English: Bernard Madoff's mugshot (Photo credit: Wikipedia)
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FedEx Indicted For Shipping Drugs For OnLine Pharmacies (Bloomberg) - FedEx Corp. was indicted for delivering prescription pain pills, sedatives, anti-anxiety drugs and other controlled substances for illegal Internet pharmacies. The operator of the world’s largest cargo airline was charged by the U.S. with 15 counts of conspiracy to distribute controlled substances and misbranded drugs and drug trafficking that carry a potential fine of twice the gains from the conduct, alleged to be at least $820 million for it and co-conspirators. The company, while denying the allegations, said today in a regulatory filing that conviction could be “material.”
Prosecutors Push For Lengthy Sentences For Madoff-5 (Reuters) - Five former employees of disgraced investment manager Bernard Madoff should be sentenced to "significant" prison sentences of up to 20 years or more, prosecutors said in a court filing on Friday. "The five defendants here, along with others, were the people who allowed Madoff's fraud to succeed as wildly as it did," prosecutors with U.S. Attorney Preet Bharara's office in Manhattan said in the filing. "Justice requires that each receive a significant prison sentence, commensurate with their active and long-standing role in the fraud."
Stanford Losses Not Covered By SIPC (Bloomberg) - The U.S. Securities and Exchange Commission can’t force a brokerage account insurer to pay victims of R. Allen Stanford’s $7 billion fraud because their purchases weren’t covered, an appeals court ruled. The U.S. Court of Appeals in Washington said the 7,000 investors in certificates of deposit sold by Stanford didn’t qualify as customers of a brokerage who would be insured by the Securities Investor Protection Corp., as the SEC argued. The CDs were bought at Antigua-based Stanford International Bank LLC, which wasn’t a SIPC member, the court said.
PA Man Charged In $5 million Ponzi Scheme (Ponzi Tracker) - Federal authorities unveiled charges against a Pennsylvania man and accused him of orchestrating a $5 million Ponzi scheme.. Walter "Buddy" Lambert, 73, was charged with sixteen counts of mail fraud, five counts of wire fraud, and one count of interfering with the due administration of the Internal Revenue Service. The criminal charges come over three years after the Federal Bureau of Investigation raided Lambert's offices, and nearly four years after almost a dozen lawsuits were filed against Lambert by victims.
How The World's Best Wine Was Kidnapped (NY Post) - As journalist Maximillian Potter describes in his new true thriller, “Shadows in the Vineyard,” the mysterious man injected the contents of one syringe into the vine’s root, sealed the drill hole with a tiny wooden plug and smoothed over the dirt. He repeated the act one vine over.
Academic Fraud, Athletes and Faculty Responsibility (Inside Higher Ed) - The National Collegiate Athletic Association rarely admits to the need to revisit an infractions case, and particularly one that strikes at the core of academic integrity issues. So when the NCAA announced an unusual and embarrassing return to the University of North Carolina at Chapel Hill to reopen an academic fraud investigation that first came to light in 2011 and resulted in narrowly constructed sanctions in 2012 that affected the eligibility of a single athlete, it marked another confidence crisis in whether the NCAA can control the powerful forces of big-time college sports.
Dallas Woman Gets Federal Prison For Bankruptcy Fraud (Dallas News) - A Dallas woman was sentenced Friday to one year and one day in federal prison for making false statements during her multiple bankruptcy filings, the U.S. attorney’s office said. Estela Martinez, 54, had pleaded guilty in August 2013 to one count of making a false statement under penalty of perjury related to bankruptcy filings. Martinez’s prosecution is part of U.S. Attorney Sarah R. SaldaÃ±a‘s effort to crack down on bankruptcy fraud in the Northern District of Texas, her office said. Under the office’s Bankruptcy Fraud Initiative, seven people have been charged with various felony offenses since February 2013.
Drug Sentences Can Be Cut Retroactively (Bloomberg) - Federal drug offenders may get their sentences cut by an average of two years under changes to U.S. guidelines in a move praised by Attorney General Eric Holder, who has made fair sentencing and prison overcrowding two of his signature issues. The U.S. Sentencing Commission voted unanimously to allow some convicts to return to court and seek shorter terms, according to a statement by the agency. The commission, which has the legal power to permit judges to act retroactively, said offenders eligible for reductions could see their sentences cut by an average of 25 months, or 18.8 percent.
Corrections Officer Gets Prison For Fraud (SF Gate) - A former Miami-Dade County corrections officer and three others have been sentenced for operating an identity theft and tax fraud ring using identities of current and former prisoners. Ex-officer Anthony Pace Jr. was sentenced last week to more than six years in federal prison after pleading guilty to fraud conspiracy and theft charges. The other defendants got lesser prison sentences.