Frauds and Swindling

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    Trump to Pardon Todd and Julie Chrisley, Reality TV Stars Convicted of Fraud

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    The clemency for Todd and Julie Chrisley, the stars of “Chrisley Knows Best,” is Mr. Trump’s latest gift to people he calls victims of a weaponized justice system.President Trump will fully pardon the reality television stars Todd and Julie Chrisley, who were convicted three years ago of evading taxes and defrauding banks of more than $30 million to support their luxurious lifestyle.The pardon, announced Tuesday by the White House, is the latest instance of Mr. Trump using his clemency power to settle grievances over what he calls the political weaponization of the justice system. Mr. Trump, in notifying the Chrisleys’ daughter, Savannah, called their treatment “pretty harsh,” as shown in a video clip of their call posted to social media by one of the president’s special assistants, Margo Martin.“Your parents are going to be free and clean, and I hope we can do it by tomorrow,” Mr. Trump tells Savannah Chrisley, adding, “I don’t know them, but give them my regards and wish them a good life.”Savannah Chrisley can be heard saying, “Thank you so much, Mr. President.”The Chrisleys soared to fame about a decade ago in the USA Network hit “Chrisley Knows Best” as self-made, God-fearing real estate moguls who lived in a 30,000-square-foot mansion outside Atlanta. But according to prosecutors, their empire was “based on the lie that their wealth came from dedication and hard work” and they were “career swindlers who have made a living by jumping from one fraud scheme to another, lying to banks, stiffing vendors and evading taxes at every corner.”A jury in 2022 found the couple guilty of eight counts of financial fraud and two counts of tax evasion, while Ms. Chrisley was convicted of additional counts of wire fraud and obstruction of justice. Mr. Chrisley received a 12-year prison sentence, and Ms. Chrisley was sentenced to seven years.According to the Justice Department, the Chrisleys conspired with a former business partner to defraud banks around Atlanta into giving them more than $36 million in personal loans. They submitted false bank statements, audit reports and personal financial statements to obtain the loans, the Justice Department said, and spent the money on luxury cars, real estate and clothing, while also using new fraudulent loans to repay older ones. After spending all the money, the Justice Department said, Mr. Chrisley filed for bankruptcy.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Texas Doctor Who Filed $118 Million in Fraudulent Medical Claims Gets 10 Years in Prison

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      Jorge Zamora-Quezada falsely diagnosed patients with a chronic disease and subjected them to unnecessary treatments to help fund his lavish lifestyle, officials said.For nearly 20 years, a Texas doctor falsely diagnosed patients as having a chronic disease, administered unnecessary, toxic treatments and filed more than $118 million in fraudulent health insurance claims to fund his lavish lifestyle, which included a private jet, luxury cars and high-end properties, prosecutors said.The doctor, Jorge Zamora-Quezada, 68, of Mission, Texas, was sentenced to 10 years in prison this week, according to the Justice Department.From 2000 to 2018, he falsely diagnosed patients with rheumatoid arthritis and administered dangerous, medically unnecessary treatments to defraud federal and private health insurance companies, the Justice Department said.Rheumatoid arthritis is a chronic disease that causes a person’s immune system to attack healthy tissue. Some of Mr. Zamora-Quezada’s patients were as young as 13, the Justice Department said.Mr. Zamora-Quezada’s medical license was canceled in 2021, according to Texas Medical Board records.His scheme funded what prosecutors described in court documents as his “lavish and opulent lifestyle,” with properties across the United States and Mexico, as well as a private jet and a Maserati that he used to travel between his offices in the Rio Grande Valley and San Antonio.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      An Officer Said She Was Disabled. Prosecutors Said She Ran, Skied and Danced.

