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Tag: Fraud

  • New York AG Letitia James charged in mortgage fraud investigation | Fortune

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    New York Attorney General Letitia James was charged Thursday as part of a mortgage fraud investigation aggressively pushed by the Trump administration, becoming the latest foe of the president to be prosecuted by his Justice Department.

    James, who infuriated President Donald Trump by suing him and his company for fraud in a case that played out as he was running for office, was indicted on charges of bank fraud and false statements to a financial institution following a presentation to a grand jury in Virginia by a prosecutor who was hastily appointed last month amid Trump administration pressure to deliver criminal cases against his adversaries.

    James’ office had no immediate comment Thursday. Her lawyers have vigorously denied any allegations and characterized the investigation as an act of political revenge.

    The indictment, two weeks after a separate criminal case charging former FBI Director James Comey with lying to Congress, is the latest indication of the Trump administration’s norm-busting determination to use the law enforcement powers of the Justice Department to pursue the president’s political foes and public figures who once investigated him.

    The James case remained under seal Thursday, making it impossible to assess what evidence prosecutors have. But as was the case with the Comey charges, the prosecution followed a strikingly unconventional route. The Trump administration, two weeks ago, pushed out Erik Siebert, the veteran prosecutor who had overseen the investigation for months but had resisted pressure to file a case, and replaced him with Lindsey Halligan, a White House aide who was once Trump’s personal lawyer but who has never worked as a federal prosecutor.

    Halligan presented the case to the grand jury herself, as she did in the case against Comey, a person familiar with the matter told The Associated Press.

    “No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan said in a statement. “The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”

    Trump has been advocating charging James for months, posting on social media without citing any evidence that she’s “guilty as hell” and telling reporters at the White House, “It looks to me like she’s really guilty of something, but I really don’t know.”

    Her lawyer has accused the Justice Department of concocting a bogus criminal case to settle Trump’s personal vendetta against James, who last year won a staggering judgment against Trump and his companies in a lawsuit alleging he lied to banks and others about the value of his assets.

    The Justice Department has also been investigating mortgage-related allegations against Federal Reserve board member Lisa Cook, using the probe to demand her ouster, and Sen. Adam Schiff, D-Calif., whose lawyer called the allegations against him “transparently false, stale, and long debunked.”

    But James is a particularly personal target. As attorney general, she sued the Republican president and his administration dozens of times and oversaw a lawsuit accusing him of defrauding banks by dramatically overstating the value of his real estate holdings on financial statements.

    An appeals court overturned the fine, which had ballooned to more than $500 million with interest, but upheld a lower court’s finding that Trump had committed fraud.

    The Justice Department probe began after Federal Housing Finance Agency Director William Pulte sent a letter in April to Attorney General Pam Bondi, asking her to investigate James over her role in the 2023 purchase of a house in Norfolk, Virginia.

    In seeking the investigation, Pulte cited a two-page power-of-attorney form that James signed on Aug. 17, 2023, which states, “I intend to occupy this property as my principal residence.” He speculated that claiming the house as her primary residence might have allowed James to avoid higher interest rates that often apply to second homes.

    James’ lawyer, Abbe Lowell, said the Democrat never misled anyone. James has said that she made an error while filling out a form related to the home purchase, but quickly rectified it and didn’t deceive the lender.

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    Alanna Durkin Richer, Michael R. Sisak, Eric Tucker, The Associated Press

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  • Fintech Ramp launches fraud fighting, bill payment AI agents

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    Spend management platform Ramp Inc. is enlisting artificial intelligence agents to help eliminate a growing problem for corporate customers: invoice fraud. Invoice fraud has been spreading with the help of readily available generative AI tools that make fabricating documents easier. It’s a simple and effective scheme: bad actors generate a false invoice designed to look […]

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    Bloomberg News

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  • Colorado companies, execs charged in Chinese forklift scheme tried to avoid $1M in tariffs, feds say

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    Two Denver-area companies face federal wire fraud charges in a scheme to sell imported Chinese forklifts to the federal government as American-made equipment, according to an indictment released Tuesday.

    Endless Sales and Octane Forklifts, along with current executives Brian Firkins and Jeffrey Blasdel and former executive J.R. Antczak, were indicted by a federal grand jury in Denver on Aug. 21, Department of Justice officials announced this week.

    According to the indictment, Octane’s main business was buying forklifts made in China, rebranding them as American-made and selling them through Endless Sales to local, state and federal government clients.

    The scheme started in Aug. 2018 and continued until at least July 2024. Investigators say the companies and executives also worked with a Chinese manufacturer to create fake invoices that undervalued the imported forklifts to avoid paying more than $1 million in tariffs and fees.

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    Katie Langford

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  • Montgomery Co. accountant sent to federal prison for $24 million COVID relief fraud scheme – WTOP News

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    A Gaithersburg, Maryland, accountant has been sentenced to three years in federal prison, followed by six months of home confinement for conspiring to commit wire fraud by submitting fraudulent loan applications for various COVID-19 relief benefits.

    A Gaithersburg, Maryland, accountant has been sentenced to three years in federal prison, followed by six months of home confinement, for conspiring to commit wire fraud by submitting fraudulent loan applications for various COVID-19 relief benefits.

    According to the U.S. Attorney’s Office for Maryland, 54-year-old Harold Dotson was part of the scheme that filed more than $24 million in phony CARES Act loan applications between 2020 and 2022. He was sentenced earlier this week by U.S. District Judge Richard Bennett.

    During the pandemic, several economic assistance mechanisms were established to keep businesses afloat: the Coronavirus Aid, Relief and Economic Security Act, the Paycheck Protection Program, and the Economic Injury Disaster Loan.

