Category: Fraud

  • California Woman Convicted in Fake Smart-Ring Investment Scheme

    A federal jury in Santa Ana has convicted Michelle Bisnoff, 59, in connection with an investment fraud scheme involving her company, Esos Rings. She was found guilty of securities fraud, wire fraud, money laundering, identity theft and COVID-relief fraud.

    Prosecutors said Bisnoff raised nearly $2 million from investors by claiming she owned patents for wearable rings that could function like debit cards. She also allegedly told investors that Apple and Roc Nation supported the product and that Walmart and Target had placed orders.

    The claims did not reflect the company’s actual business, prosecutors said. Esos Rings sold only six rings to Walmart, three of which were returned, and had no agreement with Target. Apple and Roc Nation did not back the company. Investigators said Bisnoff used money from new investors to pay earlier investors.

    Evidence presented at trial showed that investor funds were also used for personal expenses, including monthly rent of more than $15,000. Prosecutors said Bisnoff obtained a $150,000 COVID-relief loan under an alias and used it for personal purposes.

    When investors did not receive the returns they had been promised, Bisnoff gave various explanations, according to the Justice Department. Prosecutors also said she later attempted to take about $550,000 from an employer and sent investors checks that could not be cashed.

    Investors lost approximately $1.4 million of the nearly $2 million raised. Bisnoff is scheduled to be sentenced on January 21, 2027, and faces up to 20 years in prison on the most serious charges.

  • Woman Arrested in Alleged Casino Jackpot Fraud

    Woman Arrested in Alleged Casino Jackpot Fraud

    A 43-year-old Alexandria woman has been arrested after Louisiana State Police alleged she used false Social Security numbers to collect more than $41,000 in casino jackpots while avoiding overdue child support.

    Police say Shamika Brown collected 16 jackpots totaling more than $41,000 at L’Auberge Casino Baton Rouge in 2020. She allegedly provided false identifying information to conceal the winnings from the Louisiana Department of Children and Family Services.

    Investigators also allege Brown collected nearly $2,500 from another Baton Rouge casino in 2023 using false information.

    In October 2024, Brown allegedly supplied additional fake Social Security numbers while attempting to claim a $1,264 jackpot at L’Auberge. The incident led to an arrest warrant issued by the 19th Judicial District Court.

    The Louisiana State Police Gaming Enforcement Division began investigating after the casino reported suspected fraud on October 15, 2024. On September 21, 2026, an investigator recognized Brown at the casino as she allegedly returned to collect the pending payout.

    Troopers arrested Brown on the warrant and booked her into East Baton Rouge Parish Prison on 18 counts of bank fraud and identity theft. The investigation is ongoing, and police say additional charges may be filed.

  • Illinois Farmer Sentenced in $8.4 Million Bank Fraud Scheme

    Illinois Farmer Sentenced in $8.4 Million Bank Fraud Scheme

    An Illinois farmer has been sentenced to 42 months in federal prison for obtaining approximately $8.4 million in bank loans using false documents. He was also ordered to repay nearly $5 million.

    Travis L. Murphy, 55, of Chandlerville, must serve three years of supervised release and pay UMB Bank $4,966,624.01 in restitution, according to WAND.

    In 2016, Murphy obtained a $1.762 million line of credit from UMB Bank. To support his application, he allegedly claimed a grain complex had cost about $2.65 million to build, though the actual cost was approximately $986,000. He also submitted false tax returns.

    The bank relied on the documents to extend the initial credit and issue additional loans, bringing the total to about $8.4 million. Murphy later sought to discharge the debts through bankruptcy.

    The scheme was uncovered during bankruptcy proceedings, with assistance from the U.S. Trustee Program and Chapter 7 trustee Andrew S. Erickson. In a 2020 opinion, Judge Mary P. Gorman denied Murphy’s request to discharge the debts.

    A federal grand jury in the Central District of Illinois indicted Murphy on bank fraud charges in 2023. He pleaded guilty in 2025.

