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Tag: Fraud

  • Opinion: No, an indictment wouldn’t end Trump’s run for the presidency – he could even campaign or serve from a jail cell

    Opinion: No, an indictment wouldn’t end Trump’s run for the presidency – he could even campaign or serve from a jail cell

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    Donald Trump announced his 2024 run for the presidency on Nov. 15. In his address he railed against what he perceived as the “persecution” of himself and his family, but made scant mention of his legal woes.

    There is also the not-so-small matter of a Justice Department investigation into the Jan. 6 storming of the Capitol.

    The announcement has led some to speculate that Trump may be hoping that becoming a presidential candidate will in some way shield him from prosecution.

    Donald Trump has announced his bid to run in the 2024 presidential race. WSJ’s Alex Leary breaks down the challenges the former president will face on the campaign trail, including new political rivals and a waning influence among voters. Photo Composite: Adele Morgan

    So, does an indictment—or even a felony conviction—prevent a presidential candidate from running or serving in office?

    The short answer is no. Here’s why:

    The U.S. Constitution specifies in clear language the qualifications required to hold the office of the presidency. In Section 1, Clause 5 of Article II, it states: “No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States.”

    These three requirements—natural-born citizenship, age, and residency—are the only specifications set forth in the United States’ founding document.

    Congress has ‘no power to alter’

    Furthermore, the Supreme Court has made clear that constitutionally prescribed qualifications to hold federal office may not be altered or supplemented by either the U.S. Congress or any of the states.

    Justices clarified the court’s position in their 1969 Powell v. McCormack ruling. The case followed the adoption of a resolution by the House of Representatives barring pastor and New York politician Adam Clayton Powell Jr. from taking his seat in the 90th Congress.

    The resolution was not based on Powell’s failure to meet the age, citizenship and residency requirements for House members set forth in the Constitution. Rather, the House found that Powell had diverted Congressional funds and made false reports about certain currency transactions.

    When Powell sued to take his seat, the Supreme Court invalidated the House’s resolution on grounds that it added to the constitutionally specified qualifications for Powell to hold office. In the majority opinion, the court held that: “Congress has no power to alter the qualifications in the text of the Constitution.”

    For the same reason, no limitation could now be placed on Trump’s candidacy. Nor could he be barred from taking office if he were to be indicted or even convicted.

    But in case of insurrection…

    The Constitution includes no qualification regarding those conditions—with one significant exception. Section 3 of the 14th Amendment disqualifies any person from holding federal office “who, having previously taken an oath…to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same, or given aid or comfort to the enemies thereof.”

    The reason why this matters is the Justice Department is currently investigating Trump for his activities related to the Jan. 6 insurrection at the Capitol.

    Under the provisions of the 14th Amendment, Congress is authorized to pass laws to enforce its provisions. And in February 2021, one Democratic congressman proposed House Bill 1405, providing for a “cause of action to remove and bar from holding office certain individuals who engage in insurrection or rebellion against the United States.”

    Even in the event of Trump being found to have participated “in insurrection or rebellion,” he might conceivably argue that he is exempt from Section 3 for a number of reasons. The 14th Amendment does not specifically refer to the presidency and it is not “self-executing”—that is, it needs subsequent legislation to enforce it. Trump could also point to the fact that Congress enacted an Amnesty Act in 1872 that lifted the ban on office holding for officials from many former Confederate states.

    He might also argue that his activities on and before Jan. 6 did not constitute an “insurrection” as it is understood by the wording of the amendment. There are few judicial precedents that interpret Section 3, and as such its application in modern times remains unclear. So even if House Bill 1405 were adopted, it is not clear whether it would be enough to disqualify Trump from serving as president again.

    Running from behind bars

    Even in the case of conviction and incarceration, a presidential candidate would not be prevented from continuing their campaign—even if, as a felon, they might not be able to vote for themselves.

    History is dotted with instances of candidates for federal office running—and even being elected—while in prison. As early as 1798—some 79 years before the 14th Amendment — House member Matthew Lyon was elected to Congress from a prison cell, where he was serving a sentence for sedition for speaking out against the Federalist Adams administration.

    Eugene Debs, founder of the Socialist Party of America, ran for president in 1920 while serving a prison sentence for sedition. Although he lost the election, he nevertheless won 913,693 votes. Debs promised to pardon himself if he were elected.

    And controversial politician and conspiracy theorist Lyndon LaRouche also ran for president from a jail cell in 1992.

    A prison cell as the Oval Office?

    Several provisions within the Constitution offer alternatives that could be used to disqualify a president under indictment or in prison.

    The 25th Amendment allows the vice president and a majority of the Cabinet to suspend the president from office if they conclude that the president is incapable of fulfilling his duties.

    The amendment states that the removal process may be invoked “if the President is unable to discharge the powers and duties of his office.”

    It was proposed and ratified to address what would happen should a president be incapacitated due to health issues. But the language is broad and some legal scholars believe it could be invoked if someone is deemed incapacitated or incapable for other reasons, such as incarceration.

    To be sure, a president behind bars could challenge the conclusion that he or she was incapable from discharging the duties simply because they were in prison. But ultimately the amendment leaves any such dispute to Congress to decide, and it may suspend the president from office by a two-thirds vote.

    Indeed, it is not clear that a president could not effectively execute the duties of office from prison, since the Constitution imposes no requirements that the executive appear in any specific location. The jail cell could, theoretically, serve as the new Oval Office.

    Finally, if Trump were convicted and yet prevail in his quest for the presidency in 2024, Congress might choose to impeach him and remove him from office. Article II, Section 4 of the Constitution allows impeachment for “treason, bribery, and high crimes and misdemeanors.”

    Whether that language would apply to Trump for indictments or convictions arising from his previous term or business dealings outside of office would be a question for Congress to decide. The precise meaning of “high crimes and misdemeanors” is unclear, and the courts are unlikely to second-guess the House in bringing an impeachment proceeding.

    For sure, impeachment would remain an option—but it might be an unlikely one if Republicans maintained their majority in the House in 2024 and 2026.

    Stefanie Lindquist is Foundation Professor of Law and Political Science at Arizona State University. She previously taught at Vanderbilt University, the University of Georgia and the University of Texas.

    This commentary was originally published by The Conversation—No, an indictment wouldn’t end Trump’s run for the presidency—he could even campaign or serve from a jail cell

    More on Trump’s legal problems

    Trump Organization executive says he helped colleagues dodge taxes

    Judge says he’ll appoint monitor to oversee Donald Trump’s company

    Justice Department weighs appointing special counsel if Trump runs in 2024, report says

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  • Katie Hobbs wins Arizona governor’s race, flipping state for Democrats

    Katie Hobbs wins Arizona governor’s race, flipping state for Democrats

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    PHOENIX — Democrat Katie Hobbs was elected Arizona governor on Monday, defeating an ally of Donald Trump who falsely claimed the 2020 election was rigged and refused to say she would accept the results of her race this year.

    Hobbs, who is Arizona’s secretary of state, rose to prominence as a staunch defender of the legitimacy of the last election and warned that her Republican rival, former television news anchor Kari Lake, would be an agent of chaos. Hobbs’ victory adds further evidence that Trump is weighing down his allies in a crucial battleground state as the former president gears up for an announcement of a 2024 presidential run.

