Wells Fargo Is Accused of Harming Fraud Victims by Closing Accounts

When signs of fraud appear on a customer’s account, such as a counterfeit check or an unauthorized withdrawal, a bank is required by law to investigate whether criminal activity has occurred. Wells Fargo had a simpler solution, according to a former employee: Close the account and drop the customer.

Matthew Valles, a former fraud investigator for Wells Fargo in Portland, Ore., said the bank fired him in January in retaliation for his internal complaints about “hundreds” of mishandled fraud investigations. On Wednesday, he sued the bank and his former manager, alleging that they violated whistle-blower laws. read more »

Equifax finds 2.4 million more users affected by 2017 breach

Investigators have found millions of new users affected by last year's massive breach of the credit reporting firm.

Add 2.4 million people to the 145.5 million Americans affected by Equifax's breach.

A massive data breach that hit nearly half of the US population affected even more people than originally reported, the credit reporting firm revealed in a statement Thursday morning. read more »

Britain’s White-Collar Cops Are Getting Too Good at Their Job

In the era of Brexit, not everyone wants the Serious Fraud Office to chase rich wrongdoers out of the country. read more »

DEA whistleblower will make case for Minnesota pill tax to curb opioids

Ex-DEA official lends voice to legislative proposal.

Joseph T. Rannazzisi leaves no one out when he’s assigning blame for the opioid epidemic.

“We would never be where we are today if the industry was doing their job,” said Rannazzisi, a former federal Drug Enforcement Administration (DEA) official who’s bringing his message to Minnesota as he prepares to testify on state legislation aimed at curbing the epidemic. “I’m talking about everybody: the doctors, the pharmacists, distributors, the manufacturers.”

Few know more about the causes of the opioid epidemic than this former deputy assistant administrator of the DEA, or have seen the influence of an industry he says helped fuel the crisis. Opioid abuse killed nearly 400 Minnesotans and 53,000 Americans in 2016.

Rannazzisi was a whistleblower in a “60 Minutes”-Washington Post investigation last year. The report detailed how the drug industry used its influence in Congress and in the executive branch to take away the DEA’s most potent tool for stopping drug companies suspected of allowing drugs to wind up in the wrong hands. read more »

Deloitte settles claims tied to audits of failed mortgage lender -U.S. DOJ

Deloitte & Touche has agreed to pay $149.5 million to settle potential False Claims Act liability stemming from its audits of failed mortgage lender Taylor, Bean & Whitaker Mortgage Corp, the U.S. Justice Department said on Wednesday.

“When auditors fail to exercise their professional judgment, and make false statements that allow bad actors to remain in government programs and submit false claims to the government, there will be consequences,” Acting Assistant Attorney General Chad Readler said in a statement announcing the settlement. read more »

Perpetrators of massive Oregon Ponzi scheme get prison time

Brothers Michael S. Holcomb and Gary L. Holcomb, both of Junction City, were sentenced to 72 months in federal prison. Michael Holcomb's daughters, Jennifer L. Chambers, of Eugene, and Kristen S. Van Breeman, of Happy Valley, each received five years probation and 250 hours of community service.

From 2008 to 2012, the brothers were managing partners of Berjac of Eugene and Berjac of Portland, insurance premium financing businesses. Michael Holcomb's daughters were Berjac employees.

According to court documents, the senior Holcombs solicited investments purportedly to finance loans to small businesses to pay for insurance coverage. Berjac investors were promised between returns of between 5 and 7 percent.

Instead, prosecutors charged that the brothers used investor money to invest in speculative real estate projects, and to fund "generous lifestyles," and cover personal financial obligations. read more »