Investment Fraud Tops List: FTC Reports Consumers Lost $12.5 Billion to Scams in 2024
Investment Fraud Tops List: Consumers lost over $12.5 billion to scams in 2024, a 25% increase from 2023, according to Federal Trade Commission (FTC) data. Despite 2.6 million fraud reports, the percentage of consumers reporting financial losses rose from 27% in 2023 to 38% in 2024. Investment scams caused the most losses, totaling $5.7 billion, followed by imposter scams at $2.95 billion. Investment Scams Lead in Losses Scams saw a 24% increase in losses as scammers targeted consumers with fraudulent investment schemes. Bank transfers and cryptocurrency were the most common payment methods. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, warned, “Scammers are evolving. Consumers must stay vigilant.” FTC Returns $25 Million to Victims Investment Fraud Tops List: The FTC is issuing $25.5 million in refunds to consumers tricked into purchasing unnecessary computer repair services from Restoro Cyprus Limited and Reimage Cyprus Limited. The FTC accused the companies of using deceptive marketing tactics to exploit consumers. Following a settlement order, both companies are banned from misrepresenting security issues or engaging in deceptive telemarketing. Biggest Increases in Scam Losses The largest losses came from: Contact Methods Used by Scammers Scammers contacted victims most often via email, followed by phone calls and text messages. The FTC urges consumers to report suspicious activities on its website to aid future investigations. Stay Updated on Consumer Fraud Trends For the latest news on consumer protection and financial fraud, visit JacobiJournal.com. Read More: Source: FTC.gov
Minnesota Bill Targets AI-Generated Deepfake Pornography
A Minnesota bill aims to combat AI-generated deepfake pornography by cracking down on companies that provide “nudification” technology. The legislation, introduced by Democratic Sen. Erin Maye Quade, would impose civil penalties of up to $500,000 on websites and apps that allow users in Minnesota to generate explicit fake images. Why Advocates Say the Law Is Needed Supporters argue the law is necessary because AI deepfake technology has evolved rapidly, making it easy to create realistic, nonconsensual explicit content. Molly Kelley, a Minnesota woman, testified that someone she knew used AI to generate fake nude images of her and at least 80 other women, all with ties to the offender. “It’s not just about the distribution of these images—it’s the fact that they exist at all,” Maye Quade emphasized. State and Federal Efforts to Regulate AI Deepfakes Minnesota’s proposal aligns with growing nationwide efforts to regulate AI-generated sexual content. The U.S. Senate recently passed a bill requiring social media platforms to remove nonconsensual AI-generated explicit images within 48 hours. Meanwhile, states like Kansas, Florida, and New York are introducing legislation to criminalize AI-generated child exploitation material. AI-Generated Deepfake Legal and Constitutional Challenges Despite the bill’s intentions, AI law experts warn it may face constitutional challenges under the First Amendment. Riana Pfefferkorn of Stanford University notes that restricting content creation—rather than distribution—could conflict with existing federal internet laws. However, Maye Quade insists her bill is legally sound. “This technology is inherently harmful. Tech companies cannot keep unleashing it without consequences.” Stay Updated on AI Regulation For the latest updates on AI and digital privacy laws, visit JacobiJournal.com. Read More:
CFPB Drops Lawsuit Against Major Banks Over Alleged Zelle Fraud
Alleged Zelle Fraud: The Consumer Financial Protection Bureau (CFPB) has dismissed its lawsuit against JPMorgan Chase, Bank of America, Wells Fargo, and Zelle’s parent company, marking another Biden-era case abandoned by the agency. The lawsuit alleged that the banks’ lack of safeguards turned the payment network into a “gold mine for fraudsters.” Alleged Zelle Fraud: Banks Welcome the Decision The lawsuit, filed late last year, accused the financial institutions of rushing Zelle’s rollout without proper fraud protections, leaving victims with little recourse. However, banks pushed back, arguing the case was baseless. A Zelle spokesperson stated, “This lawsuit was without merit and legally and factually flawed.” A Shift in CFPB Enforcement Alleged Zelle Fraud This move follows the CFPB’s recent dismissal of cases against Capital One, Rocket Cos., and fintech lender SoLo Funds. The agency’s enforcement approach is shifting ahead of President Donald Trump’s nominee, Jonathan McKernan, taking charge. Stay Updated on Financial Regulations For ongoing coverage of banking and consumer protection, visit JacobiJournal.com. Read More: Source: Here
Birth Injury Compensation Fund Executive Sentenced to 9 Years for $6.7M Embezzlement
