Business Blotter is a weekly roundup of white collar complaints, lawsuits and enforcement actions – a police beat feature from Business Blunders. All defendants are presumed innocent until proven guilty.

Former Abercrombie & Fitch CEO Michael Jeffries may finally face trial for alleged sex crimes that occurred more than a decade ago.

On Wednesday, Blake Lott, the acting warden at the Federal Medical Center in Butner, N.C., filed a letter in federal court in New York saying the 81-year-old is “now competent to stand trial.”

Jeffries was charged with sex trafficking and international prostitution in October, allegedly taking advantage of the retailer’s young male models.

We needn’t get into the sordid details contained in the indictment, but let’s just say Jeffries used the same MO as the late sex offender Jeffrey Epstein: You want to be a model?

He has pleaded not guilty.

Read More: CEOs Gone Wild (Business Blunders)

During Jeffries’ reign at Abercrombie & Fitch from 1992 to 2014 the retailer was often under fire for sexually explicit advertising aimed at teenagers.

“We are appalled and disgusted by the alleged behavior of Mr. Jeffries, whose employment with Abercrombie & Fitch Co. ended nearly ten years ago,” the company has said.

In May, a court ruled Jeffries was not fit to stand trial because of his advanced age and Alzheimers. His lawyers and prosecutors requested that he be hospitalized in federal Bureau of Prisons custody.

His lawyers described his condition as “progressive and incurable.” They also said he “cannot be restored to competency in the future.”

But suddenly, there’s a cure?

Mozaic CEO charged with wire fraud in $20 million investor scheme

A federal indictment unsealed Dec. 9 charged Marcus Cobb, CEO of Nashville-based Mozaic Payments Inc., with defrauding a Boston private equity firm out of about $20 million. He allegedly provided fabricated financial statements and fake customer testimonials to secure the funding and then used the capital for personal travel and entertainment.

Ex-Jackson Health Foundation executive sentenced in embezzlement scheme

Charmaine Gatlin, former chief operating officer of the Jackson Health Foundation, received more than six years in prison on Dec. 10 after pleading guilty to embezzling millions from the nonprofit. Gatlin, 52, of Weston, Fla., submitted false invoices, took kickbacks and misused restricted funds meant for patient support. She was also ordered to pay $6.9 million in restitution.

California woman sentenced for embezzling from youth economics program

Carrie Lynn Grant, 62, of Pleasant Hill, Calif., was sentenced to 27 months for embezzling over $1.6 million dollars from a Northern California charity organization, the U.S. Attorneys Office announced Dec. 10. The group she targeted provides educational materials and programs to prepare young people to succeed in a global economy. She spent the money on first-class air travel, floor seats for a Golden State Warriors game, box seats for a San Francisco 49ers game, and a condominium in Hawaii.

Eleven indicted for stealing Covid relief funds

Hardly a week goes by without someone getting indicted for alleged crimes committed during the pandemic. On Dec. 12 eleven people were indicted in Tampa, Fla., for submitting false Economic Injury Disaster Loan and Paycheck Protection Program applications. Indicted were Sherell Breus, 40, of Champions Gate; Jessie Perlado, 63 of Lakeland; Candice Harper, 37, of Pooler, GA; Yashica Carter, 40, of Fort Lauderdale; Brandon Thomas, 39, of Champions Gate; Antwaun Jonson, 39, of Delray Beach; Jessica Sejour 33 of Greenacres; Tameshia Roberson, 44, of Winter Haven; Vance Houston, 30, of Oakland Park; and Raymound Carvil Sr., 61, of Fort Lauderdale) If convicted, each faces up to 20 years in prison.

Securities regulator charges Canadian citizen with fraudulent offerings on Discord

The Securities and Exchange Commission on Dec. 10 announced civil charges against Canadian citizen Nathan Gauvin and related entities Blackridge, Gray Digital Capital Management USA, and Gray Digital Technologies. The regulator alleges Gauvin raised more than $18 million through fraudulent offerings marketed on Discord and misappropriated at least $6.3 million of investor funds using fabricated credentials and false performance metrics.

Two Georgia men sentenced for Covid unemployment insurance fraud

Two Cordele, Ga., men were sentenced Dec. 11 for a Covid unemployment benefits scheme. Prosecutors alleged they used stolen identities to obtain about $17 million in state jobless benefits. Malcolm Jeffrey, 34, received a 10-year prison term and was ordered $16.9 million restitution. Malcolm Jeffrey, 34, got six years and ordered to pay $365,066.

Virtual-asset trading platform pleads guilty to federal criminal charges

Paxful Holdings Inc., an online peer-to-peer cryptocurrency trading platform, agreed Dec. 10 to plead guilty to charges including violating the Travel Act and Bank Secrecy Act. Prosecutors allege the company willfully facilitated illicit transactions – including fraud, romance scams, extortion and prostitution – by ignoring anti-money-laundering requirements. The company faces sentencing in February.