    She will succeed Republican Gov. Doug Ducey, who was prohibited by term limit laws from running again. She’s the first Democrat to be elected governor in Arizona since Janet Napolitano in 2006.

    “For the Arizonans who did not vote for me, I will work just as hard for you — because even in this moment of division, I believe there is so much more that connects us,” Hobbs said in a statement declaring victory. “This was not just about an election — it was about moving this state forward and facing the challenges of our generation.”

    Lake did not immediately comment after the race was called.

    The Associated Press called the governor’s race for Hobbs after the latest round of vote releases gave her a big enough lead that the AP determined she would not relinquish it. The AP concluded that, even though Lake had been posting increasingly larger margins in vote updates from Maricopa County, she was not gaining a big enough share to overtake Hobbs and was running out of remaining votes.

    Vote counting had gone on for days since the Tuesday election, as officials continued to tally massive amounts of late-arriving ballots.

    A onetime Republican stronghold where Democrats made gains during the Trump era, Arizona has been central to efforts by Trump and his allies to cast doubt on Joe Biden’s 2020 presidential victory with false claims of fraud. This year, many Trump-endorsed candidates faltered in general elections in battleground states, though his pick in the Nevada governor’s race, Republican Joe Lombardo, defeated an incumbent Democrat.

    Before entering politics, Hobbs was a social worker who worked with homeless youth and an executive with a large domestic violence shelter in the Phoenix area. She was elected to the state Legislature in 2010, serving one term in the House and three terms in the Senate, rising to minority leader.

    Hobbs eked out a narrow win in 2018 as secretary of state and was thrust into the center of a political storm as Arizona became the centerpiece of the efforts by Trump and his allies to overturn the results of the 2020 election he lost. She appeared constantly on cable news defending the integrity of the vote count.

    The attention allowed her to raise millions of dollars and raise her profile. When she announced her campaign for governor, other prominent Democrats declined to run and Hobbs comfortably won her primary.

    She ran a cautious campaign, sticking largely to scripted and choreographed public appearances. She declined to participate in a debate with Lake, contending that Lake would turn it into a spectacle by spouting conspiracy theories and making false accusations.

    She bet instead that voters would recoil against Lake, who picked verbal fights with journalists as cameras rolled and struck a combative tone toward Democrats and even the establishment Republicans who have long dominated state government.

    Pre-election polls showed the race was tied, but Hobbs’ victory was still a surprise to many Democrats who feared her timidity would turn off voters. She overcame expectations in Maricopa and Pima counties, the metro Phoenix and Tucson areas where the overwhelming majority of Arizona voters live. She also spent considerable time in rural areas, looking to minimize her losses in regions that traditionally support Republicans.

    Lake is well known in much of the state after anchoring the evening news in Phoenix for more than two decades. She ran as a fierce critic of the mainstream media, which she said is unfair to Republicans. She earned Trump’s admiration for her staunch commitment to questioning the results of the 2020 election, a stand she never wavered from even after winning the GOP primary.

    She baselessly accused election officials of slow-rolling the vote count this year and prioritizing Democratic ballots as she narrowly trailed Hobbs for days following the election.

    She has cited a problem with printers at about a third of Maricopa County vote centers that led on-site tabulators to reject some ballots. Election officials told voters to put ballots in a separate box to be counted later, but Republican leaders told their supporters to ignore that instruction and lines in some places backed up.

    The problem affected about 7% of ballots cast in person on Election Day and about 1% of the total cast in the county.

    Maricopa County Sheriff Paul Penzone said he increased security around the elections center Monday in anticipation that the race would be called and emotions could run hot, though he said there was no specific threat. Demonstrators have gathered outside the building for several days but have remained peaceful, he said.

    “I think we’re getting close to the end game so I want to be sure that we’re prepared,” Penzone told reporters in a news conference hours before the race call.

    The sheriff’s office was caught off guard two years ago when armed and angry protesters descended on the elections building in downtown Phoenix after Fox News and the AP called Arizona for Biden, marking the first time a Democrat won the state in more than two decades.

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  • CBI arrests Arise India Ltd MD Avinash Jain in Rs 512 crore bank fraud case

    CBI arrests Arise India Ltd MD Avinash Jain in Rs 512 crore bank fraud case

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    The Central Bureau of Investigation (CBI) on Monday said it has arrested a managing director and promoter of a private company in connection with a Rs 512 crore bank fraud case. News agency ANI later reported that the arrested person had been identified as Avinash Jain, MD and Promoter of Arise India Limited.

    Probing the bank fraud, the CBI examined several persons including witnesses, officials of the private company, and bank officials. However, the agency said that the person who was arrested today was found to be evasive in his replies.

    The central agency said that a case was filed on 19 November 2019 against the company based at Mangala Puri in Palam, and others including its Director, Promoter, and government officials on the allegations of causing loss to banks to the tune of Rs 512.67 crore.

    The case was filed on a complaint by the State Bank of India (SBI). The bank in its complaint had alleged that the accused cheated the consortium of 6 banks, led by the SBI, causing fraud of Rs 512.67 crore. It was further alleged that the accused had diverted bank loans to its related parties and deliberately cheated the banks by inflating the debtors of the company.

    The company was in the business of manufacturing and trading of monoblock pumps, submersible pumps, batteries, inverters, and electrical goods and its units were at Sonipat (Haryana) and Kala Amb (Himachal Pradesh). The account of the company was declared NPA (Non-Performing Asset) on 27 February 2017.

    The CBI conducted searches on 2 December 2020 at the premises of the accused which led to the recovery of several incriminating documents.

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  • Elizabeth Holmes asks for leniency for her Theranos crimes

    Elizabeth Holmes asks for leniency for her Theranos crimes

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    Disgraced Theranos CEO Elizabeth Holmes is casting herself as a Silicon Valley scapegoat who overcame an abusive relationship to become a loving mother in an effort to avoid a lengthy prison sentence for duping investors in her failed blood-testing company.

    In an 82-page document filed late Thursday, Holmes’ lawyers tried to persuade U.S. District Judge Edward Davila that sending Holmes to prison is unnecessary, partly because she has already been stigmatized by intense media coverage that turned her into a “caricature to be mocked and vilified.”

    If Davila decides to send her to prison, Holmes’ lawyers argued she should be sentenced to no more than 18 months — a fraction of the maximum of 20 years she is facing after being convicted on four felony counts of investor fraud and conspiracy earlier this year.

    “We acknowledge that this may seem a tall order given the public perception of this case — especially when Ms. Holmes is viewed as the caricature, not the person,” the filing said.

    Prosecutors are expected to seek a much harsher sentence when they file their own sentencing recommendations ahead of Holmes’ scheduled Nov. 18 sentencing. Holmes, 38, will learn her fate in the same San Jose, California courtroom where her high-profile trial cast a glaring spotlight on Silicon Valley’s penchant for hype and hubris.

    Bogus promises

    After starting Theranos as a 19-year-old, Holmes proceeded to raise nearly $1 billion from investors swayed by what turned out to be bogus promises.

