FTX Investor Lawsuit Narrowed Against Tom Brady, Steph Curry
May 9, 2025 | JacobiJournal.com – Miami, FL – FTX Investor Lawsuit: A federal judge has narrowed but not dismissed a lawsuit that seeks to hold celebrities like Tom Brady, Stephen Curry, and Shohei Ohtani accountable for promoting the failed cryptocurrency platform FTX. The investors allege that the celebrity endorsers ignored red flags and secretly accepted millions to serve as FTX brand ambassadors. They claim these actions amounted to a civil conspiracy to defraud customers. Most Claims Dismissed, But Key Allegations Survive On May 8, U.S. District Judge K. Michael Moore dismissed 12 of 14 claims, finding the investors failed to show the celebrities knew FTX was a fraudulent operation. He ruled that accepting payment alone does not prove conspiracy. However, the judge let two claims survive. He found it plausible under Florida law that the defendants helped FTX sell unregistered securities. A related Oklahoma claim was also allowed to proceed. These remaining claims rely on strict liability statutes, which do not require proof of intent or knowledge of wrongdoing. Celebrity Endorsers Still Facing Legal Pressure The lawsuit continues against several high-profile figures, including: Plaintiffs say these endorsers misled the public by promoting FTX without disclosing their compensation or performing proper due diligence. Investors Plan to Expand Lawsuit Adam Moskowitz, who represents the investors, called the ruling a win. He announced plans to file an amended complaint that could include Major League Baseball and Formula 1 Racing as new defendants. Some celebrities, including Shaquille O’Neal and Trevor Lawrence, have already settled. Background: FTX’s Fall and Bankman-Fried’s Conviction FTX Investor Lawsuit: FTX filed for bankruptcy in November 2022. In October 2023, a judge approved a plan to repay customers. Founder Sam Bankman-Fried was convicted of fraud and sentenced to 25 years in prison, though he is currently appealing. The case is being heard in the Southern District of Florida under the title:In re FTX Cryptocurrency Exchange Collapse Litigation, No. 23-md-03076. Source ⚖️ Why It MattersThis case shows that celebrities who promote financial products—especially unregistered securities—may face legal consequences, even if they claim ignorance. It also signals stricter accountability in how influencers promote digital assets. 🔎 Read More from JacobiJournal.com: 📬 Stay InformedSubscribe to JacobiJournal.com for breaking updates on financial fraud litigation, celebrity liability, and regulatory trends shaping white-collar enforcement.
Long Island School District Sues Insurers Over Abuse Allegations
May 8, 2025 | JacobiJournal.com – Bay Shore, NY – Long Island School District: The Bay Shore Union Free School District has filed a federal lawsuit against Hartford Insurance Group and CNA Insurance, accusing the two insurers of refusing to defend and indemnify the district against a wave of sexual abuse lawsuits tied to a former elementary school teacher. Dozens of Claims Spark Legal Action The district faces 45 lawsuits filed by former students under New York’s Child Victims Act (CVA). The lawsuits allege sexual abuse by Thomas Bernagozzi, a teacher who worked from the 1970s through 2000 at Gardiner Manor and Mary G. Clarkson Elementary Schools. Long Island School District Bernagozzi was criminally charged in 2023 for allegedly abusing two students. He has pleaded not guilty. Roughly half of the civil suits have been settled. However, 18 cases remain unresolved—cases for which the district claims Hartford and CNA should provide insurance coverage under general liability policies issued between 1973 and 1982. $35 Million Bond, $25M Verdict Slashed In 2023, Bay Shore approved a $35 million bond to help fund settlements for 12 claims not covered by insurance. Meanwhile, one lawsuit that went to trial resulted in a $25 million jury award to a victim. A judge later reduced that award to $4 million, pending a new trial on damages unless the victim accepts the lower amount. Other claims have been paid through the New York State Insurance Reciprocal (NYSIR). Insurers Accused of Delay Tactics According to the lawsuit filed on May 2 in U.S. District Court for Eastern New York, the district alleges that both insurers have adopted a “wait-and-see” strategy in the wake of the CVA’s passage. The complaint argues that the insurers: Bay Shore contends that this conduct violates the terms of their contracts, as well as New York state insurance and consumer protection laws. Seeking Accountability and Coverage In its suit, Bay Shore requests a declaratory judgment affirming the insurers’ obligation to cover the remaining lawsuits. The district also seeks damages for breach of contract, bad faith, and violations of state business and insurance laws. Officials argue that the insurers are trying to evade financial responsibility despite issuing policies precisely to cover serious liabilities like those now unfolding. Source 📣 Districts and Institutions: Review Your Legacy Insurance Policies This case highlights the importance of reviewing decades-old liability policies and demanding accountability when insurers attempt to avoid responsibility under the CVA or similar survivor rights laws. 🔎 Read More from JacobiJournal.com: ⚖️ Subscribe to JacobiJournal.com for updates on high-stakes insurance litigation, institutional liability, and child protection laws.