Embezzlement: A former financial executive of Virginia’s Birth-Related Neurological Injury Compensation Program has been sentenced to nine years in prison for embezzling more than $6.7 million intended for families of infants with birth-related disabilities. Luxury Spending and Financial Misconduct Embezzlement John Hunter Raines, the program’s former chief financial officer and deputy director, exploited his position to transfer funds into personal accounts. Prosecutors detailed extravagant spending, including luxury golf carts, a Chevrolet Suburban, private jet travel, gambling, and precious metals. Raines also funneled money toward his mortgage, student loan debt, and payments to his wife and an intimate partner. Embezzlement Obstruction of Audits and Delayed Oversight In addition to financial fraud, Raines obstructed legally required audits by withholding critical financial records, delaying oversight efforts for more than three years. His actions directly impacted funds meant to cover medical care, rehabilitation, and essential services for families. Legal Proceedings and Sentencing Embezzlement Raines pleaded guilty to mail fraud and money laundering on October 8, 2024. The Virginia Birth-Related Neurological Injury Compensation Program issued a statement condemning the breach of trust, emphasizing that the stolen funds could have supported families in need. Stay Updated on Financial Crimes For more coverage on fraud cases and financial misconduct, visit JacobiJournal.com. Read More:
Fertilizer Manufacturer Fined $400K After Worker Dies from Toxic Gas Exposure
Pasco, WA – Fertilizer Manufacturer Fined $400K: The Washington State Department of Labor & Industries (L&I) has fined Two Rivers Terminal LLC $394,200 for safety violations that led to a worker’s death at its Pasco facility. The fertilizer manufacturer failed to implement critical safety measures, resulting in a preventable tragedy. Worker Dies from Toxic Hydrogen Sulfide Exposure On June 7, 2024, surveillance footage captured Viktor Voloshin, 56, entering a tanker truck to clean it. Toxic hydrogen sulfide gas from fertilizer residue filled the enclosed space, leading to his sudden death. Voloshin, a dedicated employee of 11 years and father of 12, lost his life due to the company’s failure to enforce proper safety protocols. Company’s History of Safety Violations Fertilizer Manufacturer Fined $400K: L&I cited Two Rivers Terminal for multiple willful and repeat violations, including a lack of air monitoring, inadequate ventilation, and failure to provide protective gear. This isn’t the company’s first penalty. It previously faced fines totaling $672,320, which remain under appeal. Now, the company is also contesting the latest penalties, despite its longstanding history of safety infractions. Where Do the Fines Go? The fines will be directed to the workers’ compensation supplemental pension fund, which provides financial support for injured workers and their families. Stay Updated on Workplace Safety & Legal Actions For more in-depth coverage on worker safety violations, corporate negligence, and labor laws, visit JacobiJournal.com. Read More: Former Florida Broker and Others Indicted in Major Insurance Fraud Schemes Former Ohio Insurance Agent Sentenced for $1.4M Fraud Scheme Florida Contractor Sentenced for Workers’ Compensation Fraud After Fatal Fall Detroit Man Jailed for $1M Unemployment Fraud Targeting Multiple States Source: Washington State Department of Labor & Industries
Out of Bounds for Workers Compensation: Frito-Lay Employee’s Injury Denied Coverage
Out of Bounds for Workers Compensation: Richmond, VA – A Frito-Lay forklift driver who tore his Achilles tendon during a company basketball game won’t receive workers’ compensation benefits, as ruled by the Virginia Workers’ Compensation Commission (VWCC). The commission determined that his voluntary participation in an off-duty, off-premises event does not meet the legal requirements for coverage. Why the Workers’ Comp Claim Was Denied Under Virginia workers’ compensation law, injuries are only compensable if they occur “in the course of employment.” The law excludes injuries from voluntary, employer-sponsored recreational activities that are not part of an employee’s job duties. The VWCC applies three key principles to determine if a recreational activity qualifies as work-related: In this case, the basketball tournament failed to meet these conditions. Frito-Lay’s Role in the Tournament Frito-Lay covered the entry fees for two teams and posted sign-up sheets at its warehouse. Employees with basketball experience were chosen to participate. While some players felt a sense of pride, the company did not require participation, sponsor the event, or offer compensation. Additionally: Employee Morale and Public Relations: Not Enough for Compensation The commission also ruled that the event did not