Business Crimes Hotline

The defendant allegedly claimed that Safari Media was a multi-media business developing products for the Internet and the music industry. She reportedly led investors to believe that the company was going public and that a major Japanese company intended to purchase all the shares of the company when it did. Court documents showed that her claims were false and based upon forged documents. Prosecutors say that the case involved 1200 victims.

CALIFORNIA

Multistate Attorneys General and DirecTV Settle Allegations

According to the National Association of Attorneys General, and the Office of the New York State Attorney General, 21 state Attorneys General and the Georgia Governor's Office of Consumer Affairs have reached a settlement with California-based DirecTV, Inc. resolving allegations the satellite television program service provider failed to clearly disclose all of the terms of its programming services to consumers. The investigation was launched in March 2003 in response to consumer complaints that they did not receive the advertised services, and that some of DirecTV's policies were unfair to consumers. As part of the settlement, Direct TV has agreed to reform its advertising and marketing policies, pay restitution to some customers, and pay $5 million to the states.

CONNECTICUT

President of Company Guilty of Unlawfully Accessing a Computer

The U.S. Attorney for the District of Connecticut announced that the President of Knowledge Key Associates, a computer training company, has waived indictment and pled guilty to a federal charge of unlawfully accessing a commercial computer. According to documents filed with the court, the defendant unlawfully accessed a commercial Web site in order to obtain business leads that belonged to a competitor. As a condition of his plea, the defendant has agreed to pay $13,443 in restitution. He also faces up to 1 year in prison and a fine of $100,000.

FLORIDA

Miami Hospital May Be Excluded from Federal Health Care Program for Fraud

On Dec. 7, 2005, the Inspector General of the Department of Health and Human Services (HHS) notified Miami's South Shore Hospital and Medical Center (“South Shore”) that it had 30 days to come into compliance with the terms of its corporate integrity agreement or be excluded from Medicare, Medicaid, and all other Federal health care programs.

According to HHS, South Shore has failed to comply with the requirements of the corporate integrity agreement it entered into as part of the resolution of a False Claims Act (FCA) case against the hospital in 2002. South Shore's shortcomings reportedly include failing to implement all of its Independent Review Organization requirements, and also failing to submit required reports to HHS. The original FCA claim alleged that South Shore overcharged Medicare by submitting false cost reports for unallowable costs and was settled by a $937,000 payment in addition to the corporate integrity agreement. South Shore will have thirty days from the announcement to demonstrate to HHS that it is in compliance with the agreement, has cured the breach, or will do so in a timely fashion. The hospital also has the right to appeal the decision to an HHS Administrative Law Judge.

MASSACHUSETTS

Fraud and Money Laundering

A Massachusetts man who was the president and sole shareholder of one investment advisory company, and the CEO of another has pled guilty to 115 counts of mail fraud and one count of money laundering. According to the Attorney for the U.S. District of Massachusetts, he devised a scheme to defraud approximately 125 investors of more than $27 million. The fraudulent scheme involving the diversion of funds meant for investment in mutual funds and other securities to the operation of a radio station and to defendant's personal use.

ARIZONA

CEO of Internet Media Company Convicted of Fraud

The president and CEO of Safari Media, Inc, was sentenced to 31.75 years in prison following her conviction on charges of selling unregulated securities, illegally conducting an enterprise and fraud, according to the Office of the Arizona Attorney General. She was also ordered to pay more than $21 million in restitution.

The defendant allegedly claimed that Safari Media was a multi-media business developing products for the Internet and the music industry. She reportedly led investors to believe that the company was going public and that a major Japanese company intended to purchase all the shares of the company when it did. Court documents showed that her claims were false and based upon forged documents. Prosecutors say that the case involved 1200 victims.

CALIFORNIA

Multistate Attorneys General and DirecTV Settle Allegations

According to the National Association of Attorneys General, and the Office of the New York State Attorney General, 21 state Attorneys General and the Georgia Governor's Office of Consumer Affairs have reached a settlement with California-based DirecTV, Inc. resolving allegations the satellite television program service provider failed to clearly disclose all of the terms of its programming services to consumers. The investigation was launched in March 2003 in response to consumer complaints that they did not receive the advertised services, and that some of DirecTV's policies were unfair to consumers. As part of the settlement, Direct TV has agreed to reform its advertising and marketing policies, pay restitution to some customers, and pay $5 million to the states.

CONNECTICUT

President of Company Guilty of Unlawfully Accessing a Computer

The U.S. Attorney for the District of Connecticut announced that the President of Knowledge Key Associates, a computer training company, has waived indictment and pled guilty to a federal charge of unlawfully accessing a commercial computer. According to documents filed with the court, the defendant unlawfully accessed a commercial Web site in order to obtain business leads that belonged to a competitor. As a condition of his plea, the defendant has agreed to pay $13,443 in restitution. He also faces up to 1 year in prison and a fine of $100,000.

FLORIDA

Miami Hospital May Be Excluded from Federal Health Care Program for Fraud

On Dec. 7, 2005, the Inspector General of the Department of Health and Human Services (HHS) notified Miami's South Shore Hospital and Medical Center (“South Shore”) that it had 30 days to come into compliance with the terms of its corporate integrity agreement or be excluded from Medicare, Medicaid, and all other Federal health care programs.

According to HHS, South Shore has failed to comply with the requirements of the corporate integrity agreement it entered into as part of the resolution of a False Claims Act (FCA) case against the hospital in 2002. South Shore's shortcomings reportedly include failing to implement all of its Independent Review Organization requirements, and also failing to submit required reports to HHS. The original FCA claim alleged that South Shore overcharged Medicare by submitting false cost reports for unallowable costs and was settled by a $937,000 payment in addition to the corporate integrity agreement. South Shore will have thirty days from the announcement to demonstrate to HHS that it is in compliance with the agreement, has cured the breach, or will do so in a timely fashion. The hospital also has the right to appeal the decision to an HHS Administrative Law Judge.

MASSACHUSETTS

Fraud and Money Laundering

A Massachusetts man who was the president and sole shareholder of one investment advisory company, and the CEO of another has pled guilty to 115 counts of mail fraud and one count of money laundering. According to the Attorney for the U.S. District of Massachusetts, he devised a scheme to defraud approximately 125 investors of more than $27 million. The fraudulent scheme involving the diversion of funds meant for investment in mutual funds and other securities to the operation of a radio station and to defendant's personal use.