    Holmes became lionized as a visionary while touting a compact device that was supposed to be able to scan for hundreds of diseases and other potential health problems with a few drops of blood taken with a finger prick. Theranos’ tests instead produced wildly unreliable results, flaws that Holmes tried to conceal until the problems were exposed in the media and regulatory audits.

    Although Holmes’ convictions were limited to about $140 million of the investments in Theranos, legal experts say the magnitude of just those losses make it unlikely that her push for a relatively short prison sentence or home confinement will succeed.

    Two former federal prosecutors, Duncan Levin and Amanda Kramer, told The Associated Press that Holmes seems likely to get a sentence of nine years to 17 years, although both acknowledged Davila has the discretion to be more lenient.

    “There is an argument to be made, particularly in white collar cases, that you don’t need a very long prison sentence to deter people who never have been in prison,” Kramer said.

    Holmes’ lawyer repeatedly hammered on that point in the memo to Davila. “Ms. Holmes is no danger to the public,” the filing asserted. “She has no criminal history, has a perfect pretrial services compliance record, and is described by the people who know her repeatedly as a gentle and loving person who tries to do the right thing.”

    Mother to a 1-year-old

    The filing also cited her motherhood to a 1-year-old son she had with her current partner, William “Billy” Evans, shortly before the start of last year’s trial. Former Theranos lab director Adam Rosendorff, a key prosecution witness in that trial, said he understood that Holmes was pregnant when he was summoned back to court last month for further sworn testimony in Holmes’ failed bid for a new trial.

    Neither Holmes nor Evans responded when asked if she was pregnant again after that Oct. 17 hearing, and pregnancy wasn’t mentioned in the sentencing memo.

    Evans was among more than 130 people who submitted letters to Davila extolling Holmes’ character. One came from Sen. Cory Booker, a Democrat from New Jersey, who described Holmes as a friend who “holds onto the hope that she can make contributions to the lives of others, and that she can, despite mistakes, make the world a better place.”

    Silicon Valley crackdown

    In their memo, Holmes’ lawyers also pointed out some of her past trauma, echoing Holmes’ testimony about being raped while she was still a student at Stanford. After that, Holmes testified she endured years of emotional and sexual abuse that affected her decision-making while in a romantic relationship with Ramesh “Sunny” Balwani, who was also Theranos’ chief operating officer.

    Balwani, 57, was convicted on 12 felony counts of investor and patient fraud in July during separate trial. He is scheduled to be sentenced Dec. 7. His lawyers have denied Holmes’ abuse accusations.

    The documents also asserted that Holmes was unfairly singled out by a federal government looking to crack down on Silicon Valley excesses, suggesting part of the reason may have been because she became a successful woman in a technology industry that has been dominated by men. Although she once was worth $4.5 billion based on the value of her stake in privately held Theranos, the lawyers stressed she never sold any shares in the company and now has few future prospects.

    “Ms. Holmes will never be able to seek another job or meet a new friend without the negative caricature acting as a barrier,” the filing said.

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  • Musk’s partisan tweets call into question Twitter neutrality

    Musk’s partisan tweets call into question Twitter neutrality

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    Elon Musk used his Twitter megaphone to appeal to “independent-minded voters” on Monday, urging them to vote Republican in Tuesday’s U.S. midterm elections. In doing so, the new CEO of Twitter stepped into a political debate that tech company executives have largely tried to stay out of — so their platforms wouldn’t be seen as favoring one side over the other.

    Musk, who bought Twitter for $44 billion, has expressed political views in the past, on and off the platform. But a direct endorsement of one party over another now that he owns the platform raises questions about Twitter’s ability to remain neutral under the rule of the world’s richest man.

    “Shared power curbs the worst excesses of both parties, therefore I recommend voting for a Republican Congress, given that the Presidency is Democratic,” Musk tweeted.

    It’s one thing for the CEO of Wendy’s or Chick-fil-A to endorse a political party, said Jennifer Stromer-Galley, a professor at Syracuse University who studies social media and politics. It’s a whole other thing, though, for the owner of one of the world’s most high-profile information ecosystems to do so.

    “These social media platforms are not just companies. It’s not just a business. It is also our digital public sphere. It’s our town square,” Stromer-Galley said. “And it feels like the public sphere is increasingly privatized and owned by these companies — and when the heads of these companies put their finger on the scale — it feels like it’s potentially skewing our democracy in harmful ways.”

    Musk’s comments come as he seeks to remake the company and amid widespread concern that recent mass layoffs at the social media platform could leave the company unable to deal with hate speech, misinformation that could impact voter safety and security and actors who seek to cast doubt on the legitimate winners of elections. Though Musk has vowed not to let Twitter become a “free-for-all hellscape,” advertisers have left the platform and Musk himself has amplified misinformation.

    Musk on Sunday tweeted and deleted a link to an article pushing an unfounded conspiracy theory about the attack on Paul Pelosi. The tweet from Musk, posted just three days after he took charge of the platform, raised concerns about the type of content that will be allowed on the social media site under his control.

    It’s not a secret that when it comes to tech workers and executives, the political mix tends to favor the left, with a good amount of Silicon Valley libertarianism thrown in. Facebook CEO Mark Zuckerberg, for instance has donated to candidates on both sides of the political spectrum, but in recent years he’s veered more toward Democrats. Publicly he’s stayed away from pledging allegiance to either party.

    But in their platform policies and content moderation, tech companies such as Facebook (now Meta), Google and even Twitter have taken great pains to appear politically neutral, even as they are routinely criticized — largely by conservatives but also by liberals — for favoring one side over the other.

    “Now, you might say, look, Rupert Murdoch owns Fox News and that’s his voice amplified,” said Charles Anthony Smith, a professor of political science and law at The University of California at Irvine. “But the difference is that gets filtered through a variety of different script writers and on-air personalities and all this other sort of stuff. So it’s not really Rupert Murdoch. It may be people that agree with him on things, but it’s filtered through other voices. This is an unadulterated direct contact. So it’s an amplification that is unrivaled.”

    Global feathers rustled

    Musk’s tweets could also stir up trouble in global politics outside of the U.S. elections. On Sunday, the billionaire signaled willingness to explore reversing decisions blocking some accounts of Brazilian right-wing lawmakers. The nation’s electoral court last week ordered their suspension. All are supporters of Brazil’s President Jair Bolsonaro, who on October 30 lost his reelection bid by a narrow margin to Luiz Inacio Lula da Silva. Most had aired claims of election fraud.

    Paulo Figueiredo Filho, a political analyst who often defends Bolsonaro on social media and is also the grandson of the military dictatorship’s final president, tweeted that Twitter has become a strict and spontaneous censor.

    “Your moderators are currently being more dictatorial than our own courts!” Figueiredo wrote.

    Musk responded: “I will look into this.”

    The suspended accounts include that of Nikolas Ferreira, who garnered more votes in the October race than any other candidate for a seat in the Lower House. According to orders issued by the electoral authority, Ferreira’s account and most others were blocked for sharing a live video from an Argentinian digital influencer questioning the reliability of Brazil’s electronic voting system. The video was largely shared by allies of Bolsonaro, who himself has often claimed the system is susceptible to fraud, without presenting any evidence.

    “Upsetting the far right and the far left equally”

    Twitter’s policies, as of Monday, prohibit “manipulating or interfering in elections or other civic processes.”

