India arrests 70 call-center workers accused of duping U.S. citizens

Police escort men who they said were arrested on Wednesday on suspicion of tricking American citizens into sending them money by posing as U.S. tax officials, at a court in Thane, on the outskirts of Mumbai, India,

By Devidutta Tripathy

MUMBAI (Reuters) – Police in India said they arrested 70 call-centre workers on Wednesday on suspicion of tricking American citizens into sending them money by posing as U.S. tax officials.

A total of 772 workers were detained earlier on Wednesday in raids on nine call centers in a Mumbai suburb, a senior police official told Reuters. Seventy were placed under formal arrest, 630 were released pending questioning over the coming days, and 72 were freed without further investigation.

“The motive was earning money,” said Parag Manere, a deputy commissioner of police. “They were running an illegal process, posing themselves as officers of the (U.S.) Internal Revenue Service.”

The police official did not identify the company where the call center workers were employed, or any of the main players involved in the alleged scam. He also declined comment on whether Mumbai police were investigating in conjunction with U.S. authorities, or comment on what prompted the inquiry.

Manere said the alleged scammers asked Americans to buy prepaid cash cards in order to settle outstanding tax debts and also used the threat of arrest against people who did not pay up.

Last year, a Pennsylvania man who helped coordinate a fraud in which India-based callers preyed on vulnerable Americans by pretending to be U.S. government agents was sentenced to 14-1/2 years in prison.

India is home to a vast number of back office operations for North American and European companies. Thousands of call centers in India provide back office services to these firms, processing everything from utility payments to credit card bills.

While such business arrangements help Western companies cut costs, there have been frequent allegations of security breaches and improper trading of consumers’ account details and other commercial information for profit.

(Reporting by Devidutta Tripathy; Editing by Euan Rocha and Mark Heinrich)

Phantom voters, smuggled ballots hint at foul play in Russian vote

Russian President Vladimir Putin speaks at the United Russia party's campaign headquarters following a parliamentary election in Moscow, Russia,

By Olga Sichkar, Jack Stubbs and Gleb Stolyarov

UFA/SARANSK Russia (Reuters) – Voters across Russia handed a sweeping victory to President Vladimir Putin’s allies in a parliamentary election on Sunday. But in two regions Reuters reporters saw inflated turnout figures, ballot-stuffing and people voting more than once at three polling stations.

In the Bashkortostan region’s capital Ufa, in the foothills of the Urals, Reuters reporters counted 799 voters casting ballots at polling station number 284. When officials tallied the vote later in the day, they said the turnout was 1,689.

At polling station 591 in the Mordovia regional capital of Saransk, about 650 km south-east of Moscow, reporters counted 1,172 voters but officials recorded a turnout of 1,756.

A Reuters reporter obtained a temporary registration to vote at that station, and cast a ballot for a party other than the pro-Putin United Russia. During the count, officials recorded that not a single vote had been cast for that party.

Election officials at the stations denied there were violations or count irregularities.

It is unlikely that any irregularities at these polling stations would have been on a scale that could have affected the result.

The incidents are only a narrow snapshot of what was happening across Russia’s 11 time zones and thousands of polling stations on an election day that was a test of whether support for Putin and his allies had held up despite a recession and Western sanctions. Reuters was unable to assess independently if such practices were widespread.

Reuters sent reporters to a random sample of 11 polling stations across central and western Russia on polling day, including in and around Moscow.

At three of them, there were large discrepancies between the number of voters Reuters reporters counted, and the number that officials recorded. At four of the other eight, there were also some irregularities, including smaller discrepancies in the voter tallies and people saying they had been paid or pressured to vote.

Ella Pamfilova, chairwoman of Russia’s Central Election Commission, told news briefings that the vote had been more transparent than the previous election, citing the use of live webcams in some polling stations.

She said the webcams had shown some cases of vote-rigging, and that they would be investigated. But she said no one had brought the commission concrete evidence of large-scale fraud.

After the last parliamentary election in 2011, which was also won comfortably by the pro-Putin United Russia party, allegations from opposition activists of widespread electoral fraud prompted large protests in the capital Moscow.

The Central Election Commission did not respond when asked by Reuters to comment on the incidents seen by reporters. Requests for comment sent to the regional election commissions for Bashkortostan and Mordovia also received no replies.

