Latest news with #RICO)Act
Yahoo
22-05-2025
- Automotive
- Yahoo
Ford files $100-million suit over alleged 'Lemon Law' scheme by L.A. lawyers
Ford Motor Co. has filed suit against multiple prominent Southern California law firms and attorneys, alleging that they engaged in a vast and sophisticated fraud scheme to collect at least $100 million in "phantom legal fees' under the state's Lemon Law. In a complaint filed early Wednesday in Los Angeles federal court, the Dearborn, Mich.-based car manufacturer claimed the lawyers violated the Racketeering Influenced and Corrupt Organizations (RICO) Act by working together to carry out the alleged fraud for years. Describing the invoices it received from California lawyers as a 'magical mystery tour of fictitious billings,' Ford claimed that attorneys named in the lawsuit took advantage of a statute designed to protect consumers from faulty products, including cars. Under the Song-Beverly Consumer Warranty Act, commonly known as California's Lemon Law, automakers are required to pay for legal work, court fees and related expenses associated with defective vehicles. That requirement, Ford alleged, has created an opportunity for lawyers to pad their bottom line by claiming more hours than they actually worked or reporting having been in more than one place at the same time. The complaint alleged that Steve B. Mikhov was the 'ringleader of the criminal enterprise' and that he and Knight Law Group, the Los Angeles-based firm where he was a founding partner, 'orchestrated' the scheme. Emails and phone messages seeking comment from Knight Law Group were not immediately returned Wednesday, nor were requests for comment made via email addresses and cellphone numbers for Mikhov listed in online databases. Ford, which is being represented by New York-based Kasowitz Benson Torres LLP, claimed in the complaint that an investigation uncovered payments of legal fees that reflected work that never could have happened. For instance, the auto giant alleged that Knight partner Amy Morse 'billed more than 20 hours per day on at least 66 occasions, 34 of which exceeded 24 hours, including an ostensibly heroic but physically impossible 57.5-hour workday in November 2016." Morse did not immediately respond to an email seeking comment Wednesday. Edward McNally, a former federal prosecutor and lawyer for Ford at Kasowitz Benson Torres, described how the alleged scheme worked in an emailed statement. 'When you look at any single legal bill for a single case it might show only one or two hours for a given lawyer on a given day—nothing to draw suspicion," he said. "However, when Ford searched across public filings, as alleged in the complaint, the conduct in this case was carried out through a sophisticated and unlawful enterprise of attorneys and law firms that spread their fraudulent and inflated bills across thousands of cases and against many auto makers.' The other defendants who benefited from the alleged conspiracy, Ford claimed, include Knight partner Roger Kirnos and former Knight paralegal Dorothy Becerra; L.A.-based Altman Law Group and its founder and former member attorney, Bryan C. Altman; and San Diego-based Wirtz Law APC and Richard Wirtz, its founder and managing partner. Emails and phone messages seeking comment from Kirnos, Altman Group, Wirtz Law, Altman and Wirtz were not immediately returned Wednesday. Contact information for Becerra could not be located immediately Wednesday. Daniel J. Fetterman, a former federal prosecutor and partner at Kasowitz Benson Torres, said the firm's automaker client has been in contact with federal authorities. 'Ford reported this conduct to the United States Attorney's Office and has been cooperating with a grand jury subpoena served on it in the fall of 2021," Fetterman said. Ciaran McEvoy, a spokesman for the U.S. Attorney's Office in L.A., declined to comment Wednesday. Sherman 'Tiger" Joyce, president of the American Tort Reform Assn., said via email that the alleged fraudulent scheme "is an affront to the civil justice system and these lawyers who have harmed consumers by needlessly dragging out and driving up costs of litigation should be held accountable." Ford claimed in its filing that the scheme 'has an informal governing structure that at certain times operates as a command hierarchy," meaning it had a chain of command. The arrangement, Ford alleged, violated the RICO Act, which has played a central role in cases against high-profile organizations including Italian crime families, Mexican drug cartels and the Hells Angels motorcycle gang. Ford argues it is owed civil damages under the federal racketeering law. The automaker's lawsuit said the attorneys involved "associated with one another in the Enterprise for the common purposes of preparing and filing fraudulent fee applications and billing records, negotiating fraudulent settlements, splitting inflated fees, and funneling fraud proceeds into attorney distributions and extravagant purchases.' Ford said the nine-figure damage total it is seeking would recoup what it lost in allegedly bogus payouts, along with thousands of hours investigating the alleged scheme and what the company described as the harm to its reputation it sustained as a result of representations the lawyers allegedly made in court and online about the amounts they recovered from the automaker. Kyla Christoffersen Powell, president and chief executive of the Civil Justice Assn. of California, said in an emailed statement that the alleged fraud scheme highlighted longstanding problems with the state's Lemon Law. "The shocking attorney conduct outlined in today's filing by Ford underscores the need for the Legislature to consider additional reforms to the lemon law that remove perverse incentives for attorneys," she wrote. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Los Angeles Times
