The former CEO of a bulletproof vest-making company for U.S. soldiers was arrested on accounting fraud, tax fraud and insider trading, law enforcement officials said. David H. Brooks, the former head of DHB industries, was arrested in New York by IRS and FBI agents on charges he illegally made tens of millions by allegedly lying about the financial results of his company. Federal agents were planning to seize assets as part of the raid including Brooks' Ferrari and armor plated SUV at his Old Westbury home. Investigators had been looking into whether Brooks took part in an alleged "pump and dump" scheme. Federal prosecutors said Brooks made an estimated $200 million by selling his personal stock holdings just before DHB shares plunged from $20 to about $1 per share. Brooks made his fortune by reportedly lobbying for an exclusive contract to make and provide bulletproof vests for soldiers in Iraq. There were questions in 2005 about whether the DHB vests worked, or were effective enough, in stopping enemy fire. Prosecutors said in addition to reaping nearly $200 million through illegal trading, Brooks used his company's money to pay for a personal horse racing business, luxury vacations, cosmetic surgery for relatvies, jewelry and country club bills. Investigators said Brooks spent $106,000 of the company's money on vitamins for his horses in one year. The pentagon had been conducting its own investigation into DHP. Investigators said the charges Thursday relate only to the accounting fraud and insider fraud allegations. Brooks also made headlines in 2005 for a $10 million bash he threw for his daughter at the Rainbow Room in Manhattan. The event was for his daughter's bat mitzvah, and the rock band Aerosmith performed as Brooks himself reportedly danced around in a hot-pink suede outfit. In August 2007, two other former executives with the company were arrested and charged. IRS and FBI agents arrested Brooks at his Manhattan home.
WILSONVILLE, Ore. - A woman and her ex-husband were caught red-handed spending millions of dollars that was supposed to go to their church, so why is she now publicly asking for money and living a life of travel and leisure while her victims remain unpaid? Mary Manin-Morrissey is the former leader of The Living Enrichment Center and had a following around the world from her 95-acre Wilsonville campus. She and her former husband spent millions of dollars that had been loaned to the church on themselves and on failed business ventures. In 2005, her husband went to prison for money laundering, but she was never charged with a crime. It was part of a plea agreement - he would plead guilty to money laundering on the condition that she would not be charged. It is a point that still frustrates victims. Tom H. has one of the largest stakes in the failed church - he loaned a total of $650,000 to the church, which is part of the almost $11 million that may never be repaid to dozens of people. At one time, Steve Sanders was one of the Morrisseys biggest supporters, but he never understood how she avoided prison. Manin-Morrissey is now teaching spirituality workshops on board cruise ships, sometimes taking several trips each year. She also runs Life Soulutions and Evolving Life Ministries, a virtual church online where she asks for contributions. There is also a physical church in Lake Oswego. In her 2005 bankruptcy case, Manin-Morrissey was permanently prohibited from holding the position of Officer, Financial Manager of Financial Fiduciary for any charitable or religious non-profit entity. Manin-Morrissey said she is following those rules. Her current church operates as a for-profit business, according to the state. State investigators told KATU News they want to make sure Manin-Morrissey is not diverting income because a portion of her pay is supposed to go into an account for victims. So far, there is $74,000 in the account. She and her ex-husband owe $10.7 million.
It was supposed to be a giant surprise for a six-year-old Garland girl - free tickets to a Hannah Montana concert in New York, after winning a "Rock Your Holidays" essay contest. But what started out as a happy story turned into an investigation.
A North Texas girl's essay about her father's death in Iraq won a national contest and its coveted prize--- four tickets and airfare A North Texas girl's essay about her father's death in Iraq won a national contest and its coveted prize--- four tickets and airfare to a Hannah Montana concert. But the essay turned out to be fiction, and now a 6-year-old and her mom are in the middle of a swirl of controversy. Priscilla Ceballos, the girl's mother, telephoned FOX 4 reporter Brandon Todd Friday night to clear up what she said were misconceptions about their side of the story. She claims they never represented the essay as truth, and claims she stormed out of a media photo opportunity in Garland on Friday only because a reporter "accused" her of lying. The child's winning essay read: "My daddy died this year in Iraq. I am going to give my mommy the Angel pendant that daddy put on mommy when she was having me. I had in in my jewelry box since that day. I love my mommy." The girl's grandmother told FOX 4 that the father, Jonathan Menjivar, is alive and currently lives in another town. The Department of Defense website has no record of any military casualty by that name, nor does the U.S. Army have any record at all of that name. Ceballos says her daughter knows the submission was a work of fiction. "She's aware of what she wrote, and she knows that that wasn't true," Ceballos said. The contest was organized by Club Libby Lu, a girls' spa/retail franchise chain. On Friday, the store at Firewheel Town Center in Garland treated the chosen winner to a makeover and Hannah Montana merchandise. But it's not clear what will happen now, or if the 6-year-old will be allowed to keep the tickets.
