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.

Nov 3, 2010

Toll Brothers Inc., the largest luxury home builder in the U.S., has agreed to pay $25 million to settle a lawsuit alleging that the company had misled investors about its ability to overcome the housing market dip, Bloomberg reports.

In April 2007, the City of Hialeah, Florida Employees' Retirement System sued the company, claiming its directors misrepresented demand for its new homes during the fiscal year of 2005 as well as growth projections for 2006.

The investors had purchased shares between December 9, 2004 and November 8, 2005.

Oct 25, 2010

Office Depot said recently that its chairman and CEO Steve Odland would resign in one week, the Wall Street Journal reports. 

According to the news provider, the resignation announcement comes just days after the retailer settled charges by the Securities and Exchange Commission (SEC) that the company selectively informed investors and analysts that its earnings would not reach estimates.

In the settlement, Office Depot agreed to pay $1 million while Odland and former chief financial officer, Patricia McKay, will pay $50,000 a piece, the SEC said.

Oct 13, 2010

Just days after the corporate management of the Tribune Company was characterized by the New York Times as fostering a "frat house" atmosphere, one of its top executives sent a company-wide email that included links to off-color satirical videos, Chicago Breaking News reports.

Included in the videos was one that the executive, Lee Abrams, called "Sluts," which depicted a gyrating woman pouring liquor on her bare breasts, the news source said.

Abrams, who is the chief innovation officer of the Tribune Company, which owns the Chicago Tribune, apologized &quo

Oct 7, 2010

Attorneys for a former mayor of Detroit say that numerous interviews have failed to show any evidence to confirm allegations that he obstructed the investigation into the murder of a stripper who was killed in a drive-by shooting in 2003, the Associated Press reports.

The lawsuit, filed by the family of Tamara Greene against Kwame Kilpatrick, claims the former mayor and the city of Detroit blocked the investigation and violated the family’s rights while Kilpatrick was in office.

Kilpatrick’s lawyers agree with attorneys for the city who claim that the shooting was

Oct 2, 2010

After pleading guilty to leaking information in an insider-trading case, former senior vice president of International Business Machines Corporation (IBM), Robert Moffat, has been granted his wish to serve his prison sentence early, Bloomberg Businesseek reports.

According to the news provider, Moffat will begin serving his six month prison sentence on November 5, in order to get out of prison in time for his son's graduation in May.