fraud

Clippers owner Steve Ballmer is being sued by 11 former investors in the sustainability firm Aspiration Partners.

Ballmer was added this week as a defendant in an existing civil lawsuit against Aspiration co-founder Joseph Sanberg and several others associated with the now-defunct company. Ballmer and the other defendants are accused of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

“This is an action to recover millions of dollars that Plaintiffs were defrauded into investing, directly or indirectly, in CTN Holdings, Inc. (‘Catona’), previously known as Aspiration Partners, Inc,” reads the lawsuit, which was initially filed July 9 in Los Angeles County Superior Court, Central District.

Attorney Skip Miller said his firm, Miller Barondess LLP, filed an amended complaint Monday that added the billionaire team owner and his investment company, Ballmer Group, as defendants in light of recent allegations that a $28-million deal between Aspiration and Clippers star Kawhi Leonard helped the team circumvent the NBA’s salary cap.

“Ballmer was the perfect deep-pocket partner to fund Catona’s flagging operations and lend legitimacy to Catona’s carbon credit business,” says the amended complaint, which has been viewed by The Times. “Since Ballmer had publicly promoted himself as an advocate for sustainability, Catona was an ideal vehicle for Ballmer to secretly circumvent the NBA salary cap while purporting to support the company as a legitimate environmentalist investor.”

Although Ballmer did invest millions in Aspiration, it is not known whether he was aware of or played a role in facilitating the company’s deal with Leonard. The Times reached out to the Clippers for a comment from Ballmer or a team representative but did not receive an immediate response.

CTN Holdings filed for bankruptcy in March and, according to the lawsuit, is no longer in operation.

In late August, Sanberg agreed to plead guilty in federal court to a scheme to defraud investors and lenders of more than $248 million. On Sept. 3, investigative journalist Pablo Torre reported on his podcast that after reviewing numerous documents and conducting interviews with former employees of the now-defunct firm, he did not find evidence of any marketing or endorsement work done by Leonard for the company.

That was news to the plaintiffs, according to their amended lawsuit.

“Ballmer’s purported status as a legitimate investor in Catona was material to Plaintiffs’ decision to invest in and/or keep their investments with Catona,” the complaint states.

It also says that “Sanberg and Ballmer never disclosed to Plaintiffs that the millions of dollars Ballmer injected into Catona were meant to allow Ballmer to funnel compensation to Leonard in violation of NBA rules and keep Catona’s failing business afloat financially. Sanberg and Ballmer’s scheme to pay Leonard through Catona to evade the NBA’s salary cap was only later revealed in 2025, by journalist Pablo Torre.”

Miller said in a statement to The Times: “A lot of people including our clients got hurt badly in this case. This lawsuit is being brought to make them whole for their losses. I look forward to our day in court for justice.”

The NBA announced an investigation into the matter in early September. Speaking at a forum that month hosted by the Sports Business Journal, Ballmer said that he felt “quite confident … that we abided [by] the rules. So, I welcome the investigation that the NBA is doing.”

The Clippers said in a statement at the time: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

Leonard also has denied being involved in any wrongdoing associated with his deal with the now-defunct firm. Asked about the matter Sept. 29 during Clippers media day to open training camp, Leonard said, “I don’t think it’s accurate” that he provided no endorsement services to the company. He added that he hadn’t been paid all the money due to him from the deal.

HARRISBURG, Pa. — A yearlong investigation into suspected fraudulent voter registration forms submitted ahead of last year’s presidential election produced criminal charges Friday against six street canvassers and the man who led their work in Pennsylvania.

The allegations of fraud appeared to be motivated by the defendants’ desire to make money and keep their jobs and was not an effort to influence the election results, said Pennsylvania Atty Gen. Dave Sunday.

Guillermo Sainz, 33, described by prosecutors as the director of a company’s registration drives in Pennsylvania, was charged with three counts of solicitation of registration, a state law that prohibits offering money to reach registration quotas. A message seeking comment was left on a number associated with Sainz, who lives in Arizona. He did not have a lawyer listed in court records.

The six canvassers are charged with unsworn falsification, tampering with public records, forgery and violations of Pennsylvania election law. The charges relate to activities in three Republican-leaning Pennsylvania counties: York, Lancaster and Berks.

“We are confident that the motive behind these crimes was personal financial gain, and not a conspiracy or organized effort to tip any election for any one candidate or party,” Sunday said in a news release. Prosecutors said the forms included all party affiliations.

In a court affidavit filed with the criminal charges on Friday, investigators said Sainz, an employee of Field+Media Corps, “instituted unlawful financial incentives and pressures in his push to meet company goals to maintain funding which in turn spurred some canvassers to create and submit fake forms to earn more money.”

The chief executive of Field+Media Corps, based in Mesa, Ariz., said last year the company was proud of its work to expand voting but had no information about problematic registration forms. A message seeking comment was left Friday for the CEO, Francisco Heredia. The Field+Media Corps website did not appear to be operative.

Field+Media was funded by Everybody Votes, an effort to improve voter registration rates in communities of color. The affidavit said Everybody Votes “fully cooperated” with the investigation and noted its contract with Field+Media prohibited payments on a per-registration basis.

“The investigation confirmed that we hold our partners to the highest standards of quality control when collecting, handling and delivering voter registration applications,” Everybody Votes said in a statement emailed by a spokesperson.

Sainz, who managed Pennsylvania operations from May to October 2024, is accused of paying canvassers based on how many signatures they collected. The police affidavit said Sainz told agents with the attorney general’s office earlier this month he was unaware of any canvassers paid extra hours if they reached a target number of forms.

“Sainz had to be asked the question multiple times before he stated he was not aware of this and that ‘everyone was an hourly worker,’ ” investigators wrote.

One canvasser said she created fake forms to boost her pay and believed others did, too, according to the police affidavit. Another told investigators that most of the registration forms he collected were “not real.” A third reported that when she realized she was not going to reach a daily quota, “she would make up names and information,” police wrote, “due to fear of losing her job.”

The investigation began in late October 2024, when election workers in Lancaster flagged about 2,500 voter registration forms for potential fraud. Authorities said they appeared to contain false names, suspicious handwriting, questionable signatures, incorrect addresses and other problematic details.

In a separate but related investigation, authorities in Monroe County late Friday filed voter registration fraud charges against three canvassers who worked for Field+Media Corps last year. All three defendants were charged with forgery, perjury, unsworn falsification, tampering with public records, identity theft and election law violations.

The suggestion of criminal activity related to the election came as the battleground state was considered pivotal to the presidential election, and then-candidate Donald Trump seized on the news. At a campaign event, he declared there was “cheating” involving “2,600” votes. The actual issue in Lancaster was about 2,500 suspected fraudulent voter registration forms, not ballots or votes.

Scolforo writes for the Associated Press.

NORFOLK, Va. — New York Atty. Gen. Letitia James is set to make her first court appearance in a mortgage fraud case on Friday, the third adversary of President Trump to face a judge on federal charges in recent weeks.

James was indicted earlier this month on charges of bank fraud and making false statements to a financial institution in connection with a 2020 home purchase in Norfolk, Va. The charges came shortly after the official who had been overseeing the investigation was pushed out by the Trump administration and the Republican president publicly called on the Justice Department to take action against James and other political foes.

James, a Democrat who has sued Trump and his administration dozens of times, has denied wrongdoing and decried the indictment as “nothing more than a continuation of the president’s desperate weaponization of our justice system.”

The indictment stems from James’ purchase of a modest house in Norfolk, where she has family. During the sale, she signed a standard document called a “second home rider” in which she agreed to keep the property primarily for her “personal use and enjoyment for at least one year,” unless the lender agreed otherwise.

Rather than using the home as a second residence, the indictment alleges, James rented it out to a family of three. According to the indictment, the misrepresentation allowed James to obtain favorable loan terms not available for investment properties.