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      Prosecutors said that Nicole Brown, 39, of the Westminster Police Department in California, falsely said that she wasn’t able to work, receiving her salary and benefits while engaging in strenuous activities.Nicole Brown, a police officer in Orange County, Calif., told her bosses in 2022 that she could no longer perform her duties after she sustained a head injury on the job.But according to prosecutors, whatever had happened to her didn’t prevent her from running in road races, skiing or snowboarding, and dancing at a music festival while she illegally collected more than $600,000 in workers’ compensation.This week, Ms. Brown, 39, who worked for the Westminster Police Department, was charged with 15 felonies related to workers’ compensation insurance fraud, according to the Orange County District Attorney’s Office.Her stepfather, Peter Gregory Schuman, 57, of Buena Park, Calif., was charged with two felonies charging him with conspiring with Ms. Brown. He is a lawyer who specializes in defending employers and insurance companies against workers’ compensation claims.Ms. Brown was charged with nine felony counts of making a fraudulent statement to obtain compensation; six felony counts of making a fraudulent insurance benefit claim; and one felony enhancement of committing an aggravated white-collar crime worth over $100,000, court records show.Her lawyer, Brian Gurwitz, said on Thursday that Ms. Brown’s on-duty injury “continues to cause her severe limitations in her daily life.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Elizabeth Holmes’s Partner Has a New Blood-Testing Start-Up

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      Billy Evans has two children with the Theranos founder, who is in prison for fraud. He’s now trying to raise money for a testing company that promises “human health optimization.”Elizabeth Holmes is in prison for defrauding investors through her blood-testing company, Theranos. In the meantime, her partner is starting one of his own.Billy Evans, who has two children with Ms. Holmes, is trying to raise money for a company that describes itself as “the future of diagnostics” and “a radically new approach to health testing,” according to marketing materials reviewed by The New York Times.If that sounds familiar, it’s because Theranos similarly aimed to revolutionize diagnostic testing. The Silicon Valley start-up captured the world’s attention by claiming, falsely as it turned out, to have developed a blood-testing device that could run a slew of complex lab tests from a mere finger prick.Mr. Evans’s company is named Haemanthus, which is a flower also known as the blood lily. It plans to begin with testing pets for diseases before progressing to humans, according to two investors pitched on the company who spoke on the condition of anonymity because they had agreed to keep the plans secret. Mr. Evans’s marketing materials, which lay out hopes to eventually raise more than $50 million, say the ultimate goal is nothing short of “human health optimization.”The Haemanthus testing device.HaemanthusA photo provided to potential investors of the start-up’s prototype bears more than a passing physical resemblance to Theranos’s infamous blood-testing machine, variously known as the Edison or miniLab. The device that Mr. Evans’s company is developing is a rectangular contraption with a door, a digital display screen and what the investor materials describe as tunable lasers inside.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Art Expert Accused of Duping Prince and Palace of Versailles Stands Trial

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      A connoisseur of 18th-century French furniture fooled buyers into purchasing chairs with fake royal pedigrees, authorities say. The distinct taste of licorice helped give him away.Bill Pallot had an unparalleled passion for 18th-century French chairs that he turned into a lucrative career consulting with museums, galleries, collectors and the Palace of Versailles.He became a fixture in Parisian society and a celebrity in the art world, until he was felled by a former student who had become so steeped in antiques that he could — literally — taste a fake.At the height of his powers, Mr. Pallot’s expertise and assurances of authenticity had helped convince French experts to designate multiple items as national treasures. He also used his renown to dupe deep-pocketed buyers, including Prince Abdullah bin Khalifa Al-Thani of Qatar, into believing they were purchasing genuine pieces of royal history.He attested to the authenticity of seating said to have belonged to Marie Antoinette and to the mistress of Louis XV, Madame du Barry.People believed so fully in Mr. Pallot because almost 40 years ago he wrote what was long considered the book on the topic: “The Art of the Chair in 18th Century France,” which includes a preface by his friend, the antique enthusiast and fashion designer Karl Lagerfeld.Now, Mr. Pallot is perhaps best known for using his knowledge of art history to hoodwink some of the most esteemed antique experts and buyers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Nonprofit’s Leader Convicted of Siphoning Off $240 Million in Federal Food Aid

