish a massive complex with several buildings near the town hall as a hub for an illegal online gambling and scam outfit that catered mostly to clients in China, where gambling is forbidden.

    A Senate committee ordered Guo arrested after she refused to appear in hearings looking into the illegal gambling business that flourished under Marcos’s predecessor, Rodrigo Duterte, who nurtured cozy ties with Chinese President Xi Jinping while often criticizing the United States and European countries.

    Guo has also been accused of concealing her Chinese nationality to run for public office, which is reserved for Filipino citizens only. At the time, a few senators suggested she may be working as a Chinese spy.

    Guo has denied any wrongdoing but was dismissed from her post for grave misconduct by the Ombudsman, an agency that investigates and prosecutes government officials accused of crimes, including graft and corruption.

    In July, Marcos ordered an immediate ban on widespread and mostly Chinese-run online gaming operations, accusing them of involvement in human trafficking, torture, kidnappings and murder.

    The crackdown on the Chinese-run online gambling outfits — estimated to number more than 400 across the Philippines and employing tens of thousands of Chinese and Southeast Asian nationals — was backed by Beijing.

    It resulted in the shutdown in the Philippines of sprawling complexes, where authorities suspect thousands of Chinese, Vietnamese and other nationals mostly from Southeast Asia have been illegally recruited and forced to work in dismal conditions.

    Philippine senators say the massive online gambling industry has flourished largely due to corruption in government regulatory agencies and big payoffs to officials.

    Indonesia and the Philippines signed an extradition agreement in 1976.

    ___

    Gomez reported from Manila, Philippines. Associated Press writer Niniek Karmini in Jakarta, Indonesia, contributed to this report.

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  • Indonesia deports an ex-Philippine town mayor accused in Manila of cybercrimes

    Indonesia deports an ex-Philippine town mayor accused in Manila of cybercrimes

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    JAKARTA, Indonesia (AP) — Indonesia on Thursday deported a dismissed Philippine town mayor accused in Manila of helping establish an illegal online gaming and scam center and evading an investigation by the Philippine Senate.

    Alice Guo, 34, will continue her legal process in Manila, according to a written statement from Indonesia’s Law and Human Rights Ministry’s Directorate General of Immigration.

    Indonesian police arrested Guo Tuesday in the outskirts of Jakarta. In exchange, Indonesian authorities hope that the Philippines will repatriate Australian Gregor Johann Haas, one of Indonesia’s most-wanted drug suspects, who was arrested in central Philippines in May.

    Guo was scheduled to undergo a medical checkup at the police headquarters before being handed to the Philippine Senate.

    Philippine President Ferdinand Marcos Jr. thanked Indonesia Wednesday for the arrest of Guo, who was accused in the Philippines of helping establish an illegal online gaming and scam center catering mostly to clients in China.

    Guo was also accused of being a Chinese spy and of faking her Filipino citizenship, which allowed her to be elected in 2022 as mayor of the rural town of Bamban in Tarlac province north of Manila.

    Guo, who denied wrongdoing, was dismissed from her post for grave misconduct by the Ombudsman, a Philippine agency that investigates and prosecutes government officials accused of crimes including graft and corruption.

    After Guo fled the Philippines in July, she was tracked in Malaysia and Singapore before turning up in Indonesia. Two companions, who reportedly slipped out of the Philippines with her, were recently arrested in Indonesia and immediately deported to the Philippines.

    In July, Marcos ordered a ban on widespread and mostly Chinese-run online gaming operations, accusing them of involvement in human trafficking, torture, kidnappings and murder.

    Khrisna Murti, chief of the international division of the national police, said Wednesday in Jakarta that “exchange efforts are still being negotiated” over the return of Haas.

    Interior Secretary Benhur Abalos and Philippine National Police chief Gen. Rommel Francisco Marbil flew to Jakarta Thursday to hold talks with their Indonesian counterparts.

    Asked about the reported detainee swap, Indonesian Ambassador to Manila Agus Widjojo told the state-run People’s Television Network that “the talks have only just started” Thursday.

    Haas, reportedly the father of a rugby star in Australia, has been described by the Bureau of Immigration in Manila as a “a high-profile fugitive for being an alleged member of the Sinaloa cartel, a large international organized crime syndicate based in Culiacan, Sinaloa, Mexico that specializes in drug trafficking and money laundering activities.”

    Indonesian authorities alleged that in December Haas tried to smuggle into Indonesia a shipment of floor ceramics filled with more than five kilograms (11 pounds) of methamphetamine, a highly addictive stimulant which is prohibited in Indonesia and the Philippines.