Senior government-contract manager indicted in cybersecurity fraud scheme

A federal grand jury in Washington, D.C., returned an indictment Dec. 10 charging a former senior manager of a Virginia-based government contractor with fraud, wire fraud and obstruction of audits. Danielle Hillmer, 53, of Chantilly, Va., allegedly misrepresented cybersecurity controls on a cloud platform used by the U.S. Army and other federal agencies.

A Connecticut oil trader sentenced in international bribery and money laundering case

A former senior oil and gas trader was sentenced Dec. 9 to 15 months in prison and for his role in an eight-year scheme to bribe Brazilian government officials and launder money to secure business for Arcadia Fuels and Freepoint Commodities. Glenn Oztemel, 66, of Westport, Connecticut, was also fined $300,000.

Business Blotter is a weekly roundup of white collar complaints, lawsuits and enforcement actions – a police beat feature from Business Blunders. All defendants are presumed innocent until proven guilty.

UPS tried to save money flying an aging and inadequately maintained jets, according to wrongful death lawsuits filed Dec. 3. The result was the Sept. 30 crash in Kentucky that killed 14 people.

The fiery crash happened on takeoff when an engine detached from a wing of a dacades old MD-11 cargo jet. The National Transportation Safety Board found cracks where it was supposed to stay attached.

“This plane should have never been in the air,” said attorney Bradley Cosgrove said at a news conference.

Families of Angela Anderson, 45, who was shopping at a business near the airport, and Trinadette “Trina” Chavez, 37, who was working at nearby Grade A Auto Parts, filed the lawsuits. They were just living their lives as the exploding plane careened into local businesses.

The lawsuit filed in state court also names engine manufacturer General Electric. Both UPS and GE are not commenting, citing pending litigation.

And this could be just the beginning. UPS is also facing another lawsuit in federal court last month, accusing it of negligence and wanton conduct.

Managing New York properties for Russian oligarchs doesn’t look profitable, either

A New York property-management firm was fined $7.1 million on Dec. 4 after the Treasury Department determined it managed U.S. properties for a sanctioned Russian oligarch closely associated with Vladimir Putin. The firm earned only $32,250 for the work, according to the enforcement filing.

Texas businessman convicted in scheme to bribe Pemex officials

Ramon Alexandro Rovirosa Martinez, 46, of The Woodlands, Texas, was convicted Dec. 5 of conspiring to bribe officials at Mexico’s state oil company to secure contracts for his businesses. Evidence showed payments of cash and luxury items to multiple Pemex employees.

Breastfeeding-supply retailer settles billing allegations for $1 million

The Breastfeeding Shop in Emmaus, Penn., and its owner, Patricia Gatter, agreed Dec. 1 to pay $1 million to resolve allegations that the company submitted false claims to TRICARE for breast pumps and related equipment. The government alleged the business billed TRICARE, uniformed services health care program, hundreds of dollars more per pump than it charged Pennsylvania’s Medicaid program.

Executive assistant admits embezzling from employer

Ashley Hymel, 42, of Ama, La., pleaded guilty to wire fraud after admitting she used a company credit card to make more than $130,000 in personal purchases while working as an executive assistant. She agreed to repay the full amount under the plea agreement announced Dec. 5.

Cryptocurrency ATM operator indicted in fraud and laundering case

Trevaughn J. Yearwood, of Orlando, Fla, and Amit Kumar Jain, 46, of Vienna, Virginia, were indicted Dec. 5 on charges alleging they laundered more than $26 million in a scam targeting the elderly people with deceptive emails.

llinois brothers charged in nearly $300 million lab-testing fraud and laundering scheme

Minhaj Feroz Muhammad, 37, and Sufyan Feroze, 35, both of Naperville, Ill., were charged in a superseding indictment unsealed Dec. 5 with health care fraud and money-laundering conspiracy. Prosecutors say they hatched a plan to bill Medicare, Medicaid and private insurers for more than $293 million in COVID-19 tests that were never performed. According to court documents, the brothers controlled four laboratories in Illinois and California, used straw owners, and received at least about $65 million in reimbursements, then moved proceeds through other businesses and into real estate, overseas developments, gold bars, luxury watches and vehicles.

Porsche restoration shop operator pleads guilty to fraud

Andrea Nicole Doherty, 38, of Fallbrook, California, pleaded guilty Dec. 4 to wire-fraud charges, admitting she diverted proceeds from sales of consignment vehicles and misused restoration funds at her Porsche restoration business, CPR Classic. Prosecutors cited victim losses exceeding $8 million.

Virginia lab settles kickback allegations

Clinical laboratory NEXT Bio-Research Services, doing business as NEXT Molecular Analytics, of Chester, Virginia, on Dec. 4 agreed to pay at least $758,000 to resolve allegations involving illegal kickbacks to doctors and marketers.

