Theranos case: Prosecutors add a criminal fraud charge against Elizabeth Holmes
SAN JOSE, Calif. — Theranos founder Elizabeth Holmes, accused of cheating doctors, patients and investors with false claims about her blood-testing startup, is now charged with 12 counts of fraud, after federal prosecutors added a new charge.The 12th felony fraud charge was filed Friday in a new criminal indictment against Holmes that was just released in court records. The charge concerns a patient’s blood-test results, according to the indictment filed in U.S. District Court in San Jose, which did not provide specific details.Holmes, a Stanford University dropout, launched Theranos in 2003, ...
The Mercury News
US Supreme Court overturns 'Bridgegate' convictions of former Chris Christie allies
PHILADELPHIA — The U.S. Supreme Court on Thursday reversed the convictions of two one-time allies of former New Jersey Gov. Chris Christie, ruling in a unanimous decision that they did not violate federal fraud laws in the political scandal known as “Bridgegate.”Bridget Anne Kelly, Christie’s former deputy chief of staff, and Bill Baroni, Christie’s top executive appointee at the Port Authority of New York and New Jersey, were convicted in 2016. Each faced prison time, and Baroni ended up serving about three months at the Loretto Federal Correctional Institution in Pennsylvania.Their convictio...
The Philadelphia Inquirer
Nation and world news briefs
Madoff victims will soon get another $378 million from US fundWASHINGTON — Thousands of victims of Bernard Madoff’s Ponzi scheme are due to get checks totaling $378 million from a U.S. Justice Department fund created years ago through settlements with some of the con man’s oldest customers and his bank, JPMorgan Chase & Co.The distribution from the Madoff Victim Fund will bring total government payouts in the case to more than $2.7 billion for almost 38,000 investors across the globe, the Justice Department said Monday in a statement. That’s almost 74% of their claimed losses, the U.S. said.Th...
Tribune News Service
Alleged fraud drains Abbott retiree's 401(k); plan's administrator facing federal probe into unauthorized distributions
When Heide Bartnett went to the mailbox in January 2019 and opened up her 401(k) statement, she expected to see a robust balance accrued after 10 years as a nutritional products saleswoman with Abbott Laboratories.Instead, the retiree from Darien, Ill., said she saw lines of zeros and an unauthorized $245,000 withdrawal. Bartnett’s primary retirement savings had been nearly drained, she said.“I was just in complete shock when I got the notice in the mail,” said Bartnett, 59. “I was very surprised and all I thought is this must be a mistake — this can’t be.”Set up through employers and often ad...
Former Venezuelan attorney general implicated in US bribery case in Miami
MIAMI — A former Venezuelan attorney general has been implicated in a major U.S. corruption case accusing a one-time oil contractor of using South Florida banks to funnel bribes to her to block criminal charges against his companies in Venezuela.Although the former high-ranking official is not named in a Miami criminal case, sources familiar with the U.S. investigation say Luisa Ortega Diaz is “Venezuela Official 1” in a charging document and is suspected of accepting bribes from Carlos Enrique Urbano Fermin. His companies did business with subsidiaries of the national oil company, PDVSA, and ...
Former Outcome Health execs can't access $10.3 million in frozen funds to pay lawyers, judge rules
Former Outcome Health CEO Rishi Shah and former president Shradha Agarwal wanted to access $10.3 million the government froze as part of a $1 billion fraud case playing out in Chicago federal court. A federal judge has denied the request.Judge Thomas Durkin ruled Wednesday that the money was “indisputably derived” from Agarwal and Shah’s alleged fraud, and therefore would remain frozen.Court documents filed by the former executives’ attorneys in February listed Shah and Agarwal’s assets and argued they cannot pay their attorneys’ fees without the frozen $10.3 million. Shah and Agarwal need “at...
Theranos founder Elizabeth Holmes wants trial preparations exempted from safety orders
SAN JOSE, Calif. — Theranos founder Elizabeth Holmes wants the judge overseeing her criminal fraud case to order her legal team’s trial preparations essential and exempt from coronavirus safety restrictions so lawyers and their agents can perform tasks that they say may provoke hostility.“While we are hesitant to encourage any person to undertake actions that are contrary to advice and directions from public health officials or impose any burdens on health care professionals or institutions, we must adhere to the direction provided by this court regarding the time and manner in which it wishes...
The Mercury News
Venezuela's top judge was paid bribes for favors, spent millions in Miami, feds say
MIAMI — The highest-ranking judge in Venezuela — on par with the chief justice of the U.S. Supreme Court — doled out legal favors to obtain millions in bribes paid through Miami and foreign bank accounts that he spent on chartered private jets, expensive watches and other luxury goods in South Florida, federal prosecutors say.Maikel Moreno, president of the Supreme Tribunal of Justice, was charged on Thursday with laundering bribes that he accepted from white-collar defendants seeking breaks in their high-stakes fraud and financial cases in Venezuela.Moreno, whose criminal case was filed in Mi...
Burr faces lawsuit as fallout continues over his sale of up to $1.7 million in stock
CHARLOTTE, N.C. — Fallout continued this week over revelations that U.S. Sen. Richard Burr dumped up to $1.7 million in stock after private briefings about the coronavirus, including a personal lawsuit against him.Politico reported the shareholder suit against Burr in U.S. District Court for the District of Columbia even as the U.S. Securities and Exchange Commission this week issued a stern warning against insider trading.Last week ProPublica and the Center for Responsive Politics reported that Burr sold the stocks in mid-February just before the market collapsed.As chairman of the Senate Int...
The Charlotte Observer
State AGs Crack down on coronavirus scams
WASHINGTON — From disgraced televangelist Jim Bakker in Missouri to a convenience store operator in New Jersey, suspected fraudsters are trying to take advantage of the coronavirus panic to trick consumers into buying useless or harmful products, triggering state anti-gouging laws and anti-fraud efforts by state attorneys general.“When people are desperate and afraid, they are more likely to make a bad financial decision,” Democratic North Carolina Attorney General Josh Stein, co-chairman of the National Association of Attorneys General Consumer Protection Committee, said in an interview with ...