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Fraud

Navy admiral pleads guilty to lying in bribery probe

SAN DIEGO — A Navy admiral on Thursday pleaded guilty to lying to federal authorities investigating a $34 million fraud scheme involving a Malaysian contractor known as “Fat Leonard” — becoming the highest-ranking military official to be taken down in the wide-spanning scandal.

Date: 06/10/2016 | Nation & World


Washington auditor Troy Kelley to face another fraud trial

TACOMA — Federal prosecutors said Tuesday they will retry the elected Washington auditor on charges he pocketed millions of dollars in needless fees while running a real estate services business a decade ago, after his five-week fraud trial ended in April with a hung jury.

Date: 05/31/2016 | Northwest


2 women accused of embezzling for years to pay for gambling

EVERETT — Two women are expected in court this week to answer to allegations that they embezzled money to finance their gambling habits.Michele Huntley, 45, is accused of stealing more than $2 million from an Everett roofing company, where she worked as a bookkeeper...

Date: 05/31/2016 | Local News


IRS scam targeting seniors still going strong

Scams against seniors and retirees are still rampant. Financial fraud against seniors is estimated to cost about $3 billion a year, according to a MetLife study. And one of the biggest scams this past year has been the IRS impersonation scam.

Date: 05/30/2016 | Nation & World


Three more Navy officials charged in corruption scandal

A long-running Navy corruption scandal reached new heights Friday as a lieutenant commander and two retired officers were arrested on federal charges of feeding inside information to a Singapore-based defense contractor for sex, vacations and other favors.All three...

Date: 05/28/2016 | Nation & World


The man who seduced the 7th fleet: Sting reveals trail of corruption

For months, a small team of U.S. Navy investigators and federal prosecutors secretly devised options for a high-stakes international manhunt. Could the target be snatched from his home base in Asia and rendered to the United States? Or held captive aboard an American warship?

Date: 05/28/2016 | Nation & World


8-year run after prison escape ends with arrest near Seattle

SEATTLE — A cotton exporter who escaped from a federal penitentiary in Virginia more than eight years ago is now behind bars in Seattle.

Date: 05/26/2016 | Northwest


Appeals court reverses fraud finding against Bank of America

NEW YORK— Bank of America Corp. was not liable for fraud and subject to a penalty of over $1.2 billion for its actions before the economy collapsed in 2008 despite a jury’s finding to the contrary, a federal appeals court ruled Monday.

Date: 05/23/2016 | Business Wire


Navy commander sentenced to 6 years in bribery scandal

SAN DIEGO — The highest ranking Navy officer charged in the sprawling “Fat Leonard” bribery and contracting fraud scheme was sentenced to more than six years in federal prison Friday, the longest term handed down so far in the scandal.

Date: 04/30/2016 | Nation & World


Judge dismisses 1 count against Washington state auditor

TACOMA — A federal judge dismissed one of the 16 charges against Washington State Auditor Troy Kelley on Tuesday after testimony concluded in the five-week fraud trial, but he refused a request from defense attorneys to acquit their client, saying there is "ample...

Date: 04/19/2016 | Northwest


For tax cheats, Panama Papers reveal perilous new world

For wealthy Americans trying to conceal their cash, stashing millions of dollars away in secret offshore shell companies is not as simple as it used to be.International laws, whistleblower bounties and embarrassing data breaches like the one being dubbed the Panama Papers...

Date: 04/08/2016 | Business Wire


FTC sues VW over false ‘Clean Diesel’ ad claims

WASHINGTON — A federal consumer watchdog sued Volkswagen on Tuesday, charging the company made false claims in commercials promoting its “Clean Diesel” vehicles as environmentally friendly.

Date: 03/30/2016 | Business Wire


2 rare coin dealers accused of scamming upstate New York couple

CORINTH, N.Y. — Authorities have accused a rare coin dealer from Texas and another from Oregon of scamming an upstate New York couple out of a portion of their coin collection.