    In a tweet just two days after he agreed to buy Twitter in April, Musk said that for “Twitter to deserve public trust, it must be politically neutral, which effectively means upsetting the far right and the far left equally.”

    And to attract the largest possible number of advertisers and users, Big Tech has tried to go this route, with varying degrees of success. For years, it managed to succeed. But the 2016 U.S. presidential elections changed online discourse, fueling the country’s increased political polarization.

    In early 2016, a tech blog quoted an anonymous former Facebook contractor who said the site downplayed news that conservatives are interested in and artificially boosted liberal issues such as the “BlackLivesMatter” hashtag. The blog did not name the person, and no evidence was provided for their claim.

    But in the explosive political climate that preceded the election of former President Donald Trump, the claim quickly took a life of its own. There was plenty of media coverage, as well as as inquiries from GOP lawmakers, then, later, congressional hearings on the matter. In the years since, as social media companies began to crack down on far-right accounts and conspiracy theories such as QAnon, some conservatives have come to see it as evidence of the platforms’ bias.


    Krebs says Twitter turmoil creating “a very chaotic environment” for midterms

    07:14

    Musk himself is at least listening to such claims, and he’s repeatedly engaged with figures on the right and far-right who would like to see a loosening of Twitter’s misinformation and hate-speech policies.

    Evidence suggests those voices are already being heard. In an October study, for instance, researchers at the University of Pennsylvania found that “Twitter gives greater visibility to politically conservative news than it does content with a liberal bent.”

    Musk’s tweet garnered hundreds of thousands of likes and many retweets Monday on the day before the final votes are cast in thousands of races around the country. But in replies and retweets, many prominent (and not so prominent) Twitter personalities expressed criticism for the Tesla CEO — often poking fun at him. For Smith, that’s a sign Musk may not quite be a billionaire political kingmaker that some of his peers, like venture capitalist Peter Thiel, are aspiring to be.

    “I wonder if we’re we’re having the emergence of a new type of billionaire, the ones who want to decide what happens and get credit for deciding what happens,” Smith said. “So this more like an oligarchy approach than the old school billionaires who would drop lots of money but then they didn’t want anybody to know their names.”

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  • Former MoviePass executives hit with criminal fraud charges

    Former MoviePass executives hit with criminal fraud charges

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    Two former leaders of the company MoviePass and its parent entity, Helios and Matheson Analytics, are facing federal charges for allegedly defrauding investors amid the once-defunct ticketing service‘s dramatic public downfall several years ago.

    An indictment unsealed on Friday criminally charged Theodore Farnsworth, the former CEO of Helios and Matheson, and Mitchell Lowe, the former CEO of MoviePass, with one count each of securities fraud and three counts each of wire fraud, the Justice Department said.

    Farnsworth, 60, and Lowe, 70, are facing similar allegations in a civil suit filed against them by the Securities and Exchange Commission in September. They reached a settlement with the Federal Trade Commission last year over another complaint alleging they fraudulently prevented MoviePass subscribers from using the app’s services as advertised, while failing to protect their personal data. 

    The latest federal indictment accuses Farnsworth and Lowe of deliberately engaging in an alleged scheme to deceive investors of Helios and Matheson, saying both executives appealed to, and secured, new financiers by sharing misleading and “materially false” information about the company’s business model and operations in order to inflate its stock prices artificially, according to the Justice Department.

    Chris Bond, a spokesperson for Farnsworth, said the former executive’s legal team plans “to contest the allegations in the indictment until his vindication is achieved” in a statement to CBS News on Sunday.

    “The indictment repeats the same allegations made by the Securities and Exchange Commission in the Commission’s recent complaint filed on September 27th against Mr. Farnsworth, concerning matters that were publicly disclosed nearly three years ago and widely reported by the news media,” Bond said. “As with the SEC filing, Mr. Farnsworth is confident that the facts will demonstrate that he has acted in good faith, and his legal team intends to contest the allegations in the indictment until his vindication is achieved.”

    NY Premiere Of
    Mitch Lowe and Ted Farnsworth attend the New York premiere of “Gotti” on June 14, 2018.

    Dave Kotinsky/Getty Images for The “Gotti” Film


    The indictment comes about five years after MoviePass, which first launched in 2011, was acquired by Helios and Matheson and later announced a significant drop in the app’s monthly subscription fee — just $9.95 a month to see an unlimited number of movies — in a bid to grow membership. Although the move did exponentially increase MoviePass’ subscriber base, it cut profits significantly, and the company filed for bankruptcy protection in 2020. The service relaunched this year with a new advertising component.

    “As alleged, the defendants deliberately and publicly engaged in a fraudulent scheme designed to falsely bolster their company’s stock price,” said Michael J. Driscoll, the assistant director in charge of the FBI New York field office, in a statement included with the Justice Department’s announcement outlining the allegations. 

    “Attempted scams of this nature erode the public’s faith in our financial markets,” the statement added. “The FBI is committed to ensuring these types of frauds and swindles are uncovered and the perpetrators are held responsible for their actions in the criminal justice system.”

    The federal indictment alleged that Farnsworth and Lowe knew that the $9.95 MoviePass “unlimited” plan was unsustainable and “a temporary marketing gimmick to grow new subscribers” that would not produce enough revenue, despite claiming that the model had been tested and “would be profitable or break even on subscription fees alone,” the Justice Department said.

    Prosecutors also accused both former CEOs of making false and deceiving statements about MoviePass’ revenue streams outside of subscription fees — like artificial intelligence platforms that Farnsworth and Lowe purportedly claimed were being used to collect and monetize subscribers’ data — alleging there were none. The indictment also alleged that Farnsworth and Lowe directed employees to block some subscribers from accessing MoviePass services in order to feed a false claim that the company’s cost of goods was “naturally declining,” the Justice Department said.

    The FBI New York field office is investigating this case, the Justice Department said. If convicted of the charges, Farnsworth and Lowe could face maximum sentences of 20 years in prison for each each count.

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  • NYS Inspector General and Navy SEAL to Speak at NYACT Conference for Law Enforcement and Insurance Professionals

    NYS Inspector General and Navy SEAL to Speak at NYACT Conference for Law Enforcement and Insurance Professionals

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    New York State Inspector General Attorney Lucy Lang and Kevin Holland Master Sergeant, Former Navy SEAL Team 6 and Delta Force, will be speaking at the NYACT Annual Education Conference on Nov. 9 at the Heritage Club in Bethpage, NY.

    Press Release


    Nov 1, 2022

    New York State Inspector General and lifelong New Yorker Lucy Lang, and Kevin Holland, Master Sergeant, Former Navy SEAL Team 6 and Delta Force, will be featured speakers at The New York Anti Car Theft and Fraud Association (NYACT) 2022 Annual Education Conference on Nov. 9, 2022, at the Heritage Club at Bethpage State Park.  

