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:
Hospice Fraud and Mobile Job Scams: Identity Theft in Plain Sight
June 5, 2025 | JacobiJournal.com – Hospice fraud and mobile job scams have taken on new dimensions, particularly in healthcare and employment, where fraudulent actors are exploiting systemic vulnerabilities. Investigators have uncovered a disturbing trend: scammers are enrolling Medicare beneficiaries in hospice care without their knowledge, while fraudsters are targeting job seekers to steal personal information. Hospice Fraud: When Compassion Becomes a Cover Alarmingly, fraudsters are enrolling individuals, many of whom are not terminally ill, into hospice programs to generate false Medicare claims. In many cases, these schemes often involve identity theft, where scammers gain access to Medicare numbers through deceptive marketing, door-to-door pitches, or unsolicited calls. Once enrolled, victims often remain unaware until legitimate Medicare services are denied. This not only jeopardizes patient care but also defrauds government programs and taxpayers. Mobile Job Scams: The New Phishing Frontier Fraudsters now target job seekers through mobile-based job scams, posing as recruiters and sending convincing phishing emails.. These messages often include links that install malware like the AppLite Banker Trojan—designed to steal login credentials and sensitive information. What makes these attacks particularly dangerous is their sophistication. Fraudsters clone job websites and create professional-looking recruiter profiles to deceive and exploit their targets. What Legal and Compliance Teams Should Do The key to prevention lies in proactive vigilance and system-wide awareness. Here’s what experts recommend: Moreover, fraudulent hospice enrollment and mobile job scams are more than financial crimes—they erode public trust and endanger lives. With billions at stake, legal professionals, healthcare providers, and compliance officers must act as the first line of defense. 🔎 Read More from JacobiJournal.com:
Contractor Fraud Awareness Week 2025: Strengthening Consumer Protection Against Post-Disaster Scams
June 3, 2025 | JacobiJournal.com – When storms hit and communities are rebuilding, not all who show up to help have good intentions. Indeed, disaster-stricken areas often attract opportunists disguised as helpers. Contractor Fraud Awareness Week 2025 puts a spotlight on a growing crisis: post-disaster fraud carried out under the guise of reconstruction. From unlicensed repairs to inflated invoices, bad actors exploit chaos to line their pockets. For legal professionals and fraud investigators, the week serves as a renewed call for vigilance, enforcement, and education. Fraud by Hammer and Nail: How Scammers Operate Fraudulent contractors use urgency and emotional pressure to their advantage. They often mask their methods as kindness—offering quick repairs, skipping permit requirements, or demanding cash-only payments under the pretense of helping homeowners get back on their feet. Key warning signs include: In many cases, these scammers disappear after partial or substandard work, leaving property owners in worse condition—financially and structurally—than before. Legal Systems Respond: More Than Just Fines To address this, state attorney generals, licensing boards, and fraud units are shifting strategies—viewing contractor fraud not as an ethical lapse but a prosecutable crime. Efforts underway include: Legal experts emphasize pairing consumer protection with strong deterrents. Civil suits may not be enough—criminal charges send a clearer message. What This Means for Investigators and Attorneys Contractor fraud is not a series of isolated incidents — it’s a systemic vulnerability that often emerges in the aftermath of chaos. For legal professionals and investigators, this underscores the need for a proactive, coordinated approach that goes beyond surface-level enforcement. The real challenge lies in bridging jurisdictional gaps and streamlining inter-agency collaboration. Investigators now adopt a pattern-recognition mindset—identifying trends, networks, and behaviors that signal organized fraud instead of merely reacting to individual complaints. Attorneys working on these cases are also navigating evolving legislation aimed at strengthening penalties and tightening licensure requirements. As regulatory frameworks shift, staying informed and agile becomes essential—not only to prosecute, but to prevent. Ultimately, effective fraud prevention in post-disaster scenarios demands more than awareness. It calls for legal readiness, community education, and policy-level support that can close the cracks where opportunists thrive. Consumer Awareness Is the First Line of Defense Contractor Fraud Awareness Week emphasizes this key message: informed homeowners reduce their risk of becoming fraud victims. But awareness is only part of the equation. The legal system must take swift and decisive action when fraud occurs. 🔎 Read More from JacobiJournal.com:
Asbestos Clinic Closure Ordered to Pay BNSF Jury Award
