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NEW YORK — Former President Donald Trump answered questions for nearly seven hours Thursday during his second deposition in a legal battle with New York’s attorney general over his company’s business practices, reversing an earlier decision to invoke his Fifth Amendment protection against self-incrimination and remain silent.
The Republican met all day with lawyers for Attorney General Letitia James, who sued Trump last year. Her lawsuit claims Trump and his family misled banks and business associates by giving them false information about his net worth and the value of assets such as hotels and golf courses.
Shortly after Trump entered the Manhattan skyscraper that houses James’ offices, his attorney, Alina Habba, said he was “not only willing but also eager to testify.”
After the deposition was finished, a lawyer for Trump’s businesses, Christopher Kise, said the former president had spent nearly seven hours “describing in detail his extraordinary business success.”
“The transactions at the center of this case were wildly profitable for the banks and for the Trump entities,” Kise said. “When the facts of this success, and not politically engineered soundbites, are out in the open, everyone will scoff at the notion any fraud took place.”
The lawsuit is unrelated to the felony criminal charges filed against Trump by the Manhattan district attorney, which led last week to his historic arraignment, the first for a former president.
James declined to answer a question about the deposition at a news conference on an unrelated matter Wednesday.
Trump previously met with James’ lawyers Aug. 10, but refused to answer all but a few procedural questions, invoking his Fifth Amendment rights more than 400 times. At the time, James had not yet brought her lawsuit and it was unclear whether questions about the way Trump valued his company would become the basis of a criminal case.
“Anyone in my position not taking the Fifth Amendment would be a fool, an absolute fool,” he said in that deposition, which was recorded on video and later released publicly. Trump predicted a “renegade” prosecutor would try to make a criminal case out of his answers, if he gave them.
“One statement or answer that is ever so slightly off, just ever so slightly, by accident, by mistake, such as it was a sunny, beautiful day, when actually it was slightly overcast, would be met by law enforcement at a level seldom seen in this country, because I’ve experienced it,” he said.
Circumstances since then have changed. The criminal charges brought by the Manhattan district attorney focused on how the company accounted internally for payments to a lawyer, Michael Cohen, for his work paying off people not to go public with stories about extramarital sexual encounters Trump said never happened.
James’ lawsuit focused on allegations that Trump lied repeatedly about his own wealth and exaggerated the value of his assets on financial statements.
In a social media post Thursday morning, Trump called the suit “ridiculous, just like all of the other Election Interference cases being brought against me.”
He raised a fist as he left his apartment at Trump Tower in the morning, arriving by motorcade at the attorney general’s office around 9:40. The two sides took a break for lunch. Trump departed in the motorcade just before 6:15 p.m. and did not stop to speak to reporters.
The lawsuit James brought is scheduled to go to trial in October. Video recordings of Trump’s depositions could potentially be played at the trial, if the lawsuit is not settled.
Thursday’s deposition was conducted in private.

PLAINVIEW, N.Y., April 13, 2023 (Newswire.com)
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The New York Anti Car Theft and Fraud Association (NYACT), New York’s association founded to provide training for insurance and law enforcement personnel to combat vehicle crime and insurance fraud, and the National Insurance Crime Bureau (NICB) joined forces to present their half day Joint Medical Fraud Seminar on Thursday, April 13, 2023.
NYACT Board of Directors’ Chair, Nichole Soriano, Regional Director of Travelers Insurance Company, stated, “America is facing a surge in claims and the anti-fraud community needs up-to-date training to handle the increase of fraudulent activity and crime. NYACT and NICB join forces every year for several joint trainings, but this year, due to new trends in the fraudulent claim and auto crime arena, it is more important than ever that we provide law enforcement and our insurance members with skills and tactics to not only solve cases and prosecute criminals but to also hopefully prevent crimes against the American public.”
Training topics focused on trends affecting medical billing, Case Law Developments in PIP, and Litigation Funding and Evolution of Mallela.
This seminar’s goal is to provide current training practices and networking opportunities to state and national law enforcement personnel and insurance industry representatives that focus on fraud investigations.
This annual event was held in person at the Holiday Inn in Plainview, N.Y. Over 175 investigators and insurance personnel registered for the event. The keynote speaker was Suffolk County District Attorney, Honorable Raymond A. Tierney. Other special speakers included Harlan R. Schreiber, Partner of Goldberg, Miller & Rubin, NICB Field Analyst, Brittny Krilov, Charlie Campanelli, Signet Claims Solutions, LLC., and Barry L. Levy, Partner, Rivkin Radler, LLP.
Media Contact: Abby Curro, office@nyact.org 518-694-8470
Source: The New York Anti Car Theft and Fraud Association (NYACT)