Sunday’s election was “far from anything that could be called free and fair”, Golos, a non-governmental organization that monitors Russian elections, said in a statement. “The results … of the monitoring show the practice of using illegal techniques continues.”

It said its conclusions were based on information collected by observers it posted to polling stations in 40 out of more than 80 Russian regions. It said violations reported by the observers included ballot-stuffing and people voting more than once.

VOTING TWICE

Putin, a leader many Russians credit with standing up to the West and restoring national pride, cemented his supremacy over the country’s political system when the ruling United Russia party took three-quarters of the seats in parliament, paving the way for him to run for a fourth term as president.

Latest official results from the election put the party he founded 16 years ago on 54.2 percent of the vote, with the closest runners-up far behind. Turnout was 47 percent, much lower than the last parliamentary vote.

Election officials collate two sets of turnout figures – one that includes only people who showed up at a polling station in person to vote, and a second, larger figure, that also includes votes cast at home by disabled voters. In order to make a direct comparison, Reuters compared its own count of voters with the first official figure, for people who voted in person.

On polling day, Reuters reporters operated in teams, with at least one person staying inside each station from the start of voting until the end of the count.

In Mordovia’s capital Saransk, a man dressed in a sports jacket and dark blue trousers came into polling station 591 to cast his vote, then came back again 20 minutes later and was seen once again putting his vote into the ballot box.

Asked why he came back a second time, he had no clear explanation, saying only that his wife had his keys so he could not get into his home.

Election officials at the polling station declined to explain why people were allowed to vote twice.

A woman with dyed orange hair, and a blonde man with a beard, turned up together at polling station number 424 in the village of Atemar in Mordovia, and a Reuters reporter saw each of them vote.

An hour later, they were back, and joined the queue to vote again. Asked to explain why, the woman said she was accompanying her husband who had not voted. Election officials issued the husband with another ballot paper before telling the reporter to move away from the ballot boxes.

In Atemar, reporters counted 669 voters at polling station number 424 while officials counted 1,261.

The station’s chief election official, Svetlana Baulina, brought in about 10 ballot papers wrapped up in a red raincoat, and mixed them up with other ballots being counted on a table.

Baulina declined to comment when asked why she had carried in ballots in a coat.

‘NO VIOLATIONS’

At all three locations where Reuters found large discrepancies in turnout figures, United Russia was the overwhelming winner in the official count.

In Saransk, when asked about the gap between the turnout counted by Reuters reporters and the official figure at station 591, local election chief Irina Fedoseyeva said: “You’re also human, you can make mistakes too.”

When asked about why the reporter’s vote for a party other than United Russia did not register in the official count, she said the reporter could recount the vote himself if he didn’t believe the result.

“If this is how things have turned out, then that’s how it’s turned out,” she said.

Election official Baulina at Atemar’s polling station 424 said of the discrepancy there: “We don’t know how you counted. Might the button (of a count clicker) get stuck?”

At station number 284 in Bashkortostan’s Ufa, election chief Fairuza Akhmetziyanova said: “We had no violations.”

Officials at polling station number 285 in Bashkortostan refused to let a Reuters reporter in, citing the need to obtain permission from local authorities. There is no such requirement for international media under Russian election rules.

During the count at polling station number 591 in Saransk, election officials drew a line on the floor in chalk and told a Reuters reporter not to cross it.

In the Bashkortostan village of Knyazevo, officials at polling station 62 ruled that the Reuters reporter should be removed after concerns were raised with them about the reporter’s mechanical counter by a voter identified as A.Z. Minsafin in a document drafted by the officials.

That voter said the reporter was making “strange manipulations” with an object which “could testify to the presence of an object of radioactive nature, which is a threat to health and life”, according to the document.

The ruling to remove the reporter was not enforced.

(Reporting by Svetlana Burmistrova in Bashkortostan, Vladimir Soldatkin and Alexander Winning in Mordovia, Andrei Kuzmin, Kira Zavyalova, Denis Pinchuk in Velikiye Luki, Anton Zverev, Darya Korsunskaya and Anastasiya Lyrchikova in Aleksin, Zlata Garasyuta, Anastasia Teterevleva, Natalya Shurmina and Maria Tsvetkova in Moscow; Writing by Maria Tsvetkova and Christian Lowe; Editing by Pravin Char)

U.S. completes ‘takedown’ of Medicare fraud: officials

Attorney General Loretta E. Lynch

By Sarah N. Lynch

WASHINGTON (Reuters) – U.S. law enforcement officials have charged 301 suspects with trying to defraud Medicare and other federal insurance programs in 2016, marking the “largest takedown” involving health care fraud allegations, the Justice Department said on Wednesday.

