Before the breach Equifax sought to limit exposure to lawsuits

Before Equifax discovered a massive computer breach that exposed sensitive information about millions of Americans, the company lobbied Congress on legislation to limit how much it could be forced to pay if sued by consumers, and it pressed lawmakers to roll back the powers of its regulators.

Since at least 2015, the credit reporting agency has repeatedly lobbied lawmakers on issues related to “data security and breach notification,” according to federal disclosure forms. Those issues are likely to take center stage now as the company deals with the outcry over its decision to wait six weeks before notifying the public about a cybersecurity attack that exposed the Social Security numbers, driver’s license information and other personal data of 143 million people.

The company’s spending on lobbying peaked at $1.1 million last year, and Equifax has spent $500,000 already this year, according to data collected by the Center for Responsive Politics. read more »

 

 

Tesla & other automakers used illegal foreign workers to build plants

Widening earlier claims of immigration fraud at the Tesla factory, a recently unsealed whistleblower suit says several other major automakers, including Mercedes-Benz, BMW and Volkswagen, illegally used foreign construction workers to build their U.S. factories.

The charges expand on an investigation by this news organization last year into foreign construction workers building Tesla’s paint shop in Fremont. The federal suit charges that the carmakers used hundreds of Eastern European workers on suspect visas hired through subcontractors for the German company Eisenmann.

The investigation, “The Hidden Workforce Expanding Tesla’s Factory,” and court documents revealed at least 140 foreign workers on questionable business visas worked on the factory expansion for as little as $5 an hour. read more »

Gambler Billy Walters Must Forfeit $25.4 Million of Ill-Gotten Gains

Las Vegas gambler Billy Walters, who’s scheduled to report to prison next month, was ordered to forfeit $25.4 million in illegal insider-trading gains.

Walters, 71, was convicted in April of trading on illicit tips he got from his golf buddy, former Dean Foods Co. Chairman Tom Davis. He’s scheduled to report to prison Oct. 10 to begin a five-year sentence. Walters is appealing the conviction and prison sentence.

U.S. District Judge Kevin Castel Wednesday ordered Walters to forfeit the money after finding it could be traced to his illegal trades.

The case entangled pro golfer Phil Mickelson, who wasn’t accused of wrongdoing but agreed to pay back almost $1 million he earned trading on information he got from Walters. read more »

Janet L. Yellen: Wells Fargo’s conduct has been ‘unacceptable’

Federal Reserve Chair Janet L. Yellen on Wednesday delivered a bruising assessment of Wells Fargo, calling “unacceptable” the megabank’s admissions that its employees had potentially set up as many as 3.2 million fake accounts that customers did not want so they could meet aggressive sales goals.

“Let me say that I consider the behavior of Wells Fargo toward its customers to have been egregious and unacceptable,” Yellen said during a news conference Wednesday.

The Federal Reserve has been reviewing the incident for several months, and Yellen declined to comment on the status of the investigation. “We take our supervision responsibilities of the company very seriously. And we are attempting to understand what the root causes of those problems are and to address them,” she said. read more »

Miami Physician Sentenced to 97 Months for Role in Pain Pill Diversion and $4.8 Million Medicare Fraud Scheme

A Miami physician was sentenced today to 97 months in prison and three years of supervised release, for his role in a $4.8 million health care fraud scheme that involved the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone and hydrocodone. read more »