Latest news with #wirefraud
Yahoo
4 days ago
- Business
- Yahoo
Ex-TV news anchor Stephanie Hockridge convicted in massive scheme to fraudulently obtain COVID relief funds
Stephanie Hockridge, a former Phoenix news anchor-turned-fintech entrepreneur, has been convicted of conspiracy to commit wire fraud in a federal case involving hundreds of millions of dollars in COVID relief funds. A jury in the Northern District of Texas found Hockridge guilty on one count of conspiracy to commit wire fraud. She was acquitted on four additional counts of wire fraud. Sentencing is scheduled for Oct. 10. Hockridge's conviction was announced on Friday. According to federal prosecutors and investigative reports, Hockridge and her husband, Nathan Reis, fraudulently obtained over $300,000 in Paycheck Protection Program (PPP) loans for themselves, including one application that falsely claimed he was a veteran and an African American. The couple's Scottsdale-based fintech firm, Blueacorn, which they co-founded in 2020, processed over $12.5 billion in PPP loans — with somewhere between $250 million and $300 million going to the company's ownership, including Hockridge. Blueacorn received over $1 billion in taxpayer-funded processing fees for facilitating PPP loans but spent less than 1% ($8.6 million) on fraud prevention and only $13.7 million on eligibility verification, according to a congressional investigation. The PPP was an $800 billion federal loan initiative launched in 2020 to help small businesses keep workers employed during the COVID-19 pandemic. It was part of a broader effort — including grants, tax credits and emergency loans — aimed at stabilizing the US economy and preventing mass business closures and layoffs. Investigators alleged that the couple used the proceeds to enrich themselves personally. Congress said it obtained a video created by Reis and Hockridge showing off large amounts of cash in a bar on Dec. 21, 2021. According to public records, Reis relocated to San Juan, Puerto Rico, which has no capital gains tax, following his work at Blueacorn. An Oct. 8, 2021, video obtained by congressional staffers which was geolocated to San Juan showed Hockridge and Reis on the balcony of a luxury beachfront apartment. According to a congressional report, Blueacorn routinely failed to properly vet applicants and charged illegal 'success fees' to borrowers — violating Small Business Administration rules. The congressional report detailed how Blueacorn's leadership instructed staff to prioritize speed over accuracy. Internal messages showed reviewers were told to 'push through' questionable applications, ignore red flags, and skip identity checks unless fraud was 'extremely obvious.' Some staff processed hundreds of loans with no training — sometimes within 30 seconds each. The subcommittee also uncovered the existence of a 'VIPPP' program that allowed high-dollar clients to bypass standard review protocols. Founders dismissed smaller loan applicants with phrases like 'delete them,' 'who f–king cares' and 'they go elsewhere.' Hockridge, 42, was once a familiar face in Arizona households. She spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix, and had previously worked as a reporter for CBS News Radio in London. She was nominated for an Emmy and named 'Favorite Newscaster' by Arizona Foothills Magazine. Reis is scheduled to stand trial in August 2025 on related charges. Prosecutors allege he played a lead role in directing the company's operations and handling its financial distributions. Hockridge's conviction marks one of the highest-profile PPP fraud cases to date involving a public figure. Fraud related to COVID-19 relief programs was unprecedented in US history, with losses estimated in the hundreds of billions — possibly up to $1 trillion. The PPP, Economic Injury Disaster Loans and unemployment insurance programs were especially vulnerable — with watchdogs reporting widespread misuse, insider abuse and systemic failures in fraud prevention. The Post has sought comment from Hockridge and Reis.