James drew Trump’s ire when she won a staggering judgment against the president and his companies in a lawsuit alleging he defrauded banks by overstating the value of his real estate holdings on financial statements. An appeals court overturned the fine, which had ballooned to more than $500 million with interest, but upheld a lower court’s finding that Trump had committed fraud.

James’ indictment followed the resignation of Erik Siebert as U.S. attorney for the Eastern District of Virginia after he resisted Trump administration pressure to bring charges. Siebert was replaced with Lindsey Halligan, a White House aide and former Trump lawyer who had never previously served as a federal prosecutor and presented James’ case to the grand jury herself.

On Thursday, lawyers for James asked for an order prohibiting prosecutors from disclosing to the news media information about the investigation, or materials from the case, outside of court.

The motion followed the revelation from earlier this week that Halligan contacted via an encrypted text messaging platform a reporter from Lawfare, a media organization that covers legal and national security issues, to discuss the James prosecution and complain about coverage of it. The reporter published the exchange that she and Halligan had.

“The exchange was a stunning disclosure of internal government information,” lawyers for James wrote.

They added: “It has been reported that Ms. Halligan has no prosecutorial experience whatsoever. But all federal prosecutors are required to know and follow the rules governing their conduct from their first day on the job, and so any lack of experience cannot excuse their violation.”

The motion also asks that the government be required to preserve all communications with representatives of the media as well as to prevent the deletion of any records or communications related to the investigation and the prosecution of the case.

Separately on Thursday, defense lawyers said they intended to challenge Halligan’s appointment, a step also taken this week by attorneys for former FBI Director James Comey in a different case filed by Halligan. Comey has been charged with lying to Congress in a criminal case filed days after Trump appeared to urge his attorney general to prosecute him, and he has pleaded not guilty.

A third Trump adversary, former national security adviser John Bolton, pleaded not guilty last week to charges against him of emailing classified information to family members and keeping top secret documents at his Maryland home.

The Justice Department has also been investigating mortgage fraud allegations against Democratic Sen. Adam Schiff of California, whom Trump has called to be prosecuted over allegations related to a property in Maryland. In a separate mortgage investigation, authorities have been probing allegations against Federal Reserve Board member Lisa Cook, who is challenging a Trump administration effort to remove her from her job. Schiff and Cook have denied wrongdoing.

Finely and Richer write for the Associated Press. Richer reported from Washington. Associated Press reporter Eric Tucker in Washington contributed to this report.

Oct. 24 (UPI) — New York Attorney General Letitia James will be arraigned Friday for her charges of lying on a mortgage application, a prosecution pushed by President Donald Trump.

James’ arraignment will be in Norfolk, Va., in the first court appearance since her indictment on Oct. 9. A grand jury in the U.S.District Court of Eastern Virginia indicted James on the criminal charges after the Justice Department alleged she falsely claimed a Norfolk, Va., property that she bought in 2020 would be her primary residence to get better mortgage terms.

James is expected to plead not guilty to one count of bank fraud and one count of making a false statement to a financial institution.

The indictment came a few weeks after Trump posted on Truth Social that Attorney General Pam Bondi should prosecute James, former FBI director James Comey and Sen. Adam Schiff, D-Calif. Bondi also recently indicted former national security advisor John Bolton.

James is accused of lying about the purpose of a house purchase in Norfolk in 2020. She said on the mortgage application that it would be her primary home, but instead made it a rental. She allegedly rented it to a family of three. But her great-niece has lived in the home since 2020 and testified to a grand jury that she has never paid rent. James has only reported $1,350 in rent on her taxes.

Career federal prosecutors decided against prosecuting James, but Trump forced out Erik Siebert, the U.S. attorney overseeing the office, and replaced him with Lindsey Halligan, a White House aide. Halligan brought the case against James and got the indictment.

Trump dislikes James because she filed a civil fraud lawsuit in 2022, accusing Trump of giving false property valuations and estimates of Trump’s net worth in order to get beneficial loan rates and insurance deals he wouldn’t otherwise have gotten. Trump lost the case and was ordered to pay $364 million. A judge later overturned the fine for being excessive.

Halligan made headlines on Tuesday for her messages to a reporter who wrote an article about the case in the New York Times. Halligan allegedly harassed reporter Anna Bower on Signal for 33 hours.

James’ attorney, Abbe Lowell, asked the court to intervene and warn Halligan about making extra-judicial comments about the case.

“These extrajudicial statements and prejudicial disclosures by any prosecutor, let alone one purporting to be the U.S. attorney, run afoul of and violate the federal rules of criminal procedure, the code of federal regulations, this court’s local rules, various rules of ethical and professional responsibility and [Department of Justice’s] justice manual,” Lowell wrote in a filing, The Times reported. He wanted the judge to warn Halligan “to prevent any further disclosures by government attorneys and agents of investigative and case materials, and statements to the media and public.”

WASHINGTON — A federal jury convicted an infertility specialist, who admitted inseminating patients with his own semen, of 52 counts of fraud and perjury Wednesday.

On the fourth day of jury deliberations in Alexandria, Va., Dr. Cecil Jacobson was found guilty of lying to women about the identity of the sperm donor used in their artificial insemination procedures and of telling other women that they were pregnant when they were not.

The case has provoked an inbtense debate, raising disturbing ethical questions about medical practices and the doctor/patient relationship and initiating calls for tougher regulation of sperm banks and fertility clinics.

Critics contended that Jacobson’s behavior violated his patients’ right to privacy and their right to be fully informed about their treatments.

Furthermore, the case is expected to prompt action on the federal or state level toward tighter controls on the fertility industry, which is now only loosely regulated. Such legislation is already pending on Capitol Hill.

Jacobson, 55, who may have fathered as many as 75 children in the Washington area during the late 1970s and early 1980s, faces up to 280 years in prison and $500,000 in fines when he is sentenced May 8.

Jacobson showed no reaction when the verdict was delivered but said afterward: “I spent my life trying to help women have children. It’s a shock to be found guilty of trying to help people. . . . I certainly did not willfully or intentionally harm anyone. . . . I did not break any law.”

Prosecutor Randy Bellows, who characterized Jacobson to the eight-woman, four-man jury as “a man who routinely lies to his own patients,” declined to say whether he would recommend that Jacobson go to jail.

Jacobson, who remains free on bond, is expected to appeal.

Jury foreman Daniel Richard told reporters gathered outside the courtroom that “we knew Jacobson was lying to those patients.” Another juror, Deborah Earman, said that she believed Jacobson “was a good man” who “went wrong somewhere and mistreated a lot of women. He definitely did some wrong.”

Jean Blair, a former patient who testified that Jacobson had told her six times that she was pregnant and had miscarried, said she hopes that Jacobson goes to jail. Her husband, James Blair, said Jacobson “fooled a lot of people for a long time and I’m glad he didn’t fool this jury.”

Jacobson is a former George Washington University geneticist believed to have been the first physician to perform amniocentesis in the United States. For a long time, he was one of only a few practitioners in the Washington area who could perform the prenatal procedure, which detects Down’s syndrome and other abnormalities in a developing fetus.

Later, Jacobson opened his Reproductive Genetics Center Ltd. It was while treating women there that the incidents for which he was charged occurred. In addition to lying to them about the source of the semen he used, he was also charged with fooling 10 women into thinking that they were pregnant by injecting them with unusually frequent doses of a hormone that he knew would create false positive results in a pregnancy test. Later, the prosecutor charged, he told the women that their fetuses had died and been reabsorbed by their bodies.

A series of witnesses–who testified anonymously out of concern for their children–said that Jacobson had told them he would find donors who would match the physical characteristics of the patients’ husbands and that the donor would not be aware of their identity. Genetic tests on 15 of the children, however, showed that Jacobson was 99.99% likely to have been the father, the prosecution said.