    In addition to serving as New York’s Inspector General, Ms. Lang serves as the Vice Chair of the American Bar Association Criminal Justice Section, a member of the Council on Criminal Justice, and a Term Member of the Council on Foreign Relations. Prior to her appointment, Ms. Lang served as Director of the Institute for Innovation in Prosecution (IIP), and as Assistant District Attorney in Manhattan, where she investigated and prosecuted violent crimes including homicides, gun violence, and domestic abuse. Ms. Lang brings her longstanding commitment to justice to bear in the Office’s investigations into corruption, waste, fraud, abuse, and misconduct in state government as well as deep experience designing and implementing practices that promote institutional integrity, transparency, and accountability. 

    Kevin Holland, Master Sergeant, Former Navy SEAL Team 6 and Delta Force, is the only publicly known operative to have served in both units over his noteworthy 20-year military career. Holland entered the Navy in 1988, volunteering for Basic Underwater Demolition/SEAL training. He first deployed in 1990, and during his deployment, Desert Storm began and during that time was awarded the Navy Achievement Medal and sent to Sniper School. He separated from the Navy in 1995, but after 9/11, Holland re-enlisted. He was assigned to the US Army Special Operations Command, completed the Special Forces Qualification Course, earning his Special Forces Tab and Green Beret. He deployed 20 times to the Middle East, conducting over 2000 combat missions. He was wounded in 2004 when an IED exploded behind his vehicle, and in March 2011, while on a mission in the Middle East, Holland was hit multiple times by a foreign fighter. Holland has received more than 30 awards, including seven Bronze Stars along with two Purple Hearts. 

    Other informational sessions will include: 

    Michael Mulcahy, Vanguard Direct, presents the Digital Transformation of NYS’s Motor Vehicle Dealer Oversight Program. David M. Masur, Ph.D., ABPP will introduce Basic Concepts of Billing Practices in Psychology, and Thomas Burke, Detective Bureau/Auto Crime, NYPD, will present Photo Identification of Motor Vehicles.     

    The New York Anti Car Theft and Fraud Association (NYACT) is New York’s association founded to provide training for insurance and law enforcement personnel to combat vehicle crime and insurance fraud.

    Visit nyact.org for articles and from the conference or email the NYACT Office at office@nyact.org.

    Source: The New York Anti Car Theft and Fraud Association (NYACT)

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  • Real Housewives’ Jen Shah Advised by Lawyer to Stop Using Botox During Fraud Case

    Real Housewives’ Jen Shah Advised by Lawyer to Stop Using Botox During Fraud Case

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    On the advice of her legal counsel, Jen Shah is officially all done with injectables…at least until the end of her court case.

    The Real Housewives of Salt Lake City star revealed on this week’s episode that her attorney suggested she stop getting Botox during her legal case on charges of conspiracy to commit wire fraud in connection with telemarketing and conspiracy to commit money laundering. “My lead trial attorney, Priya [Chaudhry], said, ‘You know, Jen, I’m gonna need you to not get Botox,’” Shah told some of her castmates during a trip to Scottsdale, Arizona. “I’m like, ‘What?’” she added as her costar Heather Gay also reacted to the suggestion with a look of total disbelief. Shah continued: “She goes, ‘When we were talking earlier, you were talking about something very emotional and you were crying, but your face isn’t moving. I need your face to move!’”

    The Bravo star also expressed some trepidation while getting ready to fly from Arizona to New York in order to prepare for the proceedings, telling Gay, Lisa Barlow, and Meredith Marks, “I had, like, a full-on anxiety attack this morning because I have to, like, actually fly to New York, and I’m going by myself.” Shah later added during a confessional interview, “I just try to, like, not take anything for granted anymore and celebrate every single day, ’cause what if something happens and I am not here to celebrate it next year?”

    The reality star and her assistant, Stuart Smith, were arrested in March 2021 over the dual conspiracy charges, and Shah is currently facing up to 30 years in prison. In a press release about the case at the time of those arrests, Manhattan US attorney Audrey Strauss wrote, “Jennifer Shah, who portrays herself as a wealthy and successful businessperson on ‘reality’ television, and Stuart Smith, who is portrayed as Shah’s ‘first assistant,’ allegedly generated and sold ‘lead lists’ of innocent individuals for other members of their scheme to repeatedly scam.” Strauss continued: “In actual reality and as alleged, the so-called business opportunities pushed on the victims by Shah, Smith, and their coconspirators were just fraudulent schemes, motivated by greed, to steal victims’ money. Now, these defendants face time in prison for their alleged crimes.”

    While Shah initially pleaded not guilty to the charges and has maintained her innocence on the show, she entered a plea deal in July, agreeing to a sentencing guideline of 135 to 168 months in prison for the wire fraud charge (the other charge was dropped). She told the judge she would not appeal the ruling if she is found guilty and sentenced to no more than 168 months, which amounts to 14 years. (Smith originally pleaded not guilty as well, but changed his plea in November.) Shah also agreed to forfeit $6 million in addition to paying more than $9 million in restitution. She is still awaiting her sentencing, which is currently scheduled to take place in New York on November 28.

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  • Trump skirts testimony in 14-page Jan. 6 response

    Trump skirts testimony in 14-page Jan. 6 response

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    Trump skirts testimony in 14-page Jan. 6 response – CBS News


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    Former President Donald Trump sent a response to the Jan. 6 committee after they unanimously voted to issue him a subpoena. Trump attacked the panel in the 14-page letter, calling them “political hacks and thugs” and repeated his false claims of election fraud. Scott MacFarlane has the latest.

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  • Nikola founder Trevor Milton found guilty of securities fraud over misleading statements

    Nikola founder Trevor Milton found guilty of securities fraud over misleading statements

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    A federal jury in New York convicted Nikola Corp. founder Trevor Milton of securities fraud for what prosecutors said were his repeated lies about the development of the company’s zero-emissions trucks and technology.

    The guilty verdict caps the downfall of Milton, who founded Nikola
    NKLA,
    -1.29%

    in his basement in 2015 and took it public in 2020 at a valuation of $3.3 billion, when the company hadn’t sold a single truck. The company’s market valuation briefly exceeded that of industry giants such as Ford Motor Co.
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    -0.85%

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  • Weekend reads: The Federal Reserve gets a lot of flak for inflation, but it has actually hit its target recently

    Weekend reads: The Federal Reserve gets a lot of flak for inflation, but it has actually hit its target recently

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    The U.S. stock market benchmark rebounded from a steep loss on the day when the government published hot inflation numbers.

    The S&P 500 Index ended Thursday with a 2.6% gain after investors took a closer look and saw a significant improvement from July through September, as Rex Nutting explained.

    The whipsaw action wasn’t limited to stocks, and was described by Rick Rieder, the chief investment officer for global fixed income at BlackRock, as “one of the craziest days” of his career.

    The bond market’s warning

    Some investors who focus on stocks might not realize that the bond market is much larger, and that its movements can cause government and central-bank policies to shift. Larry McDonald, founder of The Bear Traps Report and author of “A Colossal Failure of Common Sense,” which described the 2008 failure of Lehman Brothers, explained just how bad the action was in the U.K. bond market over the past few weeks, when 30-year government bonds issued in December traded as low as 24 cents on the dollar. He also predicted what will happen if the Federal Reserve continues on its current course of interest-rate increases.

