Business Crimes Hotline

PR Head Sentenced to 42 Months for Bill Padding

The former managing partner of a Los Angeles public relations firm was sentenced to 42 months in prison for allegedly submitting hundreds of thousands of dollars worth of fraudulent bills to the Los Angeles Department of Water and Power ('DWP') and other clients, according to the U.S. Attorney for the Central District of California. The scheme allegedly included an agreement between the defendant and other employees of the firm to 'pad' the DWP bill by fraudulently increasing the number of hours billed to the agency. (United States v. Dowie, 05-00027, C.D. Cal.).

Buyer for Public University Guilty of Public Corruption

A former buyer for a California University plead guilty to public corruption charges in connection with allegations that he sold confidential bid information for $5,000 to one of the vendors bidding on a university fiber optics installation project, according to federal prosecutors. (United States v. Donnelly, 06-0672, N.D. Cal.).

Connecticut

Company Will Pay $12 Million for Clean Water Act Violations

An aerospace company pled guilty to two counts of violating the Clean Water Act, according to the U.S. Attorney for the District of Connecticut. It is alleged that the company's processes to remove certain chemicals from its wastewater did not consistently meet standards, resulting in the discharge of unlawful levels of chemicals into the Farmington River. It is also alleged that the company altered records to conceal this shortcoming. The company has agreed to being placed on probation for five years, and to pay a $1 million fine, to make various grants and other contributions to state agencies totaling in excess of $5 million, and spend $5.6 million upgrading its own wastewater processing systems. (United States v. Hamilton Sundstrand., 07-00023, D. Conn.)

Georgia

Attorney Sentenced to 65 Months for Defrauding Clients

A Georgia attorney was sentenced to five years and five months in prison on charges of mail fraud and aggravated identity theft, according to the DOJ. The defendant specialized in construction litigation and represented individuals suffering from physical injuries and other damages resulting from mold infestations. He is alleged to have settled claims without informing his clients, and to have then forged signatures on the settlement checks and converted the funds to his own use. (United States v. Peebles, 05-00208, N.D. Ga.)

California

Seller of Fraudulent Insurance Sentenced to 25 Years

An employee of a company that falsely purported to provide health care coverage was sentenced to 25 years in prison and ordered to pay over $20 million in restitution following his conviction on charges of mail fraud, misappropriation, money laundering, and obstruction of justice, according to federal prosecutors. The charges stemmed from a scheme in which the defendant misrepresented to insurance agents and the public that his company's plans were insured through legitimate insurance companies. The defendant and others associated with the company collected millions of dollars in insurance premiums from 20,000 people but provided no benefits, leaving their customers with over $20 million in unpaid claims. (United States v. Graf, 04- 00492, C.D. Cal.)

PR Head Sentenced to 42 Months for Bill Padding

The former managing partner of a Los Angeles public relations firm was sentenced to 42 months in prison for allegedly submitting hundreds of thousands of dollars worth of fraudulent bills to the Los Angeles Department of Water and Power ('DWP') and other clients, according to the U.S. Attorney for the Central District of California. The scheme allegedly included an agreement between the defendant and other employees of the firm to 'pad' the DWP bill by fraudulently increasing the number of hours billed to the agency. (United States v. Dowie, 05-00027, C.D. Cal.).

Buyer for Public University Guilty of Public Corruption

A former buyer for a California University plead guilty to public corruption charges in connection with allegations that he sold confidential bid information for $5,000 to one of the vendors bidding on a university fiber optics installation project, according to federal prosecutors. (United States v. Donnelly, 06-0672, N.D. Cal.).

Connecticut

Company Will Pay $12 Million for Clean Water Act Violations

An aerospace company pled guilty to two counts of violating the Clean Water Act, according to the U.S. Attorney for the District of Connecticut. It is alleged that the company's processes to remove certain chemicals from its wastewater did not consistently meet standards, resulting in the discharge of unlawful levels of chemicals into the Farmington River. It is also alleged that the company altered records to conceal this shortcoming. The company has agreed to being placed on probation for five years, and to pay a $1 million fine, to make various grants and other contributions to state agencies totaling in excess of $5 million, and spend $5.6 million upgrading its own wastewater processing systems. (United States v. Hamilton Sundstrand., 07-00023, D. Conn.)

Georgia

Attorney Sentenced to 65 Months for Defrauding Clients

A Georgia attorney was sentenced to five years and five months in prison on charges of mail fraud and aggravated identity theft, according to the DOJ. The defendant specialized in construction litigation and represented individuals suffering from physical injuries and other damages resulting from mold infestations. He is alleged to have settled claims without informing his clients, and to have then forged signatures on the settlement checks and converted the funds to his own use. (United States v. Peebles, 05-00208, N.D. Ga.)