But defense attorney James Tate argued that Jacobson had been very successful in helping many high-risk women become pregnant and give birth to healthy babies. Jacobson, testifying in his own behalf, said he was unaware that the hormone he was using could cause false positive pregnancy test results.

In comments made before the trial, Jacobson acknowledged that he had used his own semen, saying that he did not believe he had done anything wrong. He said that he believed his own fresh semen was more effective than a bank’s frozen sperm. And, he said, because he had been faithful to his wife, he was confident he would not transmit any dangerous infectious diseases to his patients.

There is some evidence that Jacobson’s actions, while unusual, were not isolated. The results of a 1987 survey conducted by the federal Office of Technology Assessment–virtually ignored at the time–showed that as many as 2% of the fertility doctors polled had done exactly the same thing as Jacobson, using their own sperm to inseminate patients.

In a separate case several years earlier, Jacobson was prohibited from practicing clinical medicine in Virginia after the state medical board determined that he had misled women who had paid $5,000 for fertility treatments. Jacobson, a native of Utah, returned there to conduct privately funded genetic research.

WASHINGTON — President Trump said Friday that he had commuted the sentence of former U.S. Rep. George Santos, who is serving more than seven years in federal prison after pleading guilty to fraud and identity theft charges.

Joseph Murray, one of Santos’ lawyers, told the Associated Press late Friday that the former lawmaker was released from the Federal Correctional Institution in Fairton, N.J., around 11 p.m. and was greeted outside the facility by his family.

The New York Republican was sentenced in April after admitting last year to deceiving donors and stealing the identities of 11 people — including his own family members — to make donations to his campaign.

He reported to FCI Fairton on July 25 and was housed in a minimum-security prison camp with fewer than 50 other inmates.

“George Santos was somewhat of a ‘rogue,’ but there are many rogues throughout our Country that aren’t forced to serve seven years in prison,” Trump posted on his social media platform. He said he had “just signed a Commutation, releasing George Santos from prison, IMMEDIATELY.”

“Good luck George, have a great life!” Trump said.

Santos’ account on X, which has been active throughout his roughly 84 days in prison, reposted a screenshot of Trump’s Truth Social post Friday.

During his time behind bars, Santos has been writing regular dispatches in a local newspaper on Long Island, N.Y., in which he mainly complained about the prison conditions.

In his latest letter, he pleaded to Trump directly, citing his fealty to the president’s agenda and to the Republican Party.

“Sir, I appeal to your sense of justice and humanity — the same qualities that have inspired millions of Americans to believe in you,” he wrote in the South Shore Press on Monday. “I humbly ask that you consider the unusual pain and hardship of this environment and allow me the opportunity to return to my family, my friends, and my community.”

Santos’ commutation is Trump’s latest high-profile act of clemency for former Republican politicians since retaking the White House in January.

Like Santos, Trump has been convicted of fraud. He was found guilty last year on 34 felony counts in a case related to paying hush money to a porn actor. He is the only president in U.S. history convicted of a felony.

In granting clemency to Santos, Trump was rewarding a figure who has drawn scorn from within his own party.

After becoming the first openly gay Republican elected to Congress in 2022, Santos served less than a year after it was revealed that he had fabricated much of his life story.

On the campaign trail, Santos had claimed he was a successful business consultant with Wall Street cred and a sizable real estate portfolio. But when his resume came under scrutiny, Santos eventually admitted he had never graduated from Baruch College — or been a standout player on the Manhattan college’s volleyball team, as he had claimed. He had never worked at Citigroup and Goldman Sachs.

He wasn’t even Jewish. Santos insisted he meant he was “Jew-ish” because his mother’s family had a Jewish background, even though he was raised Catholic.

In truth, the then-34-year-old was struggling financially and faced eviction.

Santos was charged in 2023 with stealing from donors and his campaign, fraudulently collecting unemployment benefits and lying to Congress about his wealth.

Within months, he was expelled from the U.S. House of Representatives — with 105 Republicans joining with Democrats to make Santos just the sixth member in the chamber’s history to be ousted by colleagues.

Santos pleaded guilty as he was set to stand trial.

Still, Rep. Marjorie Taylor Greene (R-Ga.) urged the White House to commute Santos’ sentence, saying in a letter sent just days into his prison term that the punishment was “a grave injustice” and a product of judicial overreach.

Greene was among those who cheered the announcement Friday. But Rep. Nick LaLota, a Republican who represents part of Long Island and has been highly critical of Santos, said in a post on social media that Santos “didn’t merely lie” and his crimes “warrant more than a three-month sentence.”

“He should devote the rest of his life to demonstrating remorse and making restitution to those he wronged,” LaLota said.

Santos’ clemency appears to clear not just his prison term, but also any “further fines, restitution, probation, supervised release, or other conditions,” according to a copy of Trump’s order posted on X by Ed Martin, the Justice Department’s pardon attorney.

As part of his guilty plea, Santos had agreed to pay restitution of $373,750 and forfeiture of $205,003.

In explaining his reason for granting Santos clemency, Trump claimed the lies Santos told about himself were no worse than misleading statements U.S. Sen. Richard Blumenthal — a Democrat and frequent critic of the administration —had made about his military record.

Blumenthal apologized 15 years ago for implying that he served in Vietnam, when he was stateside in the Marine Reserve during the war. The senator was never accused of violating any law.

“This is far worse than what George Santos did, and at least Santos had the Courage, Conviction, and Intelligence to ALWAYS VOTE REPUBLICAN!” Trump wrote.

Marcelo writes for the Associated Press. AP writers Michael R. Sisak in New York and Susan Haigh in Connecticut contributed to this report.

Los Angeles County is poised to pay out an additional $828 million to victims who say they were sexually abused in county facilities as children, months after agreeing to the largest sex abuse settlement in U.S. history.

The award, posted on the county claims board agenda Friday, would resolve an additional 414 cases that were not included in the $4-billion sex abuse settlement approved this spring. Both the supervisors and the county claims board will need to vote on the payout before it is finalized.

The record $4-billion settlement covered more than 11,000 people, who say they were abused inside county-run juvenile facilities and foster homes as children. The individual payouts will range from $100,000 to $3 million.

The newest payout would break down to an average of roughly $2 million per person. It involves cases from three prominent law firms: Manly, Stewart & Finaldi, Arias Sanguinetti Wang & Team, and Panish Shea Ravipudi.

The firms declined to comment on the potential settlement until the vote by the Board of Supervisors.

The announcement follows reporting by The Times that found nine plaintiffs who say they were paid by recruiters to sue the county over sex abuse. Four of them have said they were explicitly told to make up claims. All had lawsuits filed by Downtown LA Law Group, or DTLA.

The firm has denied any involvement with recruiters who allegedly paid plaintiffs to sue. DTLA said previously it would never “encourage or tolerate anyone lying about being abused” and is conducting new screenings to remove “false or exaggerated claims” from its caseload.

The county said any claims brought by DTLA will undergo an additional level of review before payments are made, citing reporting by The Times. The extra screening “may require plaintiff interviews and additional proof of allegations,” the county said.

DTLA did not immediately respond to a request for comment Friday.

The exterior of Downtown LA Law Group’s offices in Los Angeles.

(Carlin Stiehl / Los Angeles Times)

Supervisor Kathryn Barger, who recently launched an investigation into the $4-billion settlement following The Times’ reporting, said the vetting will ensure “money goes only to the true victims of abuse.”

“Our settlements balance our obligation to compensate victims and treat their experiences with compassion with the need to put strong protections in place to protect taxpayers from fraud,” she said.

County Counsel Dawyn Harrison says she wants to see the law changed so “unscrupulous lawyers don’t get windfalls at the expense of survivors of abuse.”

“The conduct alleged to have occurred by the DTLA firm is absolutely outrageous and must be investigated by the appropriate authorities,” said Harrison. “Not only does it undermine our justice system, it also deprives legitimate claimants of just compensation.”

