Former Massey Mine Executive to Enter Plea Next Month

December 14, 2012Email ThisPrintNewslettersTweetArticleComments

A former president of Massey Energy’s White Buck Coal Co. will enter a plea on federal conspiracy charges in January as prosecutors continue to investigate the 2010 explosion at another Massey operation that killed 29 men.

David C. Hughart is set to appear Jan. 16 before U.S. District Judge Irene Berger in Beckley.

Hughart is cooperating in the continuing investigation of the Upper Big Branch mine disaster in Montcoal. The explosion at that Massey mine, now sealed but owned by Virginia-based Alpha Natural Resources, was the worst U.S. coal mine disaster in four decades.

Prosecutors say Hughart worked with unnamed co-conspirators to ensure miners at White Buck and other, unidentified Massey-owned operations, got advance warning about surprise federal inspections many times between 2000 and March 2010.

They say that gave workers time to conceal life-threatening violations that could have led to citations and shutdowns.

Hughart faces two charges: felony conspiracy to defraud the government by impeding the Mine Safety and Health Administration, and misdemeanor conspiracy to violate mandatory health and safety standards. He faces as long as six years behind bars.

Hughart’s cooperation is a sign that authorities may be gathering evidence to target officials further up the Massey hierarchy. Some victims’ families hold former CEO Don Blankenship personally responsible, though prosecutors have declined to say who else could face charges in the wide-ranging and continuing probe.

Although Upper Big Branch is never directly mentioned in the case against Hughart, U.S. Attorney Booth Goodwin has said the charges stem from that investigation. The nature of the allegations also parallel charges brought against those who were directly involved with UBB.

Hughart is the third person to face serious criminal charges in connection with Upper Big Branch.

Former superintendent Gary May is also cooperating with prosecutors. He was scheduled to be sentenced Jan. 17, but last week, Goodwin filed a motion to delay that.

May continues to provide important cooperation in the criminal probe, Goodwin said, adding that notable progress has already been made. Delaying his sentencing “will allow that progress to be extended and will avoid any risk to the investigation from the sentencing proceeding itself,” he said.

Former Massey security chief Hughie Elbert Stover, meanwhile, is appealing his conviction last fall on charges he lied to investigators and ordered a subordinate to destroy documents.

He was sentenced to three years behind bars

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Former Idaho Probation Employee Alleges Gender Bias In Lawsuit

January 25, 2013Email ThisPrintNewslettersTweetArticle1 Comments

A former Idaho probation and parole employee is accusing her administrators of gender discrimination and creating a hostile work environment and emotional distress after her brief relationship with a co-worker turned violent.

The lawsuit filed in U.S. District Court on Tuesday by Cynthia Fuller, a 43-year-old single mother of two, names Department of Corrections Director Brent Reinke and Henry Atencio, chief deputy of probation and parole.

Fuller, who lives in Nampa, began working for IDOC in 2004, but she quit in November 2011, months after her relationship with probation and parole officer Herbt Cruz ended amid her allegations of sexual assault.

In her civil lawsuit, Fuller said she was beaten and raped by Cruz on Aug. 30, 2011, the day she tried ending their romantic relationship. She reported the episode to Canyon County Sheriff’s detectives days later and obtained a restraining order against Cruz.

No criminal charges have been filed against Cruz, who has an unlisted telephone number and could not immediately be reached for comment Wednesday by The Associated Press. Cruz also resigned from IDOC last January, citing personal reasons, an agency spokesman said.

IDOC officials have not yet seen the lawsuit.

Fuller’s lawsuit focuses on how IDOC administrators and her immediate supervisors responded and managed the Caldwell probation and parole office and its staff in the weeks after she claims she was assaulted.

For example, Fuller alleges she was denied a paid leave of absence after the encounter with Cruz, despite initially being told she qualified under department policy, according to the lawsuit. Instead, Fuller, seeking time away from the office to recover and seek psychological counseling, used vacation and sick time before returning to work due to financial pressure _ against the advice of her physician and counselor.

Meanwhile, the lawsuit criticizes the agency for granting paid administrative leave for Cruz, who was disciplined Aug. 15 after his supervisors learned he was the subject of a separate criminal investigation.

Then in November, after Fuller returned to work, supervisors denied her request to inform staff that Cruz was supposed to avoid entering the building because he was specifically under a restraining order.

Fuller told her boss she was fearful of Cruz and that his veteran status and relationship with colleagues would ensure him easy access to the building and her office, located just inside the main entrance.

An administrator agreed to notify staff that Cruz was prohibited from the office, but not because he was the subject of a restraining order involving another employee.

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Charges Filed Against Former Utah Insurance Agent

December 20, 2012Email ThisPrintNewslettersTweetArticleComments

The Utah Insurance Department’s fraud division has filed criminal charges against former insurance agent Stewart Ian Rodgers.

Rodgers has been operating under the name

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Former Insurance Agent Headed to Prison for Defrauding Oklahoma Seniors

November 9, 2012Email ThisPrintNewslettersTweetArticleComments

Former Oklahoma insurance agent Marshall Virden has been sentenced to two years in prison for defrauding senior citizens in Wagoner County, the Oklahoma Insurance Department (OID) announced. The punishment comes after a lengthy investigation by the OID.