WILMINGTON, Del. — Attorneys defending Fox in a defamation case related to false claims about the 2020 election withheld critical information about the role company founder Rupert Murdoch played at Fox News, a revelation that angered the judge when it came up at a Tuesday hearing.
It was not clear whether the development would affect a trial scheduled to begin Thursday with jury selection. Dominion Voting Systems is suing Fox for $1.6 billion, saying it damaged its reputation by repeatedly airing false claims that the company helped orchestrate a fraud that cost former President Donald Trump re-election.
The role of Fox executives is at the heart of the case. The company’s attorneys have sought to insulate members of the Murdoch family and to keep them from testifying live before a jury, arguing that their roles at the parent company, Fox Corp., put them at a distance from the Fox News shows that aired the bogus claims.
Fox Corp. had asserted since Dominion filed its lawsuit in 2021 that Rupert Murdoch had no official role at Fox News. In its filings, it had listed Fox News officers as Suzanne Scott, Jay Wallace and Joe Dorrego. But on Easter Sunday, Fox disclosed to Dominion’s attorneys that Murdoch also is “executive chair” at Fox News. The disclosure came after Superior Court Judge Eric Davis wondered aloud during a status conference last week who Fox News’ officers were.
Davis was clearly disturbed by the disclosure, coming on the eve of the trial.
“My problem is that it has been represented to me more than once that he is not an officer,” the judge said.
Davis suggested that had he known of Murdoch’s dual role at Fox Corp. and Fox News, he might have reached different conclusions in a summary judgment ruling he issued last month. In that ruling, the judge said there was no dispute that the statements aired by Fox were false, but that a jury would have to decide whether Fox News acted with actual malice and whether Fox Corp. directly participated in airing the statements.
To Fox attorney Matthew Carter, Davis said: “You have a credibility problem.”
In response, Carter said he believed Murdoch’s title at Fox News was only “honorific.”
“I’m not mad at you,” the judge later told Carter. “I’m mad at the situation I’m in.”
In a statement issued after Tuesday’s pretrial hearing, Fox said, “Rupert Murdoch has been listed as executive chairman of Fox News in our SEC filings since 2019 and this filing was referenced by Dominion’s own attorney during his deposition.”
It’s unclear whether the judge will take any action in response to the late disclosure. But an attorney for Dominion said he wanted Fox to further explain Murdoch’s role with the network, indicating the issue could come up when the pretrial hearing continues Wednesday.
Dominion attorney Justin Nelson told the judge the disclosure has “a big impact” on the case. He said Fox’s failure to disclose Murdoch’s status at Fox News has deprived Dominion of “a whole bunch” of information from Murdoch as a custodian of Fox News records that it was entitled to have.
“It is something that really has impacted how we have litigated this case,” he said.
Tuesday’s development was the latest to turn an uncomfortable spotlight on the network.
Information obtained by Dominion as part of its lawsuit has shown that some network hosts harbored off-camera doubts about election fraud claims but nevertheless allowed program guests to repeatedly make them in the aftermath of the 2020 election. The case also has drawn scrutiny of various emails and text messages shared among Rupert Murdoch, his son Lachlan Murdoch and Scott, the Fox News CEO, about election coverage and the allegations by Trump and his allies that he was cheated.
They revealed a chorus of voices, from Rupert Murdoch and top network hosts to producers and publicists, who internally cast the election-stealing conspiracy claims as crazy even as the network repeatedly gave them a platform. Internal communications also showed that at the time, major players at Fox were deeply worried about retaining pro-Trump viewers.
In a ruling earlier Tuesday, the judge denied a motion by Fox seeking to bar any reference at trial to matters involving the Murdoch family, which owns Fox Corp. The judge also said he would allow jurors to hear some testimony about threats directed at the voting machine company, but only to a point.
The judge granted a motion by Fox to prohibit any reference to specific threats or harassment directed at Dominion, saying he did not want the jury to be prejudiced against Fox because of threats made by people with no connection to the network. But he said he would allow Dominion to talk generally about threats it had received to show how it has been damaged by the Fox broadcasts.
“It has decimated Dominion’s ability to attract and retain employees, because the company is under siege,” said Megan Meier, an attorney for the voting machine company.
The judge already decided last week there would be no testimony about the Jan. 6, 2021, attack on the U.S. Capitol.

LOS ANGELES — A former Los Angeles auctioneer has agreed to plead guilty in a cross-country art fraud scheme where he created fake artwork and falsely attributed the paintings to artist Jean-Michel Basquiat, federal prosecutors said Tuesday.
The paintings ultimately wound up at the Orlando Museum of Art in Florida before they were seized by federal agents last year in a scandal that roiled the museum and led to its CEO’s departure after he threatened an art expert and told her to “shut up.”
Basquiat, a Neo-expressionist painter whose success came during the 1980s, lived and worked in New York before he died in 1988 at age 27 from a drug overdose. The Orlando Museum of Art scandal came in 2022 when a federal raid ended in the seizure of 25 paintings whose authenticity had been in question for a decade. The museum had been the first to display the artwork, and its former director had previously insisted the artwork was legitimate.
Defendant Michael Barzman, 45, was charged Tuesday in federal court in Los Angeles with making false statements to the FBI during an interview last year, the U.S. Attorney’s Office said in a news release. He has agreed to plead guilty and faces up to five years in prison.
Barzman’s court date has not been scheduled. Barzman admitted that he and another man, identified only as “J.F.” in court papers, had created the bogus paintings and agreed to split the sales’ proceeds.
“Mr. Barzman was drowning in medical debt after battling cancer for decades,” his attorney Joel Koury said in a statement Tuesday. “In desperation, he participated in this scheme because he was afraid of losing his health insurance. Since then, he has cooperated and done everything asked of him to compensate for his poor judgement.”
Mark Elliott, the chairman of the Orlando museum’s board of trustees, said in a statement that the museum “has recommitted itself to its mission to provide excellence in the visual arts with its exhibitions, collections, and educational programming” in the wake of the scandal.
Barzman admitted to the FBI — after repeated denials in interviews with federal agents, leading to Tuesday’s felony charge — that he made a false provenance for the paintings by claiming in a notarized document that they had been found in television writer Thad Mumford’s storage locker.
Barzman previously ran an auction business where he bought and resold the contents of unpaid storage units. He bought Mumford’s locker in 2012.
Mumford, who died in 2018, told investigators he had never owned any Basquiat art, and the paintings were not in the unit the last time he had opened it.
Experts pointed out that the cardboard used in at least one of the pieces included FedEx typeface that wasn’t used until 1994, about six years after Basquiat died, according to a federal search warrant. The artwork had been marketed as painted in 1982.
Barzman and “J.F.” would make the paintings on cardboard with various materials and then “age” them outdoors so the artwork would look like it was painted in the 1980s, according to Barzman’s plea agreement.
But on the back of one of the paintings seized from the Orlando museum, a crucial clue remained: A mailing label bearing Barzman’s name, painted over.

