Suit Against Bank of America for $30 Million Tax Scam

A lawsuit has been drafted against Bank of America to retrieve $30 million that flowed through accounts held by Harriette Walters and others in the D.C. tax scam, Acting D.C. Attorney General Peter Nickles told yesterday.

During an almost eight-hour confirmation hearing before a D.C. Council committee, Nickles said the city is negotiating with the bank in hopes of reaching a financial settlement. If they cannot agree, he said, the District would likely follow up on the lawsuit.

"Our complaint lists checks through Bank of America," said Nickles, who proposed to let the council see copies of the draft.

In an interview, Nickles said he has given the bank until Friday to respond to a settlement offering, the terms of which he would not disclose. Under an accord with the bank that extended the statute of limitations, the District has until Nov. 10 to file the lawsuit.

Nickles said the draft of the lawsuit also includes charges under the "False Claims Act," which could triple the pecuniary damages.

In the tax scam case, Walters, an erstwhile tax office manager, and 10 confederates have pleaded guilty to stealing $48 million over 20 years from the D.C. Office of Tax and Revenue. The amount mentioned in the draft of the lawsuit is based on the amount of the checks cashed at Bank of America, Nickles said.

Bank of America was the elementary bank used by Walters and most other participants in the scam, and the vast bulk of the money stolen from the District flowed through the institution. One defendant, Walters's niece, Jayrece Turnbull, transferred more than $24 million through various accounts there.

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Massive Hi-tech Credit Card Fraud in UK Supermarkets

Detectives are investigating a sophisticated credit card fraud against customers of some of the leading supermarkets including Asda, Tesco and Sainsbury. Evidence point to Pakistan as the origin of the credit card fraud.

Fraudsters have targeted more than 40 stores in an elaborate credit card fraud scam. Police say tiny devices were inserted into the stores' 'chip and pin' credit card readers.

Specialists say the technology is the most advanced they have seen and is being used in supermarket chains across Europe. The devices, which are made in China, are reading and storing selected customers’ Mastercard and personal identification numbers as the cards are inserted into readers at supermarket checkout tills.

It is believed the bugs transmit the information via wireless technology to Lahore in Pakistan. Customers’ cards are then cloned and used to steal money from their credit card and current accounts and to pay for items such as airline tickets on the internet.

The scam was first discovered in the US and while there is no direct evidence to link it with terrorist activities in Pakistan, MPs here in the UK are calling for a full investigation amid growing evidence that terrorist groups such as Al-Qaeda are resorting to sophisticated technology to raise funds.

Source: Customer Strategy, London, UK

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Federal Regulators Sue Democrat Fundraiser for $60 Million Scam

On Monday, federal regulators sued political fundraiser Norman Hsu for allegedly operating a $60 million investment scam and using some proceeds to contribute to Sen. Hillary Rodham Clinton and other prominent Democrats.

The Securities and Exchange Commission filed a lawsuit in U.S. District Court in Los Angeles. It accuses Hsu of using a company called Next Components to solicit investments that promised high rates of return by providing short-term loans to other companies.The lawsuit also states that Hsu used the investments to pay off early investors in a classic Ponzi scheme while using the rest to make political contributions and support a lavish lifestyle.

The SEC is seeking to recoup the investors' money and financial penalties.

In May, a federal judge in Los Angeles ordered Hsu to pay $28.8 million to aggrieved investors who sued him. Hsu wasn't represented by a lawyer in that case and never responded to the lawsuit.

Source: The Associated Press

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