    Citing Dotson’s plea agreement and other court documents, prosecutors said Dotson “used his accountant expertise to assist with preparing numerous false and fraudulent EIDL and PPP applications for purported businesses that did not exist in any legitimate capacity.”

    The duplicitous loan applications included false information about the fake businesses’ number of employees, monthly payroll costs and revenue. Prosecutors said he also routinely created fraudulent IRS tax forms.

    In his sentencing memo, Dotson’s lawyer said his client was an addicted gambler, with his family on the brink of economic disaster, when he was approached by co-conspirator Ahmed Sary, 47, of Brooklyn, Maryland, who ran a credit repair company.

    While Dotson originally believed his helping small businesses apply for PPP loans was aboveboard, he eventually realized Sary was sending him paperwork for businesses that didn’t exist “or that grossly overstated their payroll and assets,” according to his attorney.

    “The influx from the fraud was like gasoline on the fire of his addiction,” wrote Dotson’s lawyer. “He returned to the casino four to five times a week, gambling (and usually losing) thousands of dollars per session.”

    According to prosecutors, Dotson’s conspiracy with Sary resulted in the disbursement of more than $14 million in PPP funds in connection with more than 85 fraudulent loans. Dotson’s conspiracy with another co-conspirator resulted in the disbursement of fraudulent PPP loans valued at more than $6 million, prosecutors said.

    Additionally, prosecutors said more than $3.5 million was funded and disbursed in connection with Dotson’s submission of fraudulent EIDL applications.

    In addition to the prison time and probation, Bennett ordered Dotson to pay $24,807,432 in restitution.

    In June, Bennett sentenced Sary to seven years in federal prison for his role in the conspiracy.

    Get breaking news and daily headlines delivered to your email inbox by signing up here.

    © 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Neal Augenstein

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  • LA Fashion District firm, 2 executives sentenced for schemes to avoid millions in customs duties and to launder narcotics proceeds

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    LOS ANGELES — A Fashion District wholesaler and two of its executives have been sentenced for ducking more than $8 million in customs duties and using a cross-border money laundering system to avoid reporting over $17 million in suspected narcotics proceeds, federal authorities said Tuesday.

    The three defendants were found guilty in Los Angeles federal court in October 2024 of dozens of felonies.

    On Monday, C’est Toi Jeans Inc., which imported apparel from China and other nations and exported clothing to customers in Mexico, Central America and South America, was sentenced by U.S. District Judge Mark Scarsi to five years of probation and ordered to submit to federal monitoring. The judge also fined CTJ $11.5 million and ordered it to pay more than $15 million in restitution.

    Si Oh Rhew, 71, of La Cañada Flintridge, CTJ’s president and a 75% owner of the company, was sentenced to eight years and seven months in federal prison, fined $8 million, and ordered to pay more than $19 million in restitution.

    Lance Rhew, 38, of downtown Los Angeles, Si Oh Rhew’s son, a CTJ corporate officer and owner of another Los Angeles-based company that did business as CTJ, was sentenced to seven years in federal prison, fined $500,000, and ordered to pay restitution.

    The case outlined in a 49-page indictment filed in December 2020 resulted from an operation in which law enforcement swarmed the 100-block hub of the West Coast apparel industry, executing dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses.

    During one of those searches at a downtown condominium linked to the defendants in the CTJ case, authorities seized more than $38.3 million in cash, according to the U.S. Attorney’s Office.

    The jury found CTJ and Si Oh Rhew guilty of two conspiracies and multiple counts of failure to file report of currency transaction over $10,000 in a trade or business. The panel also found all three defendants guilty of three counts of entry of falsely classified goods, three counts of entry of goods by means of false statements, three counts of passing false and fraudulent papers through a customhouse, and two counts of international promotional money laundering, according to the U.S. Attorney’s Office.

    CTJ was found guilty of an additional two concealment money laundering counts involving drug proceeds. Si Oh Rhew was found guilty of an additional two counts of aiding, assisting and procuring the filing of a false tax return. Lance Rhew was found guilty of one additional count of aiding, assisting and procuring the filing of a false tax return. Lance Rhew was also found guilty of one conspiracy count.

    The first scheme involved the avoidance of customs duties and tariffs by purchasing garments from overseas manufacturers, including from China, but then submitting false information to U.S. Customs and Border Protection that understated the true value of the items being imported in the United States, prosecutors said.

    As a result, the import duties owed on the shipments were lowered, causing about $8.4 million in unpaid tariffs and duties that should have been paid, prosecutors said.

    In the second scheme, the Rhews used CTJ “to receive large amounts of bulk United States currency, including from narcotics proceeds, as payment for outstanding merchandise orders from customers in Mexico and elsewhere,” according to the indictment.

    The jury heard that CTJ accepted large cash payments of up to $70,000 even after the law enforcement action targeted their businesses in 2014. The defendants failed to file currency transaction reports, which are required for any transaction involving more than $10,000 in cash, and concealed the cash receipts from an accountant who prepared their taxes, which led the Rhews to fraudulently omit more than $17 million in gross sales from tax returns filed with the Internal Revenue Service, evidence shows.

    The jury found the defendants not guilty of several additional criminal counts, including two counts of concealment money laundering for CTJ and several counts of failure to file a report of a currency transaction in a nonfinancial trade or business for Lance Rhew.

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    City News Service

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  • Demanding charges against his enemies, Trump conflates justice with revenge

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    FBI Director Kash Patel portrays James Comey’s indictment as a response to “the Russiagate hoax.” Yet on their face, the charges against Comey have nothing to do with the investigation that earned the former FBI director a prominent spot on President Donald Trump’s enemies list.