WILMINGTON, Del. — Attorneys defending Fox in a defamation case related to false claims about the 2020 election withheld critical information about the role company founder Rupert Murdoch played at Fox News, a revelation that angered the judge when it came up at a Tuesday hearing.
It was not clear whether the development would affect a trial scheduled to begin Thursday with jury selection. Dominion Voting Systems is suing Fox for $1.6 billion, saying it damaged its reputation by repeatedly airing false claims that the company helped orchestrate a fraud that cost former President Donald Trump re-election.
The role of Fox executives is at the heart of the case. The company’s attorneys have sought to insulate members of the Murdoch family and to keep them from testifying live before a jury, arguing that their roles at the parent company, Fox Corp., put them at a distance from the Fox News shows that aired the bogus claims.
Fox Corp. had asserted since Dominion filed its lawsuit in 2021 that Rupert Murdoch had no official role at Fox News. In its filings, it had listed Fox News officers as Suzanne Scott, Jay Wallace and Joe Dorrego. But on Easter Sunday, Fox disclosed to Dominion’s attorneys that Murdoch also is “executive chair” at Fox News. The disclosure came after Superior Court Judge Eric Davis wondered aloud during a status conference last week who Fox News’ officers were.
Davis was clearly disturbed by the disclosure, coming on the eve of the trial.
“My problem is that it has been represented to me more than once that he is not an officer,” the judge said.
Davis suggested that had he known of Murdoch’s dual role at Fox Corp. and Fox News, he might have reached different conclusions in a summary judgment ruling he issued last month. In that ruling, the judge said there was no dispute that the statements aired by Fox were false, but that a jury would have to decide whether Fox News acted with actual malice and whether Fox Corp. directly participated in airing the statements.
To Fox attorney Matthew Carter, Davis said: “You have a credibility problem.”
In response, Carter said he believed Murdoch’s title at Fox News was only “honorific.”
“I’m not mad at you,” the judge later told Carter. “I’m mad at the situation I’m in.”
It’s unclear whether the judge will take any action in response to the late disclosure. But an attorney for Dominion said he wanted Fox to further explain Murdoch’s role with the network, indicating the issue could come up when the pretrial hearing continues Wednesday.
Dominion attorney Justin Nelson told the judge the disclosure has “a big impact” on the case. He said Fox’s failure to disclose Murdoch’s status at Fox News has deprived Dominion of “a whole bunch” of information from Murdoch as a custodian of Fox News records that it was entitled to have.
“It is something that really has impacted how we have litigated this case,” he said.
Tuesday’s development was the latest to turn an uncomfortable spotlight on the network.
Information obtained by Dominion as part of its lawsuit has shown that some network hosts harbored off-camera doubts about election fraud claims but nevertheless allowed program guests to repeatedly make them in the aftermath of the 2020 election. The case also has drawn scrutiny of various emails and text messages shared among Rupert Murdoch, his son Lachlan Murdoch and Scott, the Fox News CEO, about election coverage and the allegations by Trump and his allies that he was cheated.
They revealed a chorus of voices, from Rupert Murdoch and top network hosts to producers and publicists, who internally cast the election-stealing conspiracy claims as crazy even as the network repeatedly gave them a platform. Internal communications also showed that at the time, major players at Fox were deeply worried about retaining pro-Trump viewers.
In a ruling earlier Tuesday, the judge denied a motion by Fox seeking to bar any reference at trial to matters involving the Murdoch family, which owns Fox Corp. The judge also said he would allow jurors to hear some testimony about threats directed at the voting machine company, but only to a point.
The judge granted a motion by Fox to prohibit any reference to specific threats or harassment directed at Dominion, saying he did not want the jury to be prejudiced against Fox because of threats made by people with no connection to the network. But he said he would allow Dominion to talk generally about threats it had received to show how it has been damaged by the Fox broadcasts.
“It has decimated Dominion’s ability to attract and retain employees, because the company is under siege,” said Megan Meier, an attorney for the voting machine company.
The judge already decided last week there would be no testimony about the Jan. 6, 2021, attack on the U.S. Capitol.

Disgraced Theranos CEO Elizabeth Holmes has been rebuffed in her attempt to stay out of federal prison while she appeals her conviction for the fraud she committed while overseeing a blood-testing scam that exposed Silicon Valley’s dark side.
In an 11-page ruling issued late Monday, U.S. District Judge Edward Davila concluded there wasn’t compelling enough evidence to allow Holmes to remain free on bail while her lawyers try to persuade an appeals court that alleged misconduct during her four-month trial led to an unjust verdict.
The judge’s decision means Holmes, 39, will have to surrender to authorities April 27 to start the more than 11-year prison sentence that Davila imposed in November. The punishment came 10 months after a jury found her guilty on four counts of fraud and conspiracy against the Thearanos investors who believed in her promises to revolutionize the health care industry.
Holmes had accompanied her lawyers to a San Jose, California, courtroom on March 17 to try to convince Davila that various missteps by federal prosecutors and the omission of key evidence will culminate in the Ninth Circuit Court of Appeals exonerating her.
Her prison sentence is scheduled to start roughly 20 years after Holmes dropped out of Stanford University when she was 19 years old to start Theranos in Palo Alto, California – the same city where William Hewlett and David Packard founded a company bearing their surnames in a small garage and planted the seeds of what grew into Silicon Valley.
Holmes could still file another appeal of the ruling Davila’s latest ruling, a maneuver that her co-conspirator at Theranos – Ramesh “Sunny” Balwani – successfully used to delay his scheduled March 16 date to begin a nearly 13-year prison sentence. But the Ninth Circuit Court of Appeals last week rejected that appeal, and Balwani is now scheduled to report to a Southern California prison on April 20.
Davila has recommended that Holmes serve her sentence in a Byron, Texas, prison. It hasn’t yet been publicly confirmed if that will be the facility where she reports.
Unless she can find a way to stay free, Holmes will be separated from the two children she had leading up to the trial and after her conviction.
Her first child, a boy, was born shortly before her trial began in September 2021. The youngest child, whose gender hasn’t been disclosed in court documents, was born at some point after her November sentencing. She conceived both with her current partner, William “Billy” Evans, who she met after breaking up with Balwani in the midst of Theranos’ scandalous downfall.
The denial of Holmes’ request to remain free is the latest twist in a long-running saga that has already been the subject of an acclaimed HBO documentary and an award-winning Hulu TV series.
Although they had separate trials, Holmes and Balwani were accused of essentially the same crimes centered on a ruse touting Theranos’ blood-testing system as a breakthrough in health care. The claims helped the company become a Silicon Valley sensation that raised nearly $1 billion from investors and at one point anointed Holmes with a $4.5 billion fortune, based on her 50% stake in Theranos.
Holmes also parlayed the buzz surrounding Theranos to speaking engagements on the same stage as former President Bill Clinton and glowing cover stories in business publication that likened her to tech visionaries such as Apple co-founder Steve Jobs.
But Theranos’ technology never came close to working like Holmes and Balwani boasted, resulting in the company’s scandalous collapse and a criminal case that shined a bright light on Silicon Valley greed and hubris.