22-05-2025
- Automotive
- Los Angeles Times
Ford files $100-million suit over alleged ‘Lemon Law' scheme by L.A. lawyers
Ford Motor Co. has filed suit against multiple prominent Southern California law firms and attorneys, alleging that they engaged in a vast and sophisticated fraud scheme to collect at least $100 million in 'phantom legal fees' under the state's Lemon Law. In a complaint filed early Wednesday in Los Angeles federal court, the Dearborn, Mich.-based car manufacturer claimed the lawyers violated the Racketeering Influenced and Corrupt Organizations (RICO) Act by working together to carry out the alleged fraud for years. Describing the invoices it received from California lawyers as a 'magical mystery tour of fictitious billings,' Ford claimed that attorneys named in the lawsuit took advantage of a statute designed to protect consumers from faulty products, including cars. Under the Song-Beverly Consumer Warranty Act, commonly known as California's Lemon Law, automakers are required to pay for legal work, court fees and related expenses associated with defective vehicles. That requirement, Ford alleged, has created an opportunity for lawyers to pad their bottom line by claiming more hours than they actually worked or reporting having been in more than one place at the same time. The complaint alleged that Steve B. Mikhov was the 'ringleader of the criminal enterprise' and that he and Knight Law Group, the Los Angeles-based firm where he was a founding partner, 'orchestrated' the scheme. Emails and phone messages seeking comment from Knight Law Group were not immediately returned Wednesday, nor were requests for comment made via email addresses and cellphone numbers for Mikhov listed in online databases. Ford, which is being represented by New York-based Kasowitz Benson Torres LLP, claimed in the complaint that an investigation uncovered payments of legal fees that reflected work that never could have happened. For instance, the auto giant alleged that Knight partner Amy Morse 'billed more than 20 hours per day on at least 66 occasions, 34 of which exceeded 24 hours, including an ostensibly heroic but physically impossible 57.5-hour workday in November 2016.' Morse did not immediately respond to an email seeking comment Wednesday. Edward McNally, a former federal prosecutor and lawyer for Ford at Kasowitz Benson Torres, described how the alleged scheme worked in an emailed statement. 'When you look at any single legal bill for a single case it might show only one or two hours for a given lawyer on a given day—nothing to draw suspicion,' he said. 'However, when Ford searched across public filings, as alleged in the complaint, the conduct in this case was carried out through a sophisticated and unlawful enterprise of attorneys and law firms that spread their fraudulent and inflated bills across thousands of cases and against many auto makers.' The other defendants who benefited from the alleged conspiracy, Ford claimed, include Knight partner Roger Kirnos and former Knight paralegal Dorothy Becerra; L.A.-based Altman Law Group and its founder and former member attorney, Bryan C. Altman; and San Diego-based Wirtz Law APC and Richard Wirtz, its founder and managing partner. Emails and phone messages seeking comment from Kirnos, Altman Group, Wirtz Law, Altman and Wirtz were not immediately returned Wednesday. Contact information for Becerra could not be located immediately Wednesday. Daniel J. Fetterman, a former federal prosecutor and partner at Kasowitz Benson Torres, said the firm's automaker client has been in contact with federal authorities. 'Ford reported this conduct to the United States Attorney's Office and has been cooperating with a grand jury subpoena served on it in the fall of 2021,' Fetterman said. Ciaran McEvoy, a spokesman for the U.S. Attorney's Office in L.A., declined to comment Wednesday. Sherman 'Tiger' Joyce, president of the American Tort Reform Assn., said via email that the alleged fraudulent scheme 'is an affront to the civil justice system and these lawyers who have harmed consumers by needlessly dragging out and driving up costs of litigation should be held accountable.' Ford claimed in its filing that the scheme 'has an informal governing structure that at certain times operates as a command hierarchy,' meaning it had a chain of command. The arrangement, Ford alleged, violated the RICO Act, which has played a central role in cases against high-profile organizations including Italian crime families, Mexican drug cartels and the Hells Angels motorcycle gang. Ford argues it is owed civil damages under the federal racketeering law. The automaker's lawsuit said the attorneys involved 'associated with one another in the Enterprise for the common purposes of preparing and filing fraudulent fee applications and billing records, negotiating fraudulent settlements, splitting inflated fees, and funneling fraud proceeds into attorney distributions and extravagant purchases.' Ford said the nine-figure damage total it is seeking would recoup what it lost in allegedly bogus payouts, along with thousands of hours investigating the alleged scheme and what the company described as the harm to its reputation it sustained as a result of representations the lawyers allegedly made in court and online about the amounts they recovered from the automaker. Kyla Christoffersen Powell, president and chief executive of the Civil Justice Assn. of California, said in an emailed statement that the alleged fraud scheme highlighted longstanding problems with the state's Lemon Law. 'The shocking attorney conduct outlined in today's filing by Ford underscores the need for the Legislature to consider additional reforms to the lemon law that remove perverse incentives for attorneys,' she wrote.