    Australia, which had abolished the death penalty, is concerned that Haas may potentially face capital punishment if he’s repatriated to Indonesia, a Philippine official told the AP on condition of anonymity because they were not authorized to discuss the issue publicly.

    Under Indonesia’s strict drug law, Haas could face the death penalty by firing squad.

    Australia’s extradition law doesn’t allow anyone to be extradited to a country that would execute that person regardless of nationality.

    __

    Associated Press writer Jim Gomez in Manila, Philippines, and Rod McGuirk in Canberra, Australia are contributed to this report.

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  • Indonesia arrests a fugitive former Filipino town mayor wanted for illegal online gaming scams

    Indonesia arrests a fugitive former Filipino town mayor wanted for illegal online gaming scams

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    JAKARTA, Indonesia — A dismissed town mayor who fled the Philippines after being accused of helping establish an illegal online gaming and scam center catering mostly to clients in China has been arrested near Indonesia’s capital, officials said Wednesday.

    Indonesian authorities arrested Alice Guo at a house in Jakarta’s satellite city of Tangerang just before midnight on Tuesday, according to Khrisna Murti, chief of the international division of the National Police.

    Guo was in custody and awaiting deportation to the Philippines, Murti said, adding that her arrest was the result of “cooperation between Indonesian and Filipino’s police.”

    Filipino President Ferdinand Marcos Jr. thanked the Indonesian authorities.

    “Let this serve as a warning to those who attempt to evade justice,” Marcos said and added that arrangements were being made to bring Guo back to the Philippines where she faces a slew of criminal charges.

    After Guo fled the Philippines in July, she was tracked in Malaysia and Singapore before turning up in Indonesia. Two companions, who reportedly slipped out of the Philippines with her without going through normal immigration and clearing procedures, were recently arrested in Indonesia.

    Guo ran as a Filipino candidate in 2022 elections and won as mayor of the rural town of Bamban in Tarlac province north of Manila. She was accused of helping establish a massive complex with several buildings near the town hall as a hub for an illegal online gambling and scam outfit that catered mostly to clients in China, where gambling is forbidden.

    A Senate committee ordered Guo arrested after she refused to appear in hearings looking into the illegal gambling business that flourished under Marcos’s predecessor, Rodrigo Duterte, who nurtured cozy ties with Chinese President Xi Jinping while often criticizing the United States and European countries.

    Guo has also been accused of concealing her Chinese nationality to run for public office, which is reserved for Filipino citizens only. At the time, a few senators suggested she may be working as a Chinese spy.

    Guo has denied any wrongdoing but was dismissed from her post for grave misconduct by the Ombudsman, an agency that investigates and prosecutes government officials accused of crimes, including graft and corruption.

    In July, Marcos ordered an immediate ban on widespread and mostly Chinese-run online gaming operations, accusing them of involvement in human trafficking, torture, kidnappings and murder.

    The crackdown on the Chinese-run online gambling outfits — estimated to number more than 400 across the Philippines and employing tens of thousands of Chinese and Southeast Asian nationals — was backed by Beijing.

    It resulted in the shutdown in the Philippines of sprawling complexes, where authorities suspect thousands of Chinese, Vietnamese and other nationals mostly from Southeast Asia have been illegally recruited and forced to work in dismal conditions.

    Philippine senators say the massive online gambling industry has flourished largely due to corruption in government regulatory agencies and big payoffs to officials.

    Indonesia and the Philippines signed an extradition agreement in 1976.

    ___

    Gomez reported from Manila, Philippines. Associated Press writer Niniek Karmini in Jakarta, Indonesia, contributed to this report.

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  • Chase check fraud not ‘a glitch,’ expert says

    Chase check fraud not ‘a glitch,’ expert says

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    Chase customers claimed to have identified a glitch in Chase ATMs during Labor Day weekend, allowing them to deposit false checks and withdraw large sums of cash from accounts potentially without the funds to cover the withdrawals.   This past weekend, Chase clients took to TikTok to share “the glitch” in the $3.8 trillion bank’s system.  […]

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  • Hewlett Packard to pursue suit against tech mogul Mike Lynch, who died when his yacht sank

    Hewlett Packard to pursue suit against tech mogul Mike Lynch, who died when his yacht sank

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    Hewlett Packard Enterprise will pursue a lawsuit against the estate of British tech entrepreneur Mike Lynch, who died in August after his yacht sank off the coast of Sicily.