When a scam artist called Cameron Huddleston’s mom to tell her to wire money in order to claim a prize, Huddleston had to intercept the calls. Her mom, who had been diagnosed with Alzheimer’s, was convinced she had to wire the money as soon as possible.
“That was a wake-up call for me. If you have any cognitive decline, you don’t see those red flags anymore,” said Huddleston, who lives in Kentucky and is the director of education at Carefull, a service built to protect aging adults’ daily finances. She also wrote the book “Mom and Dad, We Need to Talk,” on how to have important conversations about money with your parents.
Scam artists often target older adults, partly because they have amassed greater wealth. “If you are thinking from a criminal’s perspective, which target will give you the greatest returns: a broke 20-something who is struggling with student loans or a baby boomer with a couple million dollars of retirement assets?” asked Marti DeLiema, assistant professor of social work at University of Minnesota’s School of Social Work.
According to the Federal Trade Commission, consumers age 60 and older filed 467,340 fraud reports in 2021, reporting total losses of more than $1 billion. Overall, consumers age 60 and older are less likely to report losing money to fraud than those age 18-59. But when they do report a monetary loss, it tends to be for more money — especially among those 80 and older. They had the highest median loss of all groups, at $1,500. The FTC reports that older adults are more likely than younger adults to lose money on scams involving tech support, prizes, sweepstakes and lotteries, and family and friend impersonation.
Here are some steps fraud experts suggest taking to protect your parents and other older adults you care about from falling victim.
“Talking about scams can be one of the easier conversations because we’re all targeted,” Huddleston said. And you can use your own experiences or trending news to put it out there in a way that isn’t condescending.
DeLiema says explaining specific scams — such as a stranger reaching out over social media saying they want to be friends then asking for money, or fake text messages claiming to be a grandchild who needs immediate help — can greatly reduce the chances that someone will fall for them. “If you know about the scam first, you’re 80% less likely to respond,” she said.
A few simple steps can help avert fraud, such as setting phones to send unknown numbers to voicemail, using a credit freeze, and setting stricter privacy controls on social media, said Amy Nofziger, director of fraud victim support for AARP. “These are things we should all be doing,” she said, adding that you can set this up for yourself at the same time.
It’s also relatively easy to sign up for financial account monitoring or to receive alerts for every transaction, Huddleston said. In some cases, it could make sense to allow adult children to also monitor those accounts, depending on the parents’ comfort level and support needs.
Legal tools such as a durable power of attorney, a guardianship or a revocable trust can be among the most effective ways to keep an older adult’s money safe from scammers, says James Ferraro, a vice president and trust counsel at Argent Trust Company, a wealth management firm headquartered in Ruston, Louisiana.
“If you have funded a revocable trust, then you have a vehicle in place where you can quickly step in if you suspect someone is taking advantage of your parents, be it a fake charity or ‘your grandson is in jail in Mexico’ scam,’” he said.
If an older adult is suddenly reluctant to talk about finances, has trouble paying for everyday expenses or has a high number of incoming phone calls or text messages, those are all potential signs of fraud, said John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, a nonprofit advocacy group.
Scammers are adept at creating a false sense of urgency, Breyault said, telling their targets that they must send funds immediately or the IRS or other authority will come. “They are incredibly inventive,” he added, noting that methods and techniques are constantly evolving. The FTC reports that scam artists are even using artificial intelligence to mimic voices.
If fraud does occur, help the authorities track and prosecute it by reporting it, Nofziger said. Start by reporting to your local police department and using the FTC’s online reporting portal. The AARP Fraud Watch Network Helpline has a toll-free number you can call: 877-908-3360.
The shame and embarrassment people feel when victimized can make a stressful situation worse.
“Lead the conversation with kindness and empathy, not anger or belittlement,” says Nofzigar. “You can say, ‘I’m sorry this happened to you. Together we’ll figure out next steps. There is no problem that we can’t solve or recover from.’”
Reassuring words that can keep older adults, and their money, safer from scam artists in the future.
This column was provided to The Associated Press by the personal finance website NerdWallet. The content is for educational and informational purposes and does not constitute investment advice. Kimberly Palmer is a personal finance expert at NerdWallet and the author of “Smart Mom, Rich Mom.”

LAS VEGAS — A Las Vegas lawyer accused of orchestrating a $460 million “slip-and-fall” Ponzi scheme across the U.S. West was granted release Friday after spending more than a year in federal custody.
U.S. District Judge Cam Ferenbach said he was persuaded by Matthew Beasley’s “strong family support” to give the personal injury lawyer a chance at leading a “productive life” as he awaits trial on charges of money laundering and wire fraud.
While out of custody, Ferenbach said, Beasley is required to maintain employment and barred from contacting any of the alleged victims in the case or possessing a weapon.
Assistant U.S. Attorney Daniel Schiess told the judge the federal government would appeal the decision and ask for a court order keeping Beasley in custody pending the outcome of the appeal.
Beasley was indicted last week in connection with the alleged scheme but has been in custody since March 2022, when he was shot and wounded by FBI agents who arrived at his $1.1 million home in Las Vegas to question him.
Prosecutors have said Beasley answered the door that day with a gun aimed at his own head. A four-hour standoff ensued that ended after SWAT officers entered the home.
He was charged with assault on a federal officer, leading to his yearlong detainment, but that charge was dismissed last week following his indictment in connection with the alleged Ponzi scheme.
Friday’s hearing was at times contentious as Schiess argued for Beasley’s continued detainment, citing the standoff as evidence he poses a danger to the community and to himself.
Jackie Tirinnanzi, a lawyer for Beasley, told the judge her client has a renewed outlook on life as he awaits the birth of his grandchild. She said Beasley also wants to reconnect with his children and help take care of his mother, a breast cancer survivor who has trouble walking.
In a statement afterward, Beasley’s attorneys applauded the ruling.
“Mr. Beasley has languished in Nevada Southern Detention Center for 13 months after he was shot by two FBI agents, without a warrant, in his own home,” they said.
According to the indictment, the defendant enlisted hundreds of investors starting in 2017 for a company that claimed to offer short-term loans with high interest rates to clients awaiting payment after settling personal injury “slip-and-fall” cases. Investors were allegedly promised a return of up to 13% within 90 days.
But there were no clients, according to prosecutors. Instead, Beasley is alleged to have used the incoming money to pay earlier investors.
Schiess said the scheme funded Beasley’s “luxurious” lifestyle, including luxury homes and cars, a private jet and recreational vehicles.
Beasley has pleaded not guilty, but prosecutors say that during last year’s standoff, he confessed “over and over and over again” to his involvement in the investment scheme while on the phone with a negotiator.
His trial is set to begin in June.
The Nevada Supreme Court suspended Beasley from practicing law in the state and barred him from handling client funds shortly after his arrest.

Former Theranos executive Ramesh “Sunny” Balwani will be heading to prison later this month
Former Theranos executive Ramesh “Sunny” Balwani will be heading to prison later this month after an appeals court rejected his bid to remain free while he contests his conviction for carrying out a blood-testing hoax with his former boss and lover, Elizabeth Holmes.
After the Ninth Circuit Court of Appeals issued a decision refusing Balwani’s request, U.S District Judge Edward Davila on Friday ordered him to start his nearly 13-year prison sentence on April 20.
One of Balwani’s lawyers had filed a motion late Thursday seeking nearly two weeks to give Balwani time to make travel arrangements and make other preparations for a trip that will send him to a federal prison in Southern California.
The April 20 reporting date means Balwani will be heading to prison a week before Holmes, Theranos’ founder and CEO, is scheduled to begin a more than 11-year prison sentence after being convicted on four counts of fraud and conspiracy last year.
Holmes, 39, appeared before Davila last month along with her lawyers in an effort to persuade the judge to allow her to remain free while she pursues her own appeal. Davila hasn’t ruled on Holmes’ request yet.
Davila last month rejected Balwani’s request to remain free while he appeals his conviction on 12 counts of fraud and conspiracy and ordered him to report to prison March 16. Balwani then avoided having to report on that date by appealing Davila’s ruling against him.
But three judges on the Ninth Circuit Court of Appeals concluded Balwani hadn’t provided enough compelling evidence to convince them that his conviction is likely to be overturned.
Balwani will serve his sentence in a prison near a harbor in San Pedro, California, located about 30 miles (50 kilometers) from downtown Los Angeles. The Terminal Island prison has incarcerated several other prominent figures, including gangster Al Capone in the 1930s, apocalyptic cult leader Charles Manson for an auto theft in the 1950s, and LSD evangelist Timothy Leary in the 1970s.
Although they had separate trials, Holmes and Balwani were accused of essentially the same crimes centered on a ruse touting Theranos’ blood-testing system as a revolutionary breakthrough in health care. The claims helped the company become a Silicon Valley sensation that raised nearly $1 billion from investors.
But its technology never came close to working like Holmes and Balwani boasted, resulting in Theranos’ scandalous collapse and a criminal case that shined a bright light on Silicon Valley greed and hubris.