All cases will be reviewed by retired judges before the money is allocated, the county said.

If a judge believes a claim is fraudulent, the plaintiff will not get any money, the county said Friday. The county’s original plan stated that if the county found a fraudulent claim, the plaintiff could be offered $50,000 to resolve it or remove the case from the settlement so that it could be litigated separately.

The flood of claims was unleashed with the passage of Assembly Bill 218 in 2020, which changed the statute of limitations and gave survivors a new window to sue their abusers. Since then, school districts and governments have faced many decades-old claims, for which they say there are no longer records kept on file to allow for vetting.

Dominique Anderson, pictured above around age 11, is among the plaintiffs who sued the county for alleged sexual abuse and would stand to receive payouts as part of a new settlement announced Friday.

(Courtesy of Dominique Anderson)

County supervisors have been increasingly critical of the law, which they argue has left them defenseless against claims dating back to the 1950s. If the supervisors approve the new settlement, the county will have paid out nearly $5 billion in child sex abuse lawsuits this year — with more to come.

The county is still facing an additional 2,500 cases, which they say will further strain the region’s social safety net. The county recently required most departments trim their budgets to pay for the $4-billion settlement.

“L.A. County and other local governments must balance their obligations to past victims with the need to avoid ruinous financial impacts,” said acting Chief Executive Joe Nicchitta.

It felt like the kind of thing that must happen in Hollywood all the time: a hundred bucks to be a movie extra.

Austin Beagle, 31, and Nevada Barker, 30, said they were trying to sign up for food stamps this spring when someone offered them a background role outside a county social services office in Long Beach. They thought the gig seemed intriguing, albeit a bit unusual.

The offer came not from a casting director, but a man hawking free cellphones. The filming location was, oddly enough, a law firm in downtown Los Angeles.

Like many DTLA clients, Austin Beagle and Nevada Barker signed a retainer agreement that entitles the firm to 45% of their payout.

(Joe Garcia / For The Times)

Maybe this was how actors were recruited here, they figured. The couple had recently moved from the remote ranching town of Stinnett in the Texas panhandle, and the recruiter seemed to appreciate their Southern drawl. They hopped on a bus, excited to make $200 between them.

“They said we’d be extras,” said Beagle, who was unemployed at the time. “But when we got to the office, that’s not what it was at all.”

The couple said they arrived at the lobby of Downtown LA Law Group. A Times investigation published earlier this month found seven plaintiffs represented by the firm who claimed they received cash from recruiters to sue the county over sex abuse, which could violate state law. Two said they had never been abused and were told to manufacture their claims.

Downtown LA Law Group has denied any involvement with the recruiters who allegedly paid plaintiffs. The firm said in a statement it would never “encourage or tolerate anyone lying about being abused” and has been conducting additional screening to remove “false or exaggerated claims” from its caseload.

Four days after The Times’ investigation was published, the firm asked for a lawsuit on behalf of Carlshawn Stovall, one of the men who said he fabricated claims, to be dismissed with prejudice, meaning the case cannot be refiled.

The firm requested a second case spurred by Juan Fajardo, who said he made up a claim using the name of a family member, to be dismissed with prejudice on Sept. 9 after Fajardo says he told lawyers he wanted to drop the lawsuit.

Now, with Beagle and Barker, two more have come forward to allege they were told to invent the stories that led to their lawsuits.

Austin Beagle and Nevada Barker said they’d been in Southern California only a few months when they were flagged down outside a social services office where they were hoping to enroll in food stamps. The couple have since moved back to Stinnett, Texas.

(Joe Garcia / For The Times)

The couple said that when they arrived at DTLA’s offices in April, a man came down to the lobby with a clipboard and gave them a piece of paper to memorize before going upstairs. They assumed this was the role they’d be playing — with room to go off script.

“They told us to say that we were sexually abused and harassed by the guards in … Las P? I can’t think of the institution’s name,” said Beagle, who added he was told to say the incidents occurred around 2005.

“The worse it was the better,” he recalled being told.

On April 29, Downtown LA Law Group filed a lawsuit against the county on behalf of 63 plaintiffs, including Beagle and Barker, who claimed they were abused at Los Padrinos, L.A. County’s juvenile hall in Downey. The couple are now part of the $4-billion settlement.

Allegations of potential fraud and pay-to-sue tactics have rocked both L.A. County government and powerhouse law firms, which are scrambling to figure out how to salvage the largest sex abuse settlement in U.S. history.

Perhaps no group has been shaken more than sex abuse victims themselves, who fear allegations of false claims could derail what they hoped would be a life-changing settlement.

“I just couldn’t believe it,” said Jimmy Vigil, 45, who sued the county in December 2022 for alleged sexual abuse by a probation officer at a detention camp in Lancaster.

Vigil said he was repeatedly molested as a 14-year-old and forced to masturbate in front of other teens while the guard watched.

“It makes me feel disgusted,” said Vigil, now a mental health case manager in Ventura County. “You have absolutely no clue what I went through. You have no clue how hard I have strived in life to make it to where I am at today.”

Jimmy Vigil, now a mental health case worker in Ventura, said he was repeatedly molested as a teenager and forced to masturbate in front of other teens.

(Christina House / Los Angeles Times)

Barker and Beagle said that after memorizing the card with the basics of their story, they were taken upstairs to a room at DTLA’s office where about 20 people were waiting. Everyone seemed confused, they said.

They “were asking us ‘Hey, did y’all promise to get paid? And we said ‘Yeah, somebody told us that we’d get paid $100 if we come in,” Beagle said. “Everybody was just concerned about getting paid whatever they were promised.”

DTLA said in a statement it has “never directed, nor do we have any knowledge that anyone was ever paid, hired, or brought to the DTLA office, or was asked to memorize a script of any kind under the guise of filmmaking,”

“We are not filmmakers,” the firm said. “No one authorized on behalf of the firm has ever promised or implied movie extra work as a means of retaining clients.”

Beagle and Barker said they were called in together to a glass cubicle where a woman spent 15-20 minutes asking them questions about their story of abuse. Barker said she struggled to come up with details because “it was all made-up stuff.”

Beagle said he thought maybe the staffers in the law firm were also acting, pretending not to know this was “a fake thing.”

“Like, they were testing us all out to see if we knew how to act — just play the part,” Beagle said. “Like, this was a trial thing.”

The couple said they were befuddled at the interaction but figured they’d done enough to get their money; the receptionist told them to come back in a few hours to collect.

The firm said, in some circumstances, it provides “interest free loans to clients once they have retained our services.”

Beagle and Barker said they frittered away two hours at Pershing Square a few blocks away until around 4 p.m. It was only when they came back to the firm, they said, that it became clear there was no movie.

A man named Kevin paid them $100 each, and told them they were part of a massive settlement involving juvenile halls they’d never heard about until that afternoon. The man told them they could get $100 for each additional person they referred to go through the same process, Beagle said.

“We walked out thinking I don’t know how legit this is and we might even get f— in trouble for it,” Beagle said.

Like most sexual abuse lawsuits, the suit was filed using only plaintiffs’ initials. The Times reviewed paperwork that DTLA provided to Beagle and Barker, which they signed in order to become clients on April 21 and to opt into the L.A. County settlement on May 29.

Under the settlement, each plaintiff could be eligible for anywhere from $100,000 to $3 million. Retainer agreements for Beagle and Barker reviewed by The Times show DTLA would get 45% of their payout.

Beagle and Barker said they aren’t banking on getting any money from L.A. County. After all, they said, they grew up in Texas, more than a thousand miles away from the abuse-plagued facilities.

“We need it, but it’s not ours. It’s like finding a wallet,” Barker said. “Return it.”