    Related outlooks for interest rates:

    Bullish signs for long-term stock investors

    Getty Images

    Michael Brush argues the Federal Reserve is moving too quickly to raise interest rates and cool the U.S. economy. He expects a rapid decline in inflation and a new bull market for stocks. In a column, he shares five sentiment indicators that suggest it is time to buy stocks — especially this group of companies.

    More: Here’s how you’ll know stock-market lows are finally here, says the legendary investor who called 1987 crash

    Don’t forget to look over your portfolio

    Beth Pinsker explains how to make sure your investments are best diversified to fit your needs during time of uncertainty in all financial markets.

    Read on: $22 billion in I-bond sales can’t be wrong. Why you may want to buy them even when their rate resets soon

    Time for a refreshing COLA if you are on Social Security

    Getty Images

    The Social Security Administration has announced that its cost-of-living adjustment (COLA) for 2023 will be 8.7%, the largest increase in four decades. There is more to the story, including tax implications and changes to Medicare, as Jessica Hall and Alessandra Malito explain.

    Related: Can I stop and restart Social Security benefits?

    Pay attention to Medicare open enrollment

    Getty Images/iStockphoto

    Medicare’s annual open enrollment season runs from Oct. 15 to Dec. 7. The majority of Medicare recipients don’t review their plans each year, which can cost them a lot of money. Here’s how to approach Medicare’s 2023 enrollment period.

    You won’t like this ‘new normal’ for the housing market

    West Coast housing markets are already seeing price declines as mortgage loan rates hit 7%.


    Stefani Reynolds/Agence France-Presse/Getty Images

    Freddie Mac said interest rates on 30-year mortgage loans averaged 6.92% on Oct. 13, up from 3.05% a year earlier. Mortgage Daily said rates had hit 7.10% — the highest in 20 years — and economists are warning these levels could be a “new normal.”

    A homeowner locked-in with a low interest rate on their mortgage loan will be reluctant to sell. And some would-be buyers may now be priced out of the market because of much higher loan payments. Here’s what economists expect for home prices in 2023.

    More housing coverage from Aarthi Swaminathan: ‘No housing market is immune to home-price declines’: Home values are already falling in these pandemic boomtowns.

    Tips for maximizing financial aid for college

    Getty Images/iStockphoto

    When you fill out the Free Application for Federal Student Aid, or FAFSA, to help pay for your child’s college education, there may be a problem — old news. The form reflects your financial situation up to two years ago, and things may have worsened recently. Here’s how to make sure schools have the most recent information to help you get as much financial aid as possible.

    This is why Florida’s insurance market is such a mess

    Florida insurers are not only suffering from storm-damage payouts.


    Joe Raedle/Getty Images

    Hurricanes are nothing new to Floridians, but insurers in the state are losing money even though premiums have doubled over the past five years. Shahid S. Hamid, the director of the Laboratory for Insurance at Florida International University, explains why the Florida insurance market is so distorted.

    Here’s a travel option you may never have heard of — home swapping

    Villefranche-sur-mer on the French Riviera.


    istock

    Home swapping can give you an opportunity to live as a local in a faraway place while spending much less than you would as a tourist. Here’s how it works.

    Want more from MarketWatch? Sign up for this and other newsletters, and get the latest news, personal finance and investing advice.

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  • New welfare scandal docs reveal role of Brett Favre’s venture

    New welfare scandal docs reveal role of Brett Favre’s venture

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    New welfare scandal docs reveal role of Brett Favre’s venture – CBS News


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    CBS News has exclusively obtained text messages and documents that connect the plan to divert millions of dollars in welfare funds to pet projects of NFL legend Brett Favre. Omar Villafranca reports.

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    Get browser notifications for breaking news, live events, and exclusive reporting.


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  • Arizona woman pleads guilty in ballot collection operation

    Arizona woman pleads guilty in ballot collection operation

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    An Arizona woman accused of illegally collecting early ballots in the 2020 primary election pleaded guilty Thursday in an agreement with state prosecutors that saw the more serious forgery and conspiracy charges dismissed and limited any potential for a lengthy prison sentence.

    Guillermina Fuentes, 66, could get probation for running what Arizona attorney general’s office investigators said was a sophisticated operation using her status as a well-known Democratic operative in the border city of San Luis to persuade voters to let her gather and in some cases fill out their ballots.

    Prosecutors were apparently unable to prove the most serious charges, dropping three felony counts alleging that Fuentes filled out one voter’s ballot and forged signatures on some of the four ballots she illegally returned for people who were not family members.

    Republicans who have rallied around the possibility of widespread voting fraud in the 2020 election where former President Trump was defeated have pointed to the charges against Fuentes as part of a broader pattern in battleground states. But there’s no sign her illegal ballot collection went beyond the small-town politics Fuentes was involved in.

    Fuentes and a second woman were indicted in December 2020 on one count of ballot abuse, a practice commonly known as “ballot harvesting” that was made illegal under a 2016 state law. The conspiracy, forgery and an additional ballot abuse charge against Fuentes were added last October.

    Fuentes said little during a change of plea hearing in southwestern Arizona’s Yuma County on Thursday, just acknowledging the judge’s questions with “yes” as he asked whether she had read and understood the plea agreement.

    Fuentes, a former San Luis mayor who serves as an elected board member of the Gadsden Elementary School District in San Luis, could be sentenced to up to two years in prison, but that would require a judge to find aggravating circumstances. The plea agreement leaves the actual sentence up to a judge, who could give her probation, home confinement and a hefty fine for her admission to illegally collecting and returning four voted ballots.

    Sentencing was set for June 30. She will lose her voting rights and must give up elected office.

    Attorney Anne Chapman said in an email Thursday that she had no comment on the charges against her client.

    But she slammed Arizona’s ballot collection law, saying it impedes minority voters who have historically relied on others to help them vote. She said “this prosecution shows that the law is part of ongoing anti-democratic, state-wide, and national voter suppression efforts.”

    Attorney general’s office investigation records obtained by The Associated Press through a public records request show that fewer than a dozen ballots could be linked to Fuentes, not enough to make a difference in all but the tightest local races.

    The office of Attorney General Mark Brnovich, a Republican seeking his party’s U.S. Senate nomination, provided the records after delays of more than 15 months.

    It is the only case ever brought by the attorney general under the 2016 “ballot harvesting” law, which was upheld by the U.S. Supreme Court last year.

    Investigators wrote that it appeared Fuentes used her position as a powerful figure in the heavily Mexican-American community to get people to give her or others their ballots to return to the polls. Fuentes and her co-defendant were seen with several mail-in envelopes outside a cultural center in San Luis on the day of the 2020 primary election, the reports show. The ballots were taken inside and dropped in a ballot box.

    She was videotaped by a write-in candidate who called the Yuma County sheriff. The reports said the video showed her marking at least one ballot, but that charge was among those dropped.

    An investigation was launched that day, and about 50 ballots checked for fingerprints, which were inconclusive. The investigation was taken over by the attorney general’s office within days, with investigators collaborating with sheriff’s deputies to interview voters, Fuentes and others.

    Although Fuentes was charged only with actions that appear on the videotape and involve just a handful of ballots, investigators believe the effort went much farther.

    Attorney general’s office investigator William Kluth wrote in one report that there was some evidence suggesting Fuentes actively canvassed San Luis neighborhoods and collected ballots, in some cases paying for them.