Former Theranos executive Ramesh “Sunny” Balwani will be heading to prison later this month
Former Theranos executive Ramesh “Sunny” Balwani will be heading to prison later this month after an appeals court rejected his bid to remain free while he contests his conviction for carrying out a blood-testing hoax with his former boss and lover, Elizabeth Holmes.
The Ninth Circuit Court of Appeals’ decision late Thursday refusing Balwani’s request to delay the start of his nearly 13-year prison sentence still leaves open the question of when he will have to surrender to authorities.
Jeffrey Coopersmith, one of Balwani’s lawyers, proposed that Balwani, 57, report to prison April 20 in a motion filed with U.S. District Judge Edward Davila, who presided over Balwani’s trial last year and imposed his sentence in December.
Balwani’s proposed April 20 reporting date is a week before Holmes, Theranos’ founder and CEO, is scheduled to begin a more than 11-year prison sentence after being convicted on four counts of fraud and conspiracy last year.
Holmes, 39, appeared before Davila last month along with her lawyers in an effort to persuade the judge to allow her to remain free while she pursues her own appeal. Davila hasn’t ruled on Holmes’ request yet.
Davila last month rejected Balwani’s request to remain free while he appeals his conviction on 12 counts of fraud and conspiracy and ordered him to report to prison March 16. Balwani then avoided having to report on that date by appealing Davila’s ruling against him.
But three judges on the Ninth Circuit Court of Appeals concluded Balwani hadn’t provided enough compelling evidence to convince them that his conviction is likely to be overturned.
The ruling means Balwani will soon be traveling to Southern California to serve his time in a facility near a harbor in San Pedro, California, located about 30 miles (50 kilometers) from downtown Los Angeles. The Terminal Island prison has incarcerated several other prominent figures, including gangster Al Capone in the 1930s, apocalyptic cult leader Charles Manson for an auto theft in the 1950s, and LSD evangelist Timothy Leary in the 1970s.
Although they had separate trials, Holmes and Balwani were accused of essentially the same crimes centered on a ruse touting Theranos’ blood-testing system as a revolutionary breakthrough in health care. The claims helped the company become a Silicon Valley sensation that raised nearly $1 billion from investors.
But its technology never came close to working like Holmes and Balwani boasted, resulting in Theranos’ scandalous collapse and a criminal case that shined a bright light on Silicon Valley greed and hubris.

Police in Cambodia say 19 Japanese men detained on suspicion of taking part in organized phone and online scams will be deported to their homeland
PHNOM PENH, Cambodia — Nineteen Japanese men detained in Cambodia in January on suspicion of taking part in organized phone and online scams will be deported to their homeland, a Cambodian immigration police officer said Friday.
Arrangements for their return are being made by the Japanese Embassy in Cambodia, but so far no date has been set, Immigration Police spokesperson Gen. Keo Vanthan told The Associated Press.
Japanese public broadcaster NHK reported Friday that Tokyo police have obtained arrest warrants for the 19 Japanese on suspicion of running phone scams from Cambodia targeting people in Japan.
NHK said Cambodian authorities who searched the men’s hotel rooms “discovered a list of Japanese citizens believed to be targets in a fraud scheme.”
The 19 were taken into custody in the southern city of Sihanoukville on Jan. 24 and sent to the capital, Phnom Penh, where they were held after investigation by the interior ministry.
Keo Vanthan declined to provide further details about the detained Japanese or their alleged offenses.
However, police in Sihanoukville, which in the past few years has become notorious for crimes such as online and phone scams, said in January that they opened the case after being informed on a crime-fighting hotline that about 20 Japanese men were being held there and extorted for money.
They found a group of 19 Japanese men staying in a hotel in Sihanoukville, but the men denied to police that they were being held against their will or extorted. They said they were visiting Cambodia legally and had been seeking work but were not involved in any crimes or wrongdoing.
Sihanoukville police, however, sent them to Phnom Penh for further investigation.
Cybercrime scams became a major issue in Cambodia last year, with numerous accounts of people from various Asian countries and further afield being lured into taking jobs in Cambodia. However, they found themselves trapped in virtual slavery and often forced to participate in scams targeting people over the internet.
The scam networks, which often have links to transnational organized crime, are set up in countries with weak law enforcement and attract educated young workers with promises of high earnings. The workers are then subject to isolation and the threat of violence unless they succeed in cheating victims reached by phone into transferring payments into overseas bank accounts.
Such activities appear to have declined recently in Sihanoukville but persist in other places, including in Myanmar near the border with Thailand. In many cases, these operations are controlled by Chinese organized crime groups.