Virden pled guilty to one felony count of exploitation of elderly. He received a 10-year sentence with eight years suspended. He was also given credit for time served.

OID investigators discovered that Virden held investment seminars across the state. He would then convince these unsuspecting “customers” to cash in their life insurance and annuity products in exchange for precious metals such as gold and silver. Victims later learned that their investments were fraudulent and that Virden had fled the state.

The insurance department said that hhanks to the efforts of the Wagoner County Sheriff’s Office and U.S. Marshals Service, Virden was eventually arrested in Florida.

“This sentence is just the beginning,” stated Insurance Commissioner John Doak. “Virden faces charges in two other counties, and we believe there are more victims who haven’t come forward. We encourage them to do so. We are determined to protect every Oklahoma senior against insurance fraud.”

Source: OID

 

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Former Hackensack, N.J., Police Chief Sentenced for Insurance Fraud

September 21, 2012Email ThisPrintNewslettersTweetArticleComments

A judge sentenced former Hackensack Police Chief Ken Zisa to five years in prison on Thursday.

Zisa will remain free on bail while he appeals his conviction for improperly removing his then-girlfriend from the scene of an accident in 2008 and filing a fraudulent insurance claim for $11,000 in damages.

Zisa was sentenced to five years for official misconduct and three years for insurance fraud. The terms will run concurrently.

The Record newspaper reports Zisa told the judge he had nothing to add to what his lawyer already said.

In an unusual move last week, the judge overturned three official misconduct convictions stemming from allegations that Zisa failed to recuse himself from a 2004 investigation of his then-girlfriend’s sons.

The judge said he had substantial concerns about the evidence.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: East NewsTopics: insurance fraud, New JerseyHave a hot lead? Email us at newsdesk

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Van Gilder Names Former Community Bankshares CEO as New President

August 28, 2012Email ThisPrintNewslettersTweetArticleComments

Denver, Colo.-based Van Gilder Insurance Corp. named Don Woods its new president.

Woods is co-founder and CEO of Community Bankshares Inc. and its subsidiaries. He began his new role at Van Gilder on Monday.

Under Woods, Community Bankshares Inc. grew to over $2 billion in assets and had 42 branches in Colorado and northern California.

A privately held insurance brokerage firm, Van Gilder is in its fourth generation of leadership by the Van Gilder family.

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Former Zurich CEO Schiro Named Lead Director at Goldman Sachs

April 4, 2012Email ThisPrintNewslettersTweetArticleComments

The Goldman Sachs Group, a global investment banking and securities firm, said it appointed former Zurich Financial Services CEO James J. Schiro to be its board’s next lead director. Additionally, Schiro will also serve as the board’s chair of the corporate governance and nominating committee.


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Former UCLA Player Nelson Sues SI For $10 Million

May 25, 2012Email ThisPrintNewslettersTweetArticleComments

Former UCLA player Reeves Nelson is suing Sports Illustrated for $10 million, citing defamation, false light and intentional infliction of emotional distress over its recent article about problems in the school’s basketball program.

The lawsuit filed Wednesday in Superior Court in Los Angeles names Time Inc. and writer George Dohrmann as defendants. The story titled “Not the UCLA Way” initially appeared Feb. 28 on the magazine’s website and then in its March 5 print edition. Nelson also wants a retraction and public apology.

The lawsuit includes sworn statements from 18 current and former UCLA players, including Tyler Trapani, the great-grandson of legendary UCLA coach John Wooden. They attest that the article’s general description of Nelson as a “psychotic bully” is false and that specific instances of Nelson’s alleged bullying described in the article never happened or were grossly distorted.

According to the lawsuit, the defendants specifically blamed UCLA’s problems on Nelson, describing him as “a classic bully, targeting teammates who weren’t as athletically gifted as he and tormenting the support staff.”

Former player Tyler Honeycutt, who was described in the article as one of Nelson’s victims, confirms in his statement that Nelson never urinated on his bed and clothes, as mentioned in the article. Trapani, who has since graduated, says Nelson did not go “out of his way” to step on his chest as Trapani lay on the ground during a practice drill. Both Honeycutt and Trapani say they were never contacted by Dohrmann about the alleged incidents.

Former players Alex Schrempf and Blake Arnet said in their statements that they were both contacted by the writer, and they told him that his version of events was incorrect. Neither of them was quoted in the article.

The lawsuit says that none of the 18 players contributed any of the anonymous quotes in the article, and that all of them have confirmed that the bulk of the writer’s claims about Nelson are false.

According to the suit, Nelson spoke briefly with Dohrmann about his UCLA career before the article was published. However, it says Dohrmann never questioned Nelson about any of the incidents involving his teammates. Instead, it says Nelson’s comments were in reference to his actions just before he was suspended and dismissed from the team last December for insubordinate behavior.

Nelson played professionally in the Lithuania Basketball League for two months before leaving to prepare for the NBA draft in June.