Yahoo
21-06-2025
- Yahoo
Lawyer Tom Girardi sentenced to 7 years for stealing millions from clients to fund Bravo star wife's career
Disbarred attorney Tom Girardi, 86, was sentenced to seven years and three months in prison for embezzling millions from former clients, according to NBC News. The former husband of the Real Housewives of Beverly Hills and a high-profile lawyer was once celebrated for his role in the landmark 1993 lawsuit against Pacific Gas and Electric Co.—the case that inspired the Oscar-winning film Erin Brockovich, starring Julia Roberts. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) "This self-proclaimed 'champion of justice' was nothing more than a thief and a liar who conned his vulnerable clients out of millions of dollars," said U.S. Attorney Bilal Essayli. In addition to prison time, Girardi was ordered to pay $2.3 million in restitution and a $35,000 fine. His lawyers argued he was mentally unfit to stand trial due to Alzheimer's disease, but a federal court ruled he was competent. Girardi was convicted of four counts of wire fraud in August 2024. Prosecutors said he stole tens of millions of dollars in settlement funds from clients over a decade. Victims included people who suffered severe burns, widows of accident victims and families of those killed in high-profile disasters, like the 2018 Lion Air crash that killed 198 people. He often misled clients, telling them their settlement money was delayed due to tax issues, debt obligations or the need for a judge's approval. "Girardi sent lulling communications to the defrauded clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese [lawfirm] could not pay the settlement proceeds to clients until certain purported requirements had been met," said the U.S. Attorney's Office for the Central District of California in a news release. According to Business Insider, one client was awarded $53 million in a settlement after a 2010 natural gas pipeline explosion in California caused severe burns. They ultimately received just $2.5 million. Prosecutors said Girardi diverted more than $25 million from his law firm's operating account to EJ Global, a company created to fund the entertainment career of his now-estranged wife, Erika Jayne, a star on Bravo's Real Housewives of Beverly Hills. Jayne, 53, has denied any involvement and was dismissed from a related lawsuit in 2022. She filed for divorce in 2020 after the allegations surfaced and has maintained she did not know about her husband's crimes. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Girardi wasn't just any lawyer — he was one of the most prominent personal injury attorneys in the country. That's what made his fraud so devastating. But there are still ways to protect yourself when hiring a lawyer, no matter how impressive their resume is. Red flags to watch out for: Lack of transparency: If a lawyer avoids sharing documentation or gives vague answers about your case, that's a warning sign. Payment delays: Once cleared, settlement checks should be disbursed promptly. Unexplained delays are cause for concern. No written agreements: Always get a written retainer agreement that outlines fees, responsibilities and expectations. Pressure tactics: Be cautious if a lawyer pushes you to make decisions without giving you time to understand your rights. Even savvy clients can still be taken advantage of. If you suspect fraud or misconduct, here's what to do: Request documentation: Ask for a detailed breakdown of your settlement and where the money went. Check the bar association: Make sure the lawyer is licensed and review any disciplinary actions through your state's bar association. File a complaint: Every state has a grievance or disciplinary board. In Ohio, for example, grievances are filed with the Ohio Bar. Hire a second lawyer: If something doesn't feel right, get a second opinion. Even a seasoned, high-profile attorney can betray their clients' trust. Staying informed, asking questions and knowing your rights can help you avoid becoming the next victim. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Forbes
20-06-2025
- Business
- Forbes
Trusted Advisor Stole From Retirees And Lied To The IRS—Now He'll Spend Decades In Prison
Higgins' businesses stored and invested gold and silver. getty A 69-year-old West Chester, Pa., man has been sentenced to 65 years in prison after being found guilty of wire fraud, mail fraud, and five counts of tax evasion. Judge Maryellen Noreika handed down the lengthy sentence to Robert Leroy Higgins, citing the 'scope and brazenness' of Higgins' crimes in what prosecutors called 'the largest theft from a precious metals depository in the history of the United States.' The jury took less than four hours to convict Higgins on fraud and tax evasion charges related to the activities of gold and silver storage companies he founded in Delaware. Tax-favored Delaware has long attracted metals traders and investors. That's was part of the appeal when Higgins established his first precious metals storage company in 2006 in The First State. As part of his business model, Higgins promised to store gold and silver bars and coins belonging to taxpayers who wanted to include precious metals in their retirement accounts. Traditional individual retirement accounts (IRAs) allow taxpayers to hold stocks, mutual funds, and other investments. But under existing IRA rules, gold and other precious metals are considered 'collectibles" and aren't generally allowed in