Ex-State Trooper Convicted of Bribery and Fraud in CDL Testing Scheme
Boston, MA – Ex-State Trooper, Gary Cederquist, has been convicted on nearly 50 counts for accepting bribes and falsifying commercial driver’s license (CDL) test results. The case reveals a serious breach of public trust and raises concerns about the integrity of CDL licensing in the state. Bribes Exchanged for Fake Passing Scores Ex-State Trooper Cederquist, 59, of Stoughton, accepted illicit payments including a new snowblower and driveway paving in return for issuing fake passing scores to unqualified CDL applicants. Instead of upholding testing standards, he passed at least 17 drivers who had failed their tests — actions that endangered public safety. The conspiracy took place between May 2019 and January 2023, according to federal prosecutors. Cederquist and other troopers used coded text messages, often saying the applicant was “golden,” to signal they had falsely passed someone. In one case, a trooper joked about how poorly a driver performed, but passed them anyway. Prosecutors Condemn Violation of Duty “Cederquist chose bribery and extortion over his oath to protect the community,” said U.S. Attorney Leah Foley. “His actions placed unqualified drivers behind the wheels of heavy vehicles, threatening everyone on the road.” The jury convicted him of conspiracy to commit extortion, honest services mail fraud, and extortion, among other charges. Four co-defendants, including two civilians and two troopers, have already pleaded guilty and are awaiting sentencing. Broader Pattern of Corruption This is not an isolated incident. In recent years, the Massachusetts State Police has dealt with multiple scandals. For instance, 46 troopers from Troop E, which patrolled the Massachusetts Turnpike, were caught falsifying overtime records between 2015 and 2017. They submitted fake traffic citations to justify pay for shifts they didn’t work. Deadly Consequences and Systemic Failures The CDL testing scandal follows a tragic 2019 crash in New Hampshire, where commercial truck driver Volodymyr Zhukovskyy killed seven motorcyclists. At the time, he should have lost his CDL due to a DUI arrest in Connecticut. Although Connecticut officials notified Massachusetts, the license was never suspended due to a backlog in processing such alerts. State Implements Reforms In response to these issues, Massachusetts officials have implemented several reforms: These reforms aim to restore integrity in a system where, in 2022, only 41% of CDL applicants passed — a statistic that underscores the importance of honest testing. Source 🔎 Read More from JacobiJournal.com: 🛡️ JacobiJournal.com – Exposing Fraud, Protecting WorkersStay informed on law enforcement corruption, workers’ comp fraud, and corporate abuse. Bookmark JacobiJournal.com for expert insights and breaking news.
SB 536 Expands Workers’ Comp Fraud Reporting: EDD to Join Enforcement Loop
May 05, 2025 | JacobiJournal.com – California lawmakers are moving to tighten oversight of workers’ compensation premium fraud. SB 536, introduced by Senator Bob Archuleta (D), proposes a significant expansion of reporting requirements and data-sharing permissions under the Workers’ Compensation Insurance Fraud Reporting Act. EDD Added to Fraud Reporting Network Currently, insurers and licensed rating organizations report suspected fraud to local district attorneys and the Department of Insurance Fraud Division. Under SB 536, they would also need to notify the Employment Development Department (EDD). This additional reporting aims to close enforcement gaps. Payroll fraud often overlaps with workers’ compensation fraud, and EDD’s involvement could help detect these schemes earlier. Insurers to Gain Limited Access to Payroll Records For the first time, SB 536 would allow insurers and rating organizations to request payroll data from EDD. This data could help verify suspected premium fraud. However, there are limits. The bill clearly states that personal identifying information must remain confidential. Insurers can only share data with law enforcement when submitting a formal fraud referral. This ensures that investigations are balanced with worker privacy. Improving Investigations While Preserving Rights By giving investigators access to more complete data, SB 536 aims to improve fraud detection. At the same time, it reinforces safeguards to protect workers’ personal information. The bill is set for a hearing in the Senate Appropriations Committee on May 12, 2025. If passed, it could enhance fraud prevention and reduce premium inflation for honest employers. Official Document 🔎 Read More from JacobiJournal.com: ✅ Stay Ahead of Workers’ Comp Policy Shifts Bookmark JacobiJournal.com for expert coverage of legislative developments, fraud enforcement cases, and policy reform that affect California’s workers’ compensation landscape. From court rulings to committee hearings, we keep professionals informed and prepared.
