Legal / Fraud

Sentencing of Three Defendants in EFI Loan Fraud Case Postponed

According to recently filed documents in the U.S. District Court for the Eastern District of Pennsylvania, district judge Paul S. Diamond, Jr. again has granted a postponement of sentencing for three defendants in the Equipment Finance Inc. loan fraud case. read more

Le-Nature's Podlucky Pleads Guilty to Fraud

The Pittsburgh Post-Gazette reported that former chief operating officer, Jonathan E. Podlucky of failed bottler Le-Nature's, has pleaded guilty to fraud and has agreed to serve a five-year sentence. read more

Class Members Win $4.9MM in Suit Against GE Capital IT Solutions

According to court documents, a judge has ruled in favor of a class action lawsuit brought against GE Capital IT Solutions (d/b/a IKON Financial Services) and approved a final settlement of $4.9 million between the parties. read more

FDIC Settles Case Alleging Reckless Lending to Leasing Companies

The FDIC's $10.4 million lawsuit against former directors and officers of Corn Belt, alleging the defendants "acted recklessly" in approving loans to three leasing companies, has been settled read more

Principal in Banc of America Leasing Case Skips Hearing

The Idaho Statesman reports an Idaho judge issued a warrant for ski resort Tamarack's owner Jean-Pierre Boespflug after he missed a hearing to determine the value of his assets. In January Banc of America leasing won a judgment to repossess Tamarack's ski lifts. read more

Second Circuit Decision 'Clear Win' for Equity Owners

Lexology notes in a recent article that despite conflicting interpretations for owner participants' right to recover claims based on tax indemnification agreements, a recent Second Circuit ruling stands as a "clear win" for equity owners. read more

Allied Health's Schwartz Pleads Guilty In Lease Fraud

The owner and president of Allied Health Care Services, Charles Schwartz, admitted to organizing and executing a $135 million phony medical equipment lease scheme, U.S. Attorney Paul J. Fishman announced. read more

Federal Charges Filed in Office Equipment Leasing Scam

The U.S. Attorney for the Southern District of Illinois announced a federal grand jury returned an indictment against an office equipment supplier for allegedly defrauding equipment lessees through a multifaceted scheme. read more

Investors Sue Leasing Company Participants in Ponzi Scheme

According to documents filed in Federal Court, investors involved in a ponzi scheme perpetrated by leasing companies controlled by John W. Otto, have filed a suit against a group of leasing companies involved in the fraud for misfeasance. read more

SEC Blocks Diversion of Petters Ponzi Victim Funds

The SEC has obtained an emergency court order to halt an agreement by Marlon Quan allegedly designed to divert $14 million of settlement funds from victims of an inventory financing Ponzi scheme run by Thomas Petters. The SEC has charged Quan with facilitating the Ponzi scheme. read more

FDIC Sues Bank Officers/Directors on Loans to Leasing Companies

The FDIC has filed a civil action against former executives and directors of a failed bank in Illinois. The FDIC is seeking to recover at least $10.4 million in losses suffered on loans made to three leasing companies. read more

Huntington to Aggressively Contest Claims in Teleservices Ruling

In a statement, Huntington Bancshares acknowledged it may be required to pay up to $73 million as a result of recent ruling by a Michigan bankruptcy court, but noted that no judgment fixing damages has been issued and that it plans to aggressively contest the claims. read more

Sentencing of Third Defendant in EFI Loan Fraud Case Postponed

According to recently filed documents in the U.S. District Court for the Eastern District of Pennsylvania, district judge Paul S. Diamond, Jr. has granted a two-month postponement of sentencing for Michael J. Schlager, former SVP of EFI. read more

Cat Financial Sues Dean's Shipping Alleging $2MM Loan Default

Caterpillar Financial Services has sued Dean's Shipping and its vessel, the M/V Legend II, alleging a loan default of more than $2 million. In the case, Caterpillar is an intervening plaintiff claiming preference over a service provider. read more

Fair Financial Execs Charged With $200 Million Fraud

Three former executives of Fair Financial were arrested and charged in an indictment for their roles in a scheme to defraud 5,000 investors of more than $200 million. One of the defendants was previously a VP with Newcourt Credit. read more

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