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Worst Part of Theranos Scandal Isn't SEC Fraud

It's duping actual patients, writes Bloomberg columnist

(Newser) - She was the first female founder of a Silicon Valley startup to become a billionaire before it all came crashing down. Now Elizabeth Holmes' personal fortune is gone , and she has just settled with federal regulators who say her company, Theranos, lied to investors about its supposedly revolutionary blood-testing equipment.... More »

Theranos Founder Elizabeth Holmes Charged With Fraud

She's agreed to settle allegations she misled investors

(Newser) - The self-made billionaire once called the next Steve Jobs was charged with "massive fraud" for "deceiving investors" Wednesday, USA Today reports. Elizabeth Holmes founded Theranos in 2003 at the age of 19 and raised over $700 million from investors. But the Securities and Exchange Commission says Holmes and... More »

Guy Has Teenage Son Shoot Him in the Legs With Shotgun

Shannon Egeland, 43, was facing prison time

(Newser) - A white-collar crook is facing extra prison time for having his son shoot him in the legs with a 20-gauge shotgun, the BBC reports. Shannon Egeland, 43, was already facing 10 years for taking part in a vast mortgage-fraud scheme when he had his 17-year-old son shoot him by a... More »

Ex-Trump U Students Will Finally Get Paid

President avoids trial as $25M settlement is approved

(Newser) - A lengthy legal battle between Donald Trump and Trump University students, who say they paid thousands of dollars for real estate "secrets" they never received, is finally over. On Tuesday, an appeals court in San Francisco approved a $25 million settlement reached last year while rejecting an appeal from... More »

Prosecutors: CEO Took 'Hundreds of Thousands' From Own Workers

Isaac Choi, former chief exec of WrkRiot, pleads guilty to wire fraud

(Newser) - The startup's motto was "No games. Just jobs." Except there were some games, too. Isaac Choi, the former CEO of short-lived tech startup WrkRiot—which developed software to be used in job searches before its closure in September 2016—pleaded guilty to wire fraud in federal court... More »

Rocker Faces 30 Years in Prison on Fraud Charges

Michael Davenport of The Ataris allegedly defrauded 100K people out of $27M

(Newser) - From hundreds of thousands of fans to 100,000 victims. The Santa Barbara Independent reports a pop-punk bassist is facing fraud charges and more than 30 years in prison over an alleged real estate scam. Prosecutors say Michael Davenport of The Ataris defrauded approximately 100,000 people in all 50... More »

Aflac Workers Cry Foul on Company's Practices

They allege widespread, companywide abuse and fraud—including charging workers for stuffed ducks

(Newser) - It has boasted about being called one of the world's most ethical companies, but based on what nine ex-Aflac employees are saying, the insurance company known for its annoying-sounding duck (once voiced by Gilbert Gottfried) may be anything but. The Intercept talked to the former workers, and current ones,... More »

Bodies Were 'Frozen Together in Flesh-on-Flesh Chunks': FBI

So-called body broker on trial for fraud

(Newser) - FBI Agent Leslie Larsen says the body parts—legs, arms, torsos, organs, and heads—inside the Detroit warehouse were "frozen together in flesh-on-flesh chunks" that required a pneumatic chisel and crowbar to separate. She says there was no heat in the "filthy" warehouse, nor running water or functioning... More »

Lawyer Guilty of Helping Shkreli Cover Up Fraud

Verdict sends a powerful message, prosecutor says

(Newser) - A lawyer accused of helping Martin Shkreli cover up financial fraud was convicted on Wednesday, a result a prosecutor said should send a "powerful message" through the legal profession. After an 11-week trial, Evan Greebel was convicted by a federal jury in Brooklyn of conspiring to commit securities fraud... More »

Trump Commutes a Sentence for the First Time

Rubashkin fraud was uncovered after immigration raid

(Newser) - Former meatpacking company exec Sholom Rubashkin will be going home to his 10 children after being the first person to have a sentence commuted by President Trump. The 57-year-old was eight years into a 27-year sentence for financial crimes uncovered after a massive immigration raid on an Iowa plant that... More »