Court Rejects Carpool Exception to Going-and-Coming Rule, No Liability Found
May 02, 2025 | JacobiJournal.com Court Rejects Carpool Exception: In a recent appellate decision, a California court ruled that the “going-and-coming rule” still applies when an employee carpools to work in a privately arranged ride with a colleague—even when that colleague receives a nominal travel stipend from the employer. Background: The Going-and-Coming Rule Under California workers’ compensation and liability law, the going-and-coming rule generally exempts employers from liability for employee injuries or torts that occur during the employee’s commute to and from work. Exceptions to this rule do exist, particularly when the commute is within the scope of employment or when the employer benefits from the transportation. Case Details The case involved an employee who was injured in a car accident while carpooling with a co-worker. The co-worker had coordinated the carpool arrangement informally and received a modest stipend from the employer intended to encourage carpooling and reduce parking congestion. However, the court found that the stipend did not transform the co-worker into an agent of the employer, nor did it constitute sufficient employer control to make the carpool trip fall under the course of employment. Court’s Reasoning Court Rejects Carpool Exception, The panel emphasized that the employer neither mandated the carpool nor exercised control over the transportation. Therefore, the injury sustained during the commute remained outside the scope of employment. The court declined to extend liability under the exception to the going-and-coming rule, noting that doing so would significantly blur the boundary between personal and work-related travel. This decision reaffirms longstanding precedent that voluntary carpools typically do not qualify for exceptions to the going-and-coming rule—even when small employer incentives are involved. Source 🔎 Read More from JacobiJournal.com: ✅ Stay Current on Workers’ Comp Law Want to stay ahead of legal developments in employment and workers’ compensation? Visit JacobiJournal.com for detailed case law analysis, fraud updates, and court rulings that matter to legal, insurance, and HR professionals.
Fired State Employees Exposed Personal Data of 33K Texans
May 1, 2025 | JacobiJournal.com – AUSTIN, TX – Fired State Employees Exposed Personal Data of 33K Texans: Late Wednesday, the Texas Health and Human Services Commission (HHSC) notified 33,529 recipients of state benefits that fired state employees had improperly accessed their private information. This latest announcement follows an ongoing investigation into breaches involving state employees who accessed Medicaid, food stamp, and other assistance programs’ data. Three months ago, the agency notified 61,104 Texans about the breach of their personal information by state employees. Seven employees were fired at that time, including two who had stolen from recipients’ food stamp cards. State Employees Involved in Data Breaches In February, HHSC notified lawmakers that two more employees had been fired, raising the total to nine employees who accessed individuals’ accounts without legitimate reasons. These employees are now responsible for breaching the personal data of another 33,529 account holders who applied for or received assistance between June 2021 and January 2025. HHSC has not yet determined how many of those individuals had their benefits compromised. Fired State Employees Exposed Personal Data of 33K Texans Recommendations for Affected Texans HHSC urges affected individuals to carefully review their accounts and examine statements from health care providers, insurance companies, and financial institutions to ensure that their account activity is correct. They should report any questionable charges to the respective provider and notify law enforcement promptly. The agency recommends that Supplemental Nutrition Assistance Program (SNAP) recipients check their Lone Star Card transactions for fraudulent activity. Individuals can do this by visiting YourTexasBenefits.com or using the mobile app. If they suspect SNAP fraud, they should call 2-1-1, select a language, and choose option 3 to report the fraud to the Texas Health and Human Services Office of the Inspector General. Affected individuals should also contact law enforcement and visit a local HHSC benefits office to replace their stolen benefits. Details of the Breach and Available Resources HHSC reports that the compromised data includes full names, addresses, phone numbers, dates of birth, email addresses, Social Security numbers, Medicaid and Medicare identification numbers, and other personal information. The agency offers two years of free credit monitoring and identity theft protection services to those affected. Individuals can also call 866-362-1773, using engagement number B139792, for further assistance. Contractor Employee Terminated Over Improper Access HHSC has notified one of its contractors, Maximus, about an employee suspected of misusing personal data from HHSC’s systems. Maximus terminated the employee for improperly accessing protected health information of Texans enrolled in state benefits between May 8, 2023, and February 28, 2025. The HHSC Office of the Inspector General is conducting an investigation into these data breaches. For more information, visit the Texas Tribune. 🔎 Read More from JacobiJournal.com: Stay Informed with JacobiJournal.com Get the latest updates on workers’ compensation fraud and other critical industry news. Stay ahead by reading more insightful articles and case analyses on 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.