Date: 03/29/2016 | Northwest


Federal Way man sentenced for fraud, ID theft, firearms

SEATTLE — A federal judge has sentenced a Federal Way man to four years in prison after he pleaded guilty to forgery, identity theft, wire fraud and firearms charges.Chong Hwa Lim also must pay almost $50,000 in restitution.

Date: 03/19/2016 | Northwest


Will ‘Nordstrom’ defense work for Troy Kelley?

TACOMA — A key element of Washington State Auditor Troy Kelley’s defense against federal charges that he stole millions of dollars when he ran a real-estate services company a decade ago is that no one promised borrowers they’d get their fees back.

Date: 03/19/2016 | Local News


Seattle man to return millions to people for online prayers

SEATTLE — The Washington state attorney general says he has reached an agreement with a Seattle man to return millions of dollars to consumers nationwide who paid for prayers through a so-called Christian prayer website.

Date: 03/16/2016 | Northwest


Fraud suit over Trump University can continue, court says

ALBANY, N.Y. — A New York court Tuesday refused to throw out a fraud lawsuit against Donald Trump over his former school for real estate investors.

Date: 03/01/2016 | Nation & World


Tri-City man faces prison for filing false liens

TRI-CITIES — A Tri-City man is facing at least five years in prison after being convicted of residential burglary, theft and other charges for filing liens on property in Kennewick that he didn’t own.

Date: 02/29/2016 | Northwest


IRS computer breach grows to 700,000 victims

WASHINGTON — The IRS said Friday that the number of taxpayers whose tax information may have been stolen by computer hackers now exceeds 700,000 — more than double the agency's previous estimate.The tax collecting agency said 390,000 more taxpayer accounts may...

Date: 02/26/2016 | Nation & World


Renew tool that fights fraud

Combating the growing avalanche of health care fraud in our state and across the country requires using the right law enforcement tools. One of the most useful tools in the battle against health care fraud is the Washington Medicaid False Claims Act. Statutes like it at the...

Date: 02/21/2016 | Commentary


Man, 75, sentenced to federal prison for art-forgery scheme

PORTLAND, Ore. — A federal judge in Oregon has sentenced a 75-year-old man to a year and a day in prison after authorities said he faked works by well-known artists and sold the knockoffs to a dozen unsuspecting buyers.

Date: 02/16/2016 | Northwest


4 years for ex-Bellevue man whose fraud case spurred law changes

SEATTLE — A man whose unauthorized use of his clients’ money prompted changes in Washington state law has been sentenced to four years in prison — even more than federal prosecutors asked for.

Date: 02/13/2016 | Northwest


Seattle scammer targets nonprofit helping hearing impaired

SEATTLE — Seattle police say a scammer may be targeting nonprofits after the suspect was able to con almost $10,000 from an organization that helps hearing-impaired children.

Date: 02/10/2016 | Northwest


HSBC reaches $470 million deal over banking abuses

WASHINGTON — Banking giant HSBC has reached a $470 million settlement with the federal government and nearly all states over mortgage lending and foreclosure abuses that officials say helped intensify the country's economic meltdown, the Justice Department announced Friday.

Date: 02/05/2016 | Business Wire


Everett-based developer's $2.5M home could be sold

SEATTLE — An embattled Everett-based real estate developer could lose one of his two Bellevue homes if a court-appointed receiver gets his way. The receiver, Michael Grassmueck, asked U.S. District Judge James Robart for permission Tuesday to sell developer Lobsang...

Date: 02/03/2016 | Local News


Cadaver dealer indicted in body parts case

DETROIT — Two years after federal agents raided his Detroit warehouse and found 1,000-plus human body parts, Grosse Pointe Park businessman Arthur Rathburn has been indicted on charges he ran an illegal cadaver business that involved dismembering bodies without consent and renting heads, arms and...

Date: 01/30/2016 | Nation & World


Receiver wants to sell off 3 of Dargey's biggest projects

EVERETT — A court-appointed receiver wants to sell off Potala Place and Farmer's Market and three other real estate projects belonging to an Everett-based developer accused by federal authorities of committing fraud.The U.S. Securities and Exchange Commission is suing...

