Former CFTC commissioner: Whistleblower allegation about volatility index manipulation 'rings true'

The CBOE Volatility Index, known as the VIX, has been "suspect for at least seven years," says Bart Chilton, former CFTC commissioner.

The whistleblower allegation of VIX manipulation "rings true to me," Chilton says. read more »

Cost Of U.S. Opioid Epidemic Since 2001 Is $1 Trillion And Climbing

The opioid epidemic has cost the U.S. more than a trillion dollars since 2001, according to a new study, and may exceed another $500 billion over the next three years.

The report by Altarum, a nonprofit group that studies the health economy, examined CDC mortality data through June of last year. The greatest financial cost of the opioid epidemic, according to the report, is in lost earnings and productivity losses to employers. Early deaths and substance abuse disorders also take a toll on local, state and federal government through lost tax revenue. read more »

$1.8 Billion in India Bank Fraud Raises Fears of Ripple Effects

One of India’s largest commercial lenders said on Wednesday that it had detected fraudulent transactions worth $1.77 billion at just one of its branches, raising concerns about the possible impact across the banking sector at a time when the country is struggling to meet its economic growth targets.

The disclosure comes months after India’s government injected $32 billion into the sector to deal with bad loans, which by some estimates could be as high as $150 billion. Indian lenders, particularly those controlled by the state, have some of the highest ratios of bad loans in the world, but the government’s cash injection in October was nevertheless considered to be an inadequate step in dealing with the mountain of debt. Analysts have called for larger governance overhauls across the sector. read more »

Ferraris, homes, jewelry in play in KC payday loan case as judge seeks $3.5 billion

A federal judge appears likely to enter a forfeiture order of $3.5 billion against convicted felon Scott Tucker of Leawood, Kan., as part of his sentence for his illegal payday lending scheme.

A preliminary order entered late Tuesday by U.S. District Court of Southern New York Judge Kevin Castel indicates that $3.5 billion represents the gross proceeds Tucker’s payday lending businesses made from 2008 to 2013. A final order is expected later this year.

Tucker was convicted in October of several criminal charges related to a payday lending enterprise that charged exorbitant interest rates and duped consumers with deceptive loan terms. Tucker was the most prominent among several Kansas City businessmen, where payday lending is big business for both lenders and investors for these operations, who made millions from illegal lending enterprises. Some of them have been pursued by regulatory and criminal authorities. read more »

Detroit Doctor Sentenced to Six Years in Prison for Role in $10.4 Million Health Care Fraud Scheme

A Detroit, Michigan-area doctor was sentenced to 72 months in prison today for his role in a $10.4 million conspiracy to defraud the Medicare program.

Mahmoud Rahim, M.D., 65, of West Bloomfield, Michigan, was sentenced by U.S. District Judge Nancy G. Edmonds of the Eastern District of Micihgan.  Judge Edmonds also ordered the defendant to forfeit $1,679,505.  The restitution amount will be determined at a later hearing.

After a one-week trial in September 2017, Rahim was convicted of one count of conspiracy to commit health care fraud and wire fraud, one count of wire fraud, one count of conspiracy to receive health care kickbacks and two counts of receiving healthcare kickbacks.  According to the evidence presented at trial, Rahim accepted kickbacks from his co-conspirators in exchange for referring Medicare patients for electromyogram tests (EMGs), some of which were unnecessary, and physical therapy performed by unlicensed individuals.  Rahim disguised these payments as “rent” and set up a shell company to hide this illegal scheme. read more »