Archive for October, 2006
Fri 20 October 06 · Filed under Uncategorized
ViAnna Jordan, the woman behind the effort to recall Milwaukee alderman Michael McGee (Jackson) has put together a website on the issue. Ms. Jordan launched the recall drive this week, and has already been getting positive press.
From Ms. Jordan’s website, 10 reasons why Michael McGee (Jackson) should be recalled:
- Has become an embarrassment to his community
- Perjured himself in court about an illicit affair with mother of his child
- Arrested on charges of resisting arrest, disorderly conduct and threatening to kill a woman
- Aide arrested for possession of guns, drugs, and open alcohol
- Used slurs and epithets against LGBT community; unbecoming of a role model
- Has shamefully earned the public reputation of a scofflaw
- Lacks the rapport and leadership skills to be an effective leader
- Refers constituents to disreputable cronies in a conspiratorial hoax/scam
- Fraudulent use of alias names to avoid responsibility for accident damages
- Used constituent organizations to rally to the defense of a shameful act
Thu 19 October 06 · Filed under Fraud News Stories
Six current and former Milwaukee police officers have been charged with federal crimes related to the Frank Jude Jr. beating incident that occured almost two years ago. A total of 8 officers have now been charged by the U.S. Attorney, and 3 have agreed to plead guilty.
Thursday’s indictments included Jon Bartlett, Daniel Masarik and Andrew Spengler, the three officers who were unsuccessfulliy tried in Milwaukee County Court. Additionally, Ryan Packard and Ryan Lemke have been charged. The felonies charged by the U.S. Attorney include conspiracy to violate the civili rights of Frank Jude and his friend, Lovell Harris. Joseph Stromei was charged with obstruction of justice for lying to investigators, and he has agreed to plead guilty.
The five men charged with conspiracy could each receive up to 20 years in prison and fines of $500,000. Stromei could receive up to 10 years in prison and a $250,000 fine. He is likely to receive less prison time than the maximum, however, since he is cooperating with prosecutors.
Wed 18 October 06 · Filed under Uncategorized
The Milwaukee Journal Sentinel reports that a drive to recall alderman Michael McGee/Jackson has begun. The group organizing the recall is named “Friends to Recall Ald. Michael McGee Jr./Jackson”, and is led by ViAnna Jordan. The papers were file on October 3, and the group has 60 days from that date to gather 1,620 signatures to force the recall. ViAnna Jordan is listed as the candidate to oppose McGee/Jackson in the recall. Among the reasons listed for the recall:
- Fraudulent use of alias names to avoid responsibility for accident damages
- Incidents such as arrests for disorderly conduct
- Perjury allegations in a trial involving the mother of his child
- Slurs against gays
- He “has become an embarrassment to our community.”
Note: The Journal/Sentinel says that “he has been known as McGee his whole life”. That is not correct. He’s got a drivers license and a social security number in the name of Jackson. Therefore, he has also been known as Jackson.
Tue 17 October 06 · Filed under Fraud News Stories
Today Milwaukee Public Schools Superintendent William Andrekopoulos ordered School of Humanities closed. This is a high school in the North Division complex with 163 students enrolled.
The school closure has been prompted by recent violent incidents, including two fights requiring police intervention and an attack on a safety aide.
At School of Humanities:
- 92% of the students have been suspended within the last year.
- In the 2004-05 school year, there were 11 drug- or weapon-related incidents that resulted in suspension or expulsion. (How many more were there that did NOT result in those consequences?)
- Last year, only 4% of the 10th graders tested proficient in reading, science, and social studies. (That was 1 student out of 24.)
- Last year ZERO 10th graders tested proficient in math.
- There was so much turnover amongst students, that 132% of them were deemed chronically truant. (189 students were chronically truant, when the school had official enrollment of 143.)
Tue 17 October 06 · Filed under Fraud Detection & Prevention
Andrew Bandy, a former property manager for Mallory Properties, has been indicted on federal charges related to embezzlement. Bandy is accused of embezzling over $240,000 from the real estate investment company.
According to the indictment, which was handed down last week by a federal grand jury, Bandy submitted false invoices for construction work never performed, and then deposited Mallory Properties checks related to those invoices deposited into a bank account he controlled. (i.e. He had a guy set up an account and give him control of the account.) The scheme was carried out from April 2003 through August 2005.
