Bid Rigging at Foreclosure Auctions

News release from the FBI, Sacramento Division:

California Investor Pleads Guilty to Bid Rigging and Fraud at Public Real Estate Foreclosure Auctions
Ninth Guilty Plea in the Investigation to Date

U.S. Attorney’s Office January 27, 2012

Eastern District of California (916) 554-2700

— filed under: Fraud, Press Release, Sacramento Top Stories

SACRAMENTO, CA—A real estate investor pleaded guilty today in U.S. District Court in Sacramento to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions held in San Joaquin County, Calif., Sharis A. Pozen, Acting Assistant Attorney General of the Department of Justice’s Antitrust Division, and Benjamin B. Wagner, U.S. Attorney for the Eastern District of California, announced.

Kenneth A. Swanger pleaded guilty to conspiring with a group of real estate speculators who agreed not to bid against each other at certain public real estate foreclosure auctions in San Joaquin County. The primary purpose of the conspiracy was to suppress and restrain competition and to obtain selected real estate offered at San Joaquin County public foreclosure auctions at noncompetitive prices, the department said in court papers.

According to the court documents, after the conspirators’ designated bidder bought a property at a public auction, they would hold a second, private auction, at which each participating conspirator would bid the amount above the public auction price he or she was willing to pay. The conspirator who bid the highest amount at the end of the private auction won the property. The difference between the price at the public auction and that at the second auction was the group’s illicit profit. The illicit profit was divided among the conspirators in payoffs. According to his plea agreement, Swanger participated in the scheme beginning in or about June 2009 until in or about October 2009.

To date, nine individuals, including Swanger, have pleaded guilty in U.S. District Court for the Eastern District of California in connection with the investigation. They are: Anthony B. Ghio; John R. Vanzetti; Theodore B. Hutz; Richard W. Northcutt; Yama Marifat; Gregory L. Jackson; Walter Daniel Olmstead; and Robert Rose. In addition, four other investors, Wiley C. Chandler, Andrew B. Katakis, Donald M. Parker and Anthony B. Joachim, and one auctioneer, W. Theodore Longley, were indicted by a federal grand jury in Sacramento on Dec. 7, 2011.

“This type of illegal scheme undermines the transparency and integrity of the competitive market for residential real estate. Today’s guilty plea sends a clear message that the Department of Justice does not tolerate anticompetitive conduct that harms consumers,” said Acting Assistant Attorney General Pozen. “The Antitrust Division will continue to work with its law enforcement partners to prosecute the perpetrators of anticompetitive schemes in public real estate foreclosure auctions in the Sacramento area and into northern California.”

“The Department of Justice is bringing greater scrutiny to auctions of foreclosed properties as part of our effort to root out fraud in the real estate industry in all its forms,” said U.S. Attorney Wagner. “The days when a few players could rig these auctions for their own benefit are ending.”

Swanger pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine. Swanger also pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine.

These charges arose from an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office. Trial attorneys Anna Pletcher and Tai Milder from the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Russell L. Carlberg are prosecuting the case.

Today’s charges are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the task force is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner. For more information on the task force, visit www.StopFraud.gov.

Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.

Small Business Summits

From the U.S. Dept. of Energy:

Tuesday, January 31, 2012

At the Department of Energy, our job is to reduce barriers as you develop your small business. We aim to connect you to resources you need to access federal procurement opportunities. In the past, we've done this in part through our Annual Small Business Conference & Expo, bringing thousands of people together at once to give a national perspective about doing business with us. This year we decided to make a change to our conference program — instead of holding a single national conference, we are spreading out across the country, partnering with our National Laboratories and field sites to bring Small Business Summits to you. Visit our summit website to learn more. Each summit is designed to bring small business owners, U.S. Department of Energy procurement experts, and local liaisons together to talk about the best ways we can partner with the small business community. At regional Small Business Summits, you'll hear localized information about doing business with the Department's Laboratories and field sites, connecting you to the 85 percent of our procurement dollars that are obligated to Facility Management Contractors. Stay tuned for additional emails from us for updates on dates, times, locations, and other news about the new Small Business Summits. Questions? Get in touch with us at smallbusiness@hq.doe.gov

Startups Offered Up to $60K in Cloud Services on Windows

News release from Microsoft:

News Press Release

TechStars and Microsoft BizSpark Team Up to Offer Startups $60,000 in Cloud Services on Windows Azure

TechStars taps Microsoft BizSpark Plus to give startups a head start.

