Legal / Fraud

NY Attorney General Sues Northern Leasing Systems

Attorney General Eric T. Schneiderman announced a lawsuit against Northern Leasing Systems and its affiliates alleging that they fraudulently siphoned millions of dollars from their former customers. read more

Attorney to Argue Against Prison for Wife of Le-Nature's CEO

The Pittsburgh Tribune-Review reported the attorney for Karla Podlucky, wife of Le-Nature's former CEO, said because of her fundamentalist Christian beliefs, she never doubted that her husband's purchase of $33 million worth of gems and jewelry was the result of business success rather than fraud. read more

Feds Seek to Seize $1.4MM from Le-Nature's Podluckys

The Pittsburgh Post-Gazette reported that federal prosecutors asked for court approval of the seizure of nearly $1.4 million held by Ligonier's Podlucky family, which once controlled the bankrupt bottler Le-Nature's. read more

Sixth Defendant Pleads Guilty in EFI Loan Fraud

The Lancaster Intelligencer Journal reported that Harold W. Young, president of an Alabama-based insurance company, pleaded guilty to one count of wire fraud affecting a financial institution for his role in the EFI loan fraud. read more

Accounting Firm Settles Lawsuit Over Le-Nature's Loan

Bloomberg reported that accounting firm BDO Seidman settled investor claims over a $285 million loan made to Le-Nature's before the drink maker went bankrupt in 2006, citing a court filing. read more

Former EFI Officer to Testify in Fraud Case

The Lancaster Intelligencer Journal reported that Joseph M. Braas, Equipment Finance Inc.'s SVP and COO, will testify against two of his former employees at their loan fraud trial in Philadelphia. read more

Wells Fargo Ordered to Pay $3.1MM Fine in Mortgage Case

The Huffington Post reported that a federal judge has ordered Wells Fargo to pay $3.1 million in punitive damages for "highly reprehensible" behavior over more than five years of litigation with a single homeowner. read more

EFI Defendant Seeks Funds for Travel to Trial

The Lancaster Intelligencer Journal reported that a former Equipment Finance Inc. employee wants taxpayers to pick up his anticipated $1,500 tab for traveling to his upcoming trial in Philadelphia. read more

Bank of America Wins Dismissal of $1 Billion RMBS Lawsuit

Bank of America, as successor to Countrywide, won dismissal of a lawsuit filed by investors in mortgage-back bonds claiming the bank should buy back defective loans underlying more than $1 billion in securities. read more

Ahern Rentals Needs More Time to File Restructuring Plan

Equipment rental company Ahern Rentals announced it will need additional time to continue developing its restructuring plan, a Dow Jones Daily Bankruptcy Review article said. Bloomberg Businessweek reported that billionaire Tom Gores' Platinum Equity is contemplating a take over of Ahern. read more

SEC Sues Wells Fargo in $60 Billion RMBS Case

The SEC has applied to a U.S. District Court for an order enforcing subpoenas issued during its investigation into possible fraud in the offer and sale of nearly $60 billion of residential mortgage-backed securities by Wells Fargo. read more

Reuters: Court OKs CIT Group $75MM Accord in Fraud Case

Reuters reported that CIT Group won preliminary court approval of a $75 million settlement to resolve allegations the commercial lender fraudulently misled shareholders about its exposures to risky mortgages and student loans. read more

Trailer Bridge Exits Chapter 11 Protection

Ocean shipping company Trailer Bridge has exited Chapter 11 protection, a Transport Topics article announced. With its emergence from bankruptcy, the company will now be majority owned by Seacor Holdings. read more

Siemens First Capital Sued Over IPO Cancellation

Bloomberg reported that Siemens First Capital Commercial Finance was sued for breach of contract over the cancellation of an initial public offering for a security-alarm service business. read more

Postal Worker Charged in $4MM Truck Leasing Fraud

A postal worker faces felony charges for submitting fraudulent invoices totaling more than $4 million from his truck leasing company to the U.S. Postal Service, according to documents filed in the U.S. District Court in Oakland, CA. read more

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