He is seeking a jury trial, and any damages would have to be decided by a jury.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: West NewsTopics: defamation, lawsuit, UCLAHave a hot lead? Email us at newsdesk

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Case Against Former AIG Execs Greenberg and Smith Cleared for Trial

Former AIG head Hank Greenberg testifying on Capitol Hill, April 2009. (AP Photo/Gerald Herbert)

An appellate court in New York has cleared the way for a trial on allegations that Maurice “Hank” Greenberg and Howard Smith, respectively the former CEO and CFO of American International Group, committed fraud in connection with two reinsurance transactions.

The litigation has been underway since 2005, and was prompted by an investigation by formerNew Yorkattorney general Elliot Spitzer.

The decision partially reverses a decision by state Supreme Court Justice Charles Ramos.

In the part of the case cleared for trial, current New York Attorney General Eric Schneiderman is accusing Greenberg and Smith of a transaction with reinsurer General Re Corp. that helped AIG inflate loss reserves by $500 million without transferring risk.

James Freedland, a spokesman for Schneiderman in the AG’sNew York Cityoffice, says, “We are pleased that the court has paved the way for a trial to hold the defendants accountable for perpetrating a major reinsurance scheme to defraud investors.”

After the decision was handed down by a five-judge panel of the Appellate Division, First Department, of the Supreme Court of New York, lawyers for Greenberg and Smith said they would appeal the decision to the Court of Appeals, the state’s highest court.

The appellate panel did rule, however, that a trial-court judge was premature to hold Greenberg and Smith liable in October 2010 for damages without a trial over an auto-warranty-insurance transaction with Capco Reinsurance Co, which the state called a sham that helped AIG hide more $200 million of losses.

Greenberg’s lawyers, David Boies of Boies Schiller and Skadden Arps partner John Gardiner, say, “Greenberg and Smith are pleased that the Appellate Division agreed that the prior grant of summary judgment to the Attorney General must be reversed.

“They believe the Appellate Division should have gone even further, however, and…dismissed the Attorney General’s action in its entirety because the claims of the attorney general conflict with the federal-securities laws, and the attorney general also failed to develop and present any proper, admissible evidence to support its allegations against Greenberg and Smith.”

Vincent Sama, of Kaye Scholer, who represents Smith, called the proceedings a “misguided action” in 2005 by then-state Attorney General Elliot Spitzer, and said the entire state case should be “conclusively dismissed.”

AIG, formerly the largest insurance company in the world, entered into a settlement agreement with the Attorney General with respect to the two transactions and other claims, paying over $1billion in damages and penalties.

The issue came to a head in March 2005, when AIG issued a press release admitting that the GenRe transaction documentation was improper, stating that in light of the lack of evidence of risk transfer, the transactions should have been recorded as deposits.

Greenberg and Smith subsequently resigned their positions as CEO and CFO of the company. In May 2005, AIG restated its results for 2000 through 2004.

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Former N.J. School Superintendent Pleads Guilty to Public Corruption

April 6, 2012Email ThisPrintNewslettersTweetArticle1 Comments

Former Toms River Regional Schools superintendent Michael Ritacco pleaded guilty to public corruption and tax evasion charges Thursday.

Federal prosecutors claimed Ritacco accepted between $1 million and $2 million in cash and gifts from the district’s insurance broker. The broker on Monday pleaded guilty to participating in a scheme to bribe the superintendent.

Ritacco’s guilty plea in federal court in Newark, N.J., came just days before he was scheduled to stand trial.

IRS special agent Rob Glantz tells the Asbury Park Press the 64-year-old could face up to 14 years in prison when sentenced July 12.

Ritacco also agreed to forfeit his 2010 Mercedes and more than $8,000 in cash that was seized at his home when it was raided in April 2010.

 

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Former Warranty Insurance Firm Co-Owner Pleads Guilty in Missouri

April 9, 2012Email ThisPrintNewslettersTweetArticleComments

A former co-owner of one of the country’s top marketers of auto service contracts has pleaded guilty in Missouri to theft and fraud.

Darain Atkinson founded St. Charles-based US Fidelis with his brother, Cory Atkinson. Missouri Attorney General Chris Koster says Darain Atkinson pleaded guilty to one count each of consumer fraud, insurance fraud and stealing consumer refunds.

Sentencing in St. Charles County Circuit Court is scheduled for July 16. Prosecutors are recommending a sentence of eight years.

A grand jury in St. Charles County last year indicted Darain Atkinson on 14 counts and his brother on 13 counts. Cory Atkinson faces trial Sept. 4.

US Fidelis was headquartered in Wentzville, Mo., a suburb of St. Louis. US Fidelis sold motor vehicle extended service contracts, sometimes called auto extended warranties, which are regulated by the Department of Insurance. In addition to extended service contracts, US Fidelis sold additive product contracts.

The company filed for bankruptcy in March 2010 amid accusations it used illegal telemarketing ploys and sold worthless warranties.

Lawsuits were filed in several states over alleged fraudulent activity associated with US. Fidelis.

 

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: Midwest NewsTopics: cory atkinson, darain atkinson, extended service contracts, felony, Fraud, Missouri, us fidelisHave a hot lead? Email us at newsdesk

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