Posts Tagged ‘msi services’

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Chicagoland Man Charged for $3.7 Million Ponzi Scheme

By admin in Background Checks, Chicago, Crime, Criminal Records, Electronic Fraud, fraud, Illinois, Investigations, MSI Detective Services, Private Investigator, Stolen Property, technorati, Theft Investigations at August 19th, 2010 | 1 comment

Ponzi_Scheme_HouseofCardsJoseph A. Dawson, a far-north Chicago suburban businessman was charged following an FBI investigation into his business. According to the FBI, Dawson defrauded 26 investors of $3.7 million dollars using a ponzi scheme.

The Fox Lake, IL, resident was charged with three criminal counts of wire fraud for allegations that he stole more than $1 million of investors’ funds for his own use and then used the investor’s funds to pay returns on investment to other investors. According to prosecutors, monies used to repay others totaled $2.8 million.

Dawson, a commodity futures & securities trader, owned an investment fund called LEAP and Dawson Trading, LLC; his businesses operated in Ingleside, Fox Lake, and Lakemoor. Dawson Trading took over LEAP (founded in 2001), and its customers, in 2004.

From 2004 to  September 2009, investigations into Dawson’s business practices revealed that he’d offered and sold approximately $3.7 million shares to 26 clients in promissory notes; the notes supposedly ensured the investments were safe and promised to return as much as 80% of any trading profits earned.

Dawson never invested the funds, instead using investor’s money for personal items, like landscaping, automobiles, and a swimming pool addition for his home. To reassure investors, Dawson lied about their investments, allegedly creating & distributing fraudulent statements showing gains.

Wire fraud carries maximum penalties of 20-years in prison and $250,000, plus restitution. Courts may also impose fines doubling the victim’s loss, or twice the the defendant’s gain, whichever amount is greater.

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“Security by Committee” Doesn’t Work

By admin in Investigations, MSI Detective Services, Privacy, Private Investigator, Safety, Screening, Security, Technology, technorati, Terrorism at August 11th, 2010 | 1 comment

SecuritySecurity decisions within the federal government don’t work according the U.S. Government Accountability Office (GAO) reports. Federal institutions tend to make security decisions by forming committees that, when reviewed by the GAO, don’t have the information, or federal job rating necessary to “choose and to fund the appropriate measures to safeguard their facilities.”

Diverse federal departments are often located within the same building or complex, and each of the department chooses a representative to sit on the Federal Security Committee (FSC). The FSC addresses security issues and approves security countermeasures at the building.

The GAO, however, found two critical deficiencies within FSC’s organizational structure.

First, federal offices that occupy government buildings are not experienced, nor do they have training that’s necessary to assess complex security issues.

Perhaps even more problematic is that FSC committee members do not have authorization to allocate funding.  According to the report, FSC members have to request funds from higher up the chain, and funding isn’t available in a timely manner.

GAO_Investigation

Another disturbing issue brought to light was that the FSCs across the nation don’t have guidelines for operation; since 1995, FSCs have received no guidance for policies and procedures on steps necessary to make decisions or establish accountability.

Federal buildings are managed by the GSA (General Services Administration). However, they are protected by the Federal Protective Service, an agency within the Department of Homeland Security. The FPS’ mission is to assess federal building security, highlight vulnerabilities, and suggest methods to counteract building weaknesses.

Once completed, the report is submitted to the building FSC to determine which measures to enact and maintain.

The FSC’s lack of formal lines of communication and guidelines actually put federal offices at greater risk.

As an example, an FPS official recommended that 24-hour security measures be implemented at a government facility in a crime-ridden neighborhood. However, the recommendation was never enacted because the FSC could not garner approval from their diverse tenants. In another example, a federal building’s committee asked FPS inspectors to not recommend improvements, “because there is not sufficient funding in regional budgets to purchase and maintain the security equipment.”

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Hidden Cam Reveals False Disability Fraud

By admin in Attorney Services, Background Checks, Criminal Background Check, fraud, hidden cameras, Investigations, MSI Detective Services, Police Records, Private Investigator, robbery, Security, Technology, technorati, Theft Investigations at August 10th, 2010 | 1 comment

The Government Accountability Office (GAO) reported that thousand of employees claim disability benefits when working full-time jobs. Wide-spread fraud was found to be present in both the public, and private, sectors.

The report that 1500 government employees collected benefits from the Social Security Administration (claiming disabilities) while working federal government jobs! Private sector investigation showed more than  62,000 people in 12 states on disability–unable to go to work–but feeling well-enough to apply for licenses as truck and bus drivers.

According to the GAO, fraudulent claims from workers under Disability Insurance and Supplemental Security Income fleeced the Social Security Administration for $10.7 billion in 2008 alone!

Both programs have enforcement regulations in place to discourage fraud, but GAO investigators found that suspicious claim review and investigations were rare and sporadic. CNBC was given access to a video, recorded using a hidden camera, of employees who showed up for work daily while also being paid for their “disability.”

In California, a TSA employee (yes, the airport “protectors”) working at her station; according to the GAO investigation, she’d bilked the SSA for $100,o00 and lived in a house valued at $1.8 million.

One postal employee in Pennsylvania showed up for work as well; when approached by investigators, she admitted to her crime and also that she’d willing committed what amounted to insurance fraud. When asked why she committed the crime, she told official that she needed the money.

The 1500 federal employees accounted for just over $20 million in 2008. One of those caught actually worked at the Social Security Administration as a collector…of improper payments.

The SSA is not happy with the report; although the investigation was recorded, they claim the GAO’s “study is hopelessly flawed.”

SSA Commissioner will be called to testify before the Senate tomorrow.


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Interpol Uses Social Media to Solve Tough Cases

By admin in MSI Detective Services at July 30th, 2010 | 1 comment

InterpolINTERPOL is looking for 450 people convicted, or suspected of, committing crimes from money laundering and counterfeiting to child sexual abuse and murder. If you have a social media account on Facebook or MySpace, the European organization is asking for you your help track down these fugitives.

INTERPOL is the world’s largest international police organization, with 188 member countries. Created in 1923, it facilitates cross-border police cooperation, and supports and assists all organizations, authorities, and services whose mission is to prevent or combat international crime.

On May 3, INTERPOL launched an international appeal to hunt down fugitives from just and enlisted social media as a source for aid. The effort was announced on the INTERPOL website.

The May search began following an international coordination and information-sharing meeting on the organizations difficult, unresolved cases in Lyon, France. After two months, the social media tactic led to criminal investigations in 32 countries resulting in the arrest of 107 fugitives and location of 26 others. New information on 357 of the 450 cases is being analyzed by INTERPOL’s Fugitive Investigative Support (FIS) unit.

INTERPOL’s use of social media is innovative due to the increased contact time on social media networks or chat sites, there’s a higher probability that a citizen will recognize a fugitive online than if they saw the same person walking down the street.

Some of the fugitives on INTERPOLS INFRA-Red list started running in the 1990s and were not difficult to apprehend; Colombian model Angie Sanclemente Valencia was arrested in Argentina, where she was wanted for drug trafficking. Others, like currency counterfeiter Mouamba Munanga of the Democratic Republic of Congo–wanted in France–was found and arrested in South Africa.

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