Maryland man sentenced for fraud in remote-worker hiring scheme

Minh Phuong Ngoc Vong, 41, of Bowie, Maryland, was sentenced Dec. 4 to 15 months in prison for conspiracy to commit wire fraud after helping foreign IT workers pose as U.S. citizens to obtain remote positions at American companies.

Houston resident admits role in romance-fraud and email-compromise scheme

Leslie Chinedu Mba, 40, a Nigerian living in Houston, pleaded guilty Dec. 4 to conspiracy charges for participating in a network that conducted business-email compromise attacks and romance scams, causing roughly $4 million in losses, according to prosecutors.

Houston man charged in prescription-drug fraud scheme

Darrion Denard Brooks, 28, of Houston, was indicted Dec. 3 in Louisiana for allegedly using stolen DEA registration numbers and fictitious patient data to obtain controlled substances from multiple pharmacies.

Subprime auto executives hit with final judgment

The Securities and Exchange Commission announced final judgments Dec. 3 against James R. Collins and Robert F. DiMeo, former executives of Honor Finance, concluding allegations they misled investors about loan-pool performance tied to a 2016 securitization.

Chauffeur charged with posing as investment adviser

The Securities and Exchange Commission sued Shahin Ahmed on Dec. 5 with defrauding clients while working as a personal driver, alleging he posed as a licensed investment professional and caused more than $1 million in losses.

Georgia man sentenced in $24 million genetic-testing kickback scheme

Patrick C. Moore Jr., 48, of Peachtree City, Georgia, was sentenced Dec. 2 to 46 months in prison and ordered to pay more than $7.2 million in restitution for a scheme that paid and received illegal kickbacks tied to Medicare-funded genetic testing. According to court documents, Moore directed recruiters to persuade Medicare beneficiaries to undergo tests that were not medically necessary or eligible for reimbursement.

Landlord under fire for sexually harassing tenants

The Justice Department on Dec. 2 said it filed a lawsuit against William Aaron Asper, the owner and manager of rental properties located in and around Westland, Michigan, for sexually harassing tenant.

Marlborough man charged in under-the-table pay and tax case

Stephen L. Hochberg, 77, of Marlborough, Massachusetts, was charged Dec. 1 with conspiracy to defraud the United States and obstruction of justice for allegedly receiving more than $1.6 million in off-the-books compensation and benefits from an accounting and real estate firm, while evading income taxes and avoiding restitution he still owed victims of a prior fraud conviction. Prosecutors say firm owner Charles D. Katz paid Hochberg’s family members, covered rent for Hochberg’s ex-wife, paid tuition and picked up personal credit-card charges, generating at least $1,668,487 in unreported income and at least $835,105 in unpaid taxes.

Business Blotter is a weekly roundup of white collar complaints and enforcement actions – a police beat feature from Business Blunders. All defendants are presumed innocent until proven guilty.

Lowe’s Home Centers on Tuesday agreed to pay $12.5 million after its contractors potentially exposed customers to dangerous lead dust and paint chips, according to the Justice Department and tEnvironmental Protection Agency.

Lead-based paint has been banned in the U.S. since 1978, but when you’re sanding and scrapping down older homes you have to be careful. The agency said Lowes’ contractors repeatedly failed to use certified renovators or lead-safe practices when working on hundreds of older homes.

And there’s no safe level of lead. As part of the sanction, Lowes must implement a revised nationwide compliance program.

“Careless handling of lead paint endangers the health of children and other Americans.” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “The stiff penalty Lowe’s will pay reflects the importance of using certified firms and contractors in older home renovations.”

SeaWorld faces discrimination probe

The U.S. Justice Department on Nov. 25 opened an investigation into United Parks & Resorts, parent company of SeaWorld Orlando, Busch Gardens Tampa Bay and Aquatica, following complaints that the parks banned rollator-walkers with seats — mobility aids used by disabled guests — potentially violating the Americans with Disabilities Act.

Trader sentenced in loss-hiding scheme

David Smothermon, a former commodities-trading executive, was sentenced Nov. 25 to three years in prison for concealing more than $240 million in trading losses through mis-marked trades and false accounting entries, prosecutors said. He used the inflated results to secure a $15 million bonus before resigning when the losses surfaced. Smotheron, 55, of Houston, must forfeit $11.6 million and pay $19.55 million in restitution.

Sky Lease faked mail delivery times

Air-cargo firm Sky Lease I Inc. on Nov. 25 agreed to pay $1.03 million under the False Claims Act after admitting it submitted false delivery-time records to the U.S. Postal Service for internationally shipped mail.