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      Aimee Bock was accused of overseeing a scheme that exploited lax pandemic-era controls, and reaped millions with fake invoices for nonexistent meals.The leader of a Minnesota anti-hunger nonprofit was convicted in U.S. District Court on Wednesday of masterminding a brazen scheme that reaped more than $240 million in pandemic relief funds with a network of bogus food kitchens that billed the government for 91 million meals.The nonprofit’s leader, Aimee Bock, 44, was convicted by a jury of seven counts, including wire fraud and bribery. Another defendant, Salim Said — a 36-year-old who oversaw one of the bogus kitchens — was convicted of 20 counts, also including wire fraud and bribery.When Ms. Bock was charged in 2022, federal prosecutors said her scheme was the largest known fraud against the government’s Covid-19 relief programs.At least 70 people were charged in the scheme, and more than 40 have already pleaded guilty or been convicted. Last year, another case related to the same scandal made national news, when someone attempted to bribe a juror in a separate trial by leaving about $120,000 in cash at her home in a Hallmark gift bag. Five people were later charged with bribery in that case.After Wednesday’s verdicts were read, Judge Nancy Brasel ordered that Ms. Bock and Mr. Said remain in jail to await their sentencing, according to a report from the courtroom by The Sahan Journal, a nonprofit newsroom. The charges carry potential sentences of more than a decade in prison.The fraud scheme targeted two programs meant to feed hungry children, which were funded by the U.S. Department of Agriculture but administered by the state of Minnesota. The system relied on nonprofit groups called “sponsors” to be its watchdogs. They were supposed to oversee individual kitchens and feeding sites and make sure they were not inflating the number of children they served.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Federal Officials Pursue Fraud Case Against Customs Official

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      A longtime customs employee has been accused of a scheme to defraud FEMA involving aid from floods in Detroit. She has denied the charges, officials say. A U.S. Customs and Border Protection official in Detroit has been charged in a scheme to defraud the Federal Emergency Management Agency and with making false statements to federal officials, the authorities announced on Wednesday.A criminal complaint against the official, Serina Baker-Hill, was unsealed on Wednesday, the U.S. attorney’s office for the Eastern District of Michigan said in a news release. Ms. Baker-Hill, 55, is a career customs employee and the director of an agency center focused on the automotive and aerospace industries. She was arrested and later released on bond, according to a spokeswoman for the U.S. attorney’s office. It is unclear who carried out the arrest, or when.Ms. Baker-Hill applied for FEMA disaster assistance after powerful storms flooded thousands of homes, including her own, in the Detroit area in August 2023, according to the criminal complaint.The complaint said that a FEMA inspector confirmed there had been damage to the basement of the home she shared with her husband, and Ms. Baker-Hill claimed she could not safely live in her home while it underwent repairs.FEMA approved funds for the repairs as well as two months of rental assistance, specifying the money was to be used for rent and essential utility costs while she was in temporary housing, according to the criminal complaint. The complaint said she received about $6,300 from the agency.However, the complaint said investigators discovered that bank records showed none of the funds were used for rent, hotel stays or utilities. And video surveillance and utility records indicated that Ms. Baker-Hill and her husband continued living in their home, officials said in the complaint.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Dozens of Canadians Are Charged in $21 Million ‘Grandparent Scam’