The Star
20-05-2025
- The Star
Singaporean faces new charges in US over US$263mil crypto theft
Singaporean Malone Lam and the cars he bought after he allegedly stole US$230 million in cryptocurrency from a victim in Washington. He is now accused of heading a 13-member crime ring that allegedly stole hundreds of millions of dollars in cryptocurrency. - Photos: Broward Sheriff's Office, court documents SINGAPORE: (Bernama) Singaporean Malone Lam, already facing charges in the United States over a cryptocurrency theft, is now accused of heading a 13-member crime ring that allegedly stole hundreds of millions of dollars in cryptocurrency, according to local media. Lam, 20, was first charged in September last year with stealing and laundering over US$230 million (US$1 = RM4.30) in cryptocurrency from a single victim. In the new indictment, federal prosecutors alleged that he orchestrated a wider scheme with a dozen other individuals, according to CNA. He appeared in a Washington DC court on Monday (May 19), where he pleaded not guilty to the superseding indictment. Lam and Conor Flansburg, 21, from California, are named in the indictment as the group's organisers. The group allegedly met through online gaming platforms and developed a scheme that netted a total of US$263 million. They allegedly stole funds from cryptocurrency wallets, converted the crypto into US dollars, and laundered the proceeds. They also allegedly carried out home burglaries, including one incident in which a member of the crime ring broke into a victim's home in New Mexico to steal a hardware wallet containing virtual currency. The 13 suspects, including Lam, have been charged under the Racketeer Influenced and Corrupt Organisations (RICO) Act. In a press release issued on May 15, the US Attorney's Office for the District of Columbia said that members of the syndicate held various roles, including database hackers, organisers, target identifiers, callers, money launderers, and burglars targeting hardware cryptocurrency wallets. Members and associates of the enterprise allegedly used the stolen virtual currency to purchase, among others, luxury handbags, watches and clothing; rental homes in Los Angeles, the Hamptons, and Miami; private jet rentals, and a fleet of at least 28 exotic cars ranging in value from US$100,000 to US$3.8 million. "Following his arrest in September 2024 and continuing while in pretrial detention, Lam is alleged to have continued working with members of the enterprise to pass and receive directions, collect stolen cryptocurrency, and to have members buy luxury bags and hand deliver them to his girlfriend in Miami, Florida,' the statement said. - Bernama
Time of India
12-05-2025
- Time of India
How Walmart and Target may have worked together to bust a $100,000 AirPods theft ring
Two women from New York, US, have been sentenced to 10 years in prison for operating a multistate retail theft ring involving over $100,000 worth of goods, including Apple AirPods , from Walmart and Target stores. Prosecutors in Cherokee County initially considered charges in May 2024 when Walmart Global Investigations met with their Gang and Organized Crime Unit to discuss a "large theft ring involving both Walmart and Target." The two retail giants collaborated to investigate the thefts by sharing information with each other before contacting law enforcement agencies, according to prosecutors. From June 2022 through August 2024, the women stole nearly $141,000 worth of merchandise in 187 incidents across 21 states, including Georgia. The women, Ebony Fallon Washington (aka Stephanie Harris), 43, and Melissa Holland (aka Keisha Wilson), 46, pleaded guilty to three counts of violating Georgia's Racketeer Influenced and Corrupt Organizations (RICO) Act, the Cherokee County District Attorney's Office said to USA Today. How these women used to steal AirPods from Walmart and Target store Their scheme involved buying Apple AirPods with cash and using tools to remove the genuine products from their packaging. They would then replace the AirPods with cheaper items and reseal the boxes to appear unopened. The fraudulent items were then returned for full cash refunds. In some cases, the refunded cash was used to purchase more AirPods, continuing the cycle. The authentic Apple products were kept and resold for profit, according to prosecutors. The suspects were arrested in September 2024 in Coweta County. During a search of their rental car, officers found hotel receipts for locations near the targeted stores and tools for opening AirPods packaging. Prosecutors noted that five cellphones seized from the defendants contained additional evidence. Each woman received a 10-year prison sentence, followed by 10 years of probation, and was ordered to pay $134,951.86 in restitution—the remaining balance after recovered items were deducted from the total theft value. A Walmart spokesperson told USA Today on May 9 that the company is deferring further comment to law enforcement, and Target had not responded to requests for comment. 