BOULDER, Colo. — Jan. 30, 2012 — TechStars, recently recognized as the No. 1 startup accelerator in the world, and Microsoft Corp. are working together to help startups fast-track their businesses. TechStars today announced an enhanced relationship with Microsoft through the new BizSpark Plus program for accelerators and incubators. The enhanced program allows TechStars accelerators in Boulder, Colo.; Boston; New York; Seattle; and Texas to offer each of their startups up to $60,000 (U.S.) of Windows Azure compute and storage over a 24-month period, at no cost. BizSpark Plus is an extension of the Microsoft BizSpark program, designed to accelerate the success of startups around the world. BizSpark Plus works through select incubators and accelerators such as TechStars to provide value-added products and services to high-potential startups. In addition to offering this to TechStars, Microsoft is making this offer available to all founders whose accelerator is part of the Global Accelerator Network, a network of nearly 40 high-quality accelerators from around the world that follow a model similar to TechStars. “Our passion is helping startups succeed around the world by providing funding and mentorship from the best and brightest Internet entrepreneurs and investors on the planet. The enhanced relationship with Microsoft will allow us to provide our founders with even more valuable support and services,” said David Cohen, founder and CEO of TechStars. “Access to technologies such as Windows Azure and other software and services from Microsoft through the BizSpark Plus program gives our companies a leg up in the all-encompassing race to scale and succeed.” TechStars has a wealth of experience working with tech startups around the world that are building products and services in the cloud. Cloud applications and smart devices are driving the new startup ecosystem, affording startups the ability to drive user adoption, scale their companies and generate financial returns with far less capital and much more quickly than ever before. Windows Azure offers a simple, comprehensive and powerful platform for the creation of Web applications and services. “TechStars is a great partner with a proven track record of attracting world-class startups. We are excited at the opportunity to work together to help startups when they need it most, with the products, resources and connections they need the most,” said Dan’l Lewin, corporate vice president, Strategic and Emerging Business Development, Microsoft. “Working with entrepreneurs on the forefront of the cloud revolution is especially rewarding. Windows Azure is a powerful, integrated platform, making it easy for startups to get their services up and running quickly with minimal overhead. This is the first offer from our new BizSpark Plus program, and we look forward to supporting TechStars members across a number of markets and technology offerings.” About TechStars TechStars (www.techstars.com) is an elite mentorship-driven start-up accelerator, recently recognized as the No. 1 accelerator program. Founded in 2006, the TechStars philosophy focuses on deep mentorship, and surrounding a small number of companies with highly engaged members of the entrepreneurial ecosystem to coach and support them to success. The TechStars community currently includes more than 300 mentors, more than 1,500 investors and over 120 alumni TechStars companies. TechStars currently operates five programs each year in Boulder, Boston, Seattle, Texas, and New York. TechStars is funded by more than 50 venture capital firms and 25 angel investors. Information on applying to TechStars can be found at www.techstars.com/apply. About Global Accelerator Network The Global Accelerator Network (www.joingan.com) consists of almost 40 high quality independently owned and operated organizations from around the world that utilize a mentorship-based startup accelerator model. It provides networking opportunities, training, special perks, and ongoing support for members of the network. TechStars led the effort to form the Global Accelerator Network in 2010 as part of the White House’s Startup America Initiative. In the spirit of supporting more entrepreneurs around the world, the Network’s mission is to ensure that 5,000 successful and experienced entrepreneurs and investors will mentor and support 6,000 promising young entrepreneurs. The goal is to increase their success rate tenfold and create 25,000 new jobs by 2015 as well as a sustained engine for growing these figures over time. About Microsoft BizSpark Microsoft BizSpark is a global program that helps software startups succeed. With more than 45,000 startups from 100 countries in the program and a global network of 2,300 BizSpark partners, Microsoft provides great business value to young technology companies around the world. The program provides a wide range of Microsoft technology, technical and business expertise, and enhanced market visibility. BizSpark Plus is an extension of the foundational BizSpark program, providing higher-value offerings through a network of leading regional incubators and accelerators around the world. More information is available at http://www.microsoft.com/bizspark. About Microsoft Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

New Software for Influx of Mobile Devices to Workplace

News release from IBM:

IBM Announces New Software to Secure the Influx of Mobile Devices to the Workplace

New York-based School System Looks to Mobile Management; New Software Secures Smartphones and Tablets for Apple iOS, Android, Symbian and Windows

---

ARMONK, N.Y. - 31 Jan 2012: IBM (NYSE: IBM) today introduced new software to help organizations better manage and secure the explosion of smartphones and tablets in the workplace, while also managing laptops, desktops and servers.

In addition to the new mobile security and management software introduced today, IBM also announced the acquisition of Worklight. Worklight accelerates IBM’s comprehensive mobile portfolio, which is designed to help global organizations leverage the proliferation of all mobile devices -- from laptops to smartphones and tablets.

As the mobile workforce is expected to reach more than 1.19 billion by next year, there are new pressures to connect personal smartphones and tablets to corporate networks and provide employee access to business data on them. At the end of 2011, almost half of mobile devices used in the workplace were employee owned according to IDC. This “Bring Your Own Device” (BYOD) trend raises additional concerns about managing security risks. Mobile exploits doubled in 2011 from 2010, according to the IBM X-Force Mid-Year Trend and Risk Report.

IBM Endpoint Manager for Mobile Devices helps organizations support and protect the growing mobile workforce. Through this software, firms can use a single solution to secure and manage smartphones and tablets, as well as laptops, desktop PCs, and servers. It manages Apple iOS, Google Android, Nokia Symbian, and Microsoft Windows Mobile and Windows Phone devices.

The software extends security intelligence to deal with the growing threats from mainstream adoption of the BYOD trend. Organizations can install the IBM software in hours, remotely set policies, identify potential data compromises and wipe data off the devices if they are lost or stolen. The software helps configure and enforce passcode policies, encryption and virtual private network settings.

“As the BYOD movement accelerates, it presents new opportunities and challenges for organizations. In order for them to take advantage of this trend, it is important that organizations have mobile security and management policies in place,” said Bob Sutor, vice president, IBM Mobile Platform. “The new offering from IBM will help organizations manage personal and enterprise-owned mobile phones and tablets across IT networks in order to minimize risk, increase productivity and enhance innovation.”

New York-based School System Automates its Computing Endpoints and Looks to Mobile Management
The Western New York Regional Information Center (WNYRIC) housed within Erie 1 BOCES, a regional public education services organization in Buffalo, N.Y., manages hundreds of thousands of computing endpoints for more than 100 school districts. IBM Tivoli Endpoint Management software automatically updates security protection and power management of its computers and servers across the school district. Before using the software, one of the ways to perform these functions was for someone to drive to each location and manually update each machine. IBM software will help the WNYRIC reduce energy usage through automating power settings of these thousands of endpoints, resulting in an estimated savings of $3.2 million in a year.

Now more of the district's administrators, teachers and students are looking to tap their district-issued and personal iPads, iPhones and Android devices to create lesson plans, communicate and share documents on their network. The WNYRIC is planning a comprehensive way to manage mobile security issues and compliance and has gotten early access to IBM Endpoint Manager for Mobile Devices.

“Our school districts are looking for a way to manage and secure hundreds and potentially thousands of smartphones, laptops and other computers,” said Jill Holbrook, associate director of the WNYRIC. “Automating the computer updates and security protection across our entire network—including mobile—would speed our ability to provide more secure and efficient services to the administrators, teachers and students we support.”

Managing and Securing Mobile Devices throughout the Workplace

This new release of IBM Endpoint Manager extends IBM capabilities in managing the security and compliance of servers, computers and point-of-sales devices, such as ATMs and self-service kiosks to smartphones and tablets using mobile operating systems while addressing the unique aspects of those devices. IBM Endpoint Manager for Mobile Devices enables customers to:

·        Safeguard Data -- Selectively wipe enterprise data when devices are lost or stolen and configure and enforce passcode policies, encryption, VPN, and more.
·        Provide Flexible Management -- Secure and manage employee- and corporate-owned mobile devices using a combination of email-based and agent-based management, while preserving the native device experience.
·        Maintain Compliance -- Automatically identify non-compliant devices and take action by denying email access or by issuing user notifications until corrective actions are implemented.
·        Unify the Infrastructure -- Leverage a single infrastructure to manage and secure all devices: smartphones, media tablets, desktops, laptops, and servers.
The IBM Endpoint Manager for Mobile Devices is built on IBM’s 2010 acquisition of BigFix software.
For more information, please visit: http://www-01.ibm.com/software/tivoli/solutions/endpoint/mdmbeta/

Global IT Survey Highlights Enthusiasm over Tablets

News release from Cisco:

PRESS RELEASE

Global IT Survey Highlights Enthusiasm over Tablets in the Enterprise, Shows Customization, Collaboration and Virtualization as Key Features

IT managers express concerns over security and application access

Related Information

Here's a quick look at some of the top findings from Cisco's global survey on IT managers' perceptions about tablet form-factor mobile devices in the enterprise.