    Britain’s High Court in 2022 ruled mostly in favor of the U.S. technology company, which accused Lynch and his former finance director of fraud over its $11 billion takeover of his software company Autonomy. Hewlett Packard is seeking up to $4 billion in damages, and the judge is expected to issue a decision on the final sum soon.

    Lynch died when his yacht, the Bayesian, sank in a storm off Sicily on Aug. 19. His widow, Angela Bacares, could now be liable for the damages. Months before the sinking, Lynch was acquitted in a separate U.S. criminal trial of fraud and conspiracy charges in the deal.

    Hewlett Packard initially celebrated the costly acquisition of Lynch’s company in 2011 but quickly came to regret it. The company said in a statement Monday that it had “substantially succeeded” in its civil fraud claims against Lynch and Sushovan Hussain, the former finance director.

    “It is HPE’s intention to follow the proceedings through to their conclusion.”

    However, the judge in the U.K. civil case has already ruled that the amount payable in damages would be “substantially less” than the company is seeking.

    A spokesperson for Lynch’s family declined to comment.

    File: Tech Tycoon Mike Lynch Awaits Extradition Fate After Damning Court Ruling
    Mike Lynch, former CEO of Autonomy Corp., and five other passengers died when his luxury yacht sank during a storm off the coast of Sicily on Aug. 19, 2024.

    Simon Dawson/Bloomberg via Getty Images


    Lynch and his 18-year-old daughter Hannah were among six passengers who died when his 184-foot luxury yacht sank quickly in a storm on Aug. 19. One crew member, the boat’s chef, also died, while 15 people survived the disaster. They had gathered on the yacht to celebrate Lynch’s acquittal.

    The incident has raised questions, as another sailboat that had been anchored nearby off the coast of Palermo made it through the storm unscathed.  Officials initially said the yacht was struck by a tornado over the water, known as a waterspout. Prosecutors in Italy are investigating the captain on possible charges including manslaughter.

    The captain, engineer and a sailor aboard the yacht, called “Bayesian,” were placed investigation for possible manslaughter in connection with the shipwreck. 

    Federal authorities sought for years to extradite Lynch from the U.K. to face multiple counts of fraud and conspiracy in the U.S. related to HP’s acquisition of Autonomy. 

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  • Claw machine games are Rio de Janeiro’s new public enemy

    Claw machine games are Rio de Janeiro’s new public enemy

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    RIO DE JANEIRO (AP) — Rio de Janeiro — already notorious for street muggings, corrupt politicians, ruthless militias and Kalashnikov-toting drug traffickers — has a new public enemy: plushies. Or, more specifically, the joystick-controlled claw machines that dispense them.

    On Wednesday, Rio police carried out 16 search warrants targeting the machines that elicit exhilaration among children and adults alike. But police said the claw machines defraud users who believe scoring stuffed animals to be a test of skill. In fact, they are games of chance — just like slot machines — and therefore illegal, according to their press office.

    Officers seized claw machines, laptops, tablets, cell phones, a firearm and — yes — furry friends. They are investigating whether organized crime groups may be the invisible hand behind the claw because they already run slot machines and a popular lottery known as “Animal Game” across the city. Police in Brazil’s southern Santa Catarina state carried out an additional three search warrants Wednesday as part of the same operation.

    It marked the second such police crackdown, following another in May during which officers apprehended 80 machines. Not only were those machines stocked with counterfeit plushies, but subsequent analysis of their programming found winning pulls were permitted only after a set number of attempts, police said in their statement Wednesday. Facilitating such sporadic, successful snags is an electrical current to the otherwise enfeebled claw so it holds fast to its prize, the statement said.

    That programming isn’t disclosed to naive users, including children liable to blow their pocket money on what’s effectively a crap shoot. Claw machines can be found in Rio’s shopping malls, subway stations, supermarkets, arcades and toy stores.

    Among Rio’s claw aficionados is Alessandra Libonatti, 41, who has played for nearly three decades. She remembers the machines causing a stir when they first appeared in the city; she had only seen them before in movies. These days she tends to play once a week, whether alone or at the mall with friends who share her “peculiar” hobby.

    She likes the low-investment adrenaline rush and, by her own account, she’s a talented clawmaster who has honed her techniques to maximize success, from scouting the stuffed animal landscape to precise positioning of the claw. She treasures a manatee with jaguar spots that she pulled in on a trip to the nation’s capital with friends.

    “When I pass by a machine, I give it a look to see if there’s a stuffed animal that makes it worth it to play,” she told The Associated Press. “Because it’s not always worth it; sometimes it’s clearly a waste of money.”