    At sentencing on September 21, 2026, the court ordered Murphy to repay UMB Bank $4,966,624.01. UMB, headquartered in Kansas City, Missouri, reported about $72.35 billion in assets in the second quarter, according to the Federal Reserve.

  • Federal Authorities Forfeit $372,583 in Iowa Business Email Scam Case

    Federal Authorities Forfeit $372,583 in Iowa Business Email Scam Case

    Federal authorities have obtained a court order forfeiting about $375,000 connected to a 2022 business email scam targeting an Iowa company.

    The U.S. District Court for the Northern District of Iowa issued the judgment Tuesday. Prosecutors said investigators traced the money to a Wells Fargo account held by Manuel and Ibrahim Hazim.

    In the scam, someone allegedly impersonated the company’s vendors and persuaded an employee to send payments to an account controlled by the fraudster. The company believed the requests were for legitimate invoices and transferred more than $800,000 in mid-2022. The money was then moved through several accounts to make it harder to track.

    Authorities seized $372,583.77 from the Hazims’ account. Checks deposited there referred to “Mack Truck,” “procurement” and “payment,” but investigators found no legitimate business activity connected to the deposits. The Hazims claimed they innocently owned the funds and said they came from a currency-exchange arrangement, but they did not submit the required sworn statements.

    U.S. Attorney Leif Olson said investigators found no evidence the Hazims owned or sold a Mack Truck or had conducted another legitimate transaction with the person who deposited the money.

    Olson urged people and businesses to check email addresses carefully, verify payment-change requests in person or by phone, and report suspected scams to their bank, law enforcement or the FBI’s Internet Crime Complaint Center. He said authorities would use available tools to identify scammers and recover stolen funds.

  • Chinese Hackers Target Latin America with “SparroWocky” Backdoor

    Chinese Hackers Target Latin America with “SparroWocky” Backdoor

    Alleged Chinese hackers are targeting Latin American government agencies with a new backdoor called “SparroWocky,” according to ESET researcher Alexandre Côté Cyr. Since August 2025, the campaign has affected countries including Guatemala, Honduras, Puerto Rico, Panama, Venezuela, Peru, and Argentina. This long-running operation, linked to the Chinese group FamousSparrow, is unusual because Chinese cyber espionage usually targets multiple regions simultaneously. ESET suggests the campaign aims to monitor U.S. influence in Latin America, especially as the U.S. under Trump has increased pressure on Chinese investments in the region. One Panama target involved in a dispute over ports is notable, as Trump has sought to challenge Chinese control of port operations and the Panama Canal.

    The malware, named SparroWocky after the “Jabberwocky” poem by Lewis Carroll, is sophisticated and designed to hinder analysis. It can exfiltrate files, take screenshots, and gather system info like IP addresses and usernames. The campaign has been active since at least 2019, initially targeting hotels before shifting focus to governments, trade groups, and international organizations. FamousSparrow, the group behind the campaign, has been linked to Salt Typhoon, a Chinese cyber espionage operation accused of breaching U.S. government and corporate targets.

  • NY Couple Sentenced for $150K Theft from Elderly Man

    NY Couple Sentenced for $150K Theft from Elderly Man

    A couple from Belmont, New York, Bonnie Stiner, 56, and Craig Stiner, 55, have been sentenced to two years in prison plus probation after they stole more than $150,000 from a 92-year-old man in Delaware. The theft occurred between January 2022 and March 2023, during which the Stiners repeatedly accessed the elderly man’s bank account, spending the money on bills, vacations, and entertainment. Craig Stiner also drove the victim to his bank, took hundreds of valuable coins from his safe deposit boxes, and pawned them with his wife. The elderly man has since died.

