Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Sunday, May 20, 2012

Fla. county approves changes after oil spill fraud

Fort Walton Beach, Fla. (AP) -- Amid a criminal investigation into the alleged misuse of funds paid by BP after the 2010 Gulf oil spill, a Florida Panhandle county made big changes Tuesday in the way it oversees spending for promotion of the area's world-famous beaches.

An attorney advising Okaloosa County commissioners said they could not wait for state auditors, the sheriff's auditors and the FBI to finish investigations into misspending of bed tax and BP funds before making the changes.

"These changes are not the end, they are merely the beginning but we feel they are crucial to the integrity of the process," attorney Greg Stewart told commissioners. They approved changes that included requiring all purchases over $25,000 by the Tourism Development Council be approved by the county's administrator or the county commission.

The move came less than two weeks after the county's former tourism director died of an apparent suicide. Investigators had unearthed more than $1.4 million in questionable spending on his home and a yacht.

The sheriff's office said last week it was expanding its inquiry, but said the investigation was ongoing did not release details.

The state is conducting forensic audits.

Also Tuesday, commissioners required that the agency's contracts conform to the rules for other county departments. Other departments require task orders detailing the purposes of the expenditures and requiring various levels of approval, Stewart said. The TDC contracts had no-such safeguards. Stewart said many other county tourism agencies in Florida require such task orders.

Interim tourism director Greg Donovan said he has spent his first week on the job fielding questions and trying to figure out the "jigsaw puzzle" that is the Okaloosa County Tourism Development Council. Donovan was the county's airport director before stepping into the interim post.

"Our first priority is to make sure we facilitate all law enforcement requests; that is paramount," he said.

But Donovan said there is another concern: What could happen if the Fort Walton Beach area falls behind in the aggressive competition to market itself as a vacation destination.

"There are thousands of communities out there competing and if you live in Tennessee and you are out there making that decision of where you are going to vacation and this location falls of the map for a year or two because of our lack of promotional capability, it will hurt us.

The TDC cancelled a plan to take an RV to South Carolina to promote the region in a "Boast the Coast" event, but the agency wants to continue a Father's Day giveaway of week's beach vacation and Jeep. Donovan told The Associated Press on Tuesday that he didn't immediately know how much the Father's Day package cost or if the money came from BP or bed tax funds. He said he would provide that information later Tuesday afternoon.

BP provided millions to Gulf counties after the oil giant's massive oil spill. Much of the money went to promote tourism along Florida's white-sand beaches after hotels, restaurants and other tourism-dependent businesses complained that the 2010 tourism season was ruined because of the perception that the oil had reached their beach.

The oil washed ashore on Pensacola Beach and tar balls and tar mats came on shore further east from Navarre Beach to Panama City. Nonstop news coverage of the spill cleanup and environmental monitoring and anxiety about the spill spreading throughout the Florida cause tourism to plummet for months.


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Sunday, May 13, 2012

Three former GE affiliate executives convicted of fraud

Wall Street Week Ahead: Stocks face choppy seas of bank woes, uncertaintyReuters

More volatility could be in store for stocks next week as investors grapple with less certainty about the economic …


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Tuesday, April 24, 2012

NY AG claims fraud by NYC leasing company

ALBANY, N.Y. (AP) -- New York Attorney General Eric Schneiderman on Monday sued a company that leases credit card machines to small businesses, claiming Northern Leasing Systems Inc. fraudulently attempted to drain more than $10 million from 100,000 former customers with expired leases.

The attorney general's office said the Manhattan-based company kept at least $3.5 million from the scheme launched in March 2011, while disguising it by working through a shell company called SKS Associates LLC. The complaint also names Northern Leasing affiliates Lease Finance Group LLC, MBF Leasing LLC, Golden Eagle Leasing LLC and Lease Source-LSI LLC all operating from the same address.

"These companies engaged in a series of deceptions to squeeze unauthorized fees out of their former customers up to a decade after their contracts expired," Schneiderman said.

The lawsuit filed in state Supreme Court in Manhattan seeks restitution, disgorgement of profits, penalties and fees. Schneiderman says the investigation was prompted by more than 70 complaints, and the company claimed it was collecting taxes and administrative fees previously unpaid.

"The taxes and fees in question were clearly called for in the lease agreement with our customers," Northern Leasing said Monday. "The company looks forward to demonstrating this to the satisfaction of everyone concerned. We have always prided ourselves on the fairness of our business practices."

The attorney general's complaint noted at least two class-action lawsuits and hundreds of complaints against Northern Leasing alleging predatory sales practices and deceptive lease agreements from customers, many of which are sole proprietors or mom-and-pop retailers. Leases typically had four-year terms with automatic monthly payments that required customers to give their checking account and bank routing numbers.

"Ultimately, over 77 percent of the amounts sought by SKS were not even taxes at all but merely alleged 'fees' related to the taxes," the complaint said. "Respondents debited former customers with expired contracts, including many customers who had received releases from their contracts when they executed buyout options to purchase the equipment."

Northern Leasing describes itself as an established provider of third-party equipment leasing services that enable business owners to finance point-of-sale and other key equipment components, that it also provides financing for equipment and leasing, and was established in 1991.


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