    Claw machines may have been feats of skill in decades past, but most modern machines have built-in programming allowing operators to predetermine their profitability, said Jeremy Hambly, a claw game aficionado from the Milwaukee area. His ClawStruck YouTube channel shows how many different models work, he previously told the AP. He said odds should be posted prominently on machines for users to review.

    Most U.S. states consider claw machines games of chance and specifically exempt them from gambling statutes, as long as they comply with certain rules specific to those states. According to industry officials, it’s in arcades’ best interests to have customers win so they’ll keep playing.

    But lately it’s tough going for Rio’s claw connoisseurs, Libonatti said. And she chalks that up to changes made to the machines that didn’t escape her exacting eye.

    “The current machines are crap. The claws are weaker,” she wrote in a text message to a friend in April, reviewed by the AP.

    “Amiga, yessssss!” her friend replied. “I went back to the machines where I always got (stuffed animals) in recent weeks and they’re soooooo weak!”

    Local online media outlet G1 dubbed the phenomenon the “weak claw scam.”

    The nearly 13,000 stuffed animals police detained in May were initially destined for destruction, but a request from state lawmakers found favor with a judge who spared them. Instead, police donated the plushies to families who lost their homes in the massive floods of southern Rio Grande do Sul state, particularly children in shelters.

    The fate of the stuffed animals seized Wednesday was still unclear.

    ___

    Associated Press writer Bruce Shipkowski contributed from Trenton, New Jersey.

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  • Telegram app CEO freed from custody and will appear in court, French prosecutors say

    Telegram app CEO freed from custody and will appear in court, French prosecutors say

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    PARIS — French prosecutors on Wednesday freed Telegram CEO Pavel Durov from police custody after four days of questioning over allegations that the messaging app is being used for illegal activities.

    Durov was detained on Saturday at Le Bourget airport outside Paris as part of a judicial inquiry opened last month involving 12 alleged criminal violations.

    “An investigating judge has ended Pavel Durov’s police custody and will have him brought to court for a first appearance and a possible indictment,” a statement from the Paris prosecutor’s office said.

    Allegations against the Russia-born Durov, who is a French citizen, include that his platform is being used for child sexual abuse material and drug trafficking, fraud and abetting organized crime transactions, and that Telegram refused to share information or documents with investigators when required by law.

    Durov’s arrest in France has caused outrage in Russia, with some government officials calling it politically motivated and proof of the West’s double standard on freedom of speech. The outcry has raised eyebrows among Kremlin critics because in 2018, Russian authorities themselves tried to block the Telegram app but failed, withdrawing the ban in 2020.

    In Iran, where Telegram is widely used despite being officially banned after years of protests challenging the country’s Shiite theocracy, Durov’s arrest in France prompted comments from the Islamic Republic’s supreme leader. Ayatollah Ali Khamenei weighed in with veiled praise for France for being “strict” against those who “violate your governance” of the internet.

    French President Emmanuel Macron said Monday that Durov’s arrest wasn’t a political move but part of an independent investigation. Macron posted on X that his country “is deeply committed” to freedom of expression but “freedoms are upheld within a legal framework, both on social media and in real life, to protect citizens and respect their fundamental rights.”

    In a statement posted on its platform after Durov’s arrest, Telegram said it abides by EU laws, and its moderation is “within industry standards and constantly improving.”

    “It is absurd to claim that a platform or its owner are responsible for abuse of that platform,” Telegram’s post said. “Almost a billion users globally use Telegram as means of communication and as a source of vital information. We’re awaiting a prompt resolution of this situation. Telegram is with you all.”

    In addition to Russia and France, Durov is also a citizen of the United Arab Emirates and the Caribbean island nation of St. Kitts and Nevis.

    The UAE Foreign Ministry said Tuesday that it was “closely following the case” and had asked France to provide Durov “with all the necessary consular services in an urgent manner.”

    Kremlin spokesman Dmitry Peskov said he hoped that Durov “has all the necessary opportunities for his legal defense” and added that Moscow stands “ready to provide all necessary assistance and support” to the Telegram CEO as a Russian citizen.

    “But the situation is complicated by the fact that he is also a citizen of France,” Peskov said.

    Telegram, which says it has nearly a billion users worldwide, was founded by Durov and his brother after he himself faced pressure from Russian authorities.

    In 2013, he sold his stake in VKontakte, a popular Russian social networking site which he launched in 2006.

    The company came under pressure during the Russian government’s crackdown following mass pro-democracy protests that rocked Moscow at the end of 2011 and 2012.