    Collecting ballots in that manner was a common get-out-the-vote tactic used by both political parties before Arizona passed the 2016 law. Paying for ballots has never been legal.

    There’s no sign she or anyone else in Yuma County collected ballots in the general election, but investigators from the attorney general’s office are still active in the community.

    The Arizona Republic reported Tuesday that search warrants were served last month at a nonprofit in San Luis. The group’s executive director is chair of the Yuma County board of supervisors and said the warrant sought the cell phone of a San Luis councilwoman who may have been involved in illegal ballot collection.

    And at a legislative hearing Tuesday where election conspiracy theorists testified, the Yuma primary election case was again a highlight.

    “It’s all about corruption in San Luis and skewing a city council election,” Yuma Republican Rep. Tim Dunn said. “This has been going on for a long time, that you can’t have free and fair elections in south county, for decades. And its spreading across the country.”

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  • Zelle faces surge in fraud and scams, Senate report finds

    Zelle faces surge in fraud and scams, Senate report finds

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    Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.

    The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed.

    Warren, D.-Massachusetts, a long-time critic of the big banks, requested data on fraud and scams on Zelle from seven banks starting in April. The report cites data from four banks reported 192,878 cases worth collectively $213.8 million in 2021 and the first half of 2022 where a customer claimed they had been fraudulently tricked into making a payment. In only roughly 3,500 cases did those banks reimburse the customer, the report found.

    Further, in the cases where it’s clear funds had been taken out of customers’ account without authorization, only 47% of those dollars were ever reimbursed.

    Banks’ answer to PayPal, Venmo

    Since being launched in June 2017, Zelle has become a popular way for bank customers to send money to friends and family. Almost $500 billion in funds were sent via Zelle in 2021, according to Early Warning Services, the company that operates Zelle.

    Zelle is the banking industry’s answer to the growing popularity of peer-to-peer payment services like PayPal, Venmo and the Cash App. The service allows a bank customer to instantaneously send money to a person via their email or phone number, and it will go from one bank account to another. More than 1,700 banks and credit unions offer the service. But the service has also grown more popular with scammers and criminals. Once money is sent via Zelle, it requires a bank’s intervention to attempt to get that money back.

    The cases of growing fraud and scams at Zelle have been highlighted in previous news reports, including two by The New York Times. But those stories cited mostly anecdotal evidence. Early Warning Services has previously said that 99.9% of all transactions happen without complaints of fraud or scams. A group of Democratic senators asked for usage data on Zelle after the Times’ report.

    Thousands of fraud cases

    Banks are required under the Electronic Fund Transfer Act to repay customers when funds are illegally taken out of their account without authorization. Banks have argued that in cases of fraud — meaning a customer’s account becomes compromised somehow and they send an unauthorized payment — they do reimburse customers. Banks are more reluctant to reimburse customers who claim to be scammed, arguing that customers would make such claims more often and it would be hard to tell whether the customer is telling the truth.

    The data for individual banks shows the increase in fraud and scams. PNC Bank had 8,848 cases on Zelle in 2020, and is on pace to have roughly 12,300 cases this year. US Bank had 14,886 cases in 2020 and had 27,702 cases in 2021. Truist had 9,455 cases of fraud and scams on Zelle in 2020, which ballooned to 22,045 last year.

    Warren made fireworks at a Congressional hearing last month involving most of the CEOs of the big Wall Street banks that use and partly own Zelle, where she pushed each of the CEOs to release fraud and scam incident data at their banks. The seven are: JPMorgan Chase, Wells Fargo, PNC Financial, Truist, Bank of America, Capital One and U.S. Bank.

    The hearing featured a scene where Jamie Dimon, the CEO of JPMorgan Chase, apologized to Warren for not getting her the data she requested and promised she would have it at the end of that day.

    Warren’s office says ultimately JPMorgan’s data on Zelle did not provide the data they were looking for, so data from JPMorgan is not included in the report. The other banks that did not provide data to Warren’s office were Wells Fargo and Capital One. JPMorgan and Early Warning Services have not returned a request for comment.

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  • Jury selection begins in electric vehicle startup Nikola founder’s fraud trial

    Jury selection begins in electric vehicle startup Nikola founder’s fraud trial

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    Jury selection began Monday in the fraud trial of Trevor Milton, the founder and former executive chairman of Nikola Corp accused of lying about the electric truck startup’s vehicles.

    Milton was indicted last year on charges of securities fraud and wire fraud. Authorities have accused Milton, of Oakley, Utah, of making false claims about the company’s technology, and said it led to some investors losing hundreds of thousands of dollars.

    Milton pleaded not guilty, and has been free on $100 million bail.

    Prosecutors allege that Milton’s false claims included saying an early prototype of an electric truck could be driven when it only came close because company engineers rolled it down a hill for a commercial.

    A 2020 report from Hindenburg Research claimed the company’s success amounted to “an intricate fraud” and based on “an ocean of lies,” including stenciling the words “hydrogen electric” on the side of a vehicle that was actually powered by natural gas.

    The Securities and Exchange Commission filed separate civil charges.

    Milton started Nikola in 2015 and announced that its stock would be publicly listed in 2020.


    A look at Ford’s first electric pickup

    03:36

    He resigned in September of that year after the company had signed a $2 billion agreement with General Motors and following a report making allegations of fraud. At that time, Nikola said the report was filled with misleading statements and accusations.

    GM exited its equity stake in the startup in 2021 after Nikola shares cratered, reported Reuters at the time. Nikola’s stock reached a high of nearly $66 in mid-2020, but have since fallen to less than $6.

    The company paid $125 million last year to settle a civil case against it from the SEC. Nikola didn’t admit to any wrongdoing in making that agreement.

    In January, the Nikola dropped a $2 billion patent lawsuit in which the EV startup alleges Tesla stole the design of its Nikola One electric truck for the Tesla Semi, which was unveiled in 2017, reported Bloomberg

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  • Over 125 Anti-Fraud Professionals Attend NYACT Joint Summer Conference

    Over 125 Anti-Fraud Professionals Attend NYACT Joint Summer Conference

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    NYACT Hosts Joint Conference for Law Enforcement and Special Investigators on New Medical and Auto Crime Fraud Trends

    Press Release


    Aug 2, 2022

    The New York Anti Car Theft and Fraud Association, New York’s association founded to provide training for insurance and law enforcement personnel to combat vehicle crime and insurance fraud, and the New York State Chapter of Special Investigation Units joined forces to present their Annual Joint Summer Conference on July 28.

    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 to provide up-to-date training to handle the increase of fraudulent activity and crime. NYACT and NYSSIU 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 digital intelligence, towing fraud, and pain management abuses in the No-Fault and PIP industry.

    The annual summer conference 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 historic Thayer Hotel at West Point. Over 130 investigators and insurance personnel registered for the event. Speakers included Joe Stephenson, Director of Digital Intelligence for Intertel, Detective Thomas Burke, Detective and Instructor, NYPD Auto Crime, Matthew J. Smith, Esq., Partner, Callinan & Smith LLP, and Scott E. Metzger, MD.