A mother who helped her daughter fake an essay about her father dying in Iraq to win Hannah Montana concert tickets has denied trying to fool anybody. Ceballos' daughter, 6-year-old Alexis Menjivar, beat out 1,000 other girls from the Dallas area to win four tickets to a Hanna Montana concert in Albany, N.Y. Her essay began with the powerful line, "My daddy died this year in Iraq." The letter went on to say the girl would "give mommy the angel pendant that daddy put on mommy when she was having me." The contest's sponsor, the girls' clothing and furniture store Club Libby Lu, has since given the tickets to another unnamed contestant. While some may understand the Ceballos' desperation to attain tickets to the hottest concerts to children and tweens, others believe her actions may have caused more harm to her daughter than if she hadn't won the tickets. Some questioned whether Ceballos went too far with the tall tale.
So many that are need have a rough going this time of year and with the holidays in full swing there are no shortage of scam artists out there who are willing to prey on innocent people. A man had claimed burglars busted into his apartment and literally stole Christmas from he and his kids. Almost immediately the phones and emails lit up at KTRK's news station with Houstonians offering to help. The story got around nationally and locally especially to news stations like Tampa Bay 10 in Florida but now we've learned that the man who calls himself 'Santa' may be a Grinch himself. The station started digging into his questionable past. Four aliases and that's not all. Less than 24 hours after Roberto Luis (his real name is Reuben Garibay) told us his sad story of thieves stealing Christmas while he was out playing Santa, an outpouring of generosity and a confrontation ensued. After seeing his story on Eyewitness News, people came to Roberto's southwest Houston apartment from all over to help. Little Kinley drove with her mother from Pasadena but in the end it was all for nothing as you will see in this interview. Reporter Jessica Willey said he told the same story on another television station but he still claimed both were true. After several denials, he finally confessed.
They were young, rich and in love. But the jet-setters financed their fun on the credit cards of unsuspecting neighbors in their high-end apartment building and other identity-fraud victims. The fraud scheme paid for jaunts to Paris, London and Hawaii and a stop at a tony salon for $1,700 worth of hair extensions, police said. Drexel University student Jocelyn Kirsch, 22, and beau Edward K. Anderton, a University of Pennsylvania graduate, were charged Friday with identity theft, forgery, unlawful use of a computer and a laundry list of other counts. A police search of the couple's $3,000-a-month apartment turned up a book titled, "The Art of Cheating: A Nasty Little Book for Tricky Little Schemers and Their Hapless Victims," as well as a 2005 article from Penn's campus newspaper on "How to Spot Fake IDs." Police started investigating after a resident on their floor notified police on Nov. 19 that she thought her identity had been stolen. A day later, the woman heard from a local UPS store about a waiting package, although she had not ordered anything from the British retailer that sent it. Police kept an eye on the store and arrested Anderton and Kirsch on Friday when they walked in to pick up the package.
Part 4 of 4 There has been a dramatic turn in the ongoing sex abuse law suit against Bishop Earl Paulk. The civil case has now turned into a criminal investigation. The Cobb county district attorney believes Paulk may have lied under oath and so he set out to prove it. The results: a court ordered DNA test that shows Paulk is the father of his brother's son. Dale Russell reports.
Part 2 of 4 Allegations of sexual misconduct have been surfacing in the ongoing Bishop Earl Paulk sexual abuse lawsuit. The woman, who claims Paulk sexually abused her, says the Bishop also goaded her into having sex with other men in the church.
Part 1 of 4 Bishop Earl Paulk, still battling allegations that he sexually abused a church singer, took to the pulpit to confess. It was a rare declaration from the leader of one of metro Atlanta's best known Mega-Churches. But while the Bishop awaits trial on the sexual abuse law suit, our I-Team uncovered court documents that outline explosive new allegations.
Part 3 of 3 Authorities have finally tracked down a Bay Area restaurant owner accused of running a credit card scam. The ABC7 News I-Team caught up with him nine months ago. He didn't like it, so he took off running. They showed you how Phau Lam was still billing his former customers' credit cards, months after his restaurant had shut down. Authorities now say the scam was even bigger than was first reported by the I-Team. Fifty-one-year-old Phau Lam is in San Francisco County Jail, charged with 32 counts, all felonies, in a credit card scam. District Attorney Kamala Harris says this is one of the most severe cases of identity theft she's ever seen.