Three former executives of a company that makes machines that test lead levels in humans deliberately concealed a problem with the devices that produced falsely low results for tens of thousands of children, federal prosecutors alleged on Wednesday.
The children, as well as pregnant people and others, faced serious health risks because of the inaccurate test results, prosecutors said.
Amy Winslow, Reba Daoust, and Mohammad Hossein Maleknia — all former executives at Magellan Diagnostics — were charged with conspiracy to commit wire fraud, wire fraud, conspiracy to defraud an agency of the U.S., and introduction of misbranded medical devices into interstate commerce with intent to defraud and mislead, according to the U.S. attorney’s office in Boston.
Winslow, 51, of Needham, is the former CEO; Maleknia, 64, of Bonita Springs, Florida, is the former chief operating officer; and Daoust, 66, of Amesbury, is the former director of Quality Assurance and Regulatory Affairs.
“We allege that these defendants deceived customers and the FDA about the reliability of medical tests that detected lead levels,” U.S. Attorney Rachael Rollins said in a statement. “By doing so, we assert that they endangered the health and lives of incredibly vulnerable victims.”
According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood, Rollins said.
Children can be exposed to lead through old paint, contaminated dust and drinking water that passes through lead pipes. The metal accumulates in the body, and at high levels, it can damage organs and cause seizures. Even at lower levels, it can harm brain development and lead to attention and behavior problems.
BJ Trach, an attorney for Winslow, called the charges “misguided,” characterizing her an effective leader who left the company amicably five years ago.
“She did not commit any crimes, and this prosecution, inexplicably initiated so many years after the events at issue, should never have been brought,” he said in a statement. “We look forward to Amy having her day in court, and we are confident she will be vindicated.”
An email was left with an attorney for Daoust. No attorney was listed for Maleknia in court records.
The devices in question, marketed under the names LeadCare Ultra, LeadCare II and LeadCare Plus, tested lead levels through blood draws or fingersticks and accounted for more than half of all blood lead tests conducted in the U.S. from 2013 through 2017, according to the U.S. Attorney’s Office for the District of Massachusetts.
The three former executives knew of the problem as far back as 2013 but released the products to the market without informing customers or the FDA, prosecutors alleged.
“We believe these executives knew about this malfunction for years but failed to come clean to their customers and the FDA about it in order to boost their company’s bottom line,” said Joseph Bonavolonta, head of the FBI’s Boston office.
“The last thing sick children and their parents should have to worry about is whether diagnostic tests and devices live up to their manufacturer’s claims,” he said.
The FDA issued a recall of the faulty products.
Winslow and Maleknia had a reason to withhold information about Magellan’s equipment — a possible sale of the company could be jeopardized if the malfunction were known, prosecutors said. Magellan, based in Billerica, Massachusetts, was acquired by Meridian Bioscience in 2016 for $66 million, and only then did the defendants notify customers and the FDA about the problem, prosecutors said.
Winslow received a bonus of roughly $2 million as a result of the sale, while Maleknia got $448,000, according to the Justice Department.
If found guilty of wire fraud and wire fraud conspiracy, the defendants could face up to 20 years in prison and a possible fine of up to $250,000, prosecutors said. The separate charges for conspiracy to defraud a U.S. agency and misbranded medical devices entail possible jail time of up to 5 and 3 years respectively in addition to fines.
Cincinnati-based Meridian said in a statement Wednesday that it is cooperating with investigators and is in settlement discussions with the Justice Department, noting that the company itself has not been charged. The company’s current line of LeadCare products have been cleared by the FDA and remain available for clinical use, the company noted.
Anyone who suspects that they or a family member received an inaccurate blood lead test result from a LeadCare device from 2013-2017 should complete the questionnaire located on the FBI’s website at https://www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma/press-highlights.

Charlie Javice, the 31-year-old founder of now-shuttered student loan software company Frank, has been arrested by law enforcement authorities after being charged with fraud by federal prosecutors.
Javice, whom Forbes named a rising star in its “30 under 30” issue in 2019, was arrested in New Jersey on Monday, the U.S. Department of Justice announced on Tuesday. She faces three charges of fraud and one charge of conspiracy.
Javice was released on $2 million bond Tuesday, and agreed to a curfew and possible electronic monitoring if court officers decide it is necessary. She also agreed not to contact key figures in the case — including investors — except for her mother and her mother’s boyfriend.
The Securities and Exchange Commission also filed a civil complaint alleging that Javice lied about having data on 4 million clients, including making up fake client information, in order to entice JPMorgan Chase to buy her company in 2021 for $175 milliion.
Javice started Frank, a student-aid assistance tool, shortly after graduating from the University of Pennsylvania. As part of the deal to sell the startup to the banking giant, Javice got $21 million for selling her equity stake in Frank, as well as a job as a managing partner at JPMorgan Chase, which came with a $20 million retention bonus, according to the Justice Department. All told, she stood to gain $45 million from the scheme, law enforcement officials said.
“This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them,” U.S. Attorney Damian Williams said in a statement.
According to the SEC’s complaint, JPMorgan was eager to buy Frank because the company claimed to have contact information — including names, emails and phone numbers — for over 4 million students, a pool of potential new customers the bank wanted to reach.
But those numbers were a lie, authorities allege. Frank only had data for about 300,000 customers, and Javice made up the 4.2 million others with the help of a local data science professor, the SEC’s complaint alleges.
Javice, along with an unnamed Frank executive, “engaged in a months-long scheme to fabricate the data that both of them knew JPMC was paying $175 million to acquire,” the complaint said.
Javice, via a lawyer, denied the allegations.
The bank discovered the alleged fraud when a test marketing campaign to Frank’s supposed customers flopped. Because JPMorgan Chase had acquired Frank’s internal records as part of the acquisition, it soon found emails in which Javice asked the professor to create “synthetic data” for 4.2 million users and discussed purchasing user databases from a data broker.
“Rather than help students, we allege that Ms. Javice engaged in an old school fraud,” Gurbir Grewal, director of the SEC’s enforcement division, said in a statement. “Even non-public, early-stage companies must be truthful in their representations, and when they fall short we will hold them accountable as in this case.”
Separately, JPMorgan Chase sued Javice last year, alleging fraud, and she countersued. Javice no longer works at the bank.
The Associated Press contributed reporting.