    The Justice Department reportedly is contemplating charges against two other Trump nemeses, Sen. Adam Schiff (D–Calif.) and New York Attorney General Letitia James, that likewise are legally unrelated to the president’s beefs with them. That disconnect reinforces the impression that Trump is perverting the law in pursuit of his personal vendettas.

    Trump fired Comey in 2017 out of anger at the FBI investigation of alleged ties between his 2016 campaign and the Russian government. In the years since, Trump has made no secret of his desire to punish Comey for that “witch hunt,” which Patel cited as a justification for the charges against Comey.

    Those charges, however, seem to stem from an entirely different investigation: the FBI’s 2016 probe of the Clinton Foundation. Although the skimpy indictment is hazy on this point, it implicitly alleges that Comey authorized the disclosure of information about that investigation and then falsely denied doing so during a 2020 Senate Judiciary Committee hearing.

    That claim is highly doubtful for several reasons, as former federal prosecutor Andrew C. McCarthy notes in a National Review essay that describes the indictment as “so ill-conceived and incompetently drafted” that Comey “should be able to get it thrown out on a pretrial motion to dismiss.” McCarthy’s take is especially notable because he wrote a book-length critique of the Russia probe that concurs with Trump’s chief complaints about it.

    In other words, even if you think that investigation epitomized the “politicization of law enforcement” (as Patel puts it), that does not necessarily mean the charges against Comey are factually or legally sound. In fact, the case is so shaky that neither career prosecutors nor Erik Siebert, the former U.S. attorney for the Eastern District of Virginia, thought it was worth pursuing.

    Lindsey Halligan, Siebert’s Trump-appointed replacement, had no such qualms. She obtained the indictment three days after taking office, which was five days before the statutory deadline and five days after Trump publicly told Attorney General Pam Bondi that “we can’t delay any longer.”

    That Truth Social missive to Bondi also mentioned Schiff and James as prime targets for federal prosecution. “Nothing is going to be done,” Trump wrote, paraphrasing the complaints of his supporters, even though “they’re all guilty as hell.”

    Guilty of what? Schiff, a longtime thorn in Trump’s side, spearheaded his first impeachment and served on the House select committee that investigated the 2021 riot at the U.S. Capitol. James sued Trump for business fraud in New York, obtaining a jaw-dropping “disgorgement” order that was later overturned by a state appeals court, which nevertheless thought she had proven her claims.

    Although Trump has averred that Schiff’s conduct as a legislator amounted to “treason,” it plainly does not fit the statutory definition of that crime. And whatever you think about the merits of James’ lawsuit, the fact that both a judge and an appeals court agreed Trump had committed fraud by overvaluing his assets suggests her claims were at least colorable.

    Casting about for a legal pretext to prosecute Schiff and James, the Justice Department is mulling allegations that both committed mortgage fraud by claiming more than one home as a primary residence. Although it’s not clear there is enough evidence to convict either of them, that is beside the point as far as Trump is concerned.

    As the president sees it, Schiff and James, like Comey, deserve to suffer because they wronged him. “JUSTICE MUST BE SERVED, NOW!!!” he told Bondi.

    Judging from the Comey case, Bondi probably will follow the president’s marching orders, to the cheers of his most enthusiastic supporters. But the rest of us have ample cause to conclude that Trump has conflated justice with revenge.

    © Copyright 2025 by Creators Syndicate Inc.

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    Jacob Sullum

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  • Why Scandals Hurt CEO Reputations More Than Fraud

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    The infamous viral video that featured Andy Byron, the then-CEO of the small New York-based data platform Astronomer, on the kiss cam at a Coldplay concert in a seemingly intimate embrace with his chief people officer, Kristin Cabot, went global earlier this year. Both parties were married to other people, so Byron quickly took the fall and resigned, with Cabot following shortly after.

    Given the worldwide attention the clip gained, their resignations were all but inevitable. But new research suggests that a scandal of a personal nature like this is much more harmful to CEOs than you might think — no rock band kiss cam necessary. In fact, if a CEO is caught committing fraud, it’s far less harmful to their future than becoming embroiled in a more personal scandal.

    The actual figure is surprising: CEOs are five times more likely to survive fraud-related scandals than they are if they get caught in inappropriate relationships, issues like drug or alcohol abuse, violence or inappropriate speech, Phys.org reports. The study leader, Aaron Hill, an associate professor from the University of Florida Warrington College of Business, told the news outlet that in an instance of financial fraud, a CEO “can easily say, ‘Hey, it wasn’t me,’” but for the other sorts of scandal, like “personal misconduct, there’s no excuse,” because it’s harder to evade accusations of direct involvement in the problem.

    The researchers also found company boards act decisively when a leader’s personal scandals become known, but recent company performance has more of an impact on how they react to a leader’s involvement in a financial scandal. If the company is doing well, the CEO is more likely to be allowed to remain at their post, possibly because company directors may have “plausible deniability” about absolute blame, and little incentive to disrupt the company’s success.  

    And when a leader does get fired when their personal misbehavior goes public, the researchers found boards are more likely to promote an insider into the role. it’s a “signalling move,” according to Hill, implying the company is fine, and the behavior of one bad apple has been addressed. “Stick with an insider after a personal scandal, and it says the organization itself is sound,” Hill said. He added that if it’s fraud, it’s better to reassure markets and clients by hiring an outsider. This is exactly what Astronomer did, in the wake of the Coldplay video scandal, by promoting Pete DeJoy, a co-founder, into an interim CEO position while looking for a replacement.

