Art Schlichter apparently promised Super Bowl tickets, but took the money for betting instead. Image: Flickr / chiropractic / CC-BY-SA

Art Schlichter is a former Baltimore Colts quarterback who is making a career of fraud. The admitted gambling addict reportedly stole millions in order to place bets on the Super Bowl. The Art Schlichter Super Bowl ticket probe will likely result in criminal charges.

Art Schlichter Super Bowl ticket probe

Art Schlichter has allegedly had a scam running for the last few years in which he offers an “investment opportunity.” The investment he offers involves buying and selling tickets to major football games. This scam apparently expanded to include promising Super Bowl tickets to investors who gave him large amounts of money. These people, however, ended up stranded in Dallas with no tickets to Super Bowl XLV and no way to find Art Schlichter.

Schlichter and gambling addiction

Art Schlichter is an admitted gambling addict who has spent time in about 45 different jails and prisons since 1994. Reportedly, the millions of dollars he collected in the Super Bowl ticket scam were spent on bets on that game and others. Last time Schlichter got out of jail, he said he was “more sorry than people will ever know.” When asked about these latest accusations, Schlichter reportedly sent text messages to the Columbus Dispatch that:

tried to portray himself as a suffering gambling addict who wants to assist other gambling addicts.

“It will help a lot of people,” Schlichter said in a text message. “This addiction is a [expletive].”

Not all Super Bowl tickets were good

The Super Bowl ticket probe stemmed from the fact that hundreds of people Schlicter had promised Super Bowl tickets to did not get into the game. These were not the only people in Dallas who did not get into the Super Bowl. Just hours before the game, safety officials deemed more than 400 seats in the stadium unsafe and turned away individuals holding tickets. The league has promised to reimburse 300 percent of the ticket cost for those 400 ticket holders, but many are saying that is simply not enough to cover their costs.

Sources

Pro Football Talk
NFL

Identity theft is on the rise. (Photo: TheTruthAbout/Flickr/CC BY-SA)

Even in the light of all the warnings and mass publicity regarding scam protection, scamming has continued to be a major problem today. The more light and publicity that shines on these illegal acts in order to protect the public, the more clever these scammers get in their schemes. If you want to stay out of their clutches, be aware and do not take risks with your money and personal information.

Be careful who you trust

Recently, I received an e-mail from a friend saying she had gone on a trip to England. She had either misplaced her purse or had it stolen and was in need of funds to help her return to the United States. It all appeared very innocent, except that she couldn’t be reached by phone. I was just about to take out a bad credit loan when I decided to call her at home. To my shock and disbelief, she was there and had never gone to England! So you can see why it is very important you take precautions before making a last-minute jump.

Safeguard your personal information

Here’s another example of scamming, one I had experienced during the process of applying for jobs and rentals. One of the rentals sent back a link along with photos of a really nice home at a very reasonable price. However, I had to complete a credit check before they could provide any more details on the house. Basically, according to the company, it was used to determine whether I had any past evictions. Seems innocent enough, right? Wrong! This is actually a huge red flag to look out for.

On another occasion, the so-called company of an available job position I had inquired about had sent me a bunch of forms to fill out, including a I-9 form (requires social security number) and a direct deposit form (they only pay that way). There was even a form that required a passport size photo of myself. Be aware that these are red flag signs to look out for, as well.

Build awareness

These schemes, among many others, may still be working for many scammers, so get the word out and build awareness. Thankfully, there are still many reputable companies out that strive to make life easier, providing payday loans and other types of short term loans to help with unexpected money problems.

Zero percent liability

The FTC requires that consumer liability for fraudulent charges made to their credit or debit accounts be limited to $50. However, VISA and MasterCard, which control 100 percent of the U.S. debit card market and the majority of the U.S. credit card market, have taken it one step further, requiring that all of their card issuers adhere to a zero percent liability policy for customers affected by fraud.

Equal protection for both accounts

This means that whether you use a credit or debit card, you are equally protected and will receive a 100 percent refund on fraudulent charges made to your accounts. Since both your credit and debit card issuers are required to adhere to the same zero percent liability policy, you should feel equally comfortable when using either account, right? Not necessarily.

Your debit account

When you use your debit card, you’re risking direct access to your checking account. Someone making fraudulent charges to your debit card is stealing your actual money, making the logistics of a refund to your checking account a more difficult and nerve racking process.

What you can expect as a victim of debit card fraud

As a victim of debit card fraud, you run the risk of bouncing important checks, such as your electric and water bill, or even your mortgage payment. Your cash flow for day-to-day expenses is cut off until the dispute is resolved with your bank. While you will get your money back eventually, you have to act fast.

