Financial Fraud News Update

Offices of the United States Attorneys   You are subscribed to Financial Fraud news updates. This information has recently been updated, and is now available. Paragon Systems Agrees to Pay $52M to Resolve False Claims Act Allegations Concerning Fraudulently Obtained Small Business Contracts and Kickbacks 11/12/2024 07:00 AM EST Baltimore, Maryland – Herndon, Virginia-based contractor Paragon Systems Inc. (Paragon) has agreed to pay to the United States $52 million to settle allegations that the company violated the False Claims Act by knowingly causing purported small businesses that it controlled to fraudulently obtain small business set-aside contracts. The settlement further resolves allegations that Paragon violated the Anti-Kickback Act. Paragon is one of the Federal government's largest providers of specialized security, fire and emergency response and mission support services, and the company provides security guards at federal buildings throughout the United States.  Utah Businessmen Indicted for Defrauding Investors and Lenders Millions of Dollars 11/12/2024 07:00 AM EST SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City returned a 16 count indictment charging two Utah businessmen with various financial crimes, including wire fraud and money laundering. The two business partners are accused of defrauding private investors and lenders in restaurant businesses such as Dirty Bird, Everbowl, and Crumbl Cookies. Former Assistant Treasurer for Bridgestone Americas Arrested and Charged with a $15 Million Wire Fraud and Money Laundering Scheme 11/12/2024 07:00 AM EST Former Used-Car Dealer Sentenced to Federal Prison for $3 Million Fraud Scheme 11/12/2024 07:00 AM EST Mitchell C. Simpson, who stole $3 million from companies that provided floor-plan financing to his used-car dealership, has been sentenced to federal prison for wire fraud. Former Comptroller of Athletic Club Sentenced in $1 Million Wire Fraud Scheme 11/12/2024 07:00 AM EST SAN JUAN, Puerto Rico – On November 7, 2024, United States District Court Chief Judge Raúl Arias Marxuach sentenced Zuleika Molina-Orozco, former comptroller of a not-for-profit sports and social club located at a resort in Humacao, Puerto Rico to 37 months in prison for a wire fraud scheme. Operator of 'Bitcoin Fog' Sentenced to More Than 12 Years in Prison for Running Notorious Darknet Cryptocurrency Mixer 11/08/2024 07:00 AM EST Roman Sterlingov, 36, a citizen of Russia and Sweden, was sentenced today to more than 12 years – or 150 months – in prison for operating a cryptocurrency mixer that laundered tens of millions of dollars for Darknet narcotics dealers and facilitated illegal conduct by other individuals who participated in a Darknet site for trafficking child sexual abuse material. A cryptocurrency mixer is a service that mixes potentially illegally derived cryptocurrency with others to obscure the trail back to the cryptocurrency's original source.  You have received this e-mail because you have asked to be notified of changes to the Offices of the United States Attorneys website. GovDelivery is providing this service on behalf of the Executive Office for United States Attorneys, Department of Justice, 950 Pennsylvania Ave., NW · Washington, DC 20530 · 202-514-2000 and may not use your subscription information for any other purposes. Manage your Subscriptions | Department of Justice Privacy Policy  | GovDelivery Privacy Policy Follow the Offices of the United States Attorneys on Twitter: @USAttorneys