The Cisco Cius: Cisco's highly secure, built-for-business mobile collaboration device in the tablet form-factor.

Cisco Cius and HD Media Station. Here, the Cius is shown docked during a video call.

SAN JOSE, Calif. – Jan. 24, 2012 – Cisco today announced findings from a global survey of IT managers' perceptions about tablet form-factor mobile devices in the enterprise.

Cisco commissioned Redshift Research to survey 1500 IT managers and executives in the US, Canada, UK, France, Germany and Spain to assess attitudes, fears and hopes for tablet form-factor mobile devices ("tablets") in the workplace. Still a nascent market, 2012 is seen as a year in which enterprise-grade tablet computing will undergo significant change.

Redshift polled IT managers and executives in a wide variety of global companies of all sectors and sizes.  All respondents are either primary IT decision makers or play a key role in the decision process for all IT products. Sole proprietors were excluded from the study. Field work was conducted in late 2011.

Key findings include:


Tablet Demand

•       Tablets vs. smartphones: which win?  Globally, IT departments report employees place one tablet request for every three smartphone requests today.

•       Which countries lead? Of the countries surveyed, the US and France are tied for tops—each report a tablet is requested by 21% of the workforce. Senior executives are most likely to be issued a tablet in the US (38%) and least likely to be issued one in the UK (27 percent)

•       Who's most excited? Spain tops the list, with 90% of IT managers believing the tablet will become more popular in the next two years.

•        "Uber-connected sales guys". Tablets are significantly more prevalent among salespeople in Germany (31%) than in all other countries (21% on average).

Fears And Wants

•       Tops in security concerns? The U.S., the country with the most experience managing tablets, also ranks #1 on the "security issue": 75% of US IT managers said new rules must be established around security and device usage.

•       What about app access? Nearly half (48%) of all IT managers surveyed agree that access to company applications should be restricted for all employees. Canada and UK were the top countries in wanting to see restricted access on tablet form-factor devices (55% and 56 %, respectively).

•      Custom apps? IT managers universally agree that custom tablet applications would benefit their business.

•       Top "want list" features? Globally,three-quarters of IT managers indicated email and document sharing are "must haves". About half agreed or strongly agreed that these are desirable: video conferencing, IM, access to company databases and seamless synchronization with other business devices.

"BYOD"

•       Turning a blind eye to BYOD. Globally, 48% said their company would never authorize employees to bring their own devices (BYOD), yet 57% agreed that some employees use personal devices without consent.

•       51% of the respondents reported the number of employees bringing their own devices to work is on the rise.

•       Using personal devices without consent was highest in the US (64%) and lowest in Germany (49%).

•       Access to company servers was highlighted as a "huge problem" of the "bring your own device" to work phenomena as was lost/stolen devices (64% globally).

•       Globally, 44% say that handling BYOD issues diverts IT attention from other important projects.  

Supporting Quotes

Tom Puorro, director of product management, IPCBU, Cisco Systems

"Mobile workers and virtual workspaces are here to stay—but so are the demands on IT to continue to ensure enterprise-grade security, manageability and interoperability.  2012 promises to be an exciting year and IT leaders are a critical component in unleashing innovation and enabling organizations to take advantage of the next wave of business growth and opportunity. Cisco is keenly focused on helping its customers navigate the post-PC era and transform their business."

Additional Resources:

• Find out more about Cisco's highly secure, built-for-business mobile collaboration device,  the Cisco Cius
• Visit the Cisco Collaboration blog

Technorati Tags:


Cisco, Cisco Cius, business tablet, mobile collaboration device, tablets, technology trends, cloud computing, BYOD

About Cisco Collaboration


From award-winning IP communications to mobility, customer care, Web conferencing, messaging, enterprise social software, and interoperable telepresence experiences, Cisco brings together network-based, integrated collaboration solutions based on open standards. These solutions offered across on-premise, cloud-based or virtualized platforms, as well as services from Cisco and our partners, are designed to help promote business growth, innovation and productivity. They are also designed to help accelerate team performance, protect investments, and simplify the process of finding the right people and information.

About Cisco


Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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Small Business & Social Media

News release from American Express:

American Express Launches Social Media Show + Tell to Help Small Businesses Harness the Power of Social Media


Members of American Express' New LinkedIn User Group, Business Knowledge Share, Can Get Free Tips, Strategies Directly From Insiders at the Top Social Media Platforms

NEW YORK,  January 26, 2012 -- 

NEW YORK,  January 26, 2012 --  Courtesy of American Express, small businesses now have a brand new resource available to help them grow and succeed through social media. Officially launching today, "Social Media Show + Tell" resides within American Express' newly created Business Knowledge Share enhanced LinkedIn user group. Through a series of "show and tell" videos available to members, representatives from the most popular digital and social platforms – starting with Facebook – explain how their tools can have a formidable impact on small businesses and empower business owners to maximize the potential of the growing digital landscape.

The Social Media Show + Tell videos aim to demystify these platforms for small businesses by providing easy to understand commentary and advice from the leading experts behind each of the platforms. Each video shows how small business owners can take advantage of different social media platforms, walks business owners through each step of the registration process and clearly illustrates the business potential of engaging customers in an ongoing dialogue. Further, group members will be able to engage directly with the featured platform expert to ask questions. Coupled with the collaborative community of Business Knowledge Share, small business owners now have actionable insights relevant to their businesses in a single, easily accessible location. Social Media Show + Tell will next roll out how-to videos containing tips and advice on how to take advantage of the foursquare platform, among others.

