Congress could strip consumers of right to sue banks and credit card companies

We'll just put the entire financial sector on the honor system. What could possibly go wrong?

According to Sen. Elizabeth Warren (D-MA), senators could vote as soon as Tuesday on a proposal to strip consumers of their right to sue many banks and other financial companies. If the vote prevails, consumers are likely to lose their right to sue credit card companies and many other financial firms in a real court and be forced to bring suits in a privatized arbitration system that tends to favor corporate parties.

Additionally, the vote would permit many lenders to strip consumers of their right to bring a class action lawsuit against the lender. read more »

Ex-HSBC executive found guilty of fraud in $3.5 billion currency trade: U.S. Jury

A U.S. jury on Monday found a former HSBC Holdings Plc(HSBA.L) executive guilty of defrauding Cairn Energy Plc (CNE.L) in a $3.5 billion currency trade in 2011.

U.S. prosecutors have said that Mark Johnson, formerly head of HSBC’s global foreign exchange cash trading desk, schemed to ramp up the price of British pounds before executing a trade for Cairn, making millions for HSBC at Cairn’s expense. read more »

Renewable Fuel Trader Pleads Guilty to Conspiracy

The owner of a company that buys and sells renewable fuel and fuel credits pleaded guilty in U.S. District Court for the Southern District of Ohio to conspiracy for his role in a scheme that generated over $47 million in fraudulent EPA renewable fuels credits, and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel. read more »

Dallas pharmacy exec admits to selling soldiers unneeded scripts in $50 million kickback fraud

A Dallas pharmacy executive has pleaded guilty to taking part in a massive kickback scheme that scammed the military's insurance program out of more than $100 million, authorities said.

Andrew Joseph Baumiller, 38, of Dallas, pleaded guilty last week to conspiracy to commit health care fraud in connection with Trilogy Pharmacy. He faces up to 10 years in federal prison and a maximum fine of $250,000. read more »