Heritage Sues Adjuster for Libel Over ’60 Minutes’ Report
April 30, 2025 | JacobiJournal.com – Heritage Sues Adjuster for Libel Over ’60 Minutes’ Report TAMPA, FL — Heritage Sues Adjuster: Heritage Property & Casualty Insurance Co. has filed a libel and defamation lawsuit against independent adjuster Jordan Lee, just weeks after his appearance on 60 Minutes accusing Heritage of manipulating hurricane damage reports. Lee’s attorney, John Tolley, fired back, calling the lawsuit a retaliatory strike against whistleblowers. “Jordan Lee acted courageously to shine a light on systemic misconduct,” Tolley said. “This lawsuit is an attack not just on him, but on every Floridian who relies on fair insurance practices after a disaster.” Lee’s Allegations: Altered Estimates and Silenced Voices In a September 2024 broadcast of 60 Minutes, Lee claimed that Heritage and other insurers routinely slashed independent adjusters’ damage estimates to minimize claim payouts after Hurricane Ian. “I handled 46 of them; 44 of them were changed,” Lee told CBS. Some claims, he said, were reduced by as much as 98%. The controversy began in late 2022 when Lee and two other adjusters testified before a Florida House committee, accusing insurers of altering their reports without consent. The revised reports made it appear as though the original adjusters had recommended the lower figures. Heritage’s Side: Inflated Claims and Alleged Misconduct Heritage responded by filing a complaint in Hillsborough County Circuit Court, alleging that Lee deliberately inflated estimates to increase his commission-based compensation. The suit also claims that Lee violated policy guidelines by favoring replacement costs over repairs and failing to document damage properly. According to Heritage’s complaint, “When his misconduct was uncovered and his estimates were corrected, Defendant did not receive the compensation he expected. Consequently, Defendant returned to Texas and began falsely and publicly alleging that Plaintiff intentionally reduced his estimates.” The insurer argues that a third-party administrator had to spend considerable time revising Lee’s reports to align them with actual damage, policy terms, and coverage limits. Legal Experts and Whistleblower Concerns Despite Heritage’s assertions, legal experts view the lawsuit with skepticism. Bob Jarvis, a law professor at Nova Southeastern University, said the suit likely aims to intimidate rather than win. “This lawsuit will bankrupt Jordan Lee, even if he wins,” Jarvis stated. “The message is clear: whistleblowers beware.” Tolley agreed, calling it a “blatant attempt to silence and punish not only Jordan but other potential whistleblowers for doing or attempting to do the right thing.” Financial Fallout and Ongoing Investigations Following the 60 Minutes segment, Heritage’s stock dipped sharply. However, it has since rebounded, reaching a nine-year high, according to Yahoo! Finance. In 2022, Florida’s then-Chief Financial Officer Jimmy Patronis promised an investigation into insurer practices related to Hurricane Ian claims. As of now, that investigation has not produced any public findings. Heritage CEO Ernie Garateix responded to the initial wave of allegations last fall, saying: “Third-party field adjusters, like Jordan Lee, always have to collaborate with those higher up. The company Lee worked for during Hurricane Ian is no longer in business.” He also clarified that some desk adjuster names were omitted from final reports due to software issues, and that some revised estimates actually increased, benefiting homeowners. What’s Next Attorney Gregory Kehoe of Greenberg Traurig is representing Heritage. He declined to comment on the pending litigation. Tolley has not yet filed a formal answer or motion to dismiss. The Heritage lawsuit accuses Lee of libel, slander, defamation, and fraud, and seeks monetary damages and legal fees. The amended complaint can be seen here. 🔎 Read More from JacobiJournal.com: 📢 For the latest updates on legal settlements, disaster recovery, and insurance fraud, visit JacobiJournal.com.
