All articles tagged with #corporate fraud
Tricolor Auto, a used-car business heavily financed by JPMorgan and focused on underserved communities, collapsed amid allegations of loan fraud, asset misvaluation, and financial mismanagement, leading to its bankruptcy and raising concerns about risks in the subprime auto industry and the broader credit market.
New advanced AI-generated images of receipts are increasingly being used to commit expense fraud, prompting companies to adopt AI-based detection methods that analyze image metadata and contextual data to identify fakes, as the technology becomes more convincing and accessible.
The Financial Times reports that First Brands is under investigation for potentially pledging invoices multiple times, raising concerns about possible financial misconduct. The article also promotes subscription options for FT journalism.
Former Ontrak CEO Terren Scott Peizer was sentenced to 42 months in prison and fined $17.9 million for the first-ever criminal conviction solely based on the misuse of Rule 10b5-1 trading plans, which are commonly used by executives. The case involved Peizer selling stock ahead of negative news that caused a significant stock drop, though his lawyer claims he disclosed his plans and did not commit insider trading.
Lawyers are still dealing with the aftermath of Bernie Madoff's massive Ponzi scheme, 15 years after his arrest and two years after his death. Irving Picard, the court-appointed trustee overseeing the liquidation of Madoff's firm, has recovered over $14.6 billion for victims so far, with an estimated total cost of $17.5 billion. Picard and his law firm, Baker & Hostetler, have been awarded over $1.5 billion in fees, accounting for nearly 17% of the firm's revenues. The fees are paid by the Securities Investor Protection Corporation and not from recoveries. Picard is still pursuing about 100 recovery lawsuits.
Lawyers are still dealing with the aftermath of Bernie Madoff's massive Ponzi scheme, 15 years after his arrest and two years after his death. Irving Picard, the court-appointed trustee overseeing the liquidation of Madoff's firm, has recovered over $14.6 billion for victims so far, with an estimated total cost of $17.5 billion. Picard and his law firm, Baker & Hostetler, have been awarded over $1.5 billion in fees, accounting for nearly 17% of the firm's revenues. The fees are paid by the Securities Investor Protection Corporation and not from the recoveries. Picard is still pursuing about 100 recovery lawsuits, aiming to maximize the recovery for Madoff's customers.
Two Indian-origin executives of Outcome Health, a Chicago-based start-up, have been convicted of running a $1 billion corporate fraud scheme that targeted the company's clients, lenders, and investors. Rishi Shah, the co-founder and former CEO, was found guilty on 19 of 22 counts, while co-founder and former president Shradha Agarwal and former chief operating officer Brad Purdy were also convicted. The company installed television screens and tablets in doctors' offices around the US and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. The trio lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients.
Three former executives of Outcome Health, a Chicago-based health technology start-up, have been convicted for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds. The scheme involved selling advertising inventory the company did not have to Outcome’s clients, then under-delivering on its advertising campaigns. The executives also lied to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because the executives caused others to fabricate data to conceal the under-deliveries from the auditor.