significantly impact employee morale. Out of 500 employees, only a few participated. Furthermore, the primary beneficiary of the tournament was a local free clinic, not the company itself. Although positive public relations may have been a factor, it did not make the tournament a core part of employment. Since participation was completely voluntary, the claim fell out of bounds for workers’ compensation. Stay Informed on Workers’ Compensation Cases For more legal updates on workers’ rights, workplace injury claims, and employer liability, visit JacobiJournal.com. Read Other Articles:📌 Maryland Woman Scams USAA for $58K—Then Tries Again📌 Tennessee Gynecologist Charged with Fraud and Unnecessary Medical Procedures📌 Iowa Sues Bitcoin Depot and CoinFlip Over Millions Lost in Crypto Scams 🔗 Source: Virginia Workers’ Compensation Commission
Iowa Sues Bitcoin Depot and CoinFlip Over Millions Lost in Crypto Scams
Des Moines, IA – Iowa Attorney General Brenna Bird has filed lawsuits against Bitcoin Depot and CoinFlip, the state’s largest cryptocurrency ATM operators, accusing them of facilitating millions in fraud. According to the lawsuits, the companies failed to prevent scams, allowing Iowans—particularly seniors—to transfer large sums to fraudsters through their kiosks. State Investigation Uncovers Widespread Crypto Scams In October 2023, the Attorney General’s office launched a groundbreaking investigation into cryptocurrency ATM operators. Officials subpoenaed 14 companies, requesting a list of Iowans who had transferred money through the machines. Investigators then contacted these individuals, reviewed complaints, police reports, and self-reported scams. The findings were alarming: Hundreds of Iowans sent over $20 million through Bitcoin Depot and CoinFlip ATMs within less than three years. Most victims were over the age of 60. Attorney General Calls Out “Evil” Scammers Attorney General Bird condemned the scammers, stating: “Con artists are evil and will stop at nothing to steal everything you have. They specifically target older Iowans—some even comb through obituaries to find widows. They manipulate victims into using crypto ATMs, while these companies take a cut of the profits. It’s not just wrong—it’s illegal.” Bird emphasized her commitment to recovering stolen funds and forcing crypto ATM companies to implement safeguards. How Bitcoin Depot and CoinFlip Profit From Scams The investigation revealed that Bitcoin Depot pockets 23% of each transaction, while CoinFlip takes 21%—directly profiting from fraud victims. The lawsuits allege that both companies: Lawsuits Aim to Protect Iowans from Future Fraud Attorney General Bird is suing both companies for consumer fraud and demanding major changes in their operations. The broader investigation into crypto ATM companies remains ongoing. Stay Updated on Consumer Protection Cases For the latest news on financial fraud and consumer protection, visit JacobiJournal.com. Stay informed and safeguard your hard-earned money.
Tennessee Gynecologist Charged with Fraud and Unnecessary Medical Procedures
Memphis, TN – Fraud and Unnecessary Medical Procedures: Federal authorities have charged Dr. Sanjeev Kumar, a Memphis-based gynecologist, with health care fraud and misconduct. Prosecutors allege that he performed unnecessary medical procedures using unsanitary, re-used devices. He now faces multiple charges, including adulterating and misbranding medical devices and persuading patients to cross state lines for illegal sexual activity. Serious Allegations of Medical Misconduct From September 2019 to June 2024, Kumar subjected female patients to unnecessary procedures. Investigators claim he re-used medical devices that should have been discarded or sterilized. Furthermore, he failed to inform patients and falsely billed Medicare and Medicaid, pretending to have used new, sanitary equipment. Fraud and Unnecessary Medical Procedures One of Tennessee’s Top-Paid Medicare Providers Kumar ranked as Tennessee’s highest-paid provider for hysteroscopy biopsies, a procedure used to examine the uterus. Given the scope of his practice, authorities suspect additional patients may have been affected and urge them to come forward. Authorities Condemn Abuse of Medical Trust Acting U.S. Attorney Kevin Ritz strongly criticized Kumar’s actions, stating: “The allegations suggest Kumar acted as a predator in a white coat, using medical exams as a cover to exploit patients and enrich himself.” Ongoing Investigation and Legal Proceedings At this point, Kumar has not responded to requests for comment. His legal representation remains unclear. Federal investigators continue to gather evidence and encourage potential victims to share their experiences. Stay Informed on Medical Fraud Cases For the latest updates on health care fraud and patient safety, visit JacobiJournal.com. Stay informed and protect your rights.