The difference using your credit card

Your credit account, on the other hand, exists on the basis of borrowed money. If someone makes fraudulent charges to your credit card, it has no direct effect on your cash flow for your day-to-day living expenses and you’re generally not responsible for the debt for 25-55 days.

What you can expect as a victim of credit card fraud

For example, let’s say fraudulent charges are made to your credit card account 10 days before you receive your bill. Assuming that you don’t notice the charges until your printed bill comes in the mail, you have a minimum of 25 days to resolve the matter before your bill is due. However, if you’ve been a little more diligent by checking your account online, you will have an additional 10 days to resolve the dispute. Either way, with a credit card, you should have enough time to detect, report, and resolve fraudulent charges before you become responsible for paying them.

And the winner is…

These practical matters clearly make credit cards a more convenient payment method when it comes to fraud protection. However, if you have trouble handing your credit responsibly then credit cards remain an unfit choice.

*Source: CSCU, The Nilson Report, VISA

Trista Joy Lathern: one bad apple.

People have all kinds of excuses for not donating to charity. Most of the people I know and I don’t hand out money to people asking for change on the streets because we all agree that unless we know what they’re going to use it for, we might be hurting instead of helping. We don’t have money to lend for furthering someone’s drug habit.

When it comes to charity organizations, people often have reservations because they worry that they’re being scammed or that the organization won’t use the money responsibly. How do thought patterns like this arise? Because of people like Trista Joy Lathern. For every legitimate charity organization and individual seeking much-needed help, there are despicable scammers like Trista Joy Lathern who ruin things for everybody.

What did Trista Joy Lathern do?

According to Texas authorities, Trista Joy Lathern held benefits in her home state of Texas to raise money to help pay for her medical bills, saying she had breast cancer and had lost her insurance. Her bald head made it appear as though she was going through chemotherapy. The benefits in her honor raised more than $10,000.

Turns out she shaved her head. She even lied to her husband about having cancer. She took the money from donations at the benefit and spent $6,800 on, drumroll please … breast implants for her perfectly healthy breasts.

Why fake breast cancer?

A police affidavit says that “Trista said she and her husband had been (having) marital problems and she thought telling him she had cancer would bring them closer together.” A lot of others are reporting that Trista thought the breast implants themselves would save her marriage.

Trista Joy Lathern is 24 years old and had been married for seven months. In case you’re wondering whether it is illegal to lie about having cancer and collect money from people for said case of fake cancer, yes it is. Trista Joy Lathern has been arrested for doing this. It is called fraud. Also, in case you are wondering whether lying about having cancer and getting breast implants saved her marriage, Zimbio reports that “Lathern’s husband filed for an annulment on the day of her arrest.”

I know, shocking, right?

The plight of the giver

Trista Joy Lathern and all of the other scammers out there who dupe people into donating their hard-earned money to fake causes should be very ashamed of themselves. Because of people like Trista Joy Lathern, there are individuals out there who are really in need of help and can’t get it because others are rightfully untrusting.

What would you do if you donated money to someone in your community and later found out that person used it for totally unnecessary cosmetic surgery? Bearing in mind that two wrongs don’t make a right, I would probably not seek revenge on that person. However, it would take a lot to get me to donate money to a cause again. I have had people lie to me about why they wanted money and refuse food before, and that has caused me to never give handouts to strangers.

People like Trista Joy Lathern don’t just stop at lying about why they want the money. They take it a step further and spend it on things that the donaters could very well be vehemently opposed to. Trista Joy Lathern is no better than a street person who spends his handouts on meth. How can people be generous and giving when they can’t trust others?

Tom Cruise, famous Scientologist. Image from Flickr.

The French government has never recognized the Church of Scientology as a religion. It has always viewed it as a “sect” or simply a commercial operation. Now, after two women filed complaints against the Church of Scientology, the French court has said the Church of Scientology is guilty of fraud.

Now, several French Church of Scientology leaders and two branches of operation in France have been fined. Prosecutors also asked that the Church of Scientology operations in France be dissolved.

Church of Scientology not banned … yet

BBC News reports that the court stopped short of banning Church of Scientology operations from the country. However, BBC also reports that a ban on the Church of Scientology is still possible, though it does not say where it got that information. France has always taken a stance on the Church of Scientology, saying it was only out for quick cash and has never been a legitimate religion. BBC News says:

Unlike the US, France has always refused to recognize Scientology as a religion, arguing that it is a purely commercial operation designed to make as much money as it can at the expense of often vulnerable victims, the BBC’s Emma Jane Kirby reports from Paris.