Federal prosecutors have charged Charlie Javice with fraudulently misrepresenting the value of the college financial aid technology startup she founded by inflating the company’s customer base ahead of a $175 million sale to JPMorgan Chase.
The Securities and Exchange Commission accused Javice on Tuesday of knowingly concealing the number of customers that her New York-based company, Frank, had secured as JPMorgan prepared to acquire the fintech in an attempt to expand in the student financial services industry.
Javice wrongfully received approximately $9.7 million as a result of the transaction as well as “millions more indirectly,” according to a complaint filed by the SEC in the U.S. District Court for the Southern District of New York.
The Department of Justice and the Federal Deposit Insurance Corporation also filed criminal charges against Javice after her arrest last night in New Jersey, accusing the Frank founder of making more than $45 million from the fraudulently negotiated deal, according to a separate statement released on Tuesday.
A lawyer for Javice declined to comment and said in an email that the Frank founder denied the government’s allegations.
The fintech founder allegedly exaggerated the amount of Frank’s 300,000 student loan customers in the months leading up to JPMorgan’s acquisition of the company in September 2021, according to the SEC’s complaint.
Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a statement that Javice “lied about Frank’s success” to induce JPMorgan into making a deal.
“Even nonpublic, early-stage companies must be truthful in their representations,” Grewal said.
After launching Frank in 2017 as an online service helping potential and current college students apply for federally disbursed financial aid, the regulator alleged, Javice promoted on the fintech’s website and in deal negotiations throughout 2021 that the company had attracted 4.25 million customers.
After JPMorgan agreed to purchase the fintech, the SEC accused Javice and a high-ranking Frank executive of working together to pay $105,000 and $75,000 to third-party data providers to augment an enlarged list of the company’s customers.
In a lawsuit filed in December, JPMorgan named former Frank chief growth and acquisition officer Olivier Amar as a co-defendant alongside Javice.
A lawyer for Amar did not respond to a request for comment. A spokesperson for JPMorgan declined to comment.
The case raises questions about how banks should conduct due diligence on potential startup acquisitions as lenders increasingly seek to purchase fintechs that have developed lucrative technology or penetrated a market that’s difficult to enter.
During JPMorgan’s fourth-quarter earnings call in January, CEO Jamie Dimon described the acquisition as “a huge mistake.”
Jordan Stutts
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Charlie Javice, the 31-year-old founder of now-shuttered student loan software company Frank, has been charged with fraud by the Securities and Exchange Commission.
The SEC filed a complaint Tuesday alleging that Javice lied about having data on 4 million clients, including making up fake client information, in order to entice JP Morgan Chase to buy her company.
Javice started Frank, a student-aid assistance tool, shortly after graduating from the University of Pennsylvania, and sold it to JPMorgan Chase in 2021 for $175 million. As part of the deal, Javice got a $9.7 million payout and a job as a managing partner at JPMorgan Chase, which came with a $20 million retention bonus.
According to the SEC’s complaint, JPMorgan Chase was eager to buy Frank because the tool claimed to have contact information — including names, addresses, emails and phone numbers — for over 4 million students, a base of potential new customers the bank wanted to reach. But the numbers were a lie, the SEC claims. Frank only had data for about 300,000 customers, and Javice made up the 4.2 million others with the help of a local data science professor, the SEC’s complaint alleges.
Javice, along with an unnamed Frank executive, “engaged in a months-long scheme to fabricate the data that both of them knew JPMC was paying $175 million to acquire,” the complaint says.
The bank discovered the alleged fraud when a test marketing campaign to Frank’s supposed customers flopped. Because JPMorgan Chase had acquired Frank’s internal records as part of the acquisition, it soon found emails in which Javice asked the professor to create “synthetic data” for 4.2 million users and discussed purchasing user databases from a data broker.
“Rather than help students, we allege that Ms. Javice engaged in an old school fraud,” Gurbir Grewal, director of the SEC’s enforcement division, said in a statement. “Even non-public, early-stage companies must be truthful in their representations, and when they fall short we will hold them accountable as in this case.”
Javice, via a lawyer, denied the allegations.
Separately, JP Morgan Chase sued Javice last year, alleging fraud; she countersued. She no longer works at the bank.

A court in Dubai has rejected the appeal of a British financier fighting extradition to Denmark, where he is accused of orchestrating a $1.7 billion tax fraud
DUBAI, United Arab Emirates — A court in Dubai on Monday rejected the appeal of a British financier fighting extradition to Denmark, where he is accused of orchestrating a $1.7 billion tax fraud.
Hedge fund trader Sanjay Shah is accused of masterminding a scheme that ran from 2012 to 2015 in which foreign businesses pretended to own shares in Danish companies and claimed tax refunds for which they were not eligible. He was arrested in Dubai, in the United Arab Emirates, last year.
The Dubai media office said the Court of Cassation upheld a ruling late last year that granted Denmark’s request for extradition. The lower court had said documents implicated him in fraud and money laundering. It was not immediately clear when he would be extradited.
In a separate ruling in September, Shah was ordered to pay $1.25 billion to Denmark’s tax authority as part of a civil case in Dubai. His lawyers are also appealing that ruling.
Shah’s lawyers could not immediately be reached for comment. His legal team had expressed disappointment in the earlier ruling that was upheld on Monday.
The 52-year-old financier has maintained his innocence in interviews with journalists but never appeared in Denmark to answer accusations. His defense has argued in closed-door hearings that Denmark did not follow the procedures laid out in international extradition treaties.
Shah’s lifestyle on Dubai’s luxurious palm-shaped island over the past few years had sparked outrage in Denmark. After Danish authorities signed an extradition agreement with the UAE, Dubai police arrested Shah in June. Shah is one of several suspects sought over the tax scheme.
During his time in Dubai, the hedge fund manager ran a center for autistic children that shut down in 2020 as Denmark sought his extradition. He also oversaw a British-based charity, Autism Rocks, which raised funds through concerts and performances.