The national sweep resulted in charges against doctors, nurses, pharmacists and physical therapists accused of fraud that cost the government $900 million, the department said.

The cases involved an array of charges, including conspiracy to commit health care fraud, money laundering and violations of an anti-kickback law.

This year’s sweep exceeded last year’s record in which 243 defendants faced charges in a combined $712 million in government losses. Officials said it was the largest takedown in the nine-year history of the Medicare Fraud Strike Force, a joint initiative between federal, state and local law enforcement.

Attorney General Loretta Lynch said some of the cases reflect new, troublesome trends, including instances of identity theft in order to prepare fake prescriptions and a growing number of cases involving compounding, or the mixing of medications tailored to meet a patient’s needs.

Compounded medications are typically very expensive. From 2012 to 2014, the quarterly Medicare spending on these prescriptions skyrocketed from $28 million to $171 million.

“As this takedown should make clear, health care fraud is not an abstract violation or benign offense,” Lynch said. “It is a serious crime.”

In one case, two owners of a group of outpatient clinics and a patient recruiter stand accused of filing $36 million in fraudulent claims for physical therapy and other services that were not medically necessary.

The Justice Department said that to find patients, the clinic operators and the recruiter targeted poor drug addicts and offered them narcotics so they could bill them for services that were never provided.

Another case was filed against the operator of a marketing business that received referral fees from pharmacies that filled and billed Tricare, the U.S. military’s government insurance program, for compounded medicines.

The prescriptions were submitted via “telemedicine” sites, and doctors were given blank prescription forms to fill out, regardless of medical necessity, according to the complaint.

One doctor told the FBI her identity and medical credentials were used without her permission to fill thousands of dollars worth of prescriptions.

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Wendy’s says it finds more unusual card activity at restaurants

Wendy's

(Reuters) – U.S. burger chain operator Wendy’s Co <WEN.O> said it had discovered additional instances of unusual credit card activity at some of its franchise-operated restaurants, widening the scope of an earlier cyber attack on the company.

The company in January said it was investigating reports of unusual activity with payment cards used at some of its restaurants.

Wendy’s said it recently discovered a variant of a malware that was discovered and reported in May. The new malware was used to target a point-of-sales system that was earlier believed to be unaffected.

The company said the new variant of the malware had been disabled in cases where it was detected.

Wendy’s expects the number of franchise restaurants that will be impacted by the cybersecurity attacks is now “considerably higher” than the 300 restaurants already affected.

“To date, there has been no indication in the ongoing investigation that any company-operated restaurants were impacted by this activity,” Wendy’s said on Thursday.

The new discoveries are a result of the company’s continuing investigation into unusual credit card activity at its restaurants.

Large retailers such as Target Corp <TGT.N> and Home Depot Inc <HD.N> have been victims of security breaches in recent years.

(Reporting by Narottam Medhora in Bengaluru; Editing by Shounak Dasgupta)

Over 100 Arrested In Social Security Scam

Arrests are being carried out in over 10 states as part of an investigation into a massive Social Security fraud scheme.

The joint federal and state investigation alleges that over $24 million has been dispersed in fraudulent disability payments. At least 102 of the people being arrested are beneficiaries that claimed to be unable to work a job or leave their home but were witnessed leading very active lives.

In addition, lawyers, disability consultants, and recruiters are facing multiple charges for their parts in the scheme including coaching people to defraud the government.

A source told the Wall Street Journal a number of former NYPD and NYFD members will be arrested as part of the fraud.

The Social Security Administration has been focusing on fraud under pressure from Congress to tighten up the disability process. Six months ago, investigators arrested 70 people from Puerto Rico on similar charges.

Bank Executive Out After Allegations of Fraud

The chief executive of Barclays is out after allegations that he was involved with a scheme to manipulate interbank lending rates. Although the government could not produce evidence that Bob Diamond was personally involved with the scheme, Diamond was encouraged to resign to keep from “damaging the franchise.”

The resignation comes a week after Barclays bank was fined over $455 million for attempting to manipulate the rates that banks lend money to each other. Shares for the bank fell over 15% following the announcement of the attempted manipulation. Continue reading