Church of Scientology has more troubles

In the U.S., a Hollywood connection has yet again brought the Church of Scientology to the forefront of the media. The director of the Oscar-winning film “Crash” has left the Church of Scientology after 35 years. Paul Haggis says his reason for leaving the church  is its stance against gay marriage and its position on gay rights.

Paul Haggis wrote a letter to the Church of Scientology’s Celebrity Centre, saying he could no longer be part of an organization that tolerates “gay-bashing.” The Church of Scientology officially supported the Proposition 8 ban in California, which made it illegal for same-sex couple to marry after the supreme court declared it legal.

Image of Bernard Kerik from Wikimedia.

Bernard Kerik knows that committing tax fraud is a no-no. He made that clear in 2004, when he withdrew his name from consideration for Secretary of Homeland Security. At that time, Bernard Kerik admitted that he had committed tax fraud.

Bernard Kerik had employed an illegal immigrant to work for him as a nanny. Although he had failed to pay taxes on his employee, Kerik said he didn’t know the worker was undocumented. This was only the beginning of his legal troubles. He apparently didn’t know, or didn’t care, that confidential information must remain confidential when one is being investigated for conspiracy, fraud and possible mob connections. But let’s back up.

More charges flood in

Shortly after Bernard Kerik withdrew his name from the running for Secretary of Homeland Security, investigations began regarding ethics violations, unclassified misdemeanors. He pleaded guilty to those and paid a $221,000 fine.The court said “pay the money now, and you’ll be free,” so he did.

But it wasn’t over. Near the end of 2007, Bernard Kerik was indicted by a grand jury. His charges include conspiracy, tax fraud and making false statements. That brings us to the present, where Bernard Kerik was out on bail and waiting for his trial, which begins Monday.

Breaking the rules

Just a quick primer on the justice system: When someone gets arrested on charges, they get thrown in jail and have the opportunity to post bail. If the accused pays the bail money, they can be let out of jail until they get their sentence, which happens after the trial. However, people who are out on bail generally must agree to certain conditions in order to remain out of jail.

In major cases such as Bernard Kerik’s, it’s imperative that the accused does not share sensitive information about the case with the public. So although Bernard Kerik posted his $500,000 bail, he violated the conditions of his release when he posted confidential documents on his defense web site, according to USA Today. The judge ruled that this action could potentially sway jurors and that Bernard Kerik could not be trusted to honor the terms of his release, so he was hauled back to the slammer.

Who cares about Bernard Kerik?

So why is everyone so interested in this Bernard Kerik fellow? He was police commissioner in New York City during the Sept. 11, 2001, attacks on the World Trade Center. He was seen often on television with Mayor Rudy Giuliani, and Giuliani recommended him for Security of Homeland Security.

Bernard Kerik also served as Interim Minister of Interior of Iraq for a few months in 2003, just after the start of the Iraq War.

Image from wikispaces.com

Most of the payday loan related crimes I write about involve petty thieves pointing guns in people’s faces and taking off with a bunch of cash. Today, however, I came across a payday loan crime of a different type.

I don’t know if this guy was giving out fax payday loans or no fax payday loans or what, but he wasn’t giving out nearly as much as he told  his investors he was. Here’s the scoop.

From the Baltimore Business Journal:

Alvin Allister Ambrose, 37, formerly of Broadwater Road in Clarksville, was sentenced by Howard County Circuit Court Judge Timothy J. McCrone to eight years in prison, with all but six months suspended, and ordered to pay $602,790 to investors.

Ambrose was convicted on June 28 on charges stemming from his misuse of $5.04 million in funds invested by more than 180 investors to provide payday loans to clients of Ambrose’s cash-advance business with a promised high rate of return to investors, the Attorney General’s office said. The state’s investigation determined that, of that amount, Ambrose invested only $261,932 in payday loans, the Attorney General’s Office said.

Prison for payday loan fraud

Ambrose was charged with “fraudulent misappropriation by a fiduciary.” I wonder how long it will take him to pay back the $602,790? It’s odd to me that he was sentenced to eight years in prison but will really only go there for six months, but this type of thing happens all the time so I guess the justice system knows what it’s doing.

This just highlights the fact that there are a whole lot of scammers out there. Sometimes it doesn’t matter how well you research a person before letting them handle your money, but it never hurts to thoroughly check out a business, individual securities broker or anyone else who you’re allowing to invest your money.

Federal Trade Commission cracks down

Last month, the FTC once again announced it would strengthen its efforts to reduce fraud and scamming. The FTC web site says:

The Federal Trade Commission today announced a law enforcement crackdown on scammers trying to take advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes, such as promising non-existent jobs; promoting overhyped get-rich-quick plans, bogus government grants, and phony debt-reduction services; or putting unauthorized charges on consumers’ credit or debit cards.