    CEOs, of course, hold massive authority over their companies, and their public image may be tightly bound up with that of the firm itself. Recent data show exactly how influential CEOs have become, with the average leaders’ pay rising nearly 6 percent in 2024, so they now make 281 times the salary of the average worker, the Economic Policy Institute showed.

    Acting swiftly to remove a scandal-tangled CEO thus makes economic sense as well as protecting the company from reputational harm. This is something Hill also highlighted, noting that firing a CEO after a scandal is nearly always motivated by finances. Meanwhile if a company leaves a CEO in post, it can simply send “the wrong message — to employees, to investors and to the public,” Hill noted.

    What can you take away from this for your own company? 

    You might think that in your smaller, more family-like atmosphere none of these issues are likely to raise their ugly heads. And hopefully you’re right. But remember that recent data show one in three U.S. workers has had a relationship with their manager, and 91 percent of the people surveyed said they’d used flirting or charm to boost their position with leadership.

    The one lesson you can learn from this is that a scandal really can impact your company unless it’s handled right, and one of a personal nature (instead of, say, fraud) can be even more damaging for the executives involved. 

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    Kit Eaton

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  • Minnesota DHS suspends payments to 11 adult disability providers over fraud allegations

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    The Minnesota Department of Human Services recently suspended payments to 11 providers that serve adults with disabilities over “credible allegations” of fraud, according to a letter written by Temporary Commissioner Shireen Gandhi and obtained by WCCO.

    According to the letter addressed to state lawmakers, the payments to 11 providers with the Integrated Community Supports program were stopped between Sept. 4 and Sept. 23, which impacted additional providers.

    “The payment withholds for these 11 ICS providers extend to all affiliated services, resulting in suspended payments to an additional 17 providers,” Gandhi said in the letter.

    ICS is a Medicaid service that provides training and help to adults with disabilities who live in a “unit of a provider-controlled ICS setting,” according to the state’s DHS website. Training may include community participation, health, safety and wellness, household management or adaptive skills.

    “It fills the gap between a person living in their own home and more restrictive settings such as a group home or assisted living,” Gandhi said.

    The fraud allegations “primarily concern” ICS providers billing DHS for services that weren’t provided, Gandhi said. 

    DHS staff are allegedly reaching out to county waiver case managers to discuss how clients may be impacted. Waiver case managers, according to the letter, are responsible for planning services with clients and will help them pick alternate services and providers.  

    The DHS, in a written statement to WCCO, said it’s not able to release information about the payments that were withheld in an effort to “protect the integrity of the investigations” into the providers.

    “We are taking more aggressive actions to stop payments, including relying on tips and data mining that demonstrate a credible allegation of fraud,” the statement said. “A payment withhold is a temporary action that is taken while an investigation is pending. All of the providers who are subject to the recent payment withholds have the opportunity to challenge these actions through a reconsideration process.”

    No charges have been announced.

    According to Gandhi, DHS recently shared information with all home- and community-based service providers to inform them about the anti-kickback law that went into effect on Aug. 1. The law makes it illegal for providers in Minnesota to offer money to people to sign up for services, and bans providers from financially rewarding businesses to refer individuals.

    The move to suspend payments comes amid a federal investigation of a “massive scheme to defraud” Minnesota’s Housing Stabilization Services program, according to court documents. The investigation involves the Minnesota Medical Assistance benefit meant to help find and maintain homes for people with disabilities. Earlier this month, the U.S. attorney in Minnesota announced charges against eight people in connection with the probe.

    A DHS spokesperson confirmed that Eric Grumdahl, an official who oversaw the housing services program, was no longer working for the state agency as of Sept. 16, though the reason for his exit is unclear. The department, in a statement to WCCO, cited state law that says the reasons for an employee’s separation is not public data. 

    On Wednesday, a 28-year-old Minneapolis woman was charged in a $14 million autism fraud scheme and in the Feeding Our Future fraud scheme.

    Gandhi said the DHS has taken “significant administrative actions” since the legislative session, and that the agency is “now seeing businesses working together to game the system, as opposed to single bad actors or rogue employees.”

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    Nick Lentz

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  • Exclusive: Thousands of Indian bank transfer records found online

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    A data spill from an unsecured cloud server has exposed hundreds of thousands of sensitive bank transfer documents in India, revealing account numbers, transaction figures, and individuals’ contact details.

    Researchers at cybersecurity firm UpGuard discovered in late August a publicly accessible Amazon-hosted storage server containing 273,000 PDF documents relating to bank transfers of Indian customers. 

    The exposed files contained completed transaction forms intended for processing via the National Automated Clearing House, or NACH, a centralized system used by banks in India to facilitate high-volume recurring transactions, such as salaries, loan repayments, and utility payments.

    The data was linked to at least 38 different banks and financial institutions, the researchers told TechCrunch.

    It’s not clear why the data was left publicly exposed and accessible to the internet, though security lapses of this nature are not uncommon due to misconfigurations and human error.

    But it remains unclear who caused the data spill, who secured it, and who is ultimately responsible for alerting those whose personal data was exposed.

    Data secured, but nobody accepts blame

    In its blog post detailing its findings, the UpGuard researchers said that out of a sample of 55,000 documents, more than half of the files mentioned the name of Indian lender Aye Finance, which had filed for a $171 million IPO last year. The Indian state-owned State Bank of India was the next institution to appear by frequency in the sample documents, according to the researchers.