"American Express is constantly looking for new and unique ways to provide additional value and support to small businesses and small-business professionals. From launching the ‘Go Social' tool that enables merchants to create and manage coupon-less offers and offering free Facebook ads to small business owners as part of Small Business Saturday, to partnering with foursquare to offer exclusive merchant Specials, our digital initiatives with the leading social platforms are designed to enable small businesses to get ahead and grow," said Penni Berns, Vice President of Americas Merchant Marketing & Insights at American Express. "The Social Media Show + Tell series on Business Knowledge Share further demonstrates how American Express is giving small business owners access to the tools they need to help grow their business."

The Business Knowledge Share LinkedIn user group, which has already attracted nearly 2,000 members, includes small business owners, entrepreneurs and social media experts. The group offers members practical advice and tips about how to grow your business, while providing a community of like-minded peers to exchange news, ideas and support.

Calling All Small-Business Professionals
Social Media Show + Tell on Business Knowledge Share is open to all small-business professionals regardless of their affiliation with American Express. To join the Business Knowledge Share community, prospective members must first join LinkedIn and then request membership for the group at: businessknowledgeshare.com. 

Man Indicted for Hurricane Katrina Fraud

News release from the FBI, Honolulu Division:

Kailua Man Indicted for Hurricane Katrina Fraud

U.S. Attorney’s Office January 25, 2012

District of Hawaii (808) 541-2850

— filed under: Fraud, Honolulu Top Stories, Press Release

HONOLULU—A federal grand jury returned a 28-count indictment today against Kailua (Oahu) resident Dan Doyle, age 54, for an investment fraud scheme marketed primarily on AM radio financial shows airing in California. Florence T. Nakakuni, United States Attorney for the District of Hawaii, and Frank Montoya, Jr., Honolulu FBI Special Agent in Charge, announced the indictment of Doyle on 27 counts of wire fraud and one count of mail fraud relating to real estate projects designed to rebuild affected areas of Mississippi following the destruction of Hurricane Katrina.

The indictment describes a program known as the “Gulf Opportunity Zone” (“GO Zone”) implemented by the federal government to provide tax incentives to real estate investors and developers seeking to build affordable housing in the Gulf region following the August 2005 devastation of Hurricane Katrina.The indictment also alleges:

• Doyle owned and operated a business in Kailua using names including Investment Real Estate Network and Investment Radio Network. From late 2007 through December 2009, DOYLE allegedly purchased air-time on California talk radio stations to broadcast “radio infomercials” that he hosted and produced touting the benefits of Mississippi “GO Zone” real estate investments. Listeners to the programs were encouraged to call DOYLE’s office in Kailua for investment information.
• When potential investors called Doyle’s Kailua office, they were allegedly encouraged to wire transfer a refundable deposit to Doyle’s business bank account in Hawaii.
• Seventeen individuals wire transferred or mailed over $890,000 to DOYLE in Hawaii as deposits for “GO Zone” investments that were never built.
• Instead of preserving the money for potential refunding, DOYLE spent investor money on unrelated personal and business obligations including mortgage payments on his Kailua home and yachting expenses, according to the indictment.

For each of the wire and mail fraud counts, DOYLE faces a maximum period of imprisonment of 20 years, plus possible fines of up to $250,000 and terms of supervised release of up to three years. The court issued a penal summons for DOYLE to appear in federal court for arraignment An indictment is only an accusation and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Atlanta Man Sentenced on Computer Hacking Charge

Press release from the FBI, Atlanta Division:

Atlanta Man Sentenced on Computer Hacking Charge
McNeal Illegally Accessed Database of Competitor’s Medical Practice

U.S. Attorney’s Office January 10, 2012

Northern District of Georgia (404) 581-6000

— filed under: Atlanta Top Stories, Breaking News, Computer Intrusions, Cyber Crimes, Press Release

ATLANTA—ERIC McNEAL, 38, of Atlanta, Georgia, was sentenced today by United States District Judge Willis B. Hunt, Jr. for intentionally accessing a protected computer of a competing medical practice without authorization, including personal information of the patients, in order to send marketing materials to these patients.

United States Attorney Sally Quillian Yates said, “Anyone who gives their personal information to a doctor or medical facility does not expect that their information will be hacked and used to make money. The cost of medical care is already high enough without patients having to pay a heavier cost with the loss of their privacy. This is cybercrime. Electronic information is bought, sold and stolen, often by someone who knows a system and, with a few keystrokes, makes our community vulnerable.”

McNEAL was sentenced to one year and one month in prison, to be followed by three years of supervised release, and was ordered to perform 120 hours of community service. McNEAL pleaded guilty to the charge on September 28, 2011.

According to United States Attorney Yates, the charge,s and other information presented in court: McNEAL worked as an information technology specialist for “A.P.A.,” a perinatal medical practice in Atlanta.

McNEAL separated from employment with A.P.A. in November 2009, and subsequently joined a competing perinatal medical practice, which was located in the same building as A.P.A. In April 2010, MCNEAL used his home computer to hack into A.P.A.’s patient database without authorization. MCNEAL downloaded the names, telephone numbers, and addresses of A.P.A.’s patients, and then “wiped” A.P.A.’s database, deleting all the patient information from A.P.A.’s system. McNEAL subsequently used the patient names and contact information to launch a direct-mail marketing campaign for the benefit of his new employer. There is no evidence that McNEAL downloaded or misused specific patient medical information.

This case was investigated by special agents of the Federal Bureau of Investigation.

Nurse Pleads Guilty in Health Care Fraud Scheme

News release from the FBI:

Miami-Area Nurse Pleads Guilty in $25 Million Health Care Fraud Scheme

U.S. Department of Justice January 24, 2012

Office of Public Affairs (202) 514-2007/TDD (202) 514-1888

— filed under: Breaking News, Health Care Fraud, Press Release

WASHINGTON—A Miami-area nurse pleaded guilty today for his participation in a $25 million home health Medicare fraud scheme, the Department of Justice, the FBI and the Department of Health and Human Services (HHS) announced today.

Jorge Pineiro, 42, pleaded guilty before U.S. District Judge Joan A. Lenard in Miami to one count of conspiracy to commit health care fraud. Pineiro was originally charged in a February 2011 indictment.

According to plea documents, Pineiro was a registered nurse who worked for ABC Home Health Care Inc. and Florida Home Health Care Providers Inc., two Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Pineiro and his co-conspirators operated ABC and Florida Home Health for the purpose of billing Medicare for expensive services that were not medically necessary and/or were never provided. The medically unnecessary services were prescribed by doctors, including, but not limited to, Pineiro’s co-defendant, Dr. Jose Nunez.

