Ex-Pasadena Schools Superintendent to Plead Guilty in $44 Million Indiana Virtual School Fraud
June 6, 2025 | JacobiJournal.com – Ex-Pasadena Schools Superintendent Percy Clark has agreed to plead guilty to charges connected with a massive fraud scheme that drained millions from Indiana’s education system. Specifically, the fraud involved inflating enrollment numbers at Indiana Virtual School (IVS) and Indiana Virtual Pathways Academy (IVPA), leading to millions of dollars in illegitimate state funding and taxpayer losses. This scheme, which was active between 2016 and 2018, manipulated attendance records by reactivating inactive students and falsely reporting attendance. As a result, the schools were able to claim excessive funding from the state unlawfully. A Coordinated Fraud Ring Clark, alongside other defendants including Christopher King and Thomas Stoughton Sr., founder of the virtual schools, allegedly conspired to funnel state education funds through a complex web of for-profit companies. Moreover, the investigation uncovered a well-orchestrated scheme designed to conceal fraudulent billing and maximize illegal payouts. Federal charges include conspiracy to commit wire fraud, multiple counts of wire fraud, and money laundering. Collectively, these charges reflect the severity and scale of the scheme that ultimately cost taxpayers millions. The Impact and Legal Repercussions The case, triggered by a 2019 state audit, prompted multi-agency investigations involving the FBI and the Department of Education’s Office of Inspector General. Clark’s pending guilty plea marks a significant step toward accountability in education funding fraud. Beyond criminal prosecution, the Indiana Attorney General has also filed a civil suit aiming to recover over $150 million in misappropriated funds, thereby underscoring the lasting financial impact of such schemes. Why This Case Matters This fraud highlights vulnerabilities in virtual education funding models and the need for heightened oversight and transparency. Therefore, this serves as a critical reminder to investigators, educators, and policymakers about the risks of unchecked enrollment reporting. 🔎 Read More from JacobiJournal.com:
Attorney Liens Scrutinized in CA DWC’s Quick Suspension Over Alleged Comp Fraud
May 13, 2025 | JacobiJournal.com – San Bernardino, CA — Attorney Liens Scrutinized: The California Division of Workers’ Compensation (DWC) has taken swift action to suspend attorney Antony Gluck’s liens following his indictment in a sweeping workers’ compensation fraud scheme. While some praise the move as bold and protective, others argue it may sidestep due process. Gluck Faces Major Charges in Alleged Fraud Operation Antony Gluck, 55, now faces felony charges for conspiracy and illegal client referrals. Investigators say that from September 2021 to October 2024, he paid $388,500 to acquire 798 clients—many of whom were Spanish-speaking workers misled by a Mexico-based call center. These individuals were promised financial benefits through workers’ compensation claims. However, their information was secretly sold to attorneys like Gluck. The California Department of Insurance began investigating the scheme in 2022. Ultimately, the probe uncovered the illegal sale of over 1,100 clients for more than $550,000, implicating several individuals in a widespread operation. DWC Moves Quickly to Suspend Gluck’s Liens On April 25, 2025, the DWC publicly listed Gluck under the category of “Criminally Charged Providers Whose Liens are Stayed” pursuant to Labor Code § 4615. This move halted at least ten liens associated with his law offices across Los Angeles, Woodland Hills, and San Bernardino. These include: Although Labor Code § 4615 allows DWC to stay liens filed by providers facing criminal charges, the speed of Gluck’s suspension has caught many in the legal community off guard. Legal Community Questions Timing and Fairness Attorney Liens Scrutinized: While many support strong measures against fraud, some legal professionals question whether this response came too early. “Due process matters,” one Southern California attorney stated. “This kind of financial penalty—if premature—can devastate a law practice long before guilt is established.” The issue has reignited debate over how the DWC enforces lien suspensions. Although the law allows action before a conviction, critics argue that such measures must be balanced with the presumption of innocence. Additional Defendants Linked to the Alleged Scheme The case, officially titled People v. Antony Eli Gluck, et al. (Case No. FSB25001283), also names three co-defendants: According to investigators, Franco served as the central broker, selling 320 clients to De La Garza and Leal for $168,750, and the remaining 798 to Gluck. These individuals reportedly used false promises and deceptive tactics to exploit vulnerable workers—many unaware their personal information had been sold. What’s at Stake for the Workers’ Comp System This high-profile case underscores the fragility of trust in California’s workers’ compensation system. It also exposes how fraud schemes can exploit already marginalized groups. The DWC’s quick lien suspension has raised tough questions: Should regulatory bodies act immediately in the interest of public trust, or wait for formal convictions to uphold due process? As the San Bernardino County District Attorney’s Office continues its prosecution, the legal community will closely watch how courts balance the fight against fraud with the rights of the accused. 📌 Bottom Line:The DWC’s rapid lien suspension of Gluck sets a bold tone for fraud prevention. However, it also risks undermining legal fairness if not carefully justified. 📚 Read More from JacobiJournal.com:
Three Rhode Island Men Charged in Catalytic Converter Theft Ring
Investigators Tie Trio to $2.4 Million in Losses Across Southern New England May 1, 2025 | JacobiJournal.com – PROVIDENCE, RI — Federal prosecutors have charged three Rhode Island men with stealing and trafficking catalytic converters worth more than $2.4 million. The charges stem from an investigation led by the FBI and local law enforcement agencies across New England. According to Acting U.S. Attorney Sara Miron Bloom, Kuron Mitchell (Newport), Alberto Rivera (Cranston), and Luis Aceituno (Providence) face charges of interstate transportation of stolen property and conspiracy. Additionally, Aceituno faces a separate charge for allegedly filing false tax returns. Thousands of Converters, Millions in Losses The Cranston Police Department began tracking patterns in catalytic converter thefts in early 2022. Eventually, investigators identified the trio as part of a group responsible for stealing over 7,000 catalytic converters in Rhode Island, Massachusetts, and the greater Boston area. These parts, critical for reducing vehicle emissions, often carry high scrap value—ranging between $300 and $1,500 at the time. Three Rhode Island Men Alleged Scheme and Tax Fraud From January 2021 through November 2022, prosecutors allege the men targeted parked and unattended vehicles. Working in teams, they would quickly cut off the converters and then sell them to a Providence-based recycling company. FBI records and crime database reviews show Rivera sold 19 converters for $7,100. Meanwhile, Aceituno allegedly sold more than 2,100 converters, earning nearly $700,000. However, Aceituno reportedly failed to report this income to the IRS, leading to a tax liability of nearly $200,000. Broader Impact and Industry Response Federal authorities noted that the thefts created widespread financial strain, not just for vehicle owners, but also for insurers. In response to increased law enforcement efforts, catalytic converter claims have dropped significantly. According to State Farm data, theft-related claims fell by 74% in the first half of 2024 compared to the same period in 2023. Nonetheless, the average claim still cost nearly $2,900. Ongoing Investigations and Prosecutions This case is one of several high-profile prosecutions involving catalytic converter thefts. For example, prosecutors in Connecticut recently sentenced two men involved in a similar scheme. In another case last October, a ringleader in Massachusetts received a federal sentence after coordinating thefts from nearly 500 vehicles. The Rhode Island case remains under investigation by multiple agencies, including the FBI, the National Insurance Crime Bureau, and police departments across Rhode Island and Massachusetts. These include Cranston, Newport, Providence, and several university and municipal departments. Although charges have been filed, all three defendants are presumed innocent until proven guilty in a court of law. Source: U.S. Attorney, District of Rhode Island 🔎 Read More from JacobiJournal.com: Stay Ahead of Insurance Crime and Legal Trends For deeper insights on fraud, criminal enforcement, and regulatory actions affecting the insurance sector, visit JacobiJournal.com and subscribe to our weekly update.
Janitorial Services Owner Sentenced in $1.45M Fraud Case
Martha Toro Receives Jail Time for Insurance Fraud and Tax Evasion April 24, 2025 | JacobiJournal.com – Sacramento, CA — A Janitorial Services Owner Sentenced to 270 days in county jail and two years of formal probation after pleading no contest to insurance fraud and tax evasion. Martha Toro, who owns MT Janitorial Services, will also pay $1,454,130 in restitution, fines, and interest. Markel Insurance will receive $848,370, while $605,760 goes to the Franchise Tax Board (FTB). Years of Payroll Fraud Exposed Janitorial Services Owner Sentenced: Investigators began looking into Toro’s business in February 2020 after Markel Insurance raised concerns. They discovered Toro had intentionally underreported her number of employees from 2013 to 2020 to lower her workers’ compensation premiums. This fraud caused Markel Insurance to lose over $800,000. Meanwhile, Toro also falsified her state tax returns from 2016 to 2020, avoiding hundreds of thousands in taxes. Investigators Respond Swiftly The California Department of Insurance (CDI) led the investigation with assistance from the Franchise Tax Board. Their efforts confirmed that Toro misrepresented payroll information year after year. According to the CDI, underreporting payroll endangers workers, especially if they are injured on the job without proper insurance coverage. Tax Fraud Harms the Public Beyond insurance losses, Toro’s actions harmed California taxpayers. “Tax evasion threatens essential public services,” the FTB said. “By shutting down underground economic activity, we protect resources for education, healthcare, and infrastructure.” Fraud Creates Unfair Business Advantages Deputy District Attorney John MacKenzie, who prosecuted the case, highlighted how such fraud distorts the marketplace. “Toro gained an unfair edge by lowering her business costs illegally,” he said. “This hurts honest employers who follow the rules and puts customers at risk.” Because Toro’s business appeared cheaper, it won contracts at the expense of law-abiding competitors. Over time, this undermines trust and damages entire industries. Source: CDI 📚 Read More from JacobiJournal.com: 🕵️♂️ Stay informed on workers’ comp fraud, employer violations, and legal enforcement by visiting JacobiJournal.com for weekly updates.