    After discovering the exposed data, UpGuard’s researchers notified Aye Finance through its corporate, customer care, and grievance redressal email addresses. The researchers also alerted the National Payments Corporation of India, or NPCI, the government body responsible for managing NACH.

    By early September, the researchers said the data was still exposed and that thousands of files were being added to the exposed server daily. 

    UpGuard said it then alerted India’s computer emergency response team, CERT-In. Shortly afterward, the exposed data was secured, the researchers told TechCrunch.

    But nobody seems to want to take responsibility for the security lapse.

    When reached for comment, NPCI spokesperson Ankur Dahiya told TechCrunch that the exposed data did not come from its systems.

    “A detailed verification and review have confirmed that no data related to NACH mandate information/records from NPCI systems have been exposed/compromised,” the spokesperson said in an email sent to TechCrunch.

    Aye Finance co-founder and CEO, Sanjay Sharma did not respond to a request for comment from TechCrunch. The State Bank of India also did not respond to a request for comment.

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    Jagmeet Singh, Zack Whittaker

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  • Comey indicted on charges of lying to Congress, obstruction

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    WASHINGTON — James Comey was charged Thursday with lying to Congress in a criminal case filed days after President Donald Trump appeared to urge his attorney general to prosecute the former FBI director and other perceived political enemies.

    The indictment makes Comey the first former senior government official involved in one of Trump’s chief grievances, the long-concluded investigation of Russian interference in the 2016 election, to face prosecution. Trump has for years derided that investigation as a “hoax” and a “witch hunt” despite multiple government reviews showing Moscow interfered on behalf of the Republican’s campaign, and has made clear his desire for retribution.


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    Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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    By ERIC TUCKER, ALANNA DURKIN RICHER and MICHAEL KUNZELMAN – Associated Press

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  • Justice Department sues California, other states that have declined to share voter rolls

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    The U.S. Justice Department sued California Secretary of State Shirley Weber on Thursday for failing to hand over the state’s voter rolls, alleging she is unlawfully preventing federal authorities from ensuring state compliance with federal voting regulations and safeguarding federal elections against fraud.

    The Justice Department also sued Weber’s counterparts in Michigan, Minnesota, New York, New Hampshire and Pennsylvania, who have similarly declined its requests for their states’ voter rolls.

    “Clean voter rolls are the foundation of free and fair elections,” Atty. Gen. Pam Bondi said in a statement on the litigation. “Every state has a responsibility to ensure that voter registration records are accurate, accessible, and secure — states that don’t fulfill that obligation will see this Department of Justice in court.”

    In its lawsuit against Weber, who is the state’s top elections official, the Justice Department argues that it is charged — including under the National Voter Registration Act — with ensuring that states have proper protocols for registering voters and maintaining accurate and up-to-date rolls, and therefore is due access to state voter rolls in order to ensure they are so maintained.

    “The United States has now been forced to bring the instant action to seek legal remedy for Defendants’ refusal to comply with lawful requests pursuant to federal law,” the lawsuit states.

    Weber, in a statement, called the lawsuit “a fishing expedition and pretext for partisan policy objectives,” a “blatant overreach” and “an unprecedented intrusion unsupported by law or any previous practice or policy of the U.S. Department of Justice.”

    “The U.S. Department of Justice is attempting to utilize the federal court system to erode the rights of the State of California and its citizens by trying to intimidate California officials into giving up the private and personal information of 23 million California voters,” Weber said.

    She said California law requires that state officials “protect our voters’ sensitive private information,” and that the Justice Department not only “failed to provide sufficient legal authority to justify their intrusive demands,” but ignored invitations from the state for federal officials to come to Sacramento and view the data in person — a process Weber said was “contemplated by federal statutes” and would “protect California citizens’ private and personal data from misuse.”

    The Justice Department has demanded a “current electronic copy of California’s computerized statewide voter registration list”; lists of “all duplicate registration records in Imperial, Los Angeles, Napa, Nevada, San Bernardino, Siskiyou, and Stanislaus counties”; a “list of all duplicate registrants who were removed from the statewide voter registration list” and the dates of their removals.

    It has also demanded a list of all registrations that have been canceled because voters in the state died; an explanation for a recent decline in the recorded number of “inactive” voters in the state; and a list of “all registrations, including date of birth, driver’s license number, and last four digits of Social Security Number, that were cancelled due to non-citizenship of the registrant.”

    The litigation is the latest move by the Trump administration to push its demands around voting policies onto individual states, which are broadly tasked under the constitution with managing their own elections.

    The lawsuit follows an executive order by Trump in March that purported to radically reshape voting rules nationwide, including by requiring voters to provide proof of citizenship and requiring states to disregard mail ballots that are not received by election day.

    The order built on years of unsubstantiated claims by Trump — and refuted by experts — that the U.S. voting system currently allows for rampant fraud and abuse, and that those failures compromised the results of elections, including his 2020 loss to Joe Biden.

    Various voting rights groups and 19 states, including California, have sued to block the order.

    Advocacy groups say the order, and especially it’s requirements for proving citizenship, would disenfranchise legal U.S. citizen voters who lack ready access to identifying documents such as passports and REAL IDs. They have said barring the acceptance of mail ballots received after election day would also create barriers for voters, especially in large state such as California that need time to process large volumes of ballots.

    California currently accepts ballots if they are postmarked by election day and received within a certain number of days after.

    California Atty. Gen. Rob Bonta has called Trump’s executive order an “illegal power grab” that California and other states will “fight like hell” to stop. His office referred questions about the U.S. Justice Department’s lawsuit against Weber to Weber’s office.

    Gov. Gavin Newsom’s office did not respond to a request for comment.