Phony debt reduction and unauthorized charges? Pretty scary stuff.

Debt consolidation scams

Often the debt consolidation scammers pretend that they’re a debt consolidator and tell you they’ll give you a loan which will pay off all of your debts, and then you can just pay back the loan.

However, what often happens is that the fake debt counselor will collect a big chunk of money as a down payment for the loan and then just disappear, leaving your debt fully intact.

Do your homework

I know I already said this, but make you you do careful research when selecting  a financial expert for any reasons. Scammers have also posed as fake mortgage modification companies.

Alvin Allister Ambrose isn’t the first person to lie about what he is doing with people’s money, and he won’t be the last.

Dina Wein-Reis (Photo: fraudtalk.blogspot.com)

Beg, borrow or steal. How do you make it, financially?

Of course that trio of choices paints an incomplete picture. Hard work and dedication are an ideal path toward success. But borrowing doesn’t hurt from time to time. For instance, if you need to borrow short term loans or payday loans, such resources are available. Begging, while unbecoming, is also an option, but doing so in public can lead to panhandling charges.

Then there’s stealing. Lately, we’ve seen our share of high-profile financial thieves, people who appear legitimate but are as felonious as cat burglars. Bernard Madoff and Allen Stanford make that list, and now we must add Dina Wein-Reis. She scammed multi-national consumer product companies for as much as $15 million per year. Considering that the companies she scammed likely wrote off the losses, Wein-Reis was in effect stealing from American taxpayers. No get out of jail free card for you, woman.

Distribution to self

A recent story at BusinessInsider.com indicates that Dina Wein-Reis of upper Manhattan allegedly duped companies like Procter & Gamble, Unilever and Hershey out of millions in a diversion scheme where she and her associates would convince primarily male executives to allow her company to supposedly distribute their products on college campuses, military bases and in aid packages at shelters and similar places.

What she actually did with the merchandise was quite different, however. She would sell the products to middlemen and retain the profits. For some strange reason, such diversion is not illegal in itself, but New York City prosecutors are attempting to get Dina Wein-Reis on fraud charges.

How did she pull it off?

Apparently, Dina Wein-Reis is an extremely charismatic woman. She would appeal to male executives by offering them a high-paying job with her company. She’d fly the executive in for the interview, where she and her handpicked underlings (all female, all well-educated  and all attractive) would work into the mark’s confidence. At that point, the offer to obtain heavily discounted merchandise would be made, ostensibly for charitable redistribution. Wein-Reis would also assure the men that if her redistribution program was successful, they’d gain “exclusive access to these hard-to-reach markets.” Of course that was no distribution program.

From what I’ve read, Dina Wein-Reis was good enough to fool some of the same companies more than once. Either these executives were stupid, they were somehow complicit in the schemes, they were being blackmailed or there was something other commodity being exchanged. Ego stroking can certainly be intoxicating, but I’d like to think multi-million dollar executives would think with their brains at some point, rather than with another part of their anatomy.

But let’s not leave the blackmail option behind quite yet. Considering that Dina Wein-Reis and her people would lead off with the job offer, it would come place them in a compromising position with their employer (or at least embarrass them) if they came back later to call her bluff.

How bad did Dina do them?

Just a few of Dina Wein-Reis’s marks were Roche, who handed over $10 million in diabetes-testing equipment; Unilever, who lost $2.23 million worth of detergent; and Procter & Gamble, who coughed up “several million dollar’s worth” of shampoo. If you got samples of it with your morning paper, at a doctor’s office or on a college campus, it’s likely Dina Wein-Reis found a way to profit off something similar.

The spoils of deceit

Here’s just some of what is known about the extent of the Dina Wein-Reis operation:

• She has over 100 different banks accounts and as many aliases used to run shell companies
• The FBI has seized “scores” of necklaces, watches, two Louis XVI footstools, two Bugatti throne chairs, two Empire sleigh beds, and a 1920s cast-iron vanity… and that’s just from her Upper West side condo
• She has homes in Westhampton Beach, New York, Bal Harbor, Florida and Jerusalem. Her Manhattan townhouse once was featured in Architectural Digest
• She was a New York socialite with a multitude of connections

Now the game is over

And short term loans and payday loans won’t get her out, if she’s convicted. For you and loved ones, however, these types of loans can come in handy in a pinch – such as for bail. Hopefully that doesn’t happen to you, but if it does, try Personal Money Market for your payday loan needs.