Daily Report
Top Stories
• An Indianapolis, Indiana man pleaded guilty
June 25 to defrauding 5,000 investors from 50 countries by running a fake
credit union, costing investors around $15 million. – Associated Press See item 5
below in the Financial Services Sector
• Regions Bank and the U.S. Securities and
Exchange Commission stated June 25 that the bank agreed to pay a $51 million
penalty to end an inquiry where three former senior bank executives were
charged with intentionally misclassifying $168 million in commercial loans in
2009. – Birmingham News See item 7 below in the Financial Services Sector
• Albertsons was ordered June 24 to pay $3.4
million in penalties to settle allegations that the grocery store chain
illegally transported, stored, managed, and disposed of hazardous waste at its
188 stores and distribution centers in California. – Los Angeles Times
20. June 24, Los Angeles Times – (California) Albertsons
to pay $3.4 million to settle illegal disposal case. Albertsons was ordered
June 24 to pay $3.4 million in penalties to settle allegations that the grocery
store chain illegally transported, stored, managed, and disposed of hazardous
waste at its 188 stores and distribution centers in California. Waste generated
at the locations included over-the-counter medications, pharmaceuticals,
aerosol products, ignitable liquids, batteries, electronic devices, pool
chemicals and other products. Source: http://www.latimes.com/local/lanow/la-me-ln-albertsons-settlement-20140624-story.html
• Heavy rains June 23 caused about 300,000
gallons of partially treated wastewater to overflow onto the grounds of the
Port Wentworth, Georgia water treatment plant adjacent to the Savannah National
Wildlife Refuge. – Savannah Morning News
21. June 26, Savannah Morning News – (Georgia) Heavy rain triggers major sewage spill in Port Wentworth. Heavy rains June 23 caused about 300,000 gallons of partially treated wastewater to overflow onto the grounds of the Port Wentworth water treatment plant adjacent to the Savannah National Wildlife Refuge. The same storm caused an additional 9,100 gallons of sewage to spill at a lift station in Port Wentworth. Source: http://savannahnow.com/news/2014-06-25/heavy-rain-triggers-major-sewage-spill-port-wentworth
Financial Services Sector
4. June 26, Help Net Security – (International) Data
breaches in 2013 exposed 14% of all debit cards. PULSE released the results
of a study which found that 14 percent of debit cards from institutions in the
study were affected by data breaches in 2013, and that consumers are continuing
to shift to electronic payments, among other findings. Source: http://www.net-security.org/secworld.php?id=17055
5. June 25, Associated Press – (International) Indiana
man pleads guilty in fake credit union. An Indianapolis man pleaded guilty
June 25 to defrauding 5,000 investors from 50 countries by running a fake
credit union, Oxford International Credit Union, costing investors around $15
million. Source: http://www.wsbt.com/news/local/indiana-man-pleads-guilty-in-fake-credit-union/26667086
6. June 25, Associated Press – (California) 13 arrested
in scheme to stage car crashes for insurance money. Thirteen people were
arrested June 25 for their alleged involvement in a Riverside County-based auto
insurance fraud scheme that staged fake accidents or submitted fraudulent
accident reports, costing insurers over $300,000. Source: http://losangeles.cbslocal.com/2014/06/25/13-arrested-for-allegedly-staging-car-crashes-for-insurance-money/
7. June 25, Birmingham News – (Alabama) Regions Bank to
pay $51 million for 2009 fraud by executives. Regions Bank and the U.S.
Securities and Exchange Commission stated June 25 that the bank agreed to pay a
$51 million penalty to end an inquiry where three former senior bank executives
were charged with intentionally misclassifying $168 million in commercial loans
in 2009. Source: http://www.al.com/business/index.ssf/2014/06/regions_bank_to_pay_51_million.html
8. June 25, Reuters – (National) U.S. brokerage must pay
athletes $13.7 mln for Ponzi fraud - FINRA. The Financial Industry
Regulatory Authority (FINRA) stated June 25 that it ordered Success Trade
Securities and its CEO to be ejected from the securities industry and repay
$13.7 million in restitutions to investors that were defrauded in an alleged
Ponzi scheme. FINRA found that the CEO and company sold investors $19.4 million
in promissory notes by misrepresenting or omitting information in order to hide
the company’s dire financial condition. Source: http://www.reuters.com/article/2014/06/25/wealth-investment-fraud-idUSL2N0P61LK20140625
9. June 25, U.S. Securities and Exchange Commission – (New
York) SEC charges former brokers with trading ahead of IBM-SPSS acquisition.
The U.S. Securities and Exchange Commission filed charges in federal court
in New York City June 25 against two former traders for allegedly trading on
nonpublic information ahead of the 2009 acquisition of SPSS Inc., by IBM
Corporation. The charges allege that the accused made around $300,000 in
illicit profits and seeks the return of the ill-gotten gains. Source: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542161708
10. June 24, Nashville Tennessean – (National) S.C.
lawyer charged in Springfield insurance fraud case. A Blythewood, South
Carolina lawyer was charged June 24 for allegedly aiding other defendants in a
$28 million fraud scheme that sold fake health insurance policies to over
17,000 people across the country. Six others were previously charged in the
alleged fraud ring. Source: http://www.tennessean.com/story/money/2014/06/24/sc-lawyer-charged-springfield-insurance-fraud-case/11336509/
For another story, see item 28 below from the Commercial Facilities Sector
28. June 25, Greenwich Time –
(Connecticut) Splash Car Wash reports security breach. Splash Car Wash stated
June 25 that the company experienced a payment card breach that affected around
1,400 customers at several of its locations, including Fairfield, Shelton,
Greenwich, Cos Cob, Bridgeport, and West Haven. The company stated that malware
was found on company systems and stole financial information between February
28 and May 16. Source: http://www.greenwichtime.com/business/article/Splash-Car-Wash-reports-security-breach-5579561.php
Information Technology Sector
23. June 26, NetworkWorld –
(International) Hackers found controlling malware and botnets from the
cloud. Researchers at Trend Micro released a blog post detailing the
company’s findings regarding botnets and malware being hosted and controlled
through cloud servers. The researchers reported that they observed a malicious
command and control server hosted on DropBox in order to disguise its traffic
as legitimate corporate traffic, among other findings. Source: http://www.networkworld.com/article/2369887/cloud-security/hackers-found-controlling-malware-and-botnets-from-the-cloud.html
24. June 25, Securityweek –
(International) 22 vulnerabilities found in Oracle Database Java VM
implementation. Security Explorations researchers reported finding 22
vulnerabilities affecting the Java Virtual Machine implementation used in
Oracle Database which can be leveraged by an attacker to escalate privileges
and execute arbitrary Java code on vulnerable Oracle Database servers. Six of
the vulnerabilities have been fixed in the main codeline and are scheduled for
a future Critical Patch Update. Source: http://www.securityweek.com/22-vulnerabilities-found-oracle-database-java-vm-implementation
Communications Sector
Nothing
to report