According to court documents, beginning in approximately June 2008, and continuing until approximately March 2009, Pineiro and his co-defendant nurses falsified patient files for Medicare beneficiaries to make it appear that they qualified for home health care and therapy services. Pineiro knew that the beneficiaries did not actually qualify for and did not receive the services. Pineiro and his co-defendant nurses described in nursing notes and patient files symptoms that were non-existent, such as tremors, impaired vision, weak grip and inability to walk without assistance. They included these symptoms to make it appear that the patients were unable to self-inject insulin and were homebound, thus appearing to qualify for home health care benefits under Medicare.

Pineiro admitted that he knew these files were falsified so that Medicare could be billed for medically unnecessary therapy and home health-related services. As a result of Pineiro’s participation in the illegal scheme, the Medicare program was billed approximately $118,000 for purported home health care services that were not medically necessary and/or were never provided.

Pineiro also recruited Medicare beneficiaries who allowed Florida Home Health to bill Medicare for services that were medically unnecessary and/or never provided. Pineiro solicited and received kickbacks and bribes from the owners and operators of Florida Home Health in return for allowing the agency to bill Medicare on behalf of the patients he recruited. The patients that Pineiro recruited did not qualify for the services that were billed to the Medicare program. Pineiro knew that the patient files for his recruited patients were falsified to make it appear that the patients qualified for services from Florida Home Health.

Eighteen co-defendants, including Nunez, Licet Diaz, and Lisandra Alonso, have pleaded guilty for their roles in the fraud scheme. Nunez, Diaz, and Alonso were sentenced to 40 months, 87 months and 78 months in prison, respectively. Two remaining defendants, Dr. Francisco Gonzalez and Odalys Alvarez-Medina, are scheduled for trial on Feb. 14, 2012. An indictment is merely a charge, and defendants are presumed innocent until proven guilty.

Sentencing for Pineiro has been scheduled for April 9, 2012.

The charge of conspiracy to commit health care fraud carries a maximum prison sentence of 10 years. The defendant also faces fines and supervised release, as well as forfeiture of any property or proceeds derived from his criminal activities.

Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami.

Since their inception in March 2007, strike force operations in nine locations have obtained indictments of more than 1,160 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

Rochester Man Sentenced in Computer Intrusion Case

U.S. Attorney’s Office January 25, 2012

Western District of New York (716) 843-5700

— filed under: Cyber Crimes, Press Release

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that David George Smith, 47, of Rochester, N.Y., who was convicted of wrecklessly causing damage to a computer domain, was sentenced to pay a fine of $500 and to pay restitution to the victim company in the amount of $4,671 by U.S. Magistrate Judge Jonathan W. Feldman.

Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant had been convicted of illegally accessing the computer system of a local company, and wrecklessly causing damage to that computer system.

The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction Special Agent in Charge Christopher M. Piehota.

Report Finds Spammers Abusing Holidays and Major Events

News release from Symantec:

Symantec Report Finds Spammers are Taking Advantage of New Year Holidays and Major Events

MOUNTAIN VIEW, Calif. – January 26, 2012 – January 26, 2012– Symantec Corp. (Nasdaq: SYMC) today announced the findings of its January Symantec Intelligence Report, which shows that spammers are using holidays and major events to make their mail more appealing.

Symantec Intelligence has seen more than 10,000 unique domain names compromised with a redirect script written in PHP that contains a reference to the New Year in the file name. These redirect scripts were hosted on compromised Web sites and links to these were included in spam emails, which were subsequently blocked by Symantec.cloud.

Click-to-Tweet: Symantec report finds spammers are taking advantage of New Year, holidays and major events: http://bit.ly/xzxecU

To further entice recipients to open their messages, spammers used additional social engineering techniques by including parameters in the URL to suggest that the destination is a social networking site.

Symantec Intelligence expects to see spammers taking advantage of other upcoming “calendar events” with one of the most important traditional Chinese New Year celebrations starting this week and continuing for several days, as well as the fast-approaching Valentine's Day.

“We also expect to see plenty of spam and malware taking advantage of some of the major upcoming sporting events this year. We are already seeing references to the Summer Olympics in London as part of 419 or advance fee fraud messages,” said Paul Wood, senior intelligence analyst, Symantec.

“By relating their mails to widely-celebrated holidays and current events with global interest, spammers and malware authors can (at first glance at least) make their messages more interesting, and increase the chance of recipients visiting spam Web sites or becoming infected,” Wood said.

During December, global spam levels dropped, but in January gradually returned to similar levels as in November 2011, which is still lower than the 2011 average.

Other Report Highlights:
Spam: In January 2012, the global ratio of spam in email traffic rose by 1.3 percentage points since December 2011, to 69.0 percent (1 in 1.45 emails). This follows a more noticeable drop in December when spam fell by 2.8 percentage points to 67.7 percent. The recent increase means that spam has almost returned to the same level as in November 2011.

Phishing: In January, the global phishing rate increased by 0.06 percentage points, taking the average to one in 370.0 emails (0.27 percent) that comprised some form of phishing attack.

Email-borne Threats: The global ratio of email-borne viruses in email traffic was one in 295.0 emails (0.33 percent) in January, a decrease of 0.02 percentage points since December 2011. In January, 29.0 percent of email-borne malware contained links to malicious Web sites, unchanged since December 2011.

Web-based Malware Threats: January saw an average of 2,102 Web sites each day harboring malware and other potentially unwanted programs including spyware and adware; a decrease of 77.4 percent since December 2011.

Endpoint Threats: The most frequently blocked malware for the last month was WS.Trojan.H. WS.Trojan.H is generic cloud-based heuristic detection for files that posses characteristics of an as yet unclassified threat. Files detected by this heuristic are deemed by Symantec to pose a risk to users and are therefore blocked from accessing the computer.

Geographical Trends:
Spam

• Saudi Arabia became the most spammed geography in January; with a spam rate of 75.5 percent.
• China was the second most-spammed with 75.0 percent of email traffic blocked as spam.
• In the US, 69.0 percent of email was spam and 68.7 percent in Canada.
• The spam level in the UK was 69.3 percent.
• In The Netherlands, spam accounted for 70.7 percent of email traffic, 68.2 percent in Germany, 69.1 percent in Denmark and 68.6 percent in Australia.
• In Hong Kong, 67.5 percent of email was blocked as spam and 66.7 percent in Singapore, compared with 65.6 percent in Japan.
• Spam accounted for 69.5 percent of email traffic in South Africa and 73.1 percent in Brazil.