NEW YORK — His name has been plastered on this city’s tabloids, bolted to its buildings and cemented to a special breed of brash New York confidence. Now, with Donald Trump due to return to the place that put him on the map, the city he loved is poised to deliver his comeuppance.
Rejected by its voters, ostracized by its protesters and now rebuked by its jurors, the people of New York have one more thing to splash Trump’s name on: Indictment No. 71543-23.
“He wanted to be in Manhattan. He loved Manhattan. He had a connection to Manhattan,” says Barbara Res, a longtime employee of the former president who was a vice president at the Trump Organization. “I don’t know that he has accepted it and I don’t know that he believes it, but New York turned on him.”
None of Trump’s romances have lasted longer than his courtship of New York. No place else could match his blend of ostentatious and outlandish. His love of the city going unrequited is Shakespearean enough, but Trump took it a step further, rising to the presidency only to become a hometown antihero.
Trump was born and raised in Queens to a real estate developer father whose projects were largely in Queens and Brooklyn. But the younger Trump ached to cross the East River and make his name in Manhattan. He gained a foothold with his transformation of the rundown Commodore Hotel into a glittering Grand Hyatt and ensured a spotlight on himself by appearing at the side of politicians and celebrities, popping up at Studio 54 and other hot spots and coaxing near-constant media coverage.
By the greed-is-good 1980s, he was a New York fixture. And in a city that prides itself as the center of the world, Trump saw himself as king.
“Trump grew up with a great deal of resentment toward others who he thought had more fame, wealth, or popularity,” says David Greenberg, a Rutgers University professor who wrote “Republic of Spin: An Inside History of the American Presidency.” “Making it in Manhattan — building Trump Tower and becoming a fixture of the Manhattan social scene in the 1980s — meant a lot to him.”
The feeling was never truly mutual, though. Trump left a trail of unpaid bills, jilted workers and everyday New Yorkers who saw through his shameless self-promotion.
He may have been a singular character, but in a city of 8 million stories, his was just another one.
So, for years, Trump’s life here continued as the city raced on around him. Marriages came and went. Skyscrapers rose. Bankruptcies were filed. Trump flickered in and out of fame’s upper echelon.
He may never have been a common New Yorker, packed in the subway on the morning commute or grabbing a hot dog from a street vendor, but for many he remained a benign, if outsized, presence.
That began changing with years of bizarre, racially-fueled lies about Barack Obama’s birthplace, and by the time he descended the golden escalator at Trump Tower on June 16, 2015, to announce his presidential bid, many in his hometown had little patience for the vitriol he spewed.
Rockefeller Center played host to a weekly “Saturday Night Live” that made him a mockery, and at a Waldorf-Astoria gala, he elicited groans. In vast swaths of the city, distaste for Trump turned to hatred.
Even among Republicans, many saw him as believable as a Gucci bag on Canal Street. Trump won the state’s Republican primary, but couldn’t convince GOP voters in Manhattan.
“He’s no longer just this TV show charlatan. People see this man is actually going to lead the country and the world in the wrong direction,” says Christina Greer, a political scientist at Fordham University.
On Election Night 2016, tears flowed at the Javits Center, where Hillary Clinton’s victory party never materialized, while giddy supporters of Trump reveled in his surprise win across town in a Hilton ballroom. New Yorkers’ rebuke of their native son meant nothing. His face was projected unto the face of the Empire State Building as locals digested the fact that he would be president.
In the days that followed, a curious parade of politicians and celebrities journeyed to Trump Tower to meet the president-elect and, for weeks after, predictions about his presidency were rampant.
Among the musings of observers was speculation of a commuter president shuttling between New York and Washington. When word emerged that his wife and young son wouldn’t immediately move to the White House, it gave credence to the idea that Trump could never fully part with the city that made him.
But Trump continued being Trump, his presidency gave way to one controversy and broken norm after another, and New York become a capital of the resistance, giving birth to persistent mass protests.
The city of his dreams was no longer a place he could call home.
“New York has gone to hell,” he said as Election Day 2020 neared.
When the ballots were counted, Manhattan had seven times as many supporters of Joe Biden than those for Trump, and this time the Electoral College followed. When Trump’s presidency ended and he left Washington after the violent insurrection he incited, it was clear New York would be inhospitable.
Like droves of New Yorkers before him, he retired to Florida.
When he returns north now, he spends most of his time at his club in Bedminster, New Jersey. The man who long tried to eschew his bridge-and-tunnel past is again separated from Manhattan by a river.
On his first return to Manhattan after leaving office, the New York Post reported a single person waited outside Trump Tower to catch a glimpse. Even protesters couldn’t be bothered with him anymore.
His rebuke came from New Yorkers taking part in a right-of-passage for city dwellers, jury duty, and if it fit the mold of prior grand juries, it brought together a quintessential Manhattan cross-section, from neighborhoods, incomes and backgrounds different enough to ensure a cast of characters fit for TV.
With word of Trump’s indictment now out, the story of his deteriorating romance with New York is gaining a sense of finality. Even the Post, part of the Rupert Murdoch media empire that helped Trump win the White House to begin with, has abandoned him. The paper that once documented his affair with a screaming “Best Sex I’ve Ever Had” headline beside Trump’s smirking face, last week called him “deranged” on a front page on which he was branded “Bat Hit Crazy” in huge letters.
Trump once bragged he could shoot someone in the middle of Fifth Avenue and remain popular. Today, he could hand out fifties in New York and still not win the support of most locals.
He has dismissed the grand jury’s actions as a “scam” and a “persecution” and denied he did anything wrong. Democrats, he says, are lying and cheating to hurt his campaign to return to the White House.
Outside the courthouse that awaits him, the spectacle has largely been confined to the hordes of media. Among the few regular New Yorkers to make the trip there was Marni Halasa, a figure skater who showed up in a leopard print leotard, cat ears and wads of fake bills strung into a “hush money” boa. She stood alone outside Friday to celebrate the indictment of one of her city’s most famous sons.
“New Yorkers are here in spirit,” she says, “and I feel like I’m representing most of them.”
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Associated Press writer Bobby Caina Calvan contributed to this report.
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Matt Sedensky can be reached at msedensky@ap.org and https://twitter.com/sedensky

Three current and former former executives of a shipbuilder that constructs vessels for the U.S. Navy have been indicted on accounting fraud charges
MONTGOMERY, Ala. — Three current and former former executives of a shipbuilder that constructs vessels for the U.S. Navy have been indicted on accounting fraud charges accusing them of falsely inflating the company’s reported earnings, federal prosecutors said.
Craig Perciavalle, 52, Joseph Runkel, 54, and William Adams, 63, all of Mobile, Alabama, where Austal USA LLC is based, are accused of misleading shareholders and investors. They are each charged with one count of conspiracy to commit wire fraud and wire fraud affecting a financial institution, five counts of wire fraud, and two counts of wire fraud affecting a financial institution, the U.S. Department of Justice said in a news release Friday.
Court records were not immediately available to show if the men had attorneys to comment on their behalf.
Austal USA LLC is a subsidiary of Australia-based Austal Limited and builds littoral combat ships for the Navy. The ships are designed to operate in shallow coastal waters.
Perciavalle resigned as Austal USA’s president in 2021 following an investigation by federal and Australian authorities into practices dating back more than four years, the company said at the time. Adams is the former director of the littoral combat ships program, according to the SEC. Runkel is the director of financial analysis.
Prosecutors alleged the three men manipulated an accounting metric to hide growing costs in order to maintain and increase the share price of Austal Limited’s stock, hurt U.S. investors.
The U.S. Securities and Exchange Commission said in a news release that the three “engaged in a scheme to artificially reduce the cost estimates to complete certain shipbuilding projects for the U.S. Navy by tens of millions of dollars.”

Three current and former former executives of a shipbuilder that constructs vessels for the U.S. Navy have been indicted on accounting fraud charges
MONTGOMERY, Ala. — Three current and former former executives of a shipbuilder that constructs vessels for the U.S. Navy have been indicted on accounting fraud charges accusing them of falsely inflating the company’s reported earnings, federal prosecutors said.
Craig Perciavalle, 52, Joseph Runkel, 54, and William Adams, 63, all of Mobile, Alabama, where Austal USA LLC is based, are accused of misleading shareholders and investors. They are each charged with one count of conspiracy to commit wire fraud and wire fraud affecting a financial institution, five counts of wire fraud, and two counts of wire fraud affecting a financial institution, the U.S. Department of Justice said in a news release Friday.
Court records were not immediately available to show if the men had attorneys to comment on their behalf.
Austal USA LLC is a subsidiary of Australia-based Austal Limited and builds littoral combat ships for the Navy. The ships are designed to operate in shallow coastal waters.
Perciavalle resigned as Austal USA’s president in 2021 following an investigation by federal and Australian authorities into practices dating back more than four years, the company said at the time. Adams is the former director of the littoral combat ships program, according to the SEC. Runkel is the director of financial analysis.
Prosecutors alleged the three men manipulated an accounting metric to hide growing costs in order to maintain and increase the share price of Austal Limited’s stock, hurt U.S. investors.
The U.S. Securities and Exchange Commission said in a news release that the three “engaged in a scheme to artificially reduce the cost estimates to complete certain shipbuilding projects for the U.S. Navy by tens of millions of dollars.”