Tags: embezzlement, indictment, grand jury
Tue 17 October 06 · Filed under Fraud Detection & Prevention
Ken Lay, the former chairman of Enron Corp., has had his criminal conviction on fraud and conspiracy charges vacated. He was convicted on May 25, 2006, and died from a massive coronary on July 5, 2006.
The law in the Fifth Circuit states that if a defendant dies before having an opportunity to appeal a conviction, that the conviction must be taken off his record. The federal government argued that Ken Lay’s estate shouldn’t be able to keep the proceeds of fraud, which should be forfeited and distributed to the victims of his crimes. The judge rejected the argument, saying that those who were defrauded could pursue the matter in civil court.
The Justice Department has said that they will continue to pursue restitution on behalf of the Enron fraud victims.
Tags: Ken Lay, fraud, conspiracy, appeal, conviction, restitution, Enron
Tue 17 October 06 · Filed under Uncategorized
Bankrate.com ran a great article about why consumers don’t save their money. It seems everyone’s got a reason, er, excuse … From their article:
- I don’t make enough money - Many people just spend their money until it’s gone. Tracking what you spend may help you control your spending, and therefore help you to save.
- I’ll get around to it later - People are always putting off saving. However, saving little by little can add up fast.
- I deserve a little luxury in my life - We’re in a society that promotes instant gratification. Saving is important too, and it’s okay to save for the treats you want too.
- Someone else will take care of it - Many count on things like inheritances to start their savings. It’s wiser to be in control of your financial future early on.
- I’m saving through my 401(k) - Retirement money is important, but you also need emergency funds for today’s problems.
- This item or service will pay for itself - Rationalizing purchases is easy, but it may be wiser to save and create a financial future.
Mon 16 October 06 · Filed under Fraud News Stories
We’re back in the saddle again, and lucky for us, fraud continues to thrive. This leaves us plenty of material on which to blog!
I see a theme developing this week, and it is Fraud in Government and Non-Profits…
Send your entry for next week’s Carnival of Fraud here!
Fri 13 October 06 · Filed under Fraud News Stories
Disclosure: I was a probation and parole agent 11 years ago.
Wisconsin is going to create a special unit of probation and parole agents to look after Milwaukee residents who are “on paper”. Police Chief Nannette Hegerty has said that one out of every five suspects arrested by Milwaukee police is on either probation or parole. Governer Jim Doyle claims that those under this intense supervision will be put back in jail as soon as they break conditions of their release.
Milwaukee County currently has 400 agents who monitor 18,000 offenders. The new unit will add 13 agents, who will have smaller caseloads than the average agent.
With the numbers currently at 45 criminals per agent, I don’t think the number of agents is the problem. The problem is that these people are habitual criminals. More so-called supervision will not prevent criminals from engaging in criminal activity.
Tags: probation, parole
Fri 13 October 06 · Filed under Pyramid Schemes & MLM, Scam Busting
While participating in online discussions and information-sharing sessions, I noticed that current Mary Kay representatives had a very strong reaction to our work. The typical reaction was to call the discussion members lazy, liars, and other names intended to discredit them.
I had heard so many similar stories, and I knew they couldn’t all be lying. I believed these women based upon my own experience and the experiences that others were sharing.
The daily participation in the online forums quickly grew as word got out about these “alternative” sources of information. Women were “showing up” in droves to add their stories, contribute incriminating documents, and give opinions on the company and its sales force.
This emboldened the “pro-Mary Kay” women even more. The attacks on credibility became stronger and they attempted to silence the groups who were speaking out. I believe that all of us are entitled to our opinions and entitled to share the truth as we know it.
However, the support of a cause often does not come without a price. Former Amway representatives have spoken out in large numbers, but the most vocal of those have been hit with lawsuits. Those lawsuits haven’t been fully successful, as books like Merchants of Deception and websites like MLM Survivor continue to exist as resources for those seeking more information.
Both sides of the debate seem to have thrown down the gauntlet. It sometimes appears to be a battle of wills. The Internet has created an opportunity for information-sharing, and it remains to be seen if this will change the policies and procedures of a multi-billion dollar company like Mary Kay.
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