Real Housewives Teresa Giudice Fraud Indicment

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teresa-giudice-mckmama-indictment

Yesterday Teresa Giudice and Guiseppi (Joe) Giudice were indicted by a federal grand jury in Newark, New Jersey on the following charges:

  • Conspiracy to Commit Mail Fraud and  Wire Fraud
  • Bankruptcy Fraud
  • Bankruptcy Fraud – Concealment
  • Bankruptcy Fraud – False Oaths
  • Bankruptcy Fraud – False Declarations
  • Failure to Make Tax Return

The mail fraud and wire fraud counts are related to false statements and documents that the Giudices allegedly submitted in order to get loans. Banks which loaned the Giudices money included Park Avenue Bank, Wachovia (now Wells Fargo), Sterling Bank, and Community Bank of Bergen County.  Non-bank lenders include HomeComings Financial Network, Eastern American Mortgage, and Alterna Mortgage. Continue reading

MckMama House Fire is Not Suspicious In the Least

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jennifer-israel-mckinneyReaders of the Fraud Files are familiar with the story of Jennifer McKinney – – mommy blogger who calls herself MckMama – – who is prone to lies and exaggerations. She and her husband Israel were accused of  lying to and manipulating readers for financial gain. What began as a touching story of a family with a very sick child turned into a long-running gravy train, from which Jennifer and Israel McKinney profited handsomely.

But making hundreds of thousands of dollars from gullible sheeple reading a blog wasn’t enough for the McKinneys. No, they had to run up over $725,000 of debts and attempt to have them discharged in bankruptcy. Fortunately, bankruptcy trustee Gene Doeling caught on quickly, and accused them of attempting to defraud their creditors by failing to report tens of thousands of dollars of income per year. Continue reading

House Fires and Land Contracts

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Several readers have posed questions to me recently about house fires and land contracts, and I will attempt to address them in this article. Remember: I am not an attorney, so the information I am providing here is only a product of my research and my experience as a forensic accountant.

I have been retained by insurance companies in the past to investigate cases of suspected arson. My role was to determine whether there was a financial motive for arson. That is, was the financial condition of the person or business such (high debts, failing business, etc.) that there may have been a motive to commit arson to collect money under an insurance policy? Continue reading

Jennifer McKinney Can Pay Her Creditors

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xyngular-momentum-jennifer-mckinneyJennifer McKinney – – former mommy blogger nicknamed MckMama – – has good news for the many creditors that she owes hundreds of thousands of dollars…. SHE CAN PAY THEM! This month’s issue of Xyngular’s Momentum magazine featured Jennifer Howe Sauls McKinney on the cover.

Publications like this are purely recruiting tools. While 99% of people participating in multi-level marketing will lose money, there are a few at the top of the pyramid who will make big money (only because many below them are losing money). Companies like Xyngular parade around the big winners, hoping to continuously recruit new victims into their schemes. Continue reading

Xyngular: Starve, Binge, Purge, Repeat!

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direct-selling-pyramid-schemeMulti-level marketing companies are getting lots of attention lately thanks to the Bill Ackman smackdown of Herbalife in December. MLMs offering “nutrition products” are of special interest to consumers, and with good reason. Companies like Isagenix, MonaVie , Usana, Mannatech, and Shaklee all offer magic potions that claim to help you lose weight, absorb more vitamins and minerals, and cure all diseases.

Of course, many of these health claims are strictly prohibited. Nutrition MLMs generally have disclaimers stating that their health claims have not been evaluated by the Food and Drug Administration, and that the products are not intended to diagnose, treat, cure or prevent any disease. But that doesn’t stop the distributors for making such claims, and the company management turns a blind eye to it. Continue reading