All posts by brucebecker

Starbucks faces charges of fraud, false advertising over underfilled lattes

Starbucks has faced a barrage of charges this year that its cheating its customers by underfilling drinks, and now a federal judge has ruled that one of those lawsuits can move forward, allowing customers to sue the coffee giant for fraud and false advertising.

On Friday, U.S. district judge Thelton Henderson ruled in San Francisco that two California customers could move proceed with a suit that accuses Starbucks of cheating customers by regularly underfilling its lattes. According to Reuters, the lawsuit contends that the coffee chain overcharges customers by serving lattes that contain 25 percent too small, with baristas leaving 1/4 of an inch of free space in cups, and that it’s a policy that’s been in place since 2009 with a recipe that creates smaller lattes in order to save money on milk.

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Pennsylvania congressman convicted in racketeering case

A veteran Pennsylvania congressman was convicted Tuesday in a racketeering case that largely centered on various efforts to repay an illegal $1 million campaign loan.

U.S. Rep. Chaka Fattah was found guilty of all counts against him, including racketeering, fraud and money laundering. His lawyers had argued that the schemes were engineered without Fattah’s knowledge by two political consultants who pleaded guilty in the case.

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Racketeering Law Applies Outside the U.S., With Limits, Justices Rule

The nation’s chief law against racketeering applies to some activities outside of the United States, but private plaintiffs must claim a domestic injury, the U.S. Supreme Court on Monday ruled in a closely watched business case involving a major American cigarette and food producer.

In RJR Nabisco v. The European Community, the justices said the Racketeer Influenced and Corrupt Organizations Act applies to “some” foreign activity, if the offenses violated another law that applied extraterritorially.

Read more: http://www.corpcounsel.com/id=1202760434890/Racketeering-Law-Applies-Outside-the-US-With-Limits-Justices-Rule#ixzz4C8hfCQSM

Oklahoma’s use of card readers to freeze, seize funds comes under fire

Police in Oklahoma are using scanners that can identify phony credit cards, but critics warn the devices could also allow cops to empty the bank accounts of law-abiding citizens with one swipe.

Authorities in the state are using the new devices during traffic stops to freeze and seize money loaded onto prepaid debit cards by alleged drug traffickers, with the potential to net up to $8,000 per portable scanner. Supporters of the program, which has only been in the field for about six weeks, say it’s an important tool for law enforcement agencies to interrupt the flow of illegal drugs into Oklahoma.

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US postal worker among 6 charged in narcotics, money laundering conspiracy

NEW YORK — A two count indictment unsealed Wednesday in Brooklyn federal court charged six people with conspiracy to distribute cocaine and/or money laundering.  The indictments follow an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Postal Inspection Service, Office of Inspector General (OIG).

The defendants allegedly conspired to transport cocaine through the U.S. mail from Puerto Rico to New York.  On Wednesday, HSI agents arrested, Jermaine Sandifer, a U.S. postal carrier assigned to the Highbridge postal station in the Bronx.

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Kerry: ‘Hard-earned revenue’ being stolen from world governments

Secretary of State John Kerry warned Wednesday that corruption is robbing governments around the globe of the money they should be collecting for themselves.

“[T]oday we see a corruption level that is stealing the future from people all over the world,” he said in Oslo, Norway. “Hard-earned revenue that should be going to the state – and I’m talking about whether it’s in Yemen, which saw billions of dollars stolen, or in Nigeria – and you can run the list.”

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Navy Officer Pleads Guilty to Fraud Scandal

A Navy officer pleaded guilty in San Diego federal court Thursday to felony charges he lied to investigators to conceal his illicit years-long relationship with Glenn “Fat Leonard” Francis, a foreign defense contractor at the center of a massive bribery and fraud scandal.

Navy Rear Adm. Robert Gilbeau, 55, is the highest-ranking Navy officer charged in the investigation so far, and is believed to be the first active-duty Naval flag officer ever charged in federal criminal court.

Gilbeau — who remains free on a $75,000 bond — faces a maximum of five years in prison when he is sentenced Aug. 26 by U.S. District Judge Janis Sammartino.

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