Phishing

• The Netherlands became the country most targeted for phishing attacks in January, with one in 62.6 emails identified as phishing.
• The UK was the second most targeted country, with one in 179.4 emails identified as phishing attacks.
• Phishing levels for the US were one in 1,145 and one in 379.9 for Canada.
• In Germany phishing levels were one in 797.6, one in 330.9 in Denmark.
• In Australia, phishing activity accounted for one in 542.2 emails and one in 942.9 in Hong Kong; for Japan it was one in 5,692 and one in 1,156 for Singapore.
• In Brazil one in 1,007 emails was blocked as phishing.

E-mail-borne Threats

• The Netherlands had the highest ratio of malicious emails in January, with one in 61.4 emails identified as malicious.
• The UK had the second highest rate, with one in 169.1 emails identified as malicious.
• In South Africa, one in 305.9 emails was blocked as malicious.
• The virus rate for email-borne malware in the US was one in 592.5 and one in 285.4 in Canada.
• In Germany virus activity reached one in 471.7 and one in 318.1 in Denmark.
• In Australia, one in 327.9 emails was malicious.
• For Japan the rate was one in 1,573, compared with one in 482.9 in Singapore.
• In Brazil, one in 681.7 emails in contained malicious content.

Vertical Trends:

• The Education sector became the most spammed industry sector in January, with a spam rate of 71.0 percent.
• The spam rate for the Chemical & Pharmaceutical sector was 69.0 percent, compared with 68.7 percent for IT Services, 68.4 percent for Retail, 68.9 percent for Public Sector and 68.2 percent for Finance.
• The Public Sector remained the most targeted by phishing activity in January, with one in 99.1 emails comprising a phishing attack.
• Phishing levels for the Chemical & Pharmaceutical sector reached one in 838.0 and one in 647.8 for the IT Services sector, one in 529.4 for Retail, one in 169.4 for Education and one in 253.7 for Finance.
• With one in 90.2 emails being blocked as malicious, the Public Sector remained the most targeted industry in January.
• The virus rate for the Chemical & Pharmaceutical sector reached one in 381.3 and one in 399.4 for the IT Services sector; one in 407.1 for Retail, one in 138.3for Education and one in 236.7 for Finance.

Market Trends:

• The spam rate for small to medium-sized businesses (1-250) was 68.9%, compared with 69.1% for large enterprises (2500+).
• Phishing attacks targeting small to medium-sized businesses (1-250) accounted for one in 225.2 emails, compared with one in 410.9 for large enterprises (2500+).
• Malicious email-borne attacks destined for small to medium-sized businesses (1-250) accounted for one in 277.3 emails, compared with one in 281.5 for large enterprises (2500+).

The January Symantec Intelligence Report provides greater detail on all of the trends and figures noted above, as well as more detailed geographical and vertical trends.

Related

• SlideShare Presentation: January 2012 Symantec Intelligence Report
• Symantec.cloud Global Threats
• Symantec.cloud Intelligence Reports
• Symantec.cloud In the News
• Symantec.cloud Podcasts

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About Symantec Intelligence Report
The Symantec Intelligence report combines the best research and analysis from the Symantec.cloud MessageLabs Intelligence Report and the Symantec State of Spam & Phishing Report. The new integrated report, the Symantec Intelligence Report, provides the latest analysis of cyber security threats, trends and insights from the Symantec Intelligence team concerning malware, spam, and other potentially harmful business risks. The data used to compile the analysis for this combined report includes data from December 2011 and January 2012.

About Symantec
Symantec is a global leader in providing security, storage and systems management solutions to help consumers and organizations secure and manage their information-driven world. Our software and services protect against more risks at more points, more completely and efficiently, enabling confidence wherever information is used or stored. More information is available at www.symantec.com.

Note to Editors: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at http://www.symantec.com/news. All prices noted are in U.S. dollars and are valid only in the United States.

Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.

Oregon Potato Company Pays EPA Penalty for Failing to Report

News release from EPA:

Oregon Potato Company pays EPA penalty for failing to report ammonia release

Wally Moon, EPA Preparedness and Prevention Unit Manager, 206-553-6323, moon.wally@epa.gov
Tony Brown, EPA Public Affairs, 206-553-1203, brown.anthony@epa.gov

(Seattle—Jan. 26, 2012) Oregon Potato Company failed to report an anhydrous ammonia release at their facility in Warden, Washington and will pay the U.S. Environmental Protection Agency a $66,235 penalty.

On July 2, 2009, the facility released approximately 300 pounds of anhydrous ammonia into the environment, according to the EPA settlement. The facility, located at 1900 First Avenue West in Warden, Washington, produces dried and dehydrated frozen potato products.


According to Wally Moon, EPA Preparedness and Prevention Unit Manager in Seattle, these cases are about protecting workers, emergency responders and the community.


“When unintended chemical releases occur, every minute counts if it is an emergency,” said EPA’s Moon. “Emergency responders need to be notified promptly to react effectively.”


The leak occurred when a circuit breaker failed, causing a pressure relief valve to open releasing the anhydrous ammonia. EPA alleges that Oregon Potato failed to immediately notify local and state agencies about the release. While no injuries were reported at the time of the incident, ammonia is a pungent, toxic gas that attacks skin, eyes, throat, and lungs and can cause serious injury or death.


The ammonia release and the failure to notify appropriate agencies are violations of the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA).


For information on EPA's Emergency Planning and Community Right to Know Act, visit http://www.epa.gov/compliance/civil/epcra/epcraenfstatreq.html


For more about toxic effects of Anhydrous Ammonia (NIOSH GUIDE): http://www.cdc.gov/niosh/npg/npgd0028.html

Dell OEM Partners with SUSE

News release from Dell:

Dell OEM Solutions Makes Available SUSE Linux Enterprise Server to Customers

SUSE is the First Linux Vendor to Join the Dell OEM Technology Partner Program

Date : 1/24/2012

Dell and SUSE today announced the Dell OEM Solutions division will offer customizable, integrated systems based on SUSE Linux Enterprise with services and support for customers worldwide. Now, Dell OEM Solutions customers can customize any Dell-standard hardware within its extensive portfolio and utilize the versatility, performance, reliability and security of SUSE Linux Enterprise Server, helping reduce cost and time to market.