    Durov had said authorities demanded that the site take down online communities of Russian opposition activists, and later that it hand over personal data of users who took part in the 2013-2014 popular uprising in Ukraine, which eventually ousted a pro-Kremlin president.

    Durov said in a recent interview that he had turned down these demands and left the country.

    The demonstrations prompted Russian authorities to clamp down on the digital space, and Telegram and its pro-privacy rhetoric offered a convenient way for Russians to communicate and share news.

    Telegram also continues to be a popular source of news in Ukraine, where both media outlets and officials use it to share information on the war, and deliver missile and air raid alerts.

    Western governments have often criticized Telegram for a lack of content moderation, which experts say opens up the messaging app for potential use in money laundering, drug trafficking and the sharing of material linked to the sexual exploitation of minors.

    In 2022, Germany issued fines of $5 million against Telegram’s operators for failing to establish a lawful way to reporting illegal content or to name an entity in Germany to receive official communication. Both are required under German laws that regulate large online platforms.

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  • Former CFO of Atlanta sentenced to prison for theft, tax evasion, and gun crimes

    Former CFO of Atlanta sentenced to prison for theft, tax evasion, and gun crimes

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    ATLANTA – The City of Atlanta’s former Chief Financial Officer, Jimmie “Jim” A. Beard, has been sentenced to federal prison for a multi-year scheme involving theft of funds, purchase and possession of two machine guns, and obstructing federal tax laws using altered documents and a fake business.

    “Jim Beard abused the trust and confidence placed in him by the people of the City of Atlanta when he decided to steal tens of thousands of dollars from taxpayers to support his lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Beard’s sentencing is a demonstration of our commitment to hold accountable public officials who trade their position of power for greed and personal gain.”

    “As this prosecution shows, the Department of Justice will work vigorously to protect the integrity of federal funds.  Today’s sentence sends a strong message of deterrence to prevent fraud and theft from state and local governments receiving federal benefits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. 

    “Beard’s actions eroded public trust in government. As one of the most powerful people in Atlanta city government, he stole tens of thousands of dollars from taxpayers so he could go on luxurious trips and even buy custom-made machine guns,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities and we continue to work to protect citizens against officials who abuse that trust.”

    “Public officials are entrusted by the citizens they serve to conduct the business of government on their behalf,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Jim Beard failed in his responsibilities to the community and utilized public tax dollars to satisfy his greed. The sentence today reinforces IRS Criminal Investigation’s commitment to investigating and forwarding for prosecution those who commit financial fraud.”

    “Beard repeatedly abused his position, broke the law he was sworn to uphold and betrayed the trust of the people of Atlanta,” said ATF Assistant Special Agent in Charge Alicia D. Jones. “This case demonstrates the partnerships of law enforcement to enforce the law and hold individuals accountable, regardless of their position or status.”

    According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the Chief Financial officer (“CFO”) of the City of Atlanta (the “City”). As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition, earning a salary of over $260,000 per year.

    During his tenure, Beard devised and executed a scheme to obtain money and property from the City for private use, including using City funds to: (1) pay for personal luxury travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, with Beard pocketing the reimbursements instead of giving them to the City; and (4) pay for travel that Beard falsely claimed as business deductions on his taxes for a non-existent personal consulting business.

    In total, Beard stole at least tens of thousands of dollars from the City.  By way of example only:

    •In the summers of 2015 and 2016, Beard charged nearly $4,000 to the City for weekend stays at the J.W. Marriott Hotel in Chicago, Illinois. However, Beard was not in Chicago those weekends and the hotel rooms were actually for his stepdaughter to attend the Lollapalooza music festival.

    •In December 2015, Beard ordered two custom-built machine guns using a purchase order and $2,641.90 check from the City, telling the manufacturer that the machine guns were for the exclusive use of the Atlanta Police Department (“APD”) – even though Beard took the guns to his own home and APD had no knowledge of them.

    •In April 2016, Beard charged more than $2,600 to the City for airfare and hotels for two weekend trips to the New Orleans Jazz and Heritage Festival. Beard had no City business in New Orleans during either trip, and took his wife one of the weekends and a different personal companion the other.

    •In June 2016, Beard charged $975.52 to the City for travel to Washington, D.C. for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard had the City pay for this travel, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard, which he kept and deposited into his personal bank account.

    •In April 2017, Beard charged more than $10,000 to the City for a four-day stay for him and his wife at the Shangri-La Hotel in Paris, in a deluxe suite with a view of the Eiffel Tower.