'Organised retail crime is a growing problem not only in our community, but nationwide,' DA Susan Treadaway said in a statement (as seen by USA Today). The DA also noted that these two women were 'clearly involved in an organised scheme' that impacted stores 'throughout the country.' Meanwhile, Rachel Murphy, Assistant District Attorney of the Gang and Organized Crime Unit said: 'These defendants operated in a coordinated effort with a specific plan in place. Although only two stores in Cherokee County were directly affected, Georgia's RICO Act enabled us to prosecute this broader criminal enterprise.'
USA Today
09-05-2025
- USA Today
Walmart, Target work together to thwart AirPod theft scheme stretching 21 states, DA says
Walmart, Target work together to thwart AirPod theft scheme stretching 21 states, DA says Two New York women were sentenced after pleading guilty to stealing over $100,000 in items from Walmart and Target stores across the country. Show Caption Hide Caption Walmart begins using bodycams on employees The retailer Walmart is starting its body cam pilot program at select U.S. locations, fitting store level associates with body cameras. Cheddar Two New York women were sentenced to a decade in prison for operating a multistate retail theft ring that involved stealing over $100,000 worth of goods from Walmart and Target stores. Ebony Fallon Washington (a.k.a. Stephanie Harris), 43, and Melissa Holland (a.k.a. Keisha Wilson), 46, both pleaded guilty to three counts of violating Georgia's Racketeer Influenced and Corrupt Organizations (RICO) Act, the Cherokee County District Attorney's Office said. According to prosecutors, from June 2022 through August 2024, the women stole nearly $141,000 worth of merchandise in 187 different incidents across 21 states, including Georgia. 'Organized retail crime is a growing problem not only in our community, but nationwide,' DA Susan Treadaway said in a statement. The DA added that the two women were "clearly involved in an organized scheme" that impacted stores "throughout the country." Women's scheme involved returning fraudulent AirPods: DA The women's scheme consisted of them buying Apple AirPods with cash, using tools to remove genuine products from their packaging, replacing them with cheaper items, resealing the boxes to appear unopened and returning the fraudulent items for full cash refunds, the DA's office said. In some cases, they used the refunded cash to buy more AirPods, thus continuing the cycle. They would also keep the authentic Apple products to resell for profit, according to prosecutors. 'These defendants operated in a coordinated effort with a specific plan in place. Although only two stores in Cherokee County were directly affected, Georgia's RICO Act enabled us to prosecute this broader criminal enterprise,' Assistant District Attorney Rachel Murphy, of the Gang and Organized Crime Unit, said in a statement. Walmart and Target joined together in effort to curb theft scheme Prosecutors in Cherokee County first considered bringing charges against the women in May 2024, when Walmart Global Investigations met with their Gang and Organized Crime Unit to discuss a "large theft ring involving both Walmart and Target," the DA's office said. The two retail giants worked together to investigate the thefts and opted to share information with each other before going to law enforcement agencies, according to prosecutors. The women were eventually arrested on Sept. 13, 2024, in Coweta County, southwest of Atlanta. While executing a search warrant, authorities found receipts for hotels near retail stores targeted in the scheme and tools used to open AirPods packaging in the women's rental car, according to the DA's office. Authorities found more incriminating evidence on five cellphones that were being used by the women, prosecutors said. In addition to the 10-year prison sentences, the women will also have to serve 10 years of probation and pay a total of $134,951.86 in restitution, which reflects the remaining balance after the value of recovered items was deducted from the total theft amount, the DA's office said. USA TODAY contacted Walmart and Target on May 9 but has not received a response. Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@