    Assistant U.S. Atty. Gen. Harmeet K. Dhillon, who heads the Justice Department’s Civil Rights Division, defended the need for the lawsuit, saying in a statement that clean voter rolls “protect American citizens from voting fraud and abuse, and restore their confidence that their states’ elections are conducted properly, with integrity, and in compliance with the law.”

    Weber, who in April called Trump’s executive order “an illegal attempt to trample on the states and Congress’s constitutional authority over elections,” said Thursday that she would not be bowed by the lawsuit.

    “The sensitive data of California citizens should not be used as a political tool to undermine the public trust and integrity of elections,” she said. “I will always stand with Californians to protect states’ rights against federal overreach and our voters’ sensitive personal information. Californians deserve better. America deserves better.”

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    Kevin Rector

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  • New risk network supports fight against AI-powered fraud – FinAi News

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    As AI improves, it is opening the door for better risk mitigation — but also for increasingly sophisticated fraud schemes as bad actors use the tech to create synthetic identities, clone voices, automate schemes and falsify images.  Fraud within financial services is expected to rise 153% to $58.3 billion by 2030, up from $23 billion […]

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    Whitney McDonald

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  • New risk network supports fight against AI-powered fraud

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    As AI improves it is opening the door for better risk mitigation — but also for increasingly sophisticated fraud schemes as bad actors use the tech to create synthetic identities, clone voices, automate schemes and falsify images.  Fraud within financial services is expected to rise 153% to $58.3 billion by 2030, up from $23 billion […]

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    Whitney McDonald

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  • New risk network supports fight against AI-powered fraud

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    As AI improves, it is opening the door for better risk mitigation — but also for increasingly sophisticated fraud schemes as bad actors use the tech to create synthetic identities, clone voices, automate schemes and falsify images.  Fraud within financial services is expected to rise 153% to $58.3 billion by 2030, up from $23 billion […]

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    Whitney McDonald

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  • First defendant in autism fraud scheme charged

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    The fight against fraud in Minnesota took on a new target, autism centers. It’s the latest in a series of taxpayer fraud cases in Minnesota.

    A 28-year-old Minneapolis woman is now facing federal wire fraud charges tied to a $14 million autism fraud scheme. 

    She’s also charged in the largest COVID-era fraud case in the state—the Feeding Our Future scheme. According to prosecutors, the woman allegedly pocketed nearly a half-million dollars by submitting fraudulent claims.

    Investigators say the 28-year-old woman, who ran Smart Therapy LLC, billed for EIDBI services only to pocket tax-payer money, but never actually helped those children.

    In a troubling twist, parents were paid to keep their children enrolled. On the high end, kickbacks reached more than $1,000 per child.

    “Often, parents threatened to leave Smart Therapy and take their children to other autism centers if they did not get paid higher kickbacks,” prosecutors said.

    Charging documents say, the owner “approached parents, to recruit children into Smart Therapy” even if they didn’t have autism.

    Last week, U.S Acting Attorney Joe Thompson announced charges against eight people accused of defrauding a Minnesota Housing program.

    At that press conference he mentioned through investigation they found individuals exploited several systems at once. 

    The woman charged in this autism scheme also allegedly stole nearly half of a million dollars as part of the “Feeding our Future” scheme.

    “I think it’s fair to say that most of these healthcare fraud investigations, including autism, grew out of [the] Feeding Our Future investigation,” Thompson said. 

    Minnesota’s Department of Human Services oversees the programs that are the focus of these federal fraud investigations.

    Since June 1—DHS says they’ve taken steps to increase oversight by re-categorizing autism services as “high-risk” for fraud.

    The change will strengthen oversight by:

    • Mandating enhanced fingerprint background studies for owners
    • Requiring screening visits before Medicaid enrollment and when enrollment is revalidated
    • Allowing DHS to make unannounced site visits

    DHS is also planning to temporarily halt new autism provider enrollments until licensing requirements are in place.

    The Department of Human Services Office of Inspector General currently has 84 open cases on autism providers and 24 active payment withholds.

    U.S Acting attorney Thompson says this is just first in the ongoing investigation into fraud in the Autism Program.

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    Ubah Ali

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  • Montgomery County health and human services employee defrauded county, report finds – WTOP News

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    An employee in the Montgomery County Department of Health and Human Services defrauded the county of more than $13,000 by spending time seeing private clients during county work hours.

    This article was written by WTOP’s news partner Bethesda Today and republished with permission. Sign up for Bethesda Today’s free email subscription today.

    An employee in the Montgomery County Department of Health and Human Services (DHHS) defrauded the county of more than $13,000 by spending more than 270 hours seeing private clients during county work hours since July 2024, according to a report released Wednesday from the Office of the Inspector General.

    According to the report, the inspector general’s office informed Richard Madaleno, the county’s chief administration officer, about the employee. In a Sept. 19 response to the report, Fariba Kassiri, deputy chief administrative officer for the county, said DHHS was “taking appropriate steps to seek recovery of the overpayment” and that the employee will be “separating” from the county on Wednesday.

    Read more at Bethesda Today.