IRAs. There's an exception in the statute for highly refined bullion that is in the physical possession of a bank or an IRS-approved non-bank trustee—personal storage of the gold, such as at home or in a safe, is prohibited. (If you're a regular reader, you'll recall that I tackled this topic in a recent issue of our free tax newsletter, Tax Breaks.) Higgins' gold and silver storage business filled that hole, and thousands of customers took advantage of his services. Approximately 2,100 customers stored gold or silver in labeled boxes similar to those used for bank deposits with Higgins' companies. Other customers used Higgins' services for investment purposes. Cracks Began To Show According to court records, Higgins' business ran out of money in 2012 and was unable to repay a sizable loan. Despite complaints filed against him, prosecutors say Higgins just opened a new company and then stole from his customers, using the company as his personal piggy bank. He also recruited help—his son, Eric, testified at his trial that Higgins told him to create false customer holding reports as part of the fraud. Prosecutors also assert that, beginning at least as early as 2015, Higgins began filing false income tax returns, claiming that he had almost no income—he also claimed that he was not associated with either company (the original company and the new company he created). By 2022, Higgins had attracted the attention of the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Commodities Futures Trading Commission after customers complained that they were unable to recover their investments. That same year, Higgins filed for bankruptcy (he had also filed for bankruptcy in 2016). Allegations And Charges Higgins was eventually charged with fraud and tax evasion, and his businesses were turned over to a court-appointed receiver in 2022. A receiver is a neutral third-party who typically takes possession of assets at the request of the court in an effort to account for and protect them. When federal agents seized Higgins' businesses, they took its vaults and a framed picture of Russian President Vladimir Putin that Higgins kept near his office desk. The seizures allowed the receiver to return some assets to clients. By 2023, the receiver had recovered $64 million of precious metals to return to the owners. Still, former customers reported they were missing over $76 million. (As part of his sentence, the judge ordered Higgins to pay $76.5 million in restitution, despite Higgins characterizing the value of the losses as 'speculation.') Prosecutors allege that Higgins used customer deposits to maintain a lavish lifestyle, including family vacations, private school tuition, shopping sprees, and new vehicles—all while representing to the IRS that he was not earning a living. He also told the court that he couldn't afford an attorney. However, when investigators searched Higgins' home, they discovered gold worth tens of thousands of dollars hidden in the ceiling of his million-dollar home in Pennsylvania. This, despite Higgins saying under oath that he had no gold in his possession. The search also turned up text messages on Higgins' phone, which reportedly showed that he attempted to purchase a Hummer (vehicle) with gold. Impact On Victims After his conviction, the government received 91 victim impact statements. Many of the victims were retired or near retirement—the IRA piece of the business had appealed to them. One victim explained that she was forced to live out of her truck and left without a home after losing her investments, while another detailed how he had invested his life savings and his daughters' college funds with Higgins. Yet another claimed she woke up 'many nights worrying about the future' because her IRA retirement savings were lost. Those statements were in addition to the nearly 800 claim forms submitted by victims seeking the return of funds. Investors are unlikely to be repaid in full. Sentencing And Related Factors Despite the widespread damage Higgins is alleged to have caused, the government claimed he had a 'complete lack of remorse.' And while Higgins himself was also a senior citizen, the government notes that 'his age didn't stop him from perpetrating this massive fraud. And it did not stop him victimizing those who were of an even more advanced age.' Prosecutors also pointed to more evidence they claim showed that Higgins demonstrated a lack of concern for others. On May 17, 2022, Higgins drove to Ohio to obtain replacement metals for an account owned by a customer who had grown frustrated with Higgins' stonewalling. While on the way, Higgins caused a car crash that killed one person and seriously injured another. According to the sentencing memorandum, in an interview with police, Higgins admitted that his driver's license was suspended, and that he caused the crash after he reached onto the floorboard of his armored vehicle while driving 66 mph in a 45 mph work zone. Additionally, the license plate on his vehicle was registered to a different vehicle. That behavior, prosecutors allege, was indicative of recklessness. Tellingly, when Higgins made his initial appearance on tax evasion charges, he did not inform the court about what had happened (he was subsequently charged with vehicular homicide in the crash). The judge had little sympathy for Higgins' defense. 'Over many years, you lied, over and over and over,' the judge told Higgins before handing down what will be, effectively, a life sentence.
