Fraud In The News – September 2018 Edition

Posted Sunday, September 16th, 2018 by Angela Fabek

It’s been a busy month in cryptocurrency, crowdfunding and cattle fraud (yes, you read that right) – and we’re only halfway through September!

The FTC is investigating a crowdfunding campaign that disappeared with more than $700K – The agency is investigating at least one crowdfunding campaign gone bad – the iBackPack – which raised more than $700,000 across both Indiegogo and Kickstarter. (Don’t miss this one and this one as well.)

Florida billionaire Phillip Frost charged by SEC in $27 million fraud plot – The Miami billionaire is one of 10 people the Securities and Exchange Commission charged with participating in a fraud plot that generated more than $27 million in what the SEC is calling a series of “classic pump-and-dump schemes.”

Founder of Crypto Exchange OKEx Allegedly Detained on Crypto Fraud Charges in China – Star Xu, the founder of exchange services provider OKCoin and the world’s second-largest crypto exchange OKEx, has allegedly been detained in China in relation to suspected digital currency fraud. (Expect more headlines like this in the coming months – including this one and this one.)

The strange and winding fraud case against two Kingston brothers turns up ties to polygamy, Turkey, even the Mueller investigation – In September 2017, Turkish President Recep Tayyip Erdoğan met with Jacob Ortell Kingston…Less than a year later, Kingston was indicted for fraud and money laundering.

$3 Million Cattle Fraud Puts Two Arizona Families on Financial Brink – About $3 million worth of cattle was stolen from an Arizona family by a man they once considered a friend, prosecutors said in court documents.

Fired Nike sales rep sent to prison for fraud – A Nike sales representative who cheated the sportswear giant out of at least three quarters of a million dollars by offering deep discounts to two side companies he quietly formed with a friend was sentenced to a year and a month in federal prison.