A Times investigation published earlier this month found plaintiffs represented by Downtown LA Law Group who claimed they received cash from recruiters to sue L.A. County over sex abuse. Four now say they were told to make up the claims.

(Carlin Stiehl / Los Angeles Times)

Among some survivors, there is a palpable fear that the fraud allegations will steamroll the settlement, overshadowing the fact that many county-run facilities were home to unchecked abuse and torpedoing their chance of receiving a life-changing sum.

The Times interviewed eight victims for this article represented by Slater Slater Schulman, ACTS LAW Firm, McNicholas & McNicholas, and Becker Law Group. Many said they were aghast at learning the worst years of their life may have become fodder for quick cash.

“It felt like a kick in the gut,” said Trinidad Pena, 52. “For somebody just to lie about it was just sickening.”

On Sept. 18, Pena said, she was eating a pancake breakfast at a homeless services center in Long Beach when she learned she had something in common with a woman sitting on the picnic bench next to her.

Both had filed lawsuits against L.A. County alleging sexual abuse at county-run facilities. Both of them were part of the county’s $4-billion settlement. But she was the only one, she believed, who had actually been abused.

The woman told her she’d been paid $20 to sue by a woman who hung around on the sidewalk outside the community center clutching a clipboard, she said.

The Times could not reach the recruiters allegedly responsible for paying plaintiffs for comment.

Trinidad Pena, who sued in 2022 over sex abuse, said she was jarred to find herself at breakfast with a woman who told her she’d been paid to sue the county.

(Allen J. Schaben / Los Angeles Times)

Pena sued L.A. County in December 2022 over an alleged rape when she was 12 by a staff member at MacLaren Children’s Center, a shuttered youth shelter now infamous for predatory staff. No amount of cash is going to erase the scars from that, she says. But it would help.

Last month, Pena traded in her New Orleans shotgun apartment for the streets of Southern California, where she was raised. The move was, she said, a Hail Mary attempt to get medical treatment through the state’s public benefits for a cyst sprouting behind her right eye that made her vision wobble and her head crackle with pain.

She is currently living on $1,206 a month in and out of her van with a failing shunt in her head, which doctors implanted to treat her cyst. She eats mostly the nonperishable Trader Joe’s snacks she brought from Louisiana.

A six- or seven-figure settlement could help save her life, Pena said.

“I’m going to have myself a hell of a Charlie Sheen party and take a nosedive off a balcony at the Chateau Marmont if I do not get some sort of relief,” said Pena, who says she grew up in foster care near the legendary West Hollywood hotel.

Part of what has made the false claims so infuriating, victims say, is that L.A. County youth detention facilities were indeed home to horrific abuse decades ago.

Kizzie Jones, 47, said she’s on antidepressants as a result of a female probation officer who allegedly molested her twice a week and groomed her with bags of chips and bottles of conditioner.

Robert Williams, 41, says he has no friends — a near-total isolation he said traces back to repeated sexual assaults in the shower he suffered as a teen.

Mario Paz, 39, said a guard molested him under the guise of soothing his genitals with milk after he was pepper sprayed while naked. The abuse, he says, has left him traumatized to the point that he is unable to change his children’s Pampers.

All three of them filed lawsuits against the county alleging sexual abuse by county probation officers.

Mario Paz, 39, said his time at Los Padrinos Juvenile Hall left him traumatized and damaged the relationship he has with his own children.

(Christina House / Los Angeles Times)

“For someone to capitalize on something that they never endured or never experienced, I think it’s a travesty,” said Cornelious Thompson, a 51-year-old community health worker, who sued the county in December 2022.

When he was around 13 at Los Padrinos, Thompson says he was put on psychiatric medication that knocked him out. He woke up in his unit sore with his pants hanging by his knees, bleeding. It took him years to tell anyone.

He said he recently lost his job with a contractor for the county’s health department due to budget cuts. The county had to slash spending, in part, to pay for the $4-billion settlement.

It was “bittersweet,” he says, losing his job because the county was finally paying for what he said he endured as a teenager.

Only now, a new fear has crept in as two more people say they made up claims: Will he still be believed?

Aspiration Partners made a splash when it entered the green investing space in 2013.

The Marina del Rey firm billed itself as a socially conscious online banking company, offering investments and focusing its finances on the climate crisis. It also generated and sold carbon credits meant to help offset greenhouse gas emissions.

Soon, it collected celebrity investors such as Leonardo DiCaprio, Orlando Bloom, Robert Downey Jr., and Steve Ballmer, the former Microsoft chief executive, philanthropist and owner of the Los Angeles Clippers.

But 12 years later, things have turned sour.

Earlier this year, the co-founder and another top company official agreed to plead guilty to wire fraud charges and scheming to bilk investors using falsified documents. Aspiration went bankrupt.

And now, the company is at the center of a NBA investigation into whether a $28-million deal the firm cut with Clippers star Kawhi Leonard was designed to help the team circumvent the league’s salary cap.

The Clippers have strongly denied that, and said neither the team nor Ballmer played any role in Leonard’s deal and that there was no intention to violate any NBA rules. Leonard has also denied any wrongdoing.

In a statement, the Clippers said Ballmer and his family are “focused on sustainability” and built the Clippers’ home arena at the leading edge of environmental design. Aspiration was part of that effort, the statement said, and Ballmer was “duped on the investment and on some parts of this agreement, as were many other investors and employees.”

A review of hundreds of pages of court records offers a window into how the once high-flying green company fell amid illegal dealings and multiple federal criminal investigations.

A company’s rise and fall

Founded by Joseph Sanberg and Andrei Cherny, Aspiration Partners reportedly raised $110 million from venture capital funds in just its first few years of existence.

It came at a moment of rising concern about climate change, and Aspiration seemed to capitalize. Sizable deals rolled in, including a $315-million pact with Oaktree Capital Management and Ballmer.

The firm even partnered with rapper Drake in 2021, using its reforestation program to offset the artist’s estimated climate impact. The company at the time claimed its business partners and customers had funded the planting of 15 million trees over the course of a year.

In September 2021, the Clippers announced a deal with the company as the first “Founding Partner” for its state-of-the-art arena in Inglewood. The idea was fans would be able to offset their carbon impact when buying a ticket to watch the team. Aspiration even bid unsuccessfully for the naming rights to the venue, now known as Intuit Dome.

The partnership, the news release announcing it declared, “set a new standard for social responsibility in sports.”

But behind the cadre of celebrity sponsors and investors, court documents reveal trouble was brewing inside Aspiration.

In 2020, the company explored a potential $55-million loan from an investor fund in exchange for 10.3 million shares of stock, according to federal court filings. But the investor fund wanted a “put option” — a sort of safety net guaranteeing it would be able to sell its stock if Aspiration defaulted on the loan, according to federal complaints.

Sanberg, according to federal prosecutors, turned to Ibrahim Ameen AlHusseini, a venture capitalist and then-board member of Aspiration Partners.

According to a federal criminal complaint, Sanberg was aware AlHusseini didn’t have the funds to cover the “put option.” So he allegedly coordinated with AlHusseini to falsify financial records and inflate AlHusseini’s worth by tens of millions of dollars.

Federal prosecutors allege AlHusseini sent Sanberg a spreadsheet showing his investment portfolio from several years back and told Sanberg the spreadsheet was not accurate but a “hypothetical.”

Sanberg, according to the federal complaint filed against him, revised the spreadsheet to read as if it were from Dec. 31, 2019, and sent it to an investment advisor.

AlHusseini also used a graphic designer from Lebanon to falsify financial documents at least 24 times between April 2020 and February 2023, according to the federal complaint filed against Sanberg. The records sent to the financial advisor made it appear that AlHusseini’s investments and assets were worth more than $200 million, the records show.

But in reality, federal prosecutors allege his Bank of America account balance in September 2021 was $11,556.89. His Fidelity investment accounts, according to court records from federal prosecutors, totaled $2,963.63 at the time.

