Complete DHS Report for November 26, 2014
Daily Report
Top Stories
• Sixteen
individuals were charged for allegedly running a telemarketing scheme that
advertised real estate in Detroit at falsified prices to ensnare investors in a
$20 million fraud scheme. – U.S. Attorney’s Office, Eastern District of
Michigan See
item 5 below in the Financial Services Sector
• About 2.5 acres of
greenhouses at Amos Zittel & Sons Inc., in Eden, New York, collapsed due to
heavy snow that accumulated during the week of November 17, causing several
million dollars in damage. – Buffalo Business First
13. November 24, Buffalo Business First – (New
York) Several greenhouses collapse at Amos Zittel & Sons. About 2.5
acres of greenhouses at Amos Zittel & Sons Inc., in Eden, New York,
collapsed due to heavy snow that accumulated during the week of November 17.
Damage was estimated to total several million dollars. Source: http://www.bizjournals.com/buffalo/news/2014/11/21/several-greenhouses-collapse-at-amos-zittel-sons.html?page=all
• The former vice president of Carson Helicopters pleaded
guilty November 24 to defrauding the U.S. Forest Service by submitting false
information about helicopter payload capabilities in a bid process for a
contract tied to a 2008 helicopter crash in California that killed 9 people. – Portland
Oregonian
17. November 25, Portland Oregonian – (Oregon;
California) Former Oregon helicopter official guilty of fraud scheme linked
to deadly 2008 chopper crash. The U.S. attorney’s office for Oregon
announced that the former vice president of Carson Helicopters pleaded guilty
November 24 to defrauding the U.S. Forest Service by submitting false
information about helicopter payload capabilities in a bid process for a
contract tied to a 2008 helicopter crash that killed 9 people near Weaverville,
California. The former vice president filed fraudulent and unsafe empty-helicopter
weights in order to help the company win contracts. Source: http://www.oregonlive.com/pacific-northwest-news/index.ssf/2014/11/former_oregon_helicopter_offic.html
• Individuals
involved in a riot that broke out after a protest November 24 in Ferguson,
Missouri, looted and burned at least 12 businesses, vandalized police vehicles,
and pelted police with various objects. – Associated Press
21. November 25, Associated Press – (Missouri) Family
blasts prosecutor's handling of case. The governor of Missouri called in
additional National Guard troops November 25 to contain a riot that broke out
after a protest November 24 in Ferguson, Missouri, where individuals looted and
burned at least 12 businesses, vandalized police vehicles, and pelted police
with various objects. At least 18 individuals were injured and 61 individuals
were arrested in connection to the riot, while around 10 flights were diverted
or cancelled, and some area schools canceled classes November 25 as a
precautionary measure. Source: http://news.yahoo.com/no-indictment-chaos-fills-ferguson-streets-083434303.html
Financial Services Sector
5. November
24, U.S. Attorney’s Office, Eastern District of Michigan –
(International) Sixteen people charged in nationwide telemarketing scheme
that involved thousands of homes in Detroit. The U.S. Attorney’s Office and
the FBI announced charges against 16 individuals in Florida, Michigan, and New
York for allegedly running a telemarketing scheme that used unsolicited calls
advertising residential property in Detroit at falsified prices that ensnared
investors and other buyers in a fraud scheme that led to over $20 million in
losses to victims in the U.S. and Canada. Several of the accused were arrested
November 21 in Florida, one individual was arrested after being extradited from
Thailand, and one other remains at large overseas. Source: http://www.fbi.gov/detroit/press-releases/2014/sixteen-people-charged-in-nationwide-telemarketing-scheme-that-involved-thousands-of-homes-in-detroit
6. November
24, Bakersfield Now – (California) Bakersfield sisters guilty on federal charges in
mortgage fraud case. Two Bakersfield women were convicted November 21 on
fraud and conspiracy charges for defrauding mortgage lenders of around $6
million between October 2005 and May 2007 by submitting false loan applications
and fraudulent supporting documentation. Three other co-conspirators previously
pleaded guilty. Source: http://www.bakersfieldnow.com/news/local/Bakersfield-sisters-guilty-on-federal-charges-in-mortgage-fraud-case-283768111.html
7. November
24, Associated Press – (Connecticut) West Haven councilman pleads guilty to wire
fraud. A West Haven councilman pleaded guilty November 24 to stealing
$106,000 from customer accounts at his employer, JPMorgan Chase Bank in New
Canaan, and disguising the embezzlement as cash withdrawals by the affected
customers. He subsequently resigned from his seat on the West Haven City
Council. Source: http://connecticut.cbslocal.com/2014/11/24/west-haven-councilman-pleads-guilty-to-wire-fraud/
8. November
24, U.S. Securities and Exchange Commission – (Massachusetts) Court
enters judgments against former Massachusetts-based boiler room operator and
his companies, also indicted by grand jury. The U.S. Securities and
Exchange Commission (SEC) announced that a federal court entered final
judgments November 18 against a Massachusetts man and his group of related
entities for violating federal securities laws in a boiler room scheme and
ordered the man and related entities to pay a total of $37,006,590 in
disgorgement of illicit gains, interest, and penalties. Parallel criminal
charges were filed and are pending against the man and another individual.
Source: http://www.sec.gov/litigation/litreleases/2014/lr23140.htm
Information Technology Sector
20. November
25, Help Net Security – (International) New Docker version solves
critical bugs, update immediately. The developers of the Docker open source
platform issued an update for the platform November 24, closing two critical
vulnerabilities including one that can be used by a remote attacker to execute
malicious code. Users were advised to update their installations as soon as
possible. Source: http://www.net-security.org/secworld.php?id=17688
Communications Sector
Nothing to report