Date: 01/23/2016 | Business


Casino exec, waitress, gambler charged with slot scheme

WILKES-BARRE, Pa. — A casino vice president plotted with a cocktail waitress and a gambler to steal more than $400,000 from a northeastern Pennsylvania casino, orchestrating a scam involving stolen identities and free slots play, authorities said.Robert Pellegrini, a...

Date: 01/21/2016 | Nation & World


Star of reality show ‘Wicked Tuna’ pleads guilty to fraud

BURLINGTON, Vt. — A man featured on the reality television show "Wicked Tuna" pleaded guilty Wednesday to federal charges in Vermont he received government disability benefits while he was fishing on the show.Paul Hebert, 50, of Gloucester, Massachusetts,...

Date: 01/21/2016 | Nation & World


Tacoma, Spokane hospitals settle over mischarging allegations

TACOMA — Two hospitals in Washington state are among 32 in 15 states agreeing to make payments to settle allegations that they submitted false claims to the federal Medicare program for a type of procedure.

Date: 12/19/2015 | Northwest


FBI arrests CEO in drug-price scandal

NEW YORK — A boyish-looking entrepreneur who became the new face of corporate greed when he jacked up the price of a lifesaving drug fiftyfold was led away in handcuffs by the FBI on unrelated fraud charges Thursday in a scene that left more than a few Americans positively...

Date: 12/18/2015 | Business Wire


Jury convicts Sovereign Citizens in $2 million IRS tax fraud

COLUMBIA, S.C. — A federal jury in Columbia Wednesday found five defendants guilty of committing various kinds of tax fraud in conspiring to get millions in IRS refunds and actually getting some $2 million before government agents discovered their scheme.

Date: 12/17/2015 | Nation & World


Everett woman who couldn’t stop embezzling sentenced to 6 years

EVERETT — April Laughlin is addicted to stealing. The Everett mother said she embezzled from three different employers to make people in her life happy. She tried to convince a judge Friday that she’s mended her ways and then asked to stay out of prison to raise her 9-year-old son.

Date: 12/05/2015 | Local News


Berjac of Oregon faces mail fraud, money laundering charges

PORTLAND, Ore. — Berjac of Oregon attracted investors through a basic business model, but prosecutors say at some point, the company started making risky bets on real estate and investors had no idea.The Eugene-based firm extended short-term loans so small businesses could cover insurance premiums.

Date: 11/28/2015 | Northwest


Auditors found liable for $10M in Madoff losses in Washington

SEATTLE — A Seattle jury has found the firm of Ernst & Young liable for half of more than $20 million lost by a Washington investment company in the wake of Bernie Madoff’s multi-decade investment scam.

Date: 11/13/2015 | Northwest


Judge puts Everett-based developer Dargey into receivership

EVERETT — A federal judge has cut off a developer accused of securities fraud from his Everett-based companies.Lobsang Dargey's businesses, bank accounts, records and other properties will be controlled by a third-party, called a receiver, appointed by U.S. District...

Date: 10/23/2015 | Business


Fox News guest charged with lying about CIA

Wayne Simmons claimed to be something of an American James Bond, and if you watched TV or ran his name through Google, you’d have no reason to doubt him. In his public speaking engagements and frequent appearances on Fox News, the purported former CIA operative spoke authoritatively about terrorism...

Date: 10/16/2015 | Nation & World


Visitors preview Potala Place

Development intended to add upscale element to Everett

Date: 10/15/2015 | Business


SEC seeks oversight of Everett-based developer accused of fraud

SEATTLE — Attorneys are arguing in U.S. District Court about who should control properties belonging to an Everett-based developer accused of securities fraud.While the U.S. Securities and Exchange Commission is pursuing a civil complaint against Lobsang Dargey, the

Date: 10/09/2015 | Business


Everett, Marysville police catch suspected check fraud ringleader

EVERETT — The fraud involved more than a dozen businesses and individuals.Two checks were passed using the account of a man who had died.Others were counterfeited using a Marysville School District account.Police in Everett and Marysville...