According to a federal complaint, Sanberg then refinanced the loaned $55 million, securing $145 million from another investment firm, again using a “put option” from AlHusseini. This time, AlHusseini promised to buy the shares for $65 million from that firm if Sanberg defaulted, according to the federal complaint.

AlHusseini did not have the funds to back that deal, federal prosecutors alleged in court papers. But he still banked $6.3 million for his role in securing it, the complaint alleged.

There were other signs the company was in trouble.

Federal prosecutors allege Sanberg moved money from his personal checking account between Aspiration and another one of his companies in March 2022, making it appear on paper as if new investments were coming in.

On Nov. 2, 2022, Sanberg defaulted on the loan, and AlHusseini agreed the following month to boost the put option value to $75 million.

Some contractors began to complain that they were not being paid, according to court filings. Lawsuits followed.

In July 2022, Cherny also notified the company he would step down as chief executive. The day after he and the company signed a separation agreement in October, Sanberg threatened to sue him, according to a letter from Sanberg’s attorneys sent to Cherny.

Cherny would later file suit against Aspiration Partners, alleging the company didn’t pay him the entirety of his severance package agreed to in October 2022, according to a complaint filed in federal court. The suit was settled out of court earlier this year.

Federal prosecutors filed charges against AlHusseini in October 2024. He later agreed to plead guilty to one count of wire fraud, as well as to work with federal authorities in their investigation.

He is expected to appear in court for a sentencing hearing on Feb. 26, according to court filings.

Aspiration Partners filed for bankruptcy in March.

Sanberg originally entered a plea of not guilty to the charges, but in August he agreed to plead guilty to two felony counts of wire fraud, according to federal prosecutors.

Court filings show he is expected in court on Oct. 20 for a change of plea hearing.

An NBA star’s deal

Aspiration cut its deal with Leonard in 2022. Although players are allowed to have separate endorsement and other business deals, the NBA probe is trying to determine whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard.

The investigation follows information detailed in the “Pablo Torre Finds Out” podcast, which reported that Leonard’s deal amounted to a no-work contract meant to circumvent the NBA’s salary cap rules.

The salary cap limits how much teams can spend on player payroll. It’s meant to ensure talent parity by preventing the league’s wealthiest teams from outspending smaller markets to acquire the best players.

Circumventing the cap by paying a player outside of his contract is strictly prohibited and can be severely punished.

Cherny, in a statement posted on X, disputed that the agreement with Leonard required no work from the basketball star.

“The contract contained three pages of extensive obligations that Leonard had to perform,” Cherny wrote in the Sept. 12 post. “And the contract clearly said that if Leonard did not meet those obligations, Aspiration could terminate the contract.”

In the statement, Cherny said he does not remember any conversations about the NBA’s salary cap when the contract between Leonard and Aspiration was signed.

“There were numerous internal conversations about the various things Aspiration was planning to do with Leonard once the 2022-23 season began, including emails from the marketing team about their plans,” he said.

Cherny declined to be interviewed for this article.

It was Aspiration’s collapse that shed light on the Leonard deal. According to bankruptcy filings, Leonard’s private company, KL2 Aspire, is listed as one of the company’s biggest creditors — being owed $7 million.

The Clippers are, by far, the biggest creditor listed for the company, with more than $30 million in outstanding debt.

In a statement, a spokesperson for the Clippers said the team terminated its relationship with Aspiration during the 2022-23 season, when the company defaulted on the agreement.

Ballmer has said he was duped by Aspiration, and insisted the Clippers followed all NBA rules. He also said he welcomed the investigation.

The Clippers signed Leonard to a four-year, $176-million contract in August 2021. In an interview with ESPN last month, Ballmer said that the sponsorship deal with Aspiration was completed in September 2021 and that the Clippers introduced Leonard to Aspiration two months later.

In a statement, a spokesperson for the Clippers said both the team and Ballmer were unaware of Aspiration’s suspicious dealings.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation,” the statement read. “The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”

Another “Real Housewives of Potomac” star is facing legal trouble: Wendy Osefo and her husband, Eddie Osefo, have been arrested for allegedly fraudulently reporting a burglary and theft last year.

A grand jury in Carroll County, Md., indicted the spouses Thursday on “multiple counts related to fraud,” the Carroll County Sheriff’s Office announced Friday in a statement. The reality TV stars, both 41, were booked at Carroll County Central Booking. They were released Friday after posting bond, the statement said.

A representative for the Osefos said Friday that they are “back home safely with their family and in good spirits.”

“They are grateful for the outpouring of concern and support from friends, fans, and colleagues,” the representative continued. “The Osefos, alongside their legal team, look forward to their day in court. At this time, they respectfully ask for privacy as they focus on their family and the legal process ahead.”

Wendy Osefos faces 16 charges, including seven felony charges for alleged false/misleading information fraud involving more than $300, eight misdemeanor conspiracy counts and a misdemeanor for an alleged false statement to an officer. Her husband faces the same charges and is also on the hook for two additional felony counts. They are due back in court in November.

The fraud charges stem from an April 2024 burglary reported at the Osefos’ home in Finksburg, Md., more than 27 miles northwest of Baltimore. The Sheriff’s Office said law enforcement responded to a report of burglary and theft and met with the spouses, who claimed their home “had been entered and numerous items had been stolen” while they were on vacation, the statement said.

“They reported approximately 80 items of jewelry, luxury goods, clothing, and shoes were stolen,” the statement said, “worth a total of more than $200,000.”

Police said Friday that detectives investigating the burglary found that the Osefos had returned more than $20,000 of the “stolen” items to their points of purchase. Detectives also saw images of Wendy Osefo taken after the alleged burglary wearing a ring she said was among items that were stolen.

Court documents show that the Osesfos filed a claim with an insurance company alleging a loss of $450,000 worth of personal property, according to TMZ.

“It became clear that the Osefos had fabricated the burglary and filed a false report [in an] attempt to fraud their insurance company,” Carroll County Sheriff James T. DeWees said during a press briefing Friday.

Wendy Osefo joined “Real Housewives of Potomac” for its fifth season in late 2020 and has been part of the cast since. She is a political commentator, author and lifestyle brand entrepreneur. Eddie Osefo is an attorney and self-proclaimed “serial entrepreneur” whose businesses include a business agency and a cannabis edibles line.

In wake of the arrests, Bravo pushed its Oct. 14 episode of “Wife Swap: The Real Housewives Edition,” featuring the Osefos, until Oct. 21, Variety reported.

The couple was arrested a year and a half after another “RHOP” personality publicly faced legal woes. Karen Huger, known among fans as the “grand dame,” was arrested in March 2024 for driving under the influence after she crossed a median and hit street signs, crashing her Maserati. She was convicted in December of driving under the influence and negligent driving, among other charges.

She was released from prison in September after serving six months of a yearlong prison sentence.

WASHINGTON — A grand jury has indicted New York Atty. Gen. Letitia James on a fraud charge in the latest Justice Department case against a perceived enemy of President Trump, a person familiar with the matter told the Associated Press on Thursday.

James was indicted in the Eastern District of Virginia on one count after a mortgage fraud investigation, said the person, who spoke on the condition of anonymity because they were not authorized to publicly discuss the matter.

James’ office had no immediate comment Thursday.

The indictment, two weeks after a separate criminal case charging former FBI Director James Comey with lying to Congress, is the latest indication of the Trump administration’s norm-busting determination to use the law enforcement powers of the Justice Department to pursue the president’s political foes and public figures who once investigated him.

The James case remained under seal Thursday, making it impossible to assess what evidence prosecutors have. But as was the case with the Comey charges, the prosecution followed a strikingly unconventional case.

The Trump administration two weeks ago pushed out Erik Siebert, the veteran prosecutor who had overseen the investigation for months but had resisted pressure to file a case, and replaced him with Lindsey Halligan, a White House aide who was once Trump’s personal lawyer but who has never worked as a federal prosecutor.

