Bribes Like ‘Monopoly Money’ Were Given to South Africa’s Leaders, Panel Hears

Cash bribes were called “monopoly money,” and handed out to high-ranking members of South Africa’s governing party on monthly retainers. When that payoff wasn’t enough, $22,000 was stuffed into a Louis Vuitton handbag and delivered to a close ally of the president at the time.

That sent the recipient “over the moon,” according to Angelo Agrizzi, a businessman — and now whistle-blower — who detailed, at a continuing government inquiry into public corruption, extravagant bribes doled out to members of the party, the African National Congress, at the highest levels of government.

A current government minister, he testified, liked receiving an annual Christmas basket that included “four cases of high-quality whiskey, 40 cases of beer, eight lambs — cut up, obviously.” Her daughter was partial to high-end convertibles, Audi A3 Cabriolets, but kept crashing the cars given to her. read more »

Report: Just Two Groups May Be Behind $1 Billion in Cryptocurrency Hacks

Just two groups of “highly sophisticated cyber criminals” may be behind an estimated $1 billion in cryptocurrency thefts, the Wall Street Journal reported on Monday.

That’s according to a report from crypto transaction tracking software manufacturer Chainalysis, which concluded that the two groups (dubbed “Alpha” and “Beta”) are likely “responsible for stealing around $1 billion to date, at least 60% of all publicly reported hacks,” and are probably still active. Chainalysis spent around three months tracking a web of transactions to reach their conclusions, the Journal wrote, and they admit that they could be wrong.

But their report suggests that Alpha “is a giant, tightly controlled organization at least partly driven by non-monetary goals,” while Beta “seems to be a less organized and smaller organization absolutely focused on the money” and which is less concerned about hiding its digital tracks. Chainalysis wrote that both suspected organizations work on a large scale—averaging roughly $90 million per hack—and move stolen cryptocurrency through a maze of wallets to evade. read more »

California’s Largest Utility Says It Is Bankrupt. Here’s What You Need to Know.

Pacific Gas and Electric has filed for Chapter 11 bankruptcy protection. The state’s wildfires are at the heart of its insolvency.anyone trying to track it down.

Pacific Gas and Electric, California’s largest utility, serving more than 16 million people, filed for bankruptcy protection on Tuesday because it is facing tens of billions of dollars in liability for wildfires. The company’s equipment could be responsible for causing wildfires that killed dozens of people, destroyed thousands of homes and resulted in billions of dollars in damage over the past few years.

Here are some big questions about the bankruptcy. read more »

Newark company hands over $2.75 million in fraud settlement

A Newark-based software company agreed to pay $2.75 million in an alleged fraud settlement, the Department of Justice announced Tuesday.

E.M. Photonics Inc. and CEO Eric Kelmelis settled after prosecutors alleged they falsified documents for government contracts and grants over a five-year span.

The government accused the software company of violating the False Claims Act by fabricating labor costs and duplicating work forms to maximize charges to contracts awarded by federal agencies, the DOJ said in a press release. read more »

Doctors Sentenced to Prison for Roles in Separate Multi-Million Dollar Medicare Fraud Schemes

Two Houston, Texas physicians were sentenced to 25 and three-year prison terms for their roles in separate schemes to defraud Medicare out of payments for medical services.

According to evidence presented at trial, from in or around December 2011 to in or around August 2015, John Ramirez and his co-defendants conspired and schemed to defraud Medicare out of payments for medical services.  Co-defendant Ann Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston.  Shepherd, along with Nwoko, sold medical orders and other documents Dr. Ramirez signed to home-health agencies in and around Houston.  Dr. Ramirez falsely certified in these medical orders information about the patient’s medical condition and need for medical services.  Co-conspirators at home-health agencies then used the false and fraudulent paperwork signed by Dr. Ramirez and sold by Ann Shepherd and Yvette Nwoko to bill to, and receive payment from, Medicare for medical services that were not medically necessary or not provided.

In all, Dr. Ramirez and his co-defendants caused Medicare to pay approximately $17 million on false and fraudulent claims submitted during the charged conspiracy. read more »