May 16, 2025 | JacobiJournal.com – Asbestos Clinic Closure: Authorities abruptly closed a longtime asbestos screening clinic in Libby, Montana, this week to satisfy a $3.1 million debt owed to the BNSF Railway, following a controversial court judgment. The move has left a vulnerable population without vital medical support and reignited tensions over accountability for the region’s asbestos disaster. Clinic Closure Sparks Public Health Concerns On Wednesday, the Lincoln County Sheriff’s Office seized and shut down the Center for Asbestos Related Disease (CARD). Located in a town of just 3,000 people, the clinic has operated for over two decades near a now-defunct vermiculite mine that emitted toxic asbestos dust. Thousands of residents have suffered health consequences, and CARD had become a cornerstone of their medical care. Despite its long-standing role in treating asbestos-related illnesses, the clinic now faces closure because of a $6 million fraud judgment awarded in 2023 to BNSF Railway. After legal fees and interest, BNSF claims it is owed $3.1 million. Allegations of Fraud and Fallout from Court Case The legal dispute began when BNSF, a Texas-based railway, sued CARD under the False Claims Act. The suit alleged that the clinic fraudulently diagnosed patients with asbestos-related illnesses to qualify them for federal Medicare benefits. According to court findings, 337 out of over 2,000 diagnoses were ruled invalid. BNSF transported contaminated material through Libby for decades, and it continues to face lawsuits from local victims of asbestos exposure. Nonetheless, the company prevailed in this case by claiming that CARD manipulated patient data, thereby defrauding the government. As a whistleblower under federal law, BNSF was entitled to a portion of the government’s recovery from the judgment. BNSF spokesperson Kendall Kirkham Sloan defended the closure, stating: “The judge determined the amount of damages to be repaid, and the process for recovery is set by law.” Bankruptcy Complicates the Enforcement However, the situation is far from resolved. After the judgment, CARD filed for bankruptcy and reached a court-approved settlement with the federal government, which included BNSF. According to James “Andy” Patten, the clinic’s bankruptcy attorney, the railway’s recent actions violated that agreement. “This seizure undermines a settlement that was approved by a federal court,” Patten argued. When asked about the bankruptcy terms, Sloan declined to comment. Community Faces Growing Health Risks Tracy McNew, Executive Director of CARD, expressed deep concern for the community. “CARD remains committed to its patients and the Libby community and will fight to reopen as soon as possible,” she stated. Until the closure, CARD served as the only local medical facility offering asbestos-related health screenings, monitoring, and treatment. Many in Libby fear that without this specialized care, health conditions will go undiagnosed and untreated—especially among the town’s aging population, which faces elevated risks from long-term asbestos exposure. 🔎 Read More from JacobiJournal.com:
Deliveries Scam Plea Entered by California DoorDash Driver
May 16, 2025 | JacobiJournal.com – Deliveries Scam Plea: A former DoorDash driver admitted in federal court this week to orchestrating a scheme that defrauded the company of more than $2.5 million. The case sheds light on how gig economy platforms remain vulnerable to insider exploitation and software manipulation. Driver Used Insider Access to Steal Millions Sayee Chaitanya Reddy Devagiri, 30, of Newport Beach, California, entered a guilty plea on Tuesday in San Jose federal court to one count of conspiracy to commit wire fraud. Prosecutors said Devagiri conspired with three others between 2020 and 2021 to exploit DoorDash’s internal systems for personal gain. Specifically, Devagiri used customer accounts to place expensive orders. He then accessed DoorDash’s backend software using credentials from a cooperating employee. After that, he reassigned the orders to fraudulent driver accounts he and his co-conspirators controlled. Orders Marked as Delivered—But Never Were Once the orders were rerouted, Devagiri falsely marked them as delivered. This action triggered automatic payments from DoorDash to the fake driver accounts. To repeat the fraud, he reset the order status from “delivered” to “in process” and rerouted the same orders back to those accounts. Notably, the scam relied heavily on insider access, allowing Devagiri and others to bypass typical safeguards. As a result, the group repeatedly collected payments for services they never provided. Deliveries Scam Plea Additional Guilty Pleas Reveal Coordinated Plot The now-former DoorDash employee who supplied system access pleaded guilty in November 2023 to conspiracy to commit wire fraud. He admitted to helping execute the fraud scheme. Devagiri is now the third person convicted in this wide-reaching conspiracy. Sentencing Scheduled for September Devagiri faces up to 20 years in federal prison and a $250,000 fine. His sentencing is set for September 16. The case raises urgent questions about how delivery platforms can better protect internal systems from misuse. 🔎 Read More from JacobiJournal.com: 💡 Tip for Insurers & Platforms: Internal access audits and cross-account monitoring are critical in detecting fraud involving insider credentials. 📬 Stay informed with the latest fraud updates at JacobiJournal.com.