    Beard exploited his position and power to execute his scheme. When lower-level City staff members responsible for processing travel reimbursements asked him for receipts or work justifications for his trips, Beard refused and ordered the staff (who worked for him) to process the reimbursements without the requisite documentation. A City employee described the culture under Beard as, “if the [] CFO asks you for something, you do not ask questions.”

    While CFO, Beard also submitted years of fraudulent tax returns in which he claimed personal business expenses to lower what he owed in taxes. During a 2015 audit of one of those returns, Beard lied to the IRS and obstructed auditors by submitting receipts for transactions that were actually paid by the City in connection with Beard’s official duties. The investigation later revealed that Beard did not operate a personal business, and years of tax deductions were based on a lie. 

    Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida was sentenced by U.S. District Judge Steve C. Jones to three years in prison to be followed by three years of supervised release. Beard was also ordered to pay a fine of $10,000 and restitution in the amount of $177,197.48.  Beard was convicted on these charges on April 8, 2024, after he pleaded guilty.

    This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

    Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis prosecuted the case.

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  • What is Telegram and why was its CEO arrested in Paris?

    What is Telegram and why was its CEO arrested in Paris?

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    Pavel Durov, the founder and CEO of the messaging app Telegram, was arrested in Paris over the weekend over allegations that his platform is being used for illicit activity such as drug trafficking and the distribution of child sexual abuse images.

    Durov, who was born in Russia, spent much of his childhood in Italy and is a citizen of France, Russia, the Caribbean island nation of St. Kitts and Nevis and the United Arab Emirates. He was taken into custody at Paris-Le Bourget Airport in France on Saturday after landing from Azerbaijan.

    In a statement posted to its platform, Telegram said it abides by EU laws and its content moderation is “within industry standards and constantly improving.” Durov, the company added, “has nothing to hide and travels frequently in Europe.”

    Here are some details on Telegram, the app at the center of Durov’s arrest.

    Telegram is an app that allows for one-on-one conversations, group chats and large “channels” that let people broadcast messages to subscribers. Unlike rivals such as Meta’s WhatsApp, Telegram’s group chats allow as many as 200,000 people, compared to a maximum of 1,024 for WhatsApp. Experts have raised concerns that misinformation spreads easily in group chats of this size.

    Telegram offers encryption for their communications, but — contrary to a popular misconception — this feature is not on by default. Users have to switch on the option to encrypt their chats. It also doesn’t work with group chats. That contrasts with rival Signal and Facebook Messenger, where chats are encrypted end-to-end by default.

    Telegram says it has more than 950 million active users. It is widely used in France as a messaging tool, including by some officials in the presidential palace and in the ministry behind the investigation into Durov. But French investigators have also found the app has been used by Islamic extremists and drug traffickers.

    Telegram was launched in 2013 by Durov and his brother Nikolai. According to Telegram, Pavel Durov supports the app “financially and ideologically while Nikolai’s input is technological.”

    Before Telegram, Durov founded VKontakte, Russia’s largest social network. The company came under pressure amid the Russian government’s crackdown after mass pro-democracy protests rocked Moscow at the end of 2011 and 2012. Durov said government authorities demanded that the VKontakte take down the online communities of Russian opposition activists. It later asked the platform to hand over the personal data of users who took part in the 2013 uprising in Ukraine, which eventually ousted a pro-Kremlin president.

    But Durov sold his stake in VKontakte after pressure from Russian authorities in 2014. He also left the country. Today, Telegram is based in Dubai, which Durov called “the best place for a neutral platform like ours to be in if we want to make sure we can defend our users’ privacy and freedom of speech” in an April interview with conservative talk show host Tucker Carlson.

    Durov was detained in France as part of a judicial inquiry opened last month involving 12 alleged criminal violations, according to the Paris prosecutor’s office. It said the suspected violations include complicity in selling child sexual abuse material and in drug trafficking, fraud, abetting organized crime transactions and refusing to share information or documents with investigators when required by law.

    As of Tuesday morning, he had not been charged. He can be held for questioning until Wednesday evening, at which point judges must either charge him or release him.

    In Russia, Kremlin spokesman Dmitry Peskov declined to comment on reports of Durov’s arrest in France.

    “We still don’t know what exactly Durov is being accused of,” Peskov said Monday during his daily media conference call. “We haven’t heard any official statements on that matter.”

    “Let’s wait until the charges are announced — if they are announced,” Peskov said.

    Russian government officials have expressed outrage at Durov’s detention, with some calling it politically motivated and proof of the West’s double standard on freedom of speech. The outcry has raised eyebrows among Kremlin critics: in 2018 Russian authorities themselves tried to block Telegram but failed, withdrawing the ban in 2020.

