Legal / Fraud

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

Avaya, CIT Settle Whistleblower Suit to Resolve Overcharging Allegations

The U.S. Attorney’s Office for the District of Central California issued a press release stating Avaya Inc. and CIT have paid the United States more than $16.5 million to settle allegations that they systematically overcharged federal and state government agencies... read more

Sentencing of Second 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. ordered a postponement of sentencing for Mary C. Stankiewicz, formerly Equipment Finance’s secretary/treasurer and accounting supervisor. In December... read more

Balboa, United Leasing Included in CA Church Scam Lawsuit

California attorney general Kamala D. Harris filed a lawsuit seeking restitution and civil penalties totaling $803,100 in a scam that defrauded 33 African American churches in Southern California. Promoters promised that the leased computer kiosks would enhance the experience of... read more

Sentencing of Key Figure in EFI Loan Fraud Case Postponed

A U.S. District Judge signed an order postponing the sentencing of Joseph M. Braas, former executive and key figure in the Equipment Finance loan fraud case, from March 9, 2011 to June 9, 2011. read more

Government Hints at Further Charges in EFI Fraud Case

According to recent court filings in the case against the remaining five defendants in the Sterling Financial/Equipment Finance loan fraud case, Zane David Memeger, U.S. Attorney, and Nancy E. Potts, Assistant U.S. Attorney, have requested that the court enter a... read more

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