Michigan pharmacist sentenced for Medicare fraud

Former Dearborn Heights pharmacist Nabil Fakih was sentenced Nov. 24 to 46 months in prison, ordered to pay $4 million in restitution and forfeit real estate after admitting he billed Medicare for prescription drugs that were never dispensed.

New Jersey vape seller accused of using fake FDA letters to lure investors

Mohammad Abuhadba, 42, of Wayne, New Jersey, was charged with wire fraud Nov. 24 after allegedly forging Food and Drug Administration authorization letters to raise money for a vaping-products venture. Investigators say the bogus government approvals helped him raise more than $2 million.

Another defendant added to food-aid fraud ring

Abdirashid Bixi Dool, 36, of Minneapolis, became the latest target in the Feeding Our Future fraud prosecution, accused of diverting federal child-nutrition funds through shell companies. Prosecutors say he claimed to feed thousands of children who never materialized.

Vitamin company CEO convicted in fraud scheme

Jared Wheat, a two-time felon running a Georgia dietary-supplement company called Hi-Tech Pharmaceuticals was convicted on Nov. 24 for wire fraud and money laundering in a scheme that misled customers about manufacturing standards.

PPP-lender co-founder given 10-year prison sentence for COVID-relief fraud

Stephanie Hockridge, co-founder of Blueacorn, was sentenced Nov. 21 to 10 years in prison after prosecutors found she and co-conspirators secured more than $63 million in fraudulent Paycheck Protection Program loans.

U.K. citizen indicted in tele-health fraud scheme

A Florida grand jury indicted Marek Rex Vernon Harrison Nov. 21 for allegedly directing a tele-medicine company that submitted fraudulent Medicare claims — over $2.7 million — for tele-health and genetic-testing services, using falsified documentation to hide ownership.

Michigan pharmacists sentenced in health care fraud case

Brothers Raad Kouza and Ramis Kouza were sentenced Nov. 21 after being convicted of billing Medicare, Medicaid and private insurers for prescription drugs never dispensed — a scheme that defrauded payors of more than $15 million.

Wound-care provider agrees to settlement over alleged medical-billing fraud

Vohra Wound Physicians Management agreed Nov. 21 to pay $45 million to settle allegations it billed Medicare for medically unnecessary surgical wound-care procedures and improperly coded services.

U.K. citizen indicted in telehealth fraud scheme

A federal grand jury in Florida indicted Marek Rex Vernon Harrison Nov. 21 on charges that he ran a telemedicine company that submitted more than $2.7 million in fraudulent Medicare claims for genetic-testing and tele-health services, including falsified enrollment documents to conceal his ownership.

Nevada home health executive sentenced for nurse-wage fraud and company sale deception

On Nov. 21 a federal court sentenced home-health executive Eduardo “Eddie” Lopez to 40 months in prison and ordered $2.5 million restitution plus $10.5 million forfeiture for wage-fixing of nurses and concealing a criminal investigation during the sale of his staffing company.

Regulator sues startup founder for investor fraud

The U.S. Securities and Exchange Commission filed a complaint on Nov. 21 against Shiloh Luckey, the founder of ComplYant App, alleging she raised more than $13 million from investors by exaggerating revenues, misrepresenting her credentials and misusing investor money for personal expenses such as home purchases, a Caribbean wedding and Super Bowl tickets.

Online seller pleads guilty to smuggling infant formula

A company selling European infant formula via LittleBundle.com pleaded guilty Nov. 21 to felony charges for smuggling formula into the U.S. without giving required prior notice to the U.S. Food and Drug Administration (FDA). The firm, Able Groupe Inc. (also doing business as Little Bundle and Huggable, Inc.), admitted it used false commodity descriptions and failed to alert regulators, triggering forfeiture of $304,640 and total government recovery expected around $2.3 million under the plea agreement.

Staffing-company owner indicted in massive tax-fraud scheme

Lorena Padilla, 49, of Villa Park, Calif., and several co-defendants were arrested Nov. 20 on an eight-count federal indictment charging them with executing a $90 million tax-fraud and money-laundering scheme that allegedly withheld and failed to remit employment taxes for temporary workers. The unpaid taxes reportedly funded lavish lifestyles.

Investment-fund managers sanctioned for securities fraud

A federal court in Madison, Wis., ordered Nov. 19 that the managers of a private fund and their related entities pay more than $27.5 million after a jury found them liable for securities fraud. The case centers on fund managers who promoted illiquid mineral- and private-equity investments to clients, misrepresenting returns for the fund run by Bluepoint Investment Counsel, Greenpoint Asset Management II and others.

Insider-trading ring charged across multiple countries

Samy Fadi Khouadja, 45, of Canada, Zhi Ge, 34, of China, and six others were charged on Nov. 18 in a global insider-trading scheme that prosecutors say netted tens of millions in illicit profits by trading ahead of corporate announcements. Authorities allege the group used burner devices and offshore accounts to conceal their positions.

Read Business Blunders