   Gartner conducted a primary research survey of 547 IT leaders in organizations (excluding technology and service providers) in 11 countries in the second half of 2010. More than half the organizations surveyed have adopted OSS solutions as part of their IT strategy, with nearly one-third citing benefits of flexibility, increased innovation, shorter development times and faster procurement processes. Lower total cost of ownership was a key driver.*

"Enterprises are increasingly using Linux in integrated systems, ranging from consumer electronics, to industrial control, aerospace and military technologies," said Nils Brauckmann, president and general manager, SUSE.

"This partnership marks another milestone in our ongoing relationship with Dell. It combines Dell's OEM product, industry standard hardware and global services capabilities, with SUSE's flexible, reliable and cost-effective operating system and tools, to meet the specific needs of the embedded and OEM markets."

Dell will use SUSE Studio, a powerful image customization and provisioning tool, to build and deploy application stacks based on SUSE Linux Enterprise Server onto Dell OEM Solutions’ embedded, built-to-order and customized solutions. Using SUSE Studio, Dell can help its OEM customers reduce the complexity and overhead costs associated with bringing integrated systems to market.

“We are pleased to welcome SUSE as the first Linux vendor to the Dell OEM Technology Partner Program. By partnering with SUSE, we are broadening and strengthening our solutions for the embedded and OEM markets,” said Ron Pugh, executive director and general manager, Dell OEM Solutions, Americas. “Our customers that use Dell OEM Solutions with SUSE Enterprise Linux Server for product design can help accelerate their time to market and cut operational costs.”

More information about the Dell OEM and SUSE partnership can be found on the Dell OEM Technology Partner website.

* Gartner, Inc., Survey Analysis: Overview of Preferences and Practices in the Adoption and Usage of Open-Source Software, Laurie F. Wurster, Bob Igou, Zeynep Babat, January 24, 2011

EPA Reaches Settlement with Companies to Pay Cleanup Costs

News Release from EPA Region 3:

EPA reaches settlement with companies to pay cleanup costs for Occidental Chemical Corp. Superfund site

       PHILADELPHIA (January 25, 2012) -- The U.S. Environmental Protection Agency today announced that current and former owners and operators of the Occidental Chemical Corporation Superfund Site in Lower Pottsgrove Township, Montgomery County, Pa. have agreed to pay $2.1 million in past cleanup costs for the site.

In a consent decree filed in federal court by the Justice Department on behalf of EPA, the companies also assumed responsibility for all future cleanup costs at the site. The companies included Occidental Chemical Corporation (OxyChem), Bridgestone Americas Tire Operations and Glenn Springs Holdings, Inc.

Under the “Superfund” law, the landowners, waste generators and waste transporters that are responsible for the contamination of a Superfund site must either clean up the site, or reimburse the government or other parties for cleanup activities.

OxyChem currently owns the site where it manufactured polyvinyl chloride (PVC) plastic resins from 1980 to 2005. OxyChem purchased the site from Firestone Tire & Rubber Company(now known as Bridgestone Americas Tire operations), which manufactured tires and PVC there from approximately 1945 to 1980. Settling defendant Glenn Springs Holdings, Inc., a corporate affiliate of OxyChem, is the current operator of the site.   Glenn Springs assumed management of the site in 2005 after OxyChem closed its PVC-manufacturing facility.

From 1942 to 1985, operators used the site for disposal of industrial wastes including cutting oils, metal filings, tires, and PVC sludge resins. In 1989, EPA placed the site on its Superfund list of the nation’s most contaminated sites to address unsafe levels of trichloroethylene (“TCE”), vinyl chloride, and other hazardous substances in the soil and groundwater. OxyChem, under EPA oversight, performed remedial action at the site and completed construction in 2008.

            Additional information on the site is available at: http://www.epa.gov/reg3hwmd/super/sites/PAD980229298/index.htm .    

Energy Department Spurs Small Modular Nuclear Reactors

News release from the U.S. Dept. of Energy:

Energy Department Takes First Step to Spur U.S. Manufacturing of Small Modular Nuclear Reactors

January 20, 2012 

Washington, D.C. – The U.S. Department of Energy today announced the first step toward manufacturing small modular nuclear reactors (SMRs) in the United States, demonstrating the Administration’s commitment to advancing U.S. manufacturing leadership in low-carbon, next generation energy technologies and restarting the nation’s nuclear industry.  Through the draft Funding Opportunity Announcement announced today, the Department will establish cost-shared agreements with private industry to support the design and licensing of SMRs.

“America’s choice is clear - we can either develop the next generation of clean energy technologies, which will help create thousands of new jobs and export opportunities here in America, or we can wait for other countries to take the lead,” said Energy Secretary Steven Chu. “The funding opportunity announced today is a significant step forward in designing, manufacturing, and exporting U.S. small modular reactors, advancing our competitive edge in the global clean energy race.”

Small modular reactors, approximately one-third the size of current nuclear plants, have compact designs that are expected to offer a host of safety, siting, construction and economic benefits. Specifically, they could be made in factories and transported to sites where they would be ready to “plug and play” upon arrival, reducing both capital costs and construction times. The small size also makes SMRs ideal for small electric grids and for locations that cannot support large reactors, providing utilities with the flexibility to scale production as demand changes.

The draft Funding Opportunity Announcement (FOA) announced today solicits input from industry in advance of a full FOA, which will support first-of-a-kind engineering, design certification and licensing through a cost-shared partnership. The full FOA will fund up to two SMR designs with the goal of deploying these reactors by 2022.

Today’s announcement comes on the heels of the Nuclear Regulatory Commission’s certification of Westinghouse Electric’s AP1000 nuclear reactor design, which was supported through a cost-shared agreement with the Energy Department. The Department’s efforts, in coordination with the NRC and private industry, have helped American companies lead the way in obtaining certification and licensing approvals for new reactor designs, which will further streamline these processes for future investments in the U.S. nuclear industry.

For more information on SMRs, please visit the Office of Nuclear Energy website.

Closing a "Crime Superstore"

From FBI blog:

01/10/12


They hijacked identities on the other side of the globe…faked drivers’ licenses and other documents…built bogus credit histories and boosted the scores in clever ways…then used it all to open bank accounts and credit lines they could loot at will.


In the end, they created what our Newark (NJ) Special Agent in Charge Mike Ward called a ‘crime superstore,’ a sophisticated way to rob financial institutions, retailers, car leasing companies, and even the IRS out of millions of dollars.