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    Thomas Robertson

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  • Sacramento police arrest Yuba City man for alleged $30,000 scam

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    HE IS, CALL THE STANISLAUS COUNTY SHERIFF’S OFFICE. SACRAMENTO POLICE ARRESTED A MAN SUSPECTED OF SCAMMING A WOMAN OUT OF NEARLY $30,000. TODAY, SACRAMENTO POLICE ANNOUNCING THEY ARRESTED 36 YEAR OLD BALWINDER SINGH OF YUBA CITY. HE WAS BOOKED ON FELONY CHARGES. POLICE RELEASING THIS PHOTO OF MONEY. OFFICERS SAY THE SUSPECT HAD. RENEE THOMAS TOLD US IT STARTED WITH AN EMAIL THAT SHE THOUGHT WAS FROM PAYPAL. WE SPOKE WITH HER LAST MONTH, THE SCAMMER TOLD THOMAS HER IDENTITY AND INFORMATION HAD BEEN USED TO OPEN 22. PAYPAL ACCOUNTS AND PROMISED TO HELP AND TOLD HER TO WITHDRAW HER LIFE SAVINGS AND CASH. AND THEN THEY CAME TO HER HOUSE TO TO PICK IT UP. ONLINE SCAMS CAN BE INHERENTLY CHALLENGING. IT’S SOMETHING THAT HAPPENS OVER THE INTERNET, SO NOT NOTHING THAT YOU KNOW THAT IS EASILY TRACKED FACE TO FACE. IN THIS CASE, WE WERE ABLE TO LOCATE THE SUSPECT’S VEHICLE. TECHNOLOGY CAN BE A CHALLENGING POINT FOR THE ELDERLY COMMUNITY, UNDERSTANDABLY. AND SO A LOT OF TIMES THEY DO FALL VICTIM TO THESE INTERNET TYPE OF PHISHING SCAMS. WELL, POLICE SAY THEY ARE HOLDING CASH AS EVIDEN

    Sacramento police arrest Yuba City man for alleged $30,000 scam

    Updated: 10:57 PM PDT Sep 23, 2025

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    Sacramento police arrested 36-year-old Balwinder Singh of Yuba City on felony charges, suspecting him of scamming a woman out of her life savings.Last month, KCRA 3 spoke to Rhane Thomas, the victim, who said it started with an email she believed was from PayPal. The accused scammer told Thomas her identity and information had been used to open 22 PayPal accounts, promised to help, and instructed her to withdraw her life savings in cash, which he then collected from her home.Thomas shared her surveillance video with KCRA 3, which captured the moment she walked up to the car and handed over a box she said contained $28,000.Allison Smith, spokesperson with Sacramento Police, said identifying the vehicle was a key part of the investigation. “Online scams can be inherently challenging. It’s something that happens over the Internet,” said Smith. “In this case, we were able to locate this suspect’s vehicle.”Police say the cash is being held as evidence. “We do need all of that information for evidence for future prosecution,” said Smith. “In terms of like the timelines of things of when people are getting their finances back, that’s hard to say.”See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

    Sacramento police arrested 36-year-old Balwinder Singh of Yuba City on felony charges, suspecting him of scamming a woman out of her life savings.

    Last month, KCRA 3 spoke to Rhane Thomas, the victim, who said it started with an email she believed was from PayPal.

    The accused scammer told Thomas her identity and information had been used to open 22 PayPal accounts, promised to help, and instructed her to withdraw her life savings in cash, which he then collected from her home.

    Thomas shared her surveillance video with KCRA 3, which captured the moment she walked up to the car and handed over a box she said contained $28,000.

    Allison Smith, spokesperson with Sacramento Police, said identifying the vehicle was a key part of the investigation.

    “Online scams can be inherently challenging. It’s something that happens over the Internet,” said Smith. “In this case, we were able to locate this suspect’s vehicle.”

    Police say the cash is being held as evidence.

    “We do need all of that information for evidence for future prosecution,” said Smith. “In terms of like the timelines of things of when people are getting their finances back, that’s hard to say.”

    See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

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  • ‘SIM Farms’ Are a Spam Plague. A Giant One in New York Threatened US Infrastructure, Feds Say

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    The phenomenon of SIM farms, even at the scale found in this instance around New York, is far from new. Cybercriminals have long used the massive collections of centrally operated SIM cards for everything from spam to swatting to fake account creation and fraudulent engagement with social media or advertising campaigns. The SIM cards are typically housed in so-called SIM boxes that can control more than a hundred cards at a time, which are in turn connected to servers that can then control thousands of SIMs each.

    SIM farms allow “bulk messaging at a speed and volume that would be impossible for an individual user,” one telecoms industry source, who asked not to be named due to the sensitivity of the Secret Service’s investigation, told WIRED. “The technology behind these farms makes them highly flexible—SIMs can be rotated to bypass detection systems, traffic can be geographically masked, and accounts can be made to look like they’re coming from genuine users.”

    The telecom industry source adds that the images of SIM servers and boxes published by the Secret Service indicate a “really organized” criminal operation may have been behind the setup. “This means that there is great intelligence and significant resources behind it,” the person added.

    The SIM farm found by the Secret Service, Unit 221b’s Coon says, isn’t the biggest operation he’s learned of in the US. But it’s the most concentrated in such a small single geographic area. SIM boxes, he notes, are illegal in the US, and the hundreds of them found in the Secret Service’s investigation must have been smuggled into the US. In one case he was involved in, Coon says, the boxes were imported from China, disguised as audio amplifiers.

    The “clean, tidy racks” of equipment in a well-lit room shows that the operation may be well-organized and professional, says Cathal Mc Daid, VP of technology at telecommunication and cybersecurity firm Enea. Photos released by the Secret Service show multiple racks of telecom equipment neatly set up, with individual pieces of tech numbered and labeled, plus cables on the floor being covered and protected with tape. Each SIM box, Mc Daid says, appears to include around 256 ports and associated modems. “This looks more professional than many of the SIM farms you see,” says Mc Daid.