Part 2 of 3 A local restaurant owner in San Francisco named Phau Lam was charging his customers' credit cards, months after his business shut down. Assistant District Attorney June Cravett has never seen a case quite like the one this which was uncovered by the I-Team in early Febuary of 2007. A Chinese restaurant that's been closed almost a year, still billing former customers, hundreds of dollars in some cases. Most of the victims didn't contact police, after their banks credited their accounts. But, they will now cooperate with the authorities.
Part 1 of 3 50-year-old restaurant owner Phau Lam, took off and kept running and running when the I-Team Investigative cameras showed up. He ran until he was out of sight. Irene Bartholomew used to have lunch at Lam's Home Menu restaurant on Mission at South Van Ness, before it closed almost a year ago. She was shocked when she checked her bank statement and found a charge for $175 dollars. She went to the restaurant, still closed and confronted Lam with cameras rolling.
Part 2 In the second part of this KTLA's 5 investigation Team talks to a former employee of the Kimkins diet, as well as a woman who says her hair is falling out as a result of using the diet promoted by Heidi Diaz aka Kimmer.
Part 1 Questions are being asked about the woman who started the online diet trend called "Kimkins." This woman actually claimed she lost 198 lbs showing before and after shots. The problem is the after shots are of a Russian model NOT Kim. The REAL Kim aka Heidi Diaz STILL weighs over 300 lbs and people are livid due to this scam. To add insult to injury, some experts say the diet this scam artists promotes can cause alot of health problems especially for women.
Sen. Chuck Grassley, R-Iowa, former chairman of the finance committee, said his requests for information came in response to complaints from the public and news coverage about practices at the six ministries. The allegations involve governing boards that aren't independent and allow generous salaries and housing allowances for church leaders, and amenities such as private jets and Rolls-Royces. "I don't want to conclude that there's a problem, but I have an obligation to donors and taxpayers to find out more," he wrote. "People who donated should have their money spent as intended and in adherence with the tax code." Besides the Whites, letters went to Benny Hinn of World Healing Center Church of Grapevine, Texas; David and Joyce Meyer of Joyce Meyer Ministries of Fenton, Mo.; Kenneth and Gloria Copeland of Kenneth Copeland Ministries of Newark, Texas; Bishop Eddie Long of New Birth Missionary Baptist Church of Lithonia, Ga., and Creflo and Taffi Dollar of World Changers Church International of College Park, Ga.
The reaction to an ABC Action News Investigation into a controversial street racing video involving the family of pro wrestler Hulk Hogan has been strong throughout the Tampa Bay area. The attorneys for the parents of the man who was critically injured in the August crash in which Nick Bollea (Hulk's son) was driving say they are shocked at what they saw.
On. Nov. 7, 17 year old Nick Bollea, Hulk Hogans son was charged with felony reckless driving after a crash left his friend, 22-year old John Graziano, in a coma. Earlier Nick was pulled over several times for speeding. On Monday night, ABC Action News Investigative Reporter Matthew Schwartz aired parts of a 2005 domentary titled "Vehicular Lunatics". It's about street racing and was filmed in several Florida locations, including Saint Petersburg and Orlando. One "Extra" in the DVD is called "Street Racing With Linda Hogan." Mrs. Hogan, real name Linda Bollea, is seen in a white Mercedes S600. She is behind the wheel, her daughter Brooke is in the passenger seat. They are being taped by one of the men in the car across from them, apparently getting ready to race. The DVD can be damaging to the Hogan family who are being sued over the horrific accident.
PART 3 of 3 As Pastor of the 22,000 member mega-church, Without Walls International, Paula White qualifies as a genuine Bay Area celebrity. Her personal story of abuse, poverty, redemption and riches inspire her local congregation and the millions who watch her television ministry around the world. That's why White's recently announced separation with husband and co-Pastor, Randy White made big news. It also revived concerns about the million dollar homes, luxury cars and other trappings of wealth both Paula and Randy display so openly. Brendan McLaughlin from ABC affiliate Channel 28 invited her to come on his program "Flashpoint".
PART 2 of 3 As Pastor of the 22,000 member mega-church, Without Walls International, Paula White qualifies as a genuine Bay Area celebrity. Her personal story of abuse, poverty, redemption and riches inspire her local congregation and the millions who watch her television ministry around the world. That's why White's recently announced separation with husband and co-Pastor, Randy White made big news. It also revived concerns about the million dollar homes, luxury cars and other trappings of wealth both Paula and Randy display so openly. Brendan McLaughlin from ABC affiliate Channel 28 invited her to come on his program "Flashpoint".