    Elsewhere, Elon Musk, the billionaire owner of X who has called himself a “ free speech absolutist,” has been speaking out in support of Durov and posted ”#freePavel” following the arrest.

    “It is absurd to claim that a platform or its owner are responsible for abuse of that platform,” Telegram’s post after the arrest said. “Almost a billion users globally use Telegram as a means of communication and as a source of vital information. We’re awaiting a prompt resolution of this situation. Telegram is with you all.”

    Western governments have often criticized Telegram for a lack of content moderation, which experts say opens up the messaging platform for potential use in money laundering, drug trafficking and the sharing of material linked to the sexual exploitation of minors.

    Compared to other messaging platforms, Telegram is “less secure (and) more lax in terms of policy and detection of illegal content,” said David Thiel, a Stanford University researcher, who has investigated the use of online platforms for child exploitation, at its Internet Observatory.

    In addition, Telegram “appears basically unresponsive to law enforcement,” Thiel said, adding that messaging service WhatsApp “submitted over 1.3 million CyberTipline reports in 2023 (and) Telegram submits none.”

    In 2022, Germany issued fines of 5.125 million euros ($5 million) against the operators of Telegram for failing to comply with German law. The Federal Office of Justice said that Telegram FZ-LLC hasn’t established a lawful way for reporting illegal content or named an entity in Germany to receive official communication.

    Both are required under German laws that regulate large online platforms.

    Last year, Brazil temporarily suspended Telegram over its failure to surrender data on neo-Nazi activity related to a police inquiry into school shootings in November.

    ___

    Associated Press Writers Barbara Surk in Nice, France, and Daria Litvinova in Tallinn, Estonia contributed to this story.

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  • Prosecutors make their case for why Utah children’s book author should face trial in husband’s death

    Prosecutors make their case for why Utah children’s book author should face trial in husband’s death

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    PARK CITY, Utah (AP) — Detectives on Monday described in court how they zeroed in on a Utah mother known for penning a children’s book about grief as the main suspect in her husband’s fatal poisoning. The multiday hearing will determine whether prosecutors have enough evidence against her to proceed with a trial.

    Kouri Richins, 34, faces several felony charges for allegedly killing her husband with a lethal dose of fentanyl in March 2022 at their home in a small mountain town near Park City. Prosecutors say she slipped five times the lethal dose of the synthetic opioid into a Moscow mule cocktail that Eric Richins, 39, drank.

    Additional charges filed in March accuse her of an earlier attempt to kill her husband with a spiked sandwich on Valentine’s Day. She has been adamant in maintaining she is innocent.

    Detective Jeff O’Driscoll with the Summit County Sheriff’s Office was called to the stand Monday to describe his interactions with the state’s key witness, a housekeeper who claims to have sold fentanyl to Kouri Richins on three occasions. He said police first linked housekeeper Carmen Lauber to Kouri Richins through a series of text messages and later arrested Lauber, saying drugs and other illegal items were found at her home.

    Lauber, 52, originally denied any knowledge of how Eric Richins died, but she later opened up in an interview with O’Driscoll after he told her the drug charges against her might be reduced or eliminated in exchange for helpful information, the detective said. The housekeeper “went back and forth on what happened, what didn’t happen and in what order things happened,” O’Driscoll explained in court.

    He said Lauber told him she had sold Kouri Richins up to 90 blue-green fentanyl pills, and her supplier later confirmed to detectives that he had sold her the fentanyl she requested. Officers did not find any fentanyl pills in the Richins home, the detective said.

    Lauber has received a letter of immunity from the U.S. Attorney’s Office and is not currently in custody, O’Driscoll said. She is among the witnesses who could be called to testify later in the hearing or during a possible trial.

    Other witnesses may include relatives of the defendant and her late husband, and friends of Eric Richins who have recounted phone conversations from the day prosecutors say he was first poisoned by his wife of nine years.

    In the months before her arrest in May 2023, the mother of three self-published the children’s book “Are You with Me?” about a father with angel wings watching over his young son after passing away. The book could eventually play a key role for prosecutors in framing Eric Richins’ death as a calculated killing with an elaborate cover-up attempt. Prosecutors have accused Kouri Richins of making secret financial arrangements and buying the illegal drug as her husband began to harbor suspicions about her.

    Utah state Judge Richard Mrazik is expected to decide as early as Tuesday whether the state has presented sufficient evidence to go forward with a trial.

    Mrazik had delayed the hearing in May after prosecutors said they would need three consecutive days to present their evidence. The case was further slowed when Kouri Richins’ team of private attorneys withdrew from representing her. The judge determined she was unable to continue paying for private representation, and he appointed attorneys Wendy Lewis and Kathy Nester to take over her case.