Maryland Woman Scams USAA for $58K—Then Tries Again
Maryland Woman Scams USAA: A Maryland woman defrauded USAA Insurance out of $58,000 using fake invoices and internet photos. When she attempted a second scam for more than $124,000, investigators uncovered her scheme. First Fraudulent Claim: $58K Payout In 2020, Rhonda K. Jackson, 39, of Upper Marlboro, also known as Rhonda Powell, filed a false insurance claim. She reported severe water damage from a broken pipe in her rented home, claiming losses on furniture, electronics, and clothing. As a result, USAA paid her $58,373. However, she never informed her landlord about the supposed leaks. Moreover, the invoices and receipts she submitted were fabricated or altered. Despite this, USAA processed her claim without immediate suspicion. Second Attempt: A $124K Mistake Maryland Woman Scams USAA: In 2022, Jackson tried again, filing a new claim for $124,034. This time, USAA became suspicious and denied her request. Upon further review, they found that she had recycled fake documents and used photos from the internet to support her claim. Consequently, the insurer referred the case for investigation. Investigation and Sentencing After a thorough inquiry by the Maryland Attorney General’s Office, Insurance Administration Investigator Edward Spragg, and Forensic Auditor Suzzanne Jones, authorities charged Jackson with felony insurance fraud. In October 2024, she pleaded guilty. Judge Lawrence Hill sentenced her to five years in prison, though he suspended all but 45 days. Additionally, she must repay $58,737 in restitution to USAA. Key Takeaway: Fraud Doesn’t Pay This case serves as a warning to those attempting insurance fraud. Insurers are increasing their fraud detection efforts, and individuals who submit false claims may face serious legal consequences. For more fraud prevention news, visit JacobiJournal.com. Read the full statement from the Maryland Attorney General’s Office here.
Detroit Man Sentenced in $1 Million Unemployment Fraud Scheme
A Detroit man has been sentenced to 51 months in prison for orchestrating a multi-state unemployment fraud scheme that stole nearly $1 million from government programs meant to assist struggling workers during the COVID-19 pandemic, officials announced. How the Fraud Unfolded According to court records, Tracey Dotson, 49, along with his co-conspirator, used stolen personal information to submit hundreds of fraudulent unemployment claims. Consequently, they funneled money from Michigan, Pennsylvania, and Maryland’s unemployment insurance programs into their own pockets. To access the stolen funds, they arranged for prepaid Bank of America debit cards—loaded with Pandemic Unemployment Assistance (PUA) funds—to be mailed to addresses in Michigan and Pennsylvania. Then, they swiftly withdrew and spent the money before authorities could detect the fraud. Unemployment Fraud Scheme Luxury Spending and Illegal Purchases Instead of using the funds legitimately, Dotson and his group spent more than $930,000 on designer clothing from Gucci and Louis Vuitton, high-end jewelry, drugs, a vehicle, and even a firearm. Meanwhile, thousands of deserving individuals struggled to receive assistance. Legal Consequences In April 2024, Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud. Consequently, U.S. District Judge Matthew F. Leitman sentenced him to 51 months in prison and ordered him to pay over $900,000 in restitution. Ongoing Investigation and Broader Crackdown Authorities, including the FBI, IRS-Criminal Investigation, and the Department of Labor’s Office of Inspector General, continue to investigate similar fraudulent activities. The government remains committed to prosecuting those who exploit public assistance programs. For more updates on financial crimes and fraud prevention, visit JacobiJournal.com. Read the full DOJ statement here.