Following an undercover investigation led by the FBI and its partners, it all came crashing down in September 2010, when 43 members of the criminal ring were charged in this complex scheme. Another 10 individuals were charged for various related offenses at the same time during a coordinated takedown. And on Monday, the leader of the band of thieves—San-Hyun Park, known to his criminal colleagues as “Jimmy”—pled guilty in federal court in Newark.


The Park criminal enterprise started by stealing Social Security numbers from unsuspecting individuals—usually from China—who were employed in American territories in Asia like Saipan, Guam, and the Philippines. They then sold these identities to its customers in the U.S. for $5,000 to $7,000. Although the stolen identities were Chinese, the vast majority of Park’s customers were Korean-Americans. The ring would use the phony Social Security numbers to obtain authentic driver’s licenses, identification cards, and other identity documents from various states…or manufacture counterfeit licenses and other documentation.
Based in Bergen County, New Jersey, Park’s organization was subdivided into different cells, each with a unique role. First, there were the customers who paid Park and his co-conspirators for fake identity documents. Then, there were the brokers, suppliers, and manufacturers of the phony identity documents—like Social Security cards, immigration documents, and driver’s licenses. A third group included merchants who colluded with the organization by knowingly swiping phony credit cards in return for a fee called a “kkang.” The credit card buildup teams made up the fourth group, fraudulently inflating credit scores to help open the bank and credit accounts.


The buildup teams would take one of the stolen Social Security numbers—and the Chinese identity attached to it—and add that person’s name as an authorized user to other co-conspirators’ credit card accounts. These co-conspirators, who knew their accounts were being used to commit fraud, received a fee for their service.


After the credit buildup was completed, the Park criminal enterprise conspired with its customers to use the fraudulent identities to apply for checking accounts, bank and retail credit cards, debit cards, lines of credit, and loans. Members of the criminal conspiracy used their sizeable proceeds to live large, buying such luxury items as fancy cars, expensive liquor, and designer shoes.


The multi-agency investigation made use of cooperating witnesses and an undercover federal agent, as well as court-authorized wiretaps, to record incriminating conversations among members of the crime ring and others. The FBI partnered with several federal agencies and local police departments in New Jersey, among others. We also worked cooperatively with the major banks, credit card companies, and department stores targeted by this criminal organization.

Former Mattoon Business Owner Sentenced for Fraud Scheme

From the FBI, Springfield Division:

Former Mattoon Business Owner Sentenced to 16 Months in Federal Prison for Fraud Scheme

U.S. Attorney’s Office January 05, 2012

Central District of Illinois (217) 492-4450

— filed under: Fraud, Press Release, Springfield Top Stories

URBANA, IL—A former Mattoon, Ill., woman, Rebecca L. Shockley, has been ordered to serve 16 months in federal prison and pay restitution of more than $400,000 for defrauding a local bank and the Illinois Department of Revenue. Chief U.S. District Judge Michael P. McCuskey sentenced Shockley, 63, currently of Bradenton, Fl., yesterday. Shockley was ordered to report on Mar. 7, 2012, to the Federal Bureau of Prisons to begin serving her sentence.

According to court documents, Shockley was co-owner of Quality Truck and Auto (QTA), in Mattoon, Ill., which did business as Cross Country RV Center. Shockley acted as bookkeeper for the business which sold new and used recreational vehicles and related items.

On May 9, 2011, Shockley entered a plea of guilty to one count each of mail fraud and bank fraud. Shockley admitted that from March 2007 to December 2008, she pledged vehicles as collateral to both the bank and another lender. Shockley had entered into the loan agreement, known as a floor plan line of credit, with the bank in mid-1999. According to court documents, as the business’s financial condition deteriorated, QTA was unable to pay-off the secured loans it had received from the bank and the bank learned that the RVs that were supposed to be collateral had already been sold and the sales proceeds forwarded to the other lender.
Shockley further admitted that from July 2006 to December 2008, she under-reported the amounts subject to sales tax by $1.8 million. As a result, although QTA collected $249,915 in sales taxes from more than 100 buyers, Shockley admitted that she remitted only $134,812 of the collected sales taxes to the state of Illinois, and kept the remainder for her own use and benefit. In addition, Shockley admitted that she under-reported the taxable retail sales of QTA from 2006 to 2008.

Shockley was ordered to pay a total of $412,028 in restitution, consisting of $279,438 to the bank and $132,590 to the Illinois Department of Revenue.

The charges were investigated by the Federal Bureau of Investigation and the Illinois Department of Revenue. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.

From U.S. Dept. of Energy's National Renewable Energy Laboratory (NREL) news release:

CREED: Helping Colorado Cleantech Startups Find the Money Thursday, January 19, 2012 The Colorado Center for Renewable Energy Economic Development (CREED) at the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) invites cleantech entrepreneurs to attend the next event in its Entrepreneur Series. The Jan. 26 class, "Financing Your Cleantech Startup," will provide cleantech entrepreneurs with an overview of how to find capital for a startup. "If you are in startup mode, you're likely asking yourself a variety of difficult funding questions," NREL Manager for the Innovation and Entrepreneurship Center Richard Adams said. "You need to answer these questions for your own strategic development as well as for the people and organizations to whom you intend to pitch." On Jan. 26, Tim Reeser, Executive Director Cenergy and Venture Director at Aravaipa Ventures will discuss: The challenges of financing a cleantech start-up or early stage company Forms of capital for start-up and early-stage companies Key elements of a financing strategy as your business grows When to ask for money, what "type" of money and the associated risks What common mistakes are made in early-stage financing and how they can be avoided. CREED's Entrepreneur Series provides support for companies trying to get off the ground. The Entrepreneur Series builds a community among cleantech participants so they can draw on one another for expertise, support and networks. CREED is a collaborative partnership between NREL and Colorado to expand clean tech entrepreneurship in the state. It is designed to bring together stakeholders and service providers who support the creation and growth of cleantech companies, contributing to economic development in Colorado. What: CREED Entrepreneur Series – Financing Your Cleantech Startup When: January 26 -- registration is at 2:30 p.m.; workshop goes from 2:45 - 5 p.m., with networking from 5-6 p.m. Where: CREED - Center for Renewable Energy Economic Development, Denver West Office Park Building 52, 14062 Denver West Parkway, Suite 300 Golden, CO 80401 Fee: $25 per person Registration: Call the Colorado Cleantech Industry Association (CCIA) at 303-623-2690 or online at https://www.creed.org. NREL is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by the Alliance for Sustainable Energy, LLC. ###

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