White Collar Crime

Find the latest news on a full range of frauds committed by business professionals and government officials, including mortgage fraud, securities fraud and heath care fraud.

May 31, 2011

After the financial collapse of 2008 many Americans were looking for justice, as many of the bankers and hedge fund managers who had driven the country into the ground were not penalized for their actions. However, this is beginning to change.

A jury recently found Galleon Group hedge-fund founder Raj Rajaratnam guilty on 14 counts of conspiracy and securities fraud.

May 20, 2011

Matthew W. Brown, a 27-year-old California man, was recently sentenced to four years in jail after he pleaded guilty earlier this year to two counts of conspiracy to commit securities fraud and money laundering.

The News Journal reports that Brown received his sentence recently in U.S. District Court in Wilmington, Delaware, because one of the major people involved in the alleged scam, Pawel P. Dynkowski, reportedly lived in Newark.

May 9, 2011

Former Ingentra HR Services CEO Albert Cipoletti was recently sentenced to more than six years in prison for his role in a scheme that allegedly defrauded Sacramento County, California, and two companies.

The Sacramento Business Journal reports that U.S. District Judge Garland Burrell also gave the former executive three years parole and ordered him to pay $19.1 million in restitution for his purported involvement in the scheme.

According to the news source, Cipoletti pleaded guilty to one count of wire fraud in diverting the money from the county, SanDisk Corp.

Apr 28, 2011

Former Taylor Bean chairman Lee Farkas was recently convicted on all 14 counts of bank, securities and wire fraud, the Justice Department said.

Reuters reports that the guilty verdict was handed down by a federal jury in Alexandria, Virginia. Assistant Attorney General Lanny Breuer told reporters that the conviction represented a "momentous and a very significant case."

Prosecutors alleged that fraud at Taylor Bean, one of the largest mortgage firms to collapse during the recent housing market crash, led to at least $1.9 billion in losses.

Apr 19, 2011

WexTrust Capital co-founder Steven Byers recently received a prison sentence of 13 years and four months for allegedly operating a Ponzi scheme that authorities claim swindled approximately $255 million from investors.

Bloomberg reports that Byers and co-founder Joseph Shereshevsky were charged in 2008 and accused of lying to investors in their real estate fund.