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      The conspirators called older adults and posed as their grandchildren in need of bail money after a fake arrest, federal prosecutors said.They sat in call centers in Montreal and targeted older Americans, claiming to be grandchildren in need of bail money after an arrest. In all, federal prosecutors said, more than two dozen Canadians defrauded hundreds of vulnerable Americans out of $21 million over three years in what the authorities called a “Grandparent Scam.”On Tuesday, the U.S. Attorney’s Office in Vermont announced that 25 Canadian nationals had been charged with conspiring to defraud Americans in 45 states. All of those accused are from Ontario or Quebec, and 23 had been arrested in Canada as of Tuesday afternoon, prosecutors said.According to prosecutors, the conspirators placed phone calls from centers in and near Montreal between the summer of 2021 and June 4, 2024, as part of the scheme.“Today’s arrests are the result of domestic collaboration as well as our critical international partnerships with our colleagues in Canada, Sûreté du Québec and the Royal Canadian Mounted Police,” Michael J. Krol, a special agent for Homeland Security Investigations in New England, said in a statement on Tuesday. “Tackling transnational crime is one of our greatest priorities and we’re working hand-in-hand with our neighbors to dismantle organized criminal groups that threaten our safety and security.”The call centers were managed by five Canadians who were charged with money laundering in addition to the conspiracy charge that all of those charged face, according to court records.“These individuals are accused of an elaborate scheme using fear to extort millions of dollars from victims who believed they were helping loved ones in trouble,” Mr. Krol said in the statement.The conspirators also told the older adults that there was a “gag order” that prevented them from discussing their relative’s predicament with other family members, the U.S. attorney’s office said.The callers used a variety of tactics to obtain money from the older Americans, according to court records. The most common tactic was to pose as a young relative who had just been arrested after a car accident.After the victims turned over the money, it was eventually transmitted to Canada, the authorities said, noting that some of the transactions involved cryptocurrency.The 25 Canadians whose indictments were unsealed on Tuesday joined nine Americans who had previously been charged in the “Grandparent Scam,” the authorities said.Contacts for those charged or their lawyers were not immediately available.If convicted, the five managers would face a maximum of 40 years in prison, while the other alleged conspirators would face a maximum of 20 years in prison.The F.B.I. warned that grandparent schemes targeting older adults are common. One such scheme figured in the plot of the 2024 movie “Thelma,” starring June Squibb, which followed a 93-year-old woman on a journey to reclaim the money that had been stolen from her. More

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      Woman Will Plead Guilty in Scheme to Defraud Presleys and Sell Graceland

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      Prosecutors had accused the woman of creating fraudulent loan documents and forging Lisa Marie Presley’s signature.A Missouri woman agreed to plead guilty to mail fraud on Tuesday for her role in orchestrating what the authorities described as a scheme to defraud Elvis Presley’s heirs by claiming ownership of Graceland, his Memphis home, and threatening to sell it in a foreclosure auction.The woman, Lisa Jeanine Findley, of Kimberling City, Mo., will have a count of aggravated identity theft dismissed as part of the plea agreement, which was filed in United States District Court for the Western District of Tennessee.The mail fraud count carries a maximum sentence of 20 years in prison, but prosecutors said they would recommend a sentence of less than five years. A spokeswoman for the Justice Department did not immediately respond to a request for comment. A public defender listed in court documents for Ms. Findley also did not respond.The case involving Ms. Findley burst into the public eye in May, when lawyers for the actress Riley Keough, the granddaughter of Mr. Presley, went to court to stop what they said was a monthslong, fraudulent scheme to sell Graceland, which is now a lucrative tourist attraction that draws 600,000 visitors a year.Court papers revealed that the attempt had been made by a company known as Naussany Investments & Private Lending LLC, but exactly who was behind that company remained a mystery for many months. Naussany Investments had claimed in court papers that Mr. Presley’s daughter, Lisa Marie Presley, who died in 2023, had borrowed $3.8 million from the company and put Graceland up as collateral.The company subsequently scheduled a sale of Graceland. But a Tennessee judge blocked the sale and the state’s attorney general said his office would look into the situation after no one showed up in court to represent the company.Eventually, federal officials came forward and claimed that the whole situation had been part of an elaborate fraud.In an affidavit filed in August in support of an arrest warrant, Christopher Townsend, an F.B.I. agent, wrote that Findley used “a series of aliases, email addresses and fake documents” to engage “in a scheme to defraud Elvis Presley’s family for millions of dollars by threatening to foreclose on the ‘Graceland’ estate.”Mr. Townsend said in the 30-page affidavit that Ms. Findley had created fraudulent loan documents and unlawfully used Ms. Presley’s name and signature as part of her scheme.The affidavit also said that Ms. Findley published a fraudulent “Notice of Foreclosure Sale” in The Commercial Appeal, a Memphis newspaper, executed false affidavits that were sent to the Shelby County Register’s Office, and communicated with the news media through fake identities. More