Yahoo
19-06-2025
- Yahoo
Queens Defenders founder Lori Zeno pleads not guilty to stealing $60K to fund luxury lifestyle
Lori Zeno, the disgraced founder of the Queens Defenders who's accused of raiding the public defender nonprofit's coffers to maintain a luxe lifestyle in a penthouse apartment, pleaded not guilty to wire fraud charges at her first appearance in federal court Wednesday. Zeno, 64, and her ex-con boyfriend, Rashad Ruhani, 55, were indicted last week on charges they stole some $60,000 for personal expenses, using their organization's accounts to pay the rent for their $6,000-a-month Astoria penthouse apartment, which they claimed was being used for 'client defense' and 'foster parent care.' Queens Defenders provides legal representation to criminal defendants who can't afford to hire lawyers. The couple used the nonprofit's credit cards and the rewards points they accrued to pay for their honeymoon to Bali, and spent big at Louis Vuitton, Bloomingdale's, Ralph Lauren and Neiman Marcus stores, the feds allege. They bought an 85-inch television for $3,300, paid for a $2,600 steak dinner, and got their teeth whitened for $600, the feds allege. Zeno used a Queens Defenders credit card to pay for a December vacation at a resort in Santa Monica, Calif., according to court documents. On Wednesday, she appeared in Brooklyn Federal Court, where Magistrate Judge Joseph Maritolo set her bond at $500,000 secured by her sister, brother-in-law and son. 'Some things are not quite what they appear to be,' her lawyer, Anthony Ricco, said outside the courtroom Wednesday, adding that he's still learning about the case against Zeno, who is barred from contacting Ruhani as part of her bail conditions. Zeno served as the executive director of the Queens Defenders from 2018 until she was forced out of the job in January and Ruhani was fired. She hired Ruhani, who was paroled after 26 years in state prison in 2022 for a robbery conviction, as a client advocate in October 2023, and started a romance soon after, according to court documents. In August 2024, Zeno and Ruhani were married in a religious ceremony, but prosecutors don't believe the marriage is legally recognized since 'both Zeno and Ruhani were married to other individuals,' they wrote in a June 11 filing seeking Ruhani's detention. Zeno promoted Ruhani in June 2024 to a position overseeing Queens Defenders' youth programs, the feds allege, and Zeno hired Ruhani's relatives and associates, including his daughter, to positions where they 'did little or no substantive work,' according to the court filing. In November, Zeno hired a woman Ruhani had married about a decade earlier as a $60,000-a-year director of a nonexistent 'health and wellness' program, the feds said. The woman, who lives in Saudi Arabia, never showed up for work, according to prosecutors. Ruhani was arrested last week. Prosecutors asked he be locked up because of his record and his ties to Saudi Arabia. Queens Defenders received roughly $368,000 in federal funds via the city Department of Housing Preservation and Development. The couple is charged with theft of federal funds and wire fraud. Earlier this year, the city reassigned the group's contracts to Brooklyn Defenders, a separate nonprofit that represents poor defendants in that borough.