Date: 10/06/2015 | Local News


Vegas casino dealers charged with skimming $1 million

LAS VEGAS — Two former casino dealers and two friends are being accused of siphoning more than $1 million off craps tables over two years by quietly paying phantom bets at a posh Las Vegas Strip resort.

Date: 10/01/2015 | Nation & World


FBI investigating Everett developer accused of defrauding investors

SEATTLE — The FBI is working with federal civil authorities to investigate an Everett developer accused of defrauding foreign investors by diverting millions of dollars for his own use, court papers show.FBI agents on Aug. 24 served a search warrant at Lobsang Dargey's...

Date: 09/24/2015 | Local News


Woman pleads not guilty to scamming investors in oil patch

FARGO, N.D. — The wife of a man indicted in a murder-for-hire scheme that originated in the North Dakota oil patch pleaded not guilty Monday in an alleged scam involving her oilfield trucking business.

Date: 09/21/2015 | Northwest


Bremerton woman charged with stealing death benefits

TACOMA — A Bremerton woman has been charged with illegally collecting federal workers’ compensation death survivor benefits that were being sent to her mother, who had been dead for years.

Date: 09/11/2015 | Northwest


Apartment complex in Everett unlikely to be halted by lawsuit

EVERETT — Everett's newest apartment building, Potala Place and Farmer's Market, is at the center of a federal agency's lawsuit against a local developer for alleged fraud. But the outcome of the court case likely will have little immediate effect on downtown development.

Date: 09/06/2015 | Local News


Lobsang Dargey company denies wrongdoing in alleged fraud

EVERETT — An Everett developer accused by federal authorities of defrauding foreign investors is keeping quiet. But one of Lobsang Dargey's companies, Path America, issued a public statement...

Date: 09/01/2015 | Local News


Officials issue warning about firefighter impersonators

ENUMCLAW — The King County Sheriff’s Office is urging residents to call 911 if a firefighter comes to their home for an unscheduled safety check.

Date: 08/28/2015 | Northwest


Feds: Developer of big Everett project skimmed investor money

EVERETT — The developer of a hotel, apartment complex and farmer's market in downtown Everett is under investigation by the federal government for allegedly bilking overseas investors out of...

Date: 08/24/2015 | Local News


Maryland musician convicted of wire fraud in Montana

HELENA, Mont. — A Maryland man has been convicted of wire fraud in Montana for misrepresenting himself as a Grammy-nominated saxophone player and soliciting money for a children’s cancer foundation that prosecutors say benefited only him.

Date: 08/11/2015 | Northwest


Nuns’ tipoff leads Spanish police to arrest 212 for fraud

MADRID — Spanish police say a congregation of nuns in the southern city of Granada led them to an organization that allegedly defrauded as many as 7,000 victims of up to 7 million euros ($7.7 million).

Date: 08/02/2015 | Nation & World


Washington man behind crowdfunded project ordered to pay penalty

SEATTLE — A Washington man who used crowdfunding to collect more than $25,000 for a project that never delivered has been slapped with civil penalties.

Date: 07/27/2015 | Northwest


Toshiba’s CEO resigns over doctored books

TOKYO — Toshiba’s CEO and eight other executives resigned Tuesday to take responsibility for doctored books that inflated profits at the Japanese technology manufacturer by $1.2 billion over several years.

Date: 07/21/2015 | Business Wire


Oregon resident worked as woman, collected disability as man

PORTLAND, Ore. — An Oregon resident who transitioned to a woman more than three decades ago continued collecting Social Security disability checks under her male identity, fraudulently raking in $250,000.

Date: 07/20/2015 | Northwest


Prison term for woman who embezzled $330K from YWCA

EVERETT — Stephanie Koppisch was abusing prescription medications when she embezzled $330,000 from the YWCA's coffers.A judge was told Tuesday that the Granite Falls mother has quit using drugs not prescribed to her and has sought mental health treatment.

Date: 07/15/2015 | Local News


Man pleads guilty to arson at marijuana business

SPOKANE — A man has pleaded guilty to setting fire to a marijuana business in Spokane Valley last fall in what investigators are calling an insurance scam attempt.

Date: 07/14/2015 | Northwest




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