Authorities charge 6 in $40 million fraud scheme

November 20, 2008 11:12:24 AM PST
Federal prosecutors in Philadelphia have charged six people in a $40 million fraud scheme involving bogus class-action lawsuit victims. Authorities say the suspects scammed the money over the past several years from settlements involving the Nasdaq stock market, Bank of America Corp. and Cendant Corp.

In announcing the charges Thursday, authorities said the six went to elaborate lengths to create fictitious documents supporting their settlement claims.

One suspect is a Florida lawyer who represented the bogus victims. Another suspect worked for the Philadelphia accounting firm in charge of doling out the settlements.

Authorities say the accountant was rewarded with cash and a Cadillac Escalade by the scheme's mastermind.

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