Halligan presented the case to the grand jury herself, as she did in the case against Comey, according to the person familiar with the matter.

Trump has been advocating charging James for months, posting on social media without citing any evidence that she’s “guilty as hell” and telling reporters at the White House, “It looks to me like she’s really guilty of something, but I really don’t know.”

James, a second-term Democrat, has denied wrongdoing. She has said that she made an error while filling out a form related to a home purchase but quickly rectified it and didn’t deceive the lender.

Her lawyer has accused the Justice Department of concocting a bogus criminal case to settle Trump’s personal vendetta against James, who last year won a staggering judgment against Trump and his companies in a lawsuit alleging he lied to banks and others about the value of his assets.

The Justice Department has also been investigating mortgage-related allegations against Federal Reserve board member Lisa Cook, using the probe to demand her ouster, and Sen. Adam Schiff (D-Calif.), whose lawyer called the allegations against him “transparently false, stale, and long debunked.”

But James is a particularly personal target. As attorney general, she sued the Republican president and his administration dozens of times and oversaw a lawsuit accusing him of defrauding banks by dramatically overstating the value of his real estate holdings on financial statements.

An appeals court overturned the fine, which had ballooned to more than $500 million with interest, but upheld a lower court’s finding that Trump had committed fraud.

Richer, Sisak and Tucker write for the Associated Press.

A fan who spent hundreds of dollars for tickets to what he thought would be one of LeBron James’ final NBA games is looking to recoup the money in small claims court after it turned out “The Second Deicision” teased by the Lakers superstar had nothing to do with his retirement.

Norwalk resident Andrew Garcia filed a claim Tuesday in Los Angeles County Superior Court that states that James owes him $865.66 because of “fraud, deception, misrepresentation, and any and all basis of legal recovery.”

Garcia told The Times that he spent that amount for two tickets to the Lakers’ game against the Cleveland Cavaliers on March 31, 2026, at Crypto.com Arena , thinking it would be the 40-year-old NBA icon’s final game against the team that drafted him in 2003.

He and other basketball fans were under that impression after James posted Monday on X that he would be announcing “the decision of all decisions” the next day. The post included a video clip teasing “The Second Decision,” a clear reference to 2010’s “The Decision,” in which James famously announced he was going to “take my talents to South Beach” to play for the Miami Heat.

Garcia said he purchased the tickets within 10 minutes of James’ social media post.

“I was like, ‘Holy s—, LeBron is going to retire! We’ve got to get tickets now,’” the 29-year-old Garcia said. “Like, literally, because if he formally makes this announcement, you know, there’s gonna be some significant price changes, right?”

Garcia is a huge fan of the Lakers and James, as well as an avid basketball fan in general, so he thought it would be cool to see the NBA’s all-time leading scorer play for the last time against the team with which he started his career and brought its first title in 2016 after his return from Miami.

“Moments like that, I understand the value,” Garcia said. “There still may be some moderate value [to the tickets], however it’s not the same without him retiring. I remember Kobe’s last year, it was kind of what this would have been, per se, where every ticket was worth a lot. Every game had value. …

“I missed out on that. I was a little bit younger at the time. I obviously wasn’t in a position to where I could just buy tickets unfortunately at that age. I believe I was like 18 or 19 at the time. And that’s one of my biggest regrets as a sports fan. I really wish I could have gotten the Kobe’s last year. So I see this as a potential to kind of make up for what I lost with Kobe.”

But “The Second Decision” ended up having nothing to do with retirement. It was merely a Hennessy ad.

So now Garcia wants his money back.

“There is no circumstance absent him saying he’s gonna retire that I would have bought tickets that far in advance,” Garcia said. “I mean, I buy tickets, but I don’t buy tickets five months’ advance. I’m the kind of person that buys tickets five hours in advance. It was solely, solely, solely based on that. So that’s why I was really thinking, ‘You know what, this might be grounds for a case.’ ”

The Times reached out to an attorney said to be working with James related to the claim but did not receive an immediate response.

In light of everything that has happened this week, though, Garcia said he’d still be willing to pay the same amount of money to see James play during his eventual retirement tour.

“Of course,” Garcia said. “I would probably spend more, because life is all about memories and experiences.”

It’s an unfortunate reality that older adults, who have had more time to accumulate wealth, are at an increased risk of being targeted by some fraudsters — and of losing more money per fraud incident. However, the risk might not affect everyone equally. In research by the FINRA Investor Education Foundation, certain behaviors and characteristics were found to be associated with an increased risk of fraud victimization in older adults.

Some of these risk factors include: engagement in activities that increase fraud exposure, such as opening all of your mail (especially unsolicited marketing materials or sweepstakes announcements), participating in conversations with telemarketers and answering unknown calls or texts; a preference for higher financial risk; loneliness; and financial fragility.

How to Help Reduce Risk

Reduce your exposure. Cut off contact before it starts by taking precautions like declining or blocking calls from unknown numbers, deleting messages from unknown senders, saying no to or hanging up on telemarketing offers, and throwing away junk mail. If you suspect a text message or email is spam, block and report the sender.

Ignore promises of big rewards. There are no guarantees with investing. Look out for red flags like promises of risk-free investing, guaranteed returns and high profits. Be especially wary if you were solicited for an investment when you weren’t even looking for one. Likewise, competitions and prize drawings, particularly if they require an upfront fee, are often fraudulent.

Check out sellers and products. Be alert to signs of imposter investment scams and, before you make any investment, research the seller and the product to make sure they’re legitimate and a good fit for you. You can look up financial professionals using FINRA BrokerCheck to confirm whether they’re registered and/or licensed and view their employment history.

Stay connected. If you’re struggling with feelings of loneliness, try to bolster your existing relationships or seek new connections in person, rather than virtually. Unfortunately, random contact from strangers online or via text message is all too often the start of a scam. Reach out to family and friends, if possible, whether in person or from a distance, and look for opportunities to participate in community programs and interact with others.

Monitor your emotions. Don’t make investing decisions in a rush or when your emotions are strong. Take time to think things over — or even better, talk over decisions with someone you trust.

Practice healthy financial habits. To bolster your sense of financial security, develop a budget for yourself and try to build an emergency fund. If you’re not sure where to start, look for money management webinars and/or financial counseling services offered by banks, libraries and local nonprofit organizations.

Increase your financial knowledge. Having a foundational knowledge about financial products and the basics of investing can make fraudulent offers easier to spot. If you have a brokerage account, make sure you know how to read your account statements, and take steps to protect your financial accounts like adding a trusted contact.

Stay informed about fraud. The more people hear about different scams, the less susceptible they are, which is a great reason to keep learning. Educate yourself about the red flags of fraud and current scams to be on the lookout for. Organizations like AARP and the BBB can help you learn about and track current scams. You can also look for coverage by your local news outlet, or discuss the matter with people you trust.

Resources

If you have a question or concern about your brokerage account or an investment recommendation, you can call FINRA’s Securities Helpline for Seniors toll-free at 844-574-3577. You can also file a complaint about a brokerage firm with FINRA or submit a tip about possible securities fraud to the SEC.

If you think you’ve been the victim of a scam, report it to law enforcement.

And if you’re experiencing emotional effects from fraud, there are resources available to help.

Learn more about protecting your money.

Sept. 3 (UPI) — Attorneys for Federal Reserve Governor Lisa Cook denied claims of wrongdoing made by the Trump administration as she seeks to block President Donald Trump‘s efforts to fire her.

In a civil action filed Tuesday, Cook’s attorney, Abe Lowell, denied claims made by U.S. Director of Federal Housing Bill Pulte that she committed mortgage fraud, which Trump presented as the reason for her firing, are untrue.

“Governor Cook did not ever commit mortgage fraud,” her attorneys wrote.