    Both pleaded guilty to felony theft and conspiracy in the second degree, with their sentencing finalized on August 31, 2026. Delaware Attorney General Kathy Jennings condemned the scheme, calling it utterly despicable to steal a lifetime’s savings from a nonagenarian. She emphasized that although nothing can undo the harm caused, the offenders will serve their time and pay restitution to the victim’s family. The case was prosecuted by Delaware’s Economic Crimes Unit with assistance from the Wilmington Police Department.

  • Dallas Man Pleads Guilty to $15 Million Treasury Fraud

    Dallas Man Pleads Guilty to $15 Million Treasury Fraud

    Federal prosecutors have announced that Kendrick Lamont Fugett, a 34-year-old resident of West Dallas, has entered a guilty plea to charges related to a large-scale fraud scheme involving over $15 million in fraudulent U.S. Treasury checks. The plea was accepted on September 17th, 2026, by Chief U.S. District Court Judge Reed O’Connor in the Northern District of Texas, according to the U.S. Attorney’s Office for the Northern District of Texas.

    Fugett’s scheme involved impersonating corporate officials and using stolen identities to open multiple bank accounts across different financial institutions. He posed as a chief financial officer and utilized fake documents, including counterfeit Texas driver’s licenses and fraudulent corporate papers, to deposit the stolen checks. Notably, Fugett deposited a staggering $13.8 million Treasury refund check at a Dallas bank using a fabricated Texas driver’s license and fake corporate documentation.

    In another instance, Fugett used a forged Illinois driver’s license to deposit a $447,000 Treasury refund check at a Bank of America branch in Mesquite, Texas. During this transaction, he impersonated a company chairman, further demonstrating the extent of his deception and criminal intent.

    U.S. Attorney Ryan Raybould emphasized the seriousness of the case, stating, “Mr. Fugett’s guilty plea reflects our office’s commitment to protecting federal funds. We will continue to work closely with our law enforcement partners to hold accountable those who steal from the American taxpayer and Main Street Americans.” The case underscores ongoing efforts to combat financial fraud targeting federal programs.

    Fugett was arrested on August 20th, and he now faces a maximum sentence of 30 years in federal prison. His sentencing hearing is scheduled for January 14th, 2027. The investigation was led by IRS Criminal Investigation, with prosecution handled by Assistant U.S. Attorneys Ignacio Perez de la Cruz and Alexander Schwab. The case highlights the persistent threat of large-scale financial fraud and the commitment of law enforcement agencies to combat such crimes and safeguard taxpayer funds.

  • Elderly New York Woman Loses Over $250,000 in Long-Running Fraud by Trusted Neighbor

    Elderly New York Woman Loses Over $250,000 in Long-Running Fraud by Trusted Neighbor

    An elderly woman in New York, aged over 90, suffered a significant financial loss of more than $250,000 after a trusted neighbor, Nahtahna Castner, and an accomplice orchestrated a prolonged theft scheme.

    According to the Justice Department, the victim’s savings, which initially totaled nearly $284,000, dwindled to just $99.59 due to a series of unauthorized transactions. Prosecutors revealed that Castner exploited her relationship with the victim by gaining her trust and sharing her banking information with a co-conspirator. Over approximately two and a half years, the pair withdrew cash from ATMs, transferred funds into Castner’s account, and made debit card purchases using the victim’s money. They also applied for three credit cards in the victim’s name, incurring thousands of dollars in unauthorized charges.

    The scheme was uncovered in September 2024 when the victim’s son discovered the bank accounts were empty after her hospitalization in January 2022. Castner had immediately moved out of the duplex without notice and ceased contact with the victim’s family. When the victim discussed the missing funds, she believed “Tana” was responsible. Sadly, she passed away on February 23, 2023. Investigations indicated that Castner used the stolen funds for personal expenses, including travel—such as a trip to Hawaii—hotel stays, car repairs, insurance, and car payments.

    In response to the crime, a federal judge in the Western District of New York sentenced Castner to four years in prison for her role in the theft. The case highlights the vulnerability of elderly individuals to exploitation by trusted acquaintances and the importance of safeguarding personal financial information.

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