    Mc Daid notes, however, that he’s tracked similar operations discovered in Ukraine—some of which have been as large or even larger than the one revealed on Tuesday by the Secret Service. Over the course of the last few years, law enforcement officials in Ukraine have discovered tens of thousands of SIM cards being used in SIM farms allegedly set up by Russian actors. In one case in 2023, around 150,000 SIM cards were reportedly found. These SIM farms have been used to operate fake social media profiles that can spread disinformation and propaganda.

    Additional equipment found in the New York–area SIM farm sites.

    Courtesy of The U.S. Secret Service

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    Andy Greenberg, Lily Hay Newman, Matt Burgess

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  • How a SIM farm like the one found near the UN threatens telecom networks

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    NEW YORK — The U.S. Secret Service has found and is quietly dismantling a massive network of “SIM farms” across the New York area just as world leaders gather for meetings at the United Nations.

    Matt McCool, the special agent in charge of the Secret Service’s New York field office, said agents found multiple sites filled with servers and stacked SIM cards, of which more than 100,000 cards were already active. Though the investigation is ongoing and no arrests have been made, he described it as a well-funded, highly organized enterprise and possibly run by nation-state actors — perpetrators from particular countries.

    Officials also warned of the havoc the network could have caused if left intact. McCool compared the potential impact to the cellular blackouts that followed the Sept. 11 attacks and the Boston Marathon bombing, when networks collapsed under strain.

    So what are these SIM farms and what are they capable of?

    SIM farms are hardware devices that can hold numerous SIM cards from different mobile operators. These devices then exploit voice over internet protocol (VoIP) technology to send and receive bulk messages or calls.

    While initially developed for legitimate purposes, such as low cost international calling, the technology has become a cornerstone of organized fraud targeting mass audiences — phishing texts and scam calls.

    “Scams have become so sophisticated now. Phishing emails, texts, spoofing caller ID, all of this technology gives scammers that edge,” said Eva Velasquez, president and CEO of the Identity Theft Resource Center.

    In this case, the devices were concentrated within 35 miles of the U.N. building. The investigation is ongoing, but McCool said forensic analysis currently believe the system could have been used to send encrypted messages to organized crime groups, cartels and terrorist organizations.

    Anthony J. Ferrante, the global head of the cybersecurity practice at FTI, an international consulting firm, said the photos show a very sophisticated and established SIM farm that could be used for any number of nefarious activities, including the potential to overwhelm cellular networks with millions of calls in just a few minutes.

    “So if you can imagine that type of magnitude on cellular networks, it would just overwhelm them and cause them to shut down,” Ferrante said in an interview. He also notes that it’s possible the system could be used for surveillance operations, given its proximity to the United Nations, “potentially that equipment could be used to either intercept communications, eavesdrop on communications, or actually, clone devices, as well.”

    Ferrante, who previously served in key security positions at the White House and the FBI, says he’s awaiting the results of the investigation before drawing any conclusions about the nature of the setup, but he emphasizes that the scale of the operation shows how simple tools can pose real risks to critical infrastructure.

    “The masterminds could have set this up a long time ago and be operating from thousands of miles away,” he said. “It’s a stark reminder of how deeply interconnected our world has become, where local vulnerabilities can be exploited globally.”

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  • Woman who tried to sell Elvis Presley’s Graceland sentenced to over 4 years in federal prison

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    A Missouri woman was sentenced Tuesday to more than four years in federal prison for scheming to defraud Elvis Presley’s family by trying to auction off his Graceland home and property before a judge halted the brazen foreclosure sale.

    U.S. District Judge John T. Fowlkes Jr. sentenced Lisa Jeanine Findley in federal court in Memphis to four years and nine months behind bars, plus an additional three years of probation. Findley, 54, declined to speak on her own behalf during the hearing.

    Findley pleaded guilty in February to a charge of mail fraud related to the scheme. She also had been indicted on a charge of aggravated identity theft, but that charge was dropped as part of a plea agreement.

    Findley, of Kimberling City, falsely claimed Lisa Marie Presley borrowed $3.8 million from a bogus private lender and had pledged Graceland as collateral for the loan before her death in January 2023, prosecutors said when Findley was charged in August 2024. Findley then threatened to sell Graceland to the highest bidder if Presley’s family didn’t pay a $2.85 million settlement, according to prosecutors.

    Findley posed as three different people allegedly involved with the fake lender, fabricated loan documents and published a fraudulent foreclosure notice in a Memphis newspaper announcing the auction of Graceland in May 2024, prosecutors said. A judge stopped the sale after Riley Keough, Lisa Marie’s daughter, sued. 

    Experts were baffled by the attempt to sell off one of the most storied pieces of real estate in the country using names, emails and documents that were quickly suspected to be phony.

    Graceland opened as a museum and tourist attraction in 1982 and draws hundreds of thousands of visitors each year. A large Presley-themed entertainment complex across the street from the museum is owned by Elvis Presley Enterprises. Presley died in August 1977 at the age of 42. Members of the Presley family, including Elvis, Lisa Marie and Benjamin Keough are buried on the property. 

    The public notice for the foreclosure sale of the 13-acre estate said Promenade Trust, which controls the Graceland museum, owed $3.8 million after failing to repay a 2018 loan. Keough inherited the trust and ownership of the home after her mother’s death.

    After the scheme fell apart, Findley tried to make it look like the person responsible was a Nigerian identity thief, prosecutors said. An email sent May 25, 2024, to the AP from the same email as the earlier statement said in Spanish that the foreclosure sale attempt was made by a Nigerian fraud ring that targets old and dead people in the U.S. and uses the internet to steal money.

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