Wildfire Alert Glitch Triggers Accidental Warning to Millions in LA County
May 15, 2025 | JacobiJournal.com – Wildfire Alert Glitch: A serious glitch in Los Angeles County’s emergency alert system triggered widespread panic on January 9, when a wildfire warning meant for a small region was mistakenly sent to millions of residents across the entire county. The error occurred just two days after wildfires tore through hillsides, leaving residents anxious and on edge. Although the alert targeted individuals in the San Fernando Valley under evacuation warning for the Kenneth Fire, a system failure caused it to reach more than 10 million people countywide. What Went Wrong? Vendor’s Glitch Disrupts Targeted Alert According to a report from Rep. Robert Garcia (D-Long Beach), Los Angeles County officials correctly configured the message to notify only affected neighborhoods. However, Genasys—the county’s emergency alert vendor—failed to properly transmit the location data into the Integrated Public Alert and Warning System (IPAWS). The report indicates that a network disruption likely prevented the location coding from being saved. As a result, the alert went out without geographic targeting, leading to widespread confusion. “The initial false alert resulted from technology issues with third-party vendor Genasys,” the report explained. Delays and Failures Across Multiple Wildfires The January incident highlights larger issues in how Los Angeles County manages wildfire alerts and evacuation notices. During the Eaton Fire in Altadena, officials sent evacuation orders long after homes had already caught fire. In another case—the Palisades Fire—many residents saw flames approaching and evacuated before receiving any official warnings. To address these failures, LA County commissioned a third-party review of its emergency response policies. Officials have already interviewed dozens of first responders, and the next progress report is scheduled for July 27. Legal Exposure and Insurance Fallout Beyond public confusion, the mistaken alert raises serious liability concerns for both government agencies and private contractors. Errors like this could: Consequently, state and local governments may soon reevaluate their contracts with alert system vendors and adopt tighter safeguards. Federal Report Calls for Urgent Reforms In his report, Rep. Garcia urged authorities to make several key improvements: “The lessons from the Kenneth Fire should not only inform reforms but drive modernization of our national alerting infrastructure,” Garcia said. Given the increasing threat of wildfires across California, local and federal governments must prioritize accuracy and reliability in emergency communications. Source 📚 Read More from JacobiJournal.com: 🛡️ Stay informed. Subscribe to JacobiJournal.com for expert analysis of public risk, emergency systems, litigation, and insurance coverage.
PFAS Settlement Agreement: New Jersey, 3M Settle for $450M
May 14, 2025 | JacobiJournal.com – PFAS Settlement Agreement: In a pivotal legal and environmental development, New Jersey has secured a $450 million settlement from 3M Company, marking the state’s largest recovery to date involving PFAS contamination. The agreement resolves 3M’s liability for polluting New Jersey’s water and natural resources with per- and polyfluoroalkyl substances, commonly known as “forever chemicals.” Landmark Deal Averts Trial The settlement, announced by Attorney General Matthew J. Platkin and DEP Commissioner Shawn M. LaTourette, comes just days before a high-stakes trial scheduled for May 19, 2025, in federal court. The trial would have been the first in the nation where a state pursued PFAS contamination claims against manufacturers. This deal ends litigation involving: Payment Timeline and Financial Breakdown PFAS Settlement Agreement: 3M will pay between $275 million and $325 million between 2026 and 2034, followed by $125 million from 2035 to 2050, subject to certain credits. Key provisions include: The agreement is subject to court approval and public comment. 3M Avoids Trial, But Not Accountability “This is one of the first statewide PFAS settlements 3M has agreed to nationwide,” said AG Platkin. “For decades, they knew the dangers but continued contaminating our water. That ends now.” Notably, the settlement does not shield 3M from private lawsuits, and the company must continue cleanup efforts at its former facilities in New Jersey. 3M, headquartered in Minnesota, was once a major PFAS producer. The company has announced plans to exit PFAS production by the end of 2025. Remaining Defendants Head to Trial While 3M exits the case, other major chemical firms remain. Defendants in the upcoming May 2025 trial include: These companies are accused of contributing to widespread PFAS contamination through their production and distribution of AFFF and other PFAS-laden products. Environmental Insurance Fallout: PFAS and Risk Exclusions As PFAS litigation and regulation escalate, insurers are growing cautious. Underwriters are increasingly: The EPA has set strict limits on PFAS levels in drinking water, while ISO has introduced endorsements that broadly exclude PFAS-related claims. These moves signal a broader tightening of coverage in environmental risk markets. Larger Context: A National Reckoning Over PFAS New Jersey is also set to receive $300 to $500 million from 3M’s $10+ billion national water system settlement announced in 2023. Combined with other settlements—including Solvay’s $175 million agreement in 2023—the state has now secured approximately $840 million for PFAS-related damages. Funds will be used to remediate contaminated water supplies, restore natural resources, and protect public health statewide. 📚 Read More from JacobiJournal.com: 🛡️ Subscribe to JacobiJournal.com for legal case coverage, environmental liability updates, and evolving trends in insurance defense and fraud litigation.