Fugitive US Lawyer Busted Outside Honduras Restaurant

Eric Conn, convicted of Social Security fraud, is in custody

(Newser) - A fugitive Kentucky lawyer who disappeared six months ago before facing a prison sentence for his central role in a massive Social Security fraud case has been captured in Honduras and will be returned to the US, officials said. Eric Conn was captured by a SWAT team as he came... More »

Serial Con Man's Unusual Sentencing Request Granted

Jimmy Sabatino, who ran $10M fraud job from prison, will have almost zero contact with anyone

(Newser) - In what the Sun Sentinel calls an "extremely unusual" case out of Florida, a judge has granted an inmate accused of running a multimillion-dollar fraud job out of his jail cell his sentencing request: to keep him away from nearly every person on Earth so he won't be... More »

Pharma Billionaire Allegedly Paid Doctors to Push Fentanyl

Insys founder faces charges including bribery, racketeering

(Newser) - Sarah Fuller died a little more than a year after she was prescribed a fentanyl spray for her chronic neck and back pain, but her mom doesn't just blame the opioid. She points the finger at "a drug company who couldn't care less about a human life.... More »

Identity Theft, Fraud Worst in This State

Sorry, Californians

(Newser) - Given the recent Equifax security breach —alongside a 630% increase in data breaches in the past year, according to one report —identity theft is bound to be a concern for many Americans. But it turns out the state you call home has a lot to do with your... More »

Woman Used Government Funds to Buy Tuxedo for Pug

Kristi Goss pleaded guilty to fraudulent use of a credit card

(Newser) - A former administrative assistant to an Arkansas county official has pleaded guilty to fraudulent use of a credit card after prosecutors accused her of using public money to buy personal items, including a tuxedo for her pet pug, the AP reports. Kristi Goss was set for trial this week but... More »

'Rotten Scam': NYC Food Fest Flops

State probe launched into the 'Fyre Festival' of pizza

(Newser) - Pizza lovers are blasting a Brooklyn food festival that apparently wasn't what it was sliced up to be. Fans who trekked to a "shady parking lot" for the New York City Pizza Festival on Saturday say they paid up to $75 for tickets, only to receive slices that... More »

Radio Host Faces 45 Years in Prison on Fraud Charges

Craig Carton allegedly scammed investors out of $5.6M to pay gambling debts

(Newser) - “I thought he called in sick this morning, but unfortunately my partner was arrested,” former NFL quarterback Boomer Esiason told listeners of WFAN's Boomer & Carton show Wednesday. The New York Daily News reports New York morning show host Craig Carton was arrested Wednesday and charged with... More »

University Fooled Into Paying $11.8M to Fake Account

Emails requested a change in banking info

(Newser) - A university in Canada is the victim of what is being described as one of the biggest known phishing scams ever. MacEwan University in Edmonton discovered the fraud on Aug. 23, when a construction company it works with asked why it had yet to be paid. But the school had... More »

Mom Raised $40K for Son's Cancer Care. He Didn't Have It

Monika Burgett is accused of having her 3-year-old's eyebrows, head shaved in the ruse

(Newser) - A woman has been accused of pretending to be a doctor and falsely claiming her preschool-age son had terminal cancer so he could receive unnecessary hospital care and opioids. A Hamilton County prosecutor told jurors on Tuesday at the trial of Monika Burgett that she convinced doctors at Cincinnati Children'... More »

Netanyahu Might Be in Real Trouble

Indictments loom as a former confidant turns against him

(Newser) - Benjamin Netanyahu has been Israel's prime minister since 2009, the longest run since that of Israel's founding father, David Ben-Gurion. That streak, however, might be in jeopardy thanks to a convoluted chain of events that involves two separate corruption investigations, a former confidant who has turned against him,... More »

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