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A judge has sentenced the owner of a suburban Chicago printer repair company to 10 years in federal prison in a $28 million Ponzi scheme.
In a Monday statement, the U.S. attorney’s office said Matthew Scott was also ordered to pay nearly $5 million in restitution. Prosecutors accused the owner of Northlake-based Gelsco of swindling around 75 people. Some lost their life savings.
A bribery investigation into a Hewlett-Packard Co. government contract in Russia has broadened to include more deals dating back to 2000.
In a statement Friday, HP said it is cooperating with authorities, “who have now expanded their investigations beyond” a transaction with the Russian prosecutor’s office. Get the full story »
Britain’s financial watchdog fined Goldman Sachs Group Inc. 17.5 million pounds ($27 million) for failing to tell the regulator it was the subject of a U.S. probe, reviving disclosure headaches for the Wall Street powerhouse.
The fine — one of the biggest imposed in Britain — stemmed from Goldman’s troubled Abacus mortgage-security product, which was the focus of an investigation by the U.S. Securities and Exchange Commission. Get the full story »
A Boeing Co. subsidiary prevailed on Wednesday against a lawsuit alleging it had helped the CIA illegally transport prisoners to secret facilities overseas, a federal appeals court has ruled.
The 9th Circuit U.S. Court of Appeals in San Francisco dismissed the lawsuit against Jeppesen Dataplan Inc, finding that rules protecting state secrets made it impossible for the litigation to proceed. The U.S. Department of Justice intervened in the case on behalf of Jeppesen. Get the full story »
Regulators probing the stock market “flash crash” in May still have not uncovered a single cause but will point to “stub quotes” and other previously identified issues as having exacerbated the market’s dramatic drop, according to two sources familiar with the probe.
A third source said the Securities and Exchange Commission is still asking about a “smoking gun” that might explain the May 6 crash, when the Dow Jones industrial average plunged some 700 points before sharply recovering, all in about 20 minutes. Get the full story »
The U.S. Justice Department is looking into allegations that Google Inc’s purchase of airline ticketing firm ITA Software Inc will cost rivals access to data they need to compete with the search giant as it moves into the travel market, sources familiar with the probe said. Get the full story »
Government safety officials have not found a connection between a new kind of Pampers diapers and the severe skin reactions reported by some parents’ groups.
The Consumer Product Safety Commission said Thursday that it has reviewed 4,700 complaints but found no specific cause linking Pampers diapers with new Dry Max technology to diaper rash. Get the full story »
U.S. safety regulators have opened a preliminary investigation into claims that Hyundai Motor Co.’s best-selling car in America, the Sonata sedan, may have steering problems.
National Highway Traffic Safety Administration officials opened the preliminary investigation into the 2011 Hyundai Sonata Friday. Get the full story »
The U.S. Commodity Futures Trading Commission said Monday it has settled fraud and unauthorized trading charges against a Naperville floor trader at the Chicago Board of Trade whose activities generated a $4 million loss.
The CFTC order permanently bans John Lee Neuman from trading. He had registered with the CFTC as a floor broker from May 1993 until February 2008, and became a local in the CBOT corn options pit in September 1997. Get the full story »
The government is asking a federal court judge to revoke the bond of accused investor David Hernandez, saying he attempted to delay his sentencing by fabricating a letter from a doctor that said he was starting treatment for cancer.
Hernandez pleaded guilty in January to a Ponzi-style scheme that bilked more than 200 people of their savings. The swindle allegedly garnered $6.3 million for Hernandez, which he used to bankroll a now-defunct Chicago sports-talk radio station and other personal purchases.
Federal prosecutors say Hernandez who lives in Downers Grove and is free on bond until a sentencing that could mean up to 14 years in prison — should be locked up because he is a flight risk. Get the full story »
Federal regulators say former Countrywide CEO Angelo Mozilo personally approved mortgages for favored borrowers that violated the company’s policies and lending standards.
The Securities and Exchange Commission had previously accused Mozilo of civil fraud and illegal insider trading. Now, the agency says Mozilo played a direct role in a program for preferential borrowers that has been the focus of congressional ethics inquiries. Get the full story »
Safety regulators have opened a preliminary investigation of about 3 million older Jeep Grand Cherokees with fuel tanks that may present a fire risk in a crash, the regulators’ website showed Tuesday.
The investigation was opened Monday by the National Highway Traffic Safety Administration. The action is short of a recall, and a Chrysler spokesman said owners of the 1993-2004 model year vehicles should take no action at this time. Get the full story »
U.S. auto safety regulators have stepped up a probe into the risk that up to 1.2 million Toyota Motor Corp. Corolla and Matrix vehicles could stall due to defective electronic engine control units.
Regulators began an engineering analysis Aug. 18 into the reports of stalling in Corolla and Matrix cars from the 2005, 2006 and 2007 model years. Get the full story »
Food and Drug Administration officials said Monday that there is no evidence a massive outbreak of salmonella in eggs has spread beyond two Iowa farms, though a team of investigators is still trying to figure out what caused it.
FDA officials said they do not expect the number of eggs recalled — now at 550 million– to grow. Get the full story »
Bank of America Corp. and former Chief Executive Kenneth Lewis denied civil fraud charges brought by New York’s attorney general over the bank’s takeover of Merrill Lynch & Co. amid the 2008 financial crisis.
In court papers filed Wednesday, Lewis said the state’s prosecutor Andrew Cuomo had no basis in his lawsuit to allege a conspiracy to mislead the public and shareholders about Merrill’s deteriorating finances and Bank of America’s desire for government assistance. Get the full story »