Yahoo
14-06-2025
- Politics
- Yahoo
Former celebrity lawyer Michael Avenatti gets nearly eight more years in prison at resentencing
Michael Avenatti, the once-swaggering celebrity lawyer who represented adult film star Stormy Daniels in her court battles against President Trump, was resentenced Thursday to 11 years in prison for dodging taxes and stealing millions of dollars from clients. U.S. District Judge James V. Selna resentenced Avenatti to 135 months — slightly more than 11 years — but credited him 40 months for the time he has served in prison for stealing nearly $300,000 from Daniels' advance on a book contract. That brought his sentence to nearly eight years. "Avenatti has done many noble and good things in his life, some reflected in this case, but he's also done great evil for which he must answer," Selna said. "His actions in this case ... show an abandonment of some of the most basic principles of fairness." Avenatti pleaded guilty in June 2022 to four counts of wire fraud for stealing money from clients and one count of obstructing collection of payroll taxes from his Seattle coffee business, which is now defunct. Read more: Michael Avenatti pleads guilty to fraud, tax charges in California One of the clients he stole from, Geoffrey Ernest Johnson, was a mentally ill paraplegic man on disability. Selna on Thursday ordered Avenatti to pay about $9 million in restitution to his victims — at least 10, including the Internal Revenue Service and the State Bar of California. Avenatti, who appeared in court in Santa Ana dressed in a gray sweatshirt and sweatpants, was sentenced to 14 years in prison in 2022. After he appealed the sentence, the 9th U.S. Circuit Court of Appeals ordered a new hearing. The 9th Circuit found that the trial judge based his decision on calculations of a greater loss than victims actually suffered and gave Avenatti too harsh a sentence. Prosecutors had sought slightly more than 13 years in prison. Avenatti had requested a little more than three. Ahead of the hearing at the federal courthouse in Santa Ana, Selna issued a tentative ruling of 10 years, citing Avenatti's work helping fellow inmates in prison, including as a suicide watch companion and through tutoring. But prosecutor Brett Sagel argued that Avenatti was the same person he was when he stole from his clients and called the judge's proposed sentence "unjust." "He is the same unrepentant person who will say or do anything whether truthful or not, if it benefits him," Sagel said. "He has not changed in the least." Margaret Farrand, Avenatti's federal public defender, said that, from the beginning of his career, Avenatti "has had a part of him that is really seeking to make the world a better place and he is not doing it for money." "This is part of who he is, it's part of what he is — a person that has a good heart and wants to help the world in some way," Farrand said. His actions while in prison, Farrand said, "shows this is the part of himself he wants to carry on." Although Selna had initially proposed a shorter sentence than his final ruling, he appeared particularly swayed by Alexis Gardner, one of Avenatti's former clients, who spoke at the hearing. Avenatti admitted stealing from a $2.75-million settlement that Hassan Whiteside, Gardner's former boyfriend and a pro basketball player then with the Miami Heat, agreed to pay Gardner to avoid a potential lawsuit. Avenatti, who during his crime spree drove a Ferrari, used most of that money to buy a private jet. Gardner was trembling as she stood before Selna, at times pausing to collect herself, noting that it was tough to "have to stand next to my abuser." "Eight years ago, I expected a life-changing settlement that would give me security and a chance to build my future," Gardner said. "Instead, Mr. Avenatti misappropriated my funds, and he dictated my fate without my consent, based on choices that he made." Gardner called Avenatti a "legal predator" and said that if it weren't for him, she would be a homeowner, would own a car and would have savings. Read more: Michael Avenatti gets four years for defrauding Stormy Daniels "This is someone who looked me in my eyes and told me that they were protecting me," she said. "I think you should give him the most that you can give him because it protects people who are not equipped to fight these legal battles." When he addressed the court, Avenatti said if could change that past, "I would." "All I can do is try to move forward in a positive way, and that's what I've attempted to do, and that's what I'm going to continue to attempt to do," he said. After the hearing, Sagel told reporters that he believed Avenatti should have gotten more time, "but obviously getting the equivalent of 11 years on a fraud matter is a significant sentence." "I'm pretty sure he doesn't see this as a victory, doing double digits in jail," Sagel said. It's unclear exactly when Avenatti will be released from prison. After Selna handed down the sentence, Avenatti seemed to signal to someone in the crowd that another legal action was coming. "We'll be back," he said. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