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:
Coalition Reports Surge in Business Email Compromise Costs for 2024
May 12, 2025 | JacobiJournal.com – Business Email Compromise: Cyber insurer Coalition has released its 2025 Cyber Claims Report, revealing a sharp rise in costs related to business email compromise (BEC). The insurer found that BEC accounted for nearly 60% of all cyber insurance claims it handled in 2024. Funds Transfer Fraud Drives Costly Losses Among BEC-related claims, nearly 30% involved funds transfer fraud (FTF)—a costly form of cybercrime. On average, each FTF incident led to initial losses of $185,000. Fortunately, Coalition and its partners were able to recover $31 million, benefiting about one in four policyholders. The report emphasized that faster reporting leads to higher recovery rates. Claim Severity Increases, Especially in the U.S. The average cost of a BEC claim jumped 23% in 2024 to $35,000, with U.S.-based claims coming in higher at $36,000. In comparison, the average BEC claim cost was $22,000 in Canada and the UK. Coalition attributed the rising severity to growing expenses associated with legal services, incident response teams, data mining, and notification requirements. Ransomware Threats Decline—But Still Costly Despite the rise in BEC claims, ransomware incidents slightly declined, with a 3% drop in frequency and a 7% decrease in severity. Coalition also reported a 22% year-over-year reduction in ransom demands and successfully negotiated a 60% cut in ransom payments on average. Even so, 44% of policyholders impacted by ransomware chose to pay. The report stressed that ransom payments are not the only cost drivers—business interruption, asset recovery, and forensic investigations also contribute heavily to claim totals. Source 📌 Key Takeaway:The data reinforces the growing risk of email-based attacks, especially when combined with fraudulent fund transfers. Insurers and businesses alike must remain vigilant, invest in preventive tools, and ensure rapid incident reporting to minimize losses. 📚 Read More from JacobiJournal.com: 🛡️ Stay informed. Subscribe to JacobiJournal.com for expert insights on cyber threats, insurance litigation, and fraud prevention.
Texas Woman Sentenced for Disaster Relief Fraud Across Multiple States
May 12, 2025 | JacobiJournal.com – Houston, TX – Disaster Relief Fraud: A Texas woman has been sentenced to nearly five years in federal prison for orchestrating a multi-agency disaster relief fraud scheme that caused over $620,000 in losses, according to the U.S. Attorney’s Office for the Southern District of Texas. Sophisticated Scam Leveraged Social Media Cora Chantail Custard, 35, who lived in both Houston and San Antonio during the conspiracy, pleaded guilty on September 17, 2024, to one count of conspiracy to commit wire fraud. On sentencing day, U.S. District Judge David Hittner imposed a 57-month prison term, followed by three years of supervised release. Custard must also pay $621,388 in restitution. The court emphasized the sophistication of the scheme, which included leveraging social media—particularly Facebook—to attract clients and advertise her illegal services. Fraud Spanned Federal and State Programs From March 2020 to March 2021, Custard worked with co-conspirators to submit fraudulent disaster relief applications on behalf of herself and others. Using her Facebook page, she encouraged followers to “do apps” that could yield between $6,000 and $8,000 within a week. Authorities say she submitted or assisted in submitting over 100 false Economic Injury Disaster Loan (EIDL) applications, with at least 36 of them leading to $345,000 in advance payments. Custard also filed 30 fake FEMA disaster claims related to Hurricane Laura (August 2020) and Hurricane Sally (September 2020). Sixteen of those applications were approved, producing about $75,000 in payments. Unemployment Insurance Also Targeted Beyond federal relief programs, Custard allegedly filed over 100 fraudulent unemployment insurance claims across multiple states, including Michigan and Illinois. These applications generated roughly $200,000 in payouts. Federal prosecutors said she not only defrauded the U.S. government but also seven different state agencies. At sentencing, she was remanded into custody immediately. Source 📌 Why It MattersThis case highlights how fraudsters exploit disaster relief programs during national emergencies and underscores the need for robust inter-agency oversight. 📚 Read More from JacobiJournal.com: 📬 Stay informed. Subscribe to JacobiJournal.com for weekly updates on fraud prosecutions, enforcement actions, and regulatory news.