Cargo Theft Surges in 2024, Led by California, Texas, and Florida
New GearTrack and CargoNet Report Highlights Evolving Tactics and Hotspots Cargo Theft Surges in North America, with California, Texas, and Florida accounting for more than half of all incidents in 2024, according to a newly released report by GearTrack and Verisk’s CargoNet. These states alone made up 54% of all reported thefts, as organized crime groups target key logistics corridors and multimodal hubs. Multimodal Hubs and Ports Under Threat The report highlights ongoing risks around California and Texas freight corridors, as well as near Chicago’s intermodal facilities. Additionally, Florida ports are seeing a concerning uptick in activity, underscoring the broader vulnerability of high-traffic freight routes. Thieves are increasingly drawn to high-volume shipping points where goods are temporarily staged, loaded, or in transit. As a result, companies moving freight through these areas face growing exposure to losses. High-Value Goods Are Top Targets While nearly all types of cargo face risk, several categories have emerged as especially attractive to criminals: These categories are favored not only for their market value but also due to their ease of redistribution and resale. Organized Crime Adopts Sophisticated Tactics Cargo Theft Surges: The report also emphasizes how organized theft groups are deploying more advanced schemes to avoid detection and maximize returns. Strategies now include: This evolving threat landscape highlights the need for real-time intelligence and enhanced verification processes. Industry Collaboration Offers New Tools for Prevention In response, GearTrack and CargoNet have partnered to provide 24/7 cargo recovery support and access to Verisk’s theft and fraud analytics tools. The collaboration will also launch the GearTrack Cargo Security Index, a monthly digest powered by CargoNet’s data to track national and regional theft patterns. “Through this partnership, customers will gain timely risk alerts and actionable insights,” the report notes, adding that real-time data can help logistics providers respond faster and adapt to new threat vectors. 📢 Read More from JacobiJournal.com: 🔍 Stay informed on cargo security, fraud trends, and insurance insights. Visit JacobiJournal.com for weekly updates and expert analysis.
Labor Organization Owners Sentenced in Union Fraud Scheme
Labor Organization Owners Sentenced: Federal court sends clear message in white-collar embezzlement case April 14, 2025 | JacobiJournal.com – TTwo Southern California labor organization owners will serve time in federal prison after admitting to a fraud scheme that embezzled more than $500,000 in union funds. This case marks another aggressive move by federal authorities to confront white-collar corruption in labor institutions. Fraud Scheme Diverted Union Funds for Luxury and Travel According to the U.S. Department of Justice, the defendants ran a labor nonprofit allegedly dedicated to protecting workers’ rights. However, investigators uncovered that the organization was used as a front to finance personal luxuries. They diverted funds toward extravagant travel and high-end purchases, betraying the trust of union members in the process. Labor Organization Owners Sentenced Falsified Invoices and Shell Companies Used to Conceal Theft To mask the scheme, the pair falsified financial records, created fake invoices, and routed money through shell companies. These tactics were aimed at avoiding detection while continuing to misuse union funds. Prosecutors emphasized the significance of the betrayal, noting that such actions undermine confidence in legitimate labor movements. Federal Sentencing Underscores Severity Following a thorough investigation and prosecution, both individuals received multi-year federal prison terms and were ordered to pay restitution. The court’s decision sends a firm message: those who exploit positions of public trust, especially within labor organizations, will face serious consequences. Heightened Scrutiny for Union Oversight This case is part of a broader federal effort to increase oversight of labor organizations. As government agencies ramp up enforcement, unions are being urged to adopt tighter compliance measures and improve financial transparency. 📌 Employers and union representatives should review internal controls regularly to avoid costly liability or legal exposure. Read More from JacobiJournal.com: 🔍 Stay informed about union fraud, compliance enforcement, and insurance-related legal actions at JacobiJournal.com. Subscribe for updates that matter to employers, investigators, and compliance professionals.