    Media Contact: Abby Curro, office@nyact.org  518-694-8470

    Source: The New York Anti Car Theft and Fraud Association

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  • The CSPOA is Calling Upon All Americans and Law Enforcement Nationwide to Come Together in Pursuit of the Truth Regarding the 2020 Election

    The CSPOA is Calling Upon All Americans and Law Enforcement Nationwide to Come Together in Pursuit of the Truth Regarding the 2020 Election

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    Press Release


    May 24, 2022

    The following is an open letter from the Constitutional Sheriffs & Peace Officers Association:

    The Constitutional Sheriffs and Peace Officers Association (CSPOA) is calling upon all Americans and law enforcement nationwide to come together in pursuit of the truth regarding the 2020 election.

    Considering the persistent allegations of election fraud since even before the 2020 elections began, and as a response to the perpetual polarizing effect this has had on the American people, the CSPOA would like to put this issue to rest. Our constitutional republic and peaceful future as a free people absolutely depend on it.

    In the opinion of the CSPOA, there is very compelling physical evidence presented by truethevote.org in the movie “2000 Mules” produced by Dinesh D’Souza. “Law Enforcement has to step in at this point,” asserts D’Souza, and we absolutely agree with him. Therefore, we are asking for all local law enforcement agencies to work together to pursue investigations to determine the veracity of the “2000 Mules” information.

    If D’Souza’s documentary is wrong, then we want that exposed. If it’s correct, then we want proper investigations fully undertaken and the criminals responsible prosecuted to the fullest extent of the law.

    No one, from either side of the aisle, ought to be against honest, professional, and independent investigations. We ask for all Americans to demonstrate civility and cooperation as we pursue the truth.

    What we want is the truth; let the consequences fall where they may.

    Contacts: Sheriff Richard Mack, CSPOA Pres. (928 432 1879) Sam Bushman, VP of Operations (801-756-9133)

    Source: CSPOA

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  • Luna Global Networks Supports Private-Sector Campaign Against COVID-19 Fraudulent Goods

    Luna Global Networks Supports Private-Sector Campaign Against COVID-19 Fraudulent Goods

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    Luna Global Networks joins coalition of private-sector partners in the launch of a new initiative to spotlight resources available to help combat the trade in fraudulent goods.

    Press Release



    updated: Jul 13, 2020

    ​​​​Luna Global Networks today joined Philip Morris International Inc. (PMI) in launching a new two-month advertising campaign designed to raise awareness of the trade of fraudulent personal protective equipment and resources available to combat the trade of these goods.

    “We are proud to be partnering with PMI and other private industry brand protection leaders and long-time partners in fighting illicit trade,” said David M. Luna, President & CEO, Luna Global Networks. 

    To date, there have been nearly 1,000 COVID-19-related seizures of prohibited test kits and medicine, counterfeit masks, and other medical equipment in the U.S., which has accounted for $17.9 million in disrupted transactions and recovered funds. 

    Prior to the COVID-19 pandemic, global illicit trade was already booming from an array of trafficking and smuggling crimes. In fact, today’s global illicit markets generate trillions of U.S. dollars every year for transnational criminal organizations, complicit corrupt facilitators, and other threat networks. These profitable criminal activities include the trafficking of narcotics, opioids, arms, and people, fake medicines, counterfeit and pirated goods, illegal tobacco and alcohol products, endangered wildlife, pillaged oil, diamonds, gold, natural resources and precious minerals, and other contraband or commodities. They are sold on our main streets, social media, online marketplaces, and the dark web every hour of every day. 

    From the onset of the COVID-19 crisis, as the virus spread worldwide, numerous market and supply chain disruptions created new opportunities for criminals in vulnerable sectors. As police and security resources were re-directed, prosecuting the battle against illicit trade was attenuated. Bad actors and threat networks have further accelerated illicit trade in recent months and continue to exploit vulnerabilities in global supply chains to expand illicit economies and criminalized markets in areas such as the life science and healthcare sectors, excisable products, fast-moving consumer goods (FMCG), frauds, cybercrime and other profitable illicit enterprises.

    “In fact, COVID-19 has mutated criminality to a higher level of danger as corrupt regimes and criminals enrich themselves through an illicit trade pandemic that puts the health and safety of all citizens and communities at risk, such as fake medicines and counterfeited medical equipment and supplies,” said Luna.

    About Luna Global Networks & Convergence Strategies LLC

    David M. Luna is also a former U.S. diplomat and national security official. He is the current Chair of the Business at OECD Anti-Illicit Trade Experts Group (AITEG); Chair, Anti-Illicit Trade (AIT) Committee of the U.S. Council for International Business (USCIB); co-Director, Anti-Illicit Trade Institute, Terrorism, Transnational Crime and Corruption Center (TraCCC), Schar School of Policy and Government, GMU.

    Luna Global Networks is an international security consultancy well-positioned to help clients tackle the most pressing illicit trade and governance challenges and related security threats globally

    Media Contact:

    David M. Luna, Luna Global Networks

    Info@LunaGlobalNetworks.com

    Source: Luna Global Networks

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  • Psychiatric Crime Exposed by Russian Human Rights Group

    Psychiatric Crime Exposed by Russian Human Rights Group

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    Closed-door conference organized by Citizens Commission on Human Rights
    St. Petersburg, Russia, reveals psychiatric fraud and flagrant violations of human rights.

    Press Release


    Jun 3, 2016

    Citizens Commission on Human Rights (CCHR) St. Petersburg held a closed-door conference where panelists and victims of psychiatry presented facts, figures and personal testimony of human rights violations and fraud in the psychiatric industry.

    Specific cases of citizen complaints including extortion and abuse by psychiatrists and psychiatric institution employees were reviewed.

    Attending the conference were victims who spoke of the abuse they suffered at the hands of psychiatry. One was a man who objected to the room being too dark when he was trying to take an examination to extend his driver’s license. He was removed from the room and falsely labeled schizophrenic. He is appealing to the courts to have that label lifted.

    Another case was an elderly woman who was forcibly committed to a psychiatric hospital and administered psychiatric drugs. She testified about the serious physical harm she suffered as a result of these drugs, which triggered intense pain and joint degeneration.

    A study of records of the Oktyabrsky district court from 2012 to 2014 showed blatant psychiatric violation of medical ethics and human rights. Psychiatrists spent an average of 10 minutes in examining each of the 1,340 cases they involuntary committed during those two years. In 115 of these cases the examination was conducted in less than a minute. Additionally, those examined were not read their rights.

    CCHR organized this conference to inform citizens, supervisors and human rights advocates of the flagrant violations extant in the psychiatric industry today and the urgent need to bring psychiatry under the law.

    Every year, hundreds of victims turn to CCHR Russia to report abuses and psychiatric crimes including false imprisonment, fraud, rape, inhumane treatment, appalling conditions in psychiatric institutions and the deprivation of fundamental human rights. For the past 15 years, CCHR Russia has been investigating and exposing human rights violations in the field of mental health and coming to the aid of psychiatric victims. 

    Citizens Commission on Human Rights is a nonprofit charitable mental health watchdog co-founded in 1969 by the Church of Scientology and professor of psychiatry emeritus, the late Dr. Thomas Szasz. It is dedicated to eradicating psychiatric abuses and ensuring patient protection.

    Source: ScientologyNews.org

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