    The two attorneys used the first day of the hearing to build upon arguments presented by Kouri Richins’ former lead attorney, Skye Lazaro. They insinuated that the housekeeper Lauber had motivation to lie as she sought leniency in the face of drug charges.

    Lazaro also argued that Eric Richins’ sisters had a clear bias against her former client amid a battle over his estate and a concurrent assault case. Similar arguments could arise if family members are called to the stand.

    A petition filed by the victim’s sister, Katie Richins, alleges Kouri Richins had financial motives for killing her husband as prosecutors say she had opened life insurance policies totaling nearly $2 million without his knowledge and mistakenly believed she would inherit his estate under terms of their prenuptial agreement.

    Court records indicate Eric Richins had consulted an attorney in October 2020 to discuss the possibility of filing for divorce and to quietly cut his wife out of his will. Forensic accountant Brooke Karrington⁠ said transcripts from that meeting indicate Eric Richins knew his wife was making major financial decisions without consulting him, but he never went through with ending the marriage.

    In May, Kouri Richins was found guilty on misdemeanor charges of assaulting her other sister-in-law shortly after her husband’s death. Amy Richins told the judge that Kouri Richins had punched her in the face during an argument over access to her brother’s safe.

    In addition to aggravated murder, assault and drug charges, Kouri Richins has been charged with mortgage fraud, forgery and insurance fraud for allegedly forging loan applications and fraudulently claiming insurance benefits after her husband’s death.

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  • Utah judge to decide if author of book on grief will face trial in husband’s death

    Utah judge to decide if author of book on grief will face trial in husband’s death

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    PARK CITY, Utah — A Utah woman who authorities say fatally poisoned her husband then published a children’s book about coping with grief is set to appear in court Monday for the start of a multiday hearing that will determine whether prosecutors have enough evidence against her to proceed with a trial.

    Kouri Richins, 34, faces several felony charges for allegedly killing her husband with a lethal dose of fentanyl in March 2022 at their home in a small mountain town near Park City. Prosecutors say she slipped five times the lethal dose of the synthetic opioid into a Moscow mule cocktail that Eric Richins, 39, drank.

    Additional charges filed in March accuse her of an earlier attempt to kill him with a spiked sandwich on Valentine’s Day. She has been adamant in maintaining her innocence.

    Utah state Judge Richard Mrazik had delayed the hearing in May after prosecutors said they would need three consecutive days to present their evidence. The case was further slowed when Kouri Richins’ team of private attorneys withdrew from representing her. Mrazik determined she was unable to continue paying for private representation, and he appointed public defenders Wendy Lewis and Kathy Nester to take over her case.

    In the months leading up to her arrest in May 2023, the mother of three self-published the children’s book “Are You with Me?” about a father with angel wings watching over his young son after passing away. The book could play a key role for prosecutors in framing Eric Richins’ death as a calculated killing with an elaborate cover-up attempt. Prosecutors have accused Kouri Richins of making secret financial arrangements and buying the illegal drug as her husband began to harbor suspicions about her.

    Both the defense and prosecution plan to call on witnesses and introduce evidence to help shape their narratives in the case. Mrazik is expected to decide after the hearing whether the state has presented sufficient evidence to go forward with a trial.

    Among the witnesses who could be called are relatives of the defendant and her late husband, a housekeeper who claims to have sold Kouri Richins the drugs, and friends of Eric Richins who have recounted phone conversations from the day prosecutors say he was first poisoned by his wife of nine years.

    Kouri Richins’ former lead defense attorney, Skye Lazaro, had argued the housekeeper had motivation to lie as she sought leniency in the face of drug charges, and that Eric Richins’ sisters had a clear bias against her client amid a battle over his estate and a concurrent assault case.

    A petition filed by his sister, Katie Richins, alleges Kouri Richins had financial motives for killing her husband as prosecutors say she had opened life insurance policies totaling nearly $2 million without his knowledge and mistakenly believed she would inherit his estate under terms of their prenuptial agreement.

    In May, Kouri Richins was found guilty on misdemeanor charges of assaulting her other sister-in-law shortly after her husband’s death. Amy Richins told the judge that Kouri Richins had punched her in the face during an argument over access to her brother’s safe.

    In addition to aggravated murder, assault and drug charges, Kouri Richins has been charged with mortgage fraud, forgery and insurance fraud for allegedly forging loan applications and fraudulently claiming insurance benefits after her husband’s death.

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