CALIFORNIA | LOCAL
April 14, 2014 |
Robert Rizzo, the former top administrator who oversaw an era of corruption in the small, working-class city of Bell, was sentenced to 33 months in federal prison Monday on tax fraud charges. For Rizzo, the sentence is likely the first of two prison terms he will be handed this week. He returns to court Wednesday, when he is expected to be sentenced to 10 to 12 years in prison on corruption-related charges. He was also ordered to pay $256,000 in restitution to the federal government.
CALIFORNIA | LOCAL
April 2, 2014 |
Willful and self-assured, Charles H. Keating Jr. strode through a life of outsized public roles -- anti-pornography crusader, luxury hotel developer, political kingmaker -- on his way to becoming one of the nation's most notorious corporate rogues. The harshest spotlight arrived in 1989 when regulators seized his Lincoln Savings & Loan after years of battles. The failure of the Irvine thrift, which had bankrolled Keating's high-rolling investments, cost the government $3.1 billion, then the costliest bank collapse in U.S. history.
March 21, 2014 |
A federal judge ratified the landmark deal in the criminal prosecution of Toyota Motor Corp. over safety defects in its vehicles, but not without a tongue-lashing about the "reprehensible picture" of corporate misconduct the automaker displayed. "Corporate fraud can kill," Judge William H. Pauley III said Thursday as Christopher P. Reynolds, the chief legal officer of Toyota Motor North America, stood silently before him in a lower Manhattan courtroom. "I sincerely hope that this is not the end but only a beginning to seek to hold those individuals responsible for making these decisions accountable," Pauley said.
March 19, 2014 |
In a sharply worded letter released Wednesday, Mike Lynch, former chief executive of Autonomy, has accused Hewlett-Packard of misleading shareholders about the accounting problems it claimed to have uncovered at the British company it acquired in 2011. HP Chief Executive Meg Whitman announced in November 2012 that the company was taking a $5-billion write-down after a whistle-blower had alerted them to widespread fraud at Autonomy. The company referred the matter to a number of U.S. and British regulatory authorities.
March 13, 2014 |
The U.S. Justice Department used faulty statistics to overstate its mortgage-fraud prosecution efforts and ranked mortgage-fraud last in its list of priorities despite public pledges to combat these types of crimes, an internal watchdog said Thursday. The 52-page report by the Justice Department's inspector general found that for the fiscal years of 2009 through 2011, the federal law enforcement agency's effort to prosecute mortgage fraud...
March 7, 2014 |
For more than a quarter of a century, investors have been able to bring class-action lawsuits against companies that have fraudulently inflated their stock prices without having to prove that each buyer of the stock had been individually duped. Now, industrial giant Halliburton Co. is trying to persuade the Supreme Court to make such lawsuits significantly harder, if not impossible, to bring. That would be a fantastic result for publicly traded companies, but a terrible one for the average investor.