The action seeks to follow up on a suggestion made Friday by the courts to use a fast-tracked review to rule on the key issues of Cook’s case, which would cut through more routine routes and timelines.

The filing states that Cook’s team would agree to this, as long as Trump, who is a defendant along with Federal Reserve Chair Jerome Powell and the Fed Board of Governors, would agree to allow Cook to serve as Fed Board Governor until the expedited ruling is made.

Cook has served as a Federal Reserve Governor since 2022 but was fired by Trump following a criminal referral from a member of his administration that alleged Cook committed mortgage fraud.

She has not been charged with any related crime.

Trump fired her “for cause,” which is the only way a president can fire a Fed governor under the Federal Reserve Act.

The White House has since attempted to justify her firing under the past case Reagan vs. United States, which the administration interprets to have created precedent that when a president determines cause for termination exists, it’s unreviewable unless protected by specific removal statutes.

“But the Government ignores the facts, context, and reasoning of Reagan to advance this contorted reading,” the lawsuit suggests. “In reality, Reagan hurts the Government’s case more than it helps it.”

Cook’s attorneys explained the “Reagan” case helped define that as officers such as Federal Reserve Board governors serve fixed terms, they are entitled “to notice and a hearing, and ultimately judicial review” before being removed for cause.

As for Cook’s role as a Fed governor, she remains active until a court rules otherwise, despite Trump’s actions.

Meanwhile, Pulte, who was responsible for both the original and a second criminal referral against Cook, said he would hold a meeting with the press on Thursday.

Pulte has posted a wave of allegations against Cook since mid-August.

“Once you see what we present on Thursday, there’s going to be a lot of people apologizing and retracting their false and defamatory statements,” Pulte posted Tuesday in regard to those who have defended Cook and called the Trump administration’s action a political power move. “Watch.”

Rudolph W. Giuliani has been released from the hospital and “is progressing well” after being injured when the vehicle he was riding in was struck from behind on a highway in New Hampshire, a spokesman said Tuesday.

The former New York City mayor, 81, was injured Saturday shortly after stopping “to assist a person in urgent need of help,” spokesman Ted Goodman said in a statement.

“He has since been discharged from the hospital and deeply appreciates the love, well wishes, and prayers he has received,” Goodman’s statement said. “The mayor also extends his gratitude to the New Hampshire State Police, paramedics, Elliot Hospital, and all of the physicians and nurses who provided him with outstanding care.”

Goodman was behind the wheel, with Giuliani as a passenger, when their rented Ford Bronco was struck from behind on Interstate 93 by a Honda HR-V driven by a 19-year-old woman, New Hampshire State Police said in a statement. Both vehicles hit the highway median and were “heavily damaged,” the statement said.

Goodman and the 19-year-old suffered “non-life-threatening injuries” and were taken to hospitals, the agency said.

Giuliani was taken by ambulance to a nearby trauma center for treatment of a fractured thoracic vertebra, multiple lacerations and contusions, as well as injuries to his left arm and lower leg, according to a statement posted on X by Michael Ragusa, Giuliani’s head of security. The thoracic vertebrae are part of the spine.

State police said the cause of the crash was under investigation. No charges were filed.

Prior to the accident, Giuliani and Goodman “were flagged down by a woman on the side of the road, just south of Exit 9N, who reported to them she had been involved in a domestic violence incident,” state police said in a news release. Goodman reported the incident to law enforcement and he and the former mayor remained at the scene until troopers arrived.

The reported domestic violence and crash were believed to be unrelated, investigators said.

“Thank you to all the people that have reached out since learning the news about my Father,” Andrew Giuliani, Rudy Giuliani’s son, wrote in a post on X. “Your prayers mean the world.”

The onetime Republican presidential candidate was dubbed “America’s mayor” in light of his leadership in New York after the Sept. 11 attacks in 2001.

Giuliani later became President Trump’s personal attorney and was a vocal proponent of Trump’s allegations of fraud in the 2020 election, which was won by Democrat Joe Biden. Trump and his backers lost dozens of lawsuits claiming fraud, and numerous recounts, reviews and audits of the election results turned up no signs of significant wrongdoing or error.

Two former Georgia elections workers later won a $148-million defamation judgment against Giuliani. As they sought to collect the judgment, the former federal prosecutor was found in contempt of court and faced a trial this winter over the ownership of some of his assets. He ultimately struck a deal that let him keep his homes and various belongings, including prized World Series rings, in exchange for unspecified compensation and a promise to stop speaking ill of the ex-election workers.

Thompson writes for the Associated Press.

Rudolph W. Giuliani is recovering from a fractured vertebra and other injuries following a car crash in New Hampshire, a spokesperson for the former New York City mayor said Sunday.

Giuliani was being driven in a rented Ford Bronco by his spokesperson Ted Goodman when their vehicle was struck from behind by a Honda HR-V driven by a 19-year-old woman late Saturday evening, New Hampshire State Police said in a statement.

Troopers witnessed the crash, which caused both vehicles to hit the highway median and left them “heavily damaged,” the State Police said. Goodman and the 19-year-old suffered “non-life-threatening injuries” and were taken to hospitals for treatment, the agency added.

The State Police said it was investigating the crash and no charges have been filed.

Giuliani, 81, was taken to a nearby trauma center and was being treated for injuries including “a fractured thoracic vertebrae, multiple lacerations and contusions, as well as injuries to his left arm and lower leg,” according to a statement posted on X by Michael Ragusa, Giuliani’s head of security.

Giuliani “sustained injuries but is in good spirits and recovering tremendously,” Ragusa said, adding: “This was not a targeted attack.”

Before the accident, Giuliani had been “flagged down by a woman who was the victim of a domestic violence incident” and contacted police assistance on her behalf, Ragusa said. After police arrived, Giuliani continued on his way and his vehicle was hit shortly after pulling onto the highway in a crash that was “entirely unrelated” to the domestic violence incident, Ragusa told The Associated Press in an emailed statement.

State police said troopers were investigating a domestic violence report on the southbound Interstate 93 shortly before 10 p.m. and observed the crash, which occurred on the northbound lanes. Troopers and fire personnel quickly crossed to provide help.

New Hampshire State Police declined to comment on whether Giuliani had contacted the agency regarding the account of a domestic violence incident.

Goodman did not respond to requests for comment and Giuliani’s team did not provide additional details about the circumstances surrounding the crash.

“Thank you to all the people that have reached out since learning the news about my Father,” Andrew Giuliani, Rudy Giuliani’s son, wrote in post on X. “Your prayers mean the world.”

The crash follows some rocky years for the onetime Republican presidential candidate, who was dubbed “America’s mayor” in light of his leadership in New York after the Sept. 11 attacks in 2001.

Giuliani later became President Trump’s personal attorney for a time and a vocal proponent of Trump’s false allegations of fraud in the 2020 election, won by Democrat Joe Biden. Trump and his backers lost dozens of lawsuits, and numerous recounts, reviews and audits of the election results turned up no signs of significant wrongdoing or error.

Two former Georgia elections workers later won a $148-million defamation judgment against Giuliani for issues related to his 2020 election fabrications.

As they sought to collect the judgment, the former federal prosecutor was found in contempt of court and faced a trial this winter over the ownership of some of his assets. He ultimately struck a deal that let him keep his homes and various belongings, including prized World Series rings, in exchange for unspecified compensation and a promise to stop speaking ill of the ex-election workers.

Brook writes for the Associated Press. AP writer Jennifer Peltz in New York contributed to this report.

Aug. 27 (UPI) — President Donald Trump is asking a New York appeals court to throw out the remaining penalties imposed against him in his civil fraud case after the roughly $500 million fine was dismissed last week.

Trump’s defense filed the motion in a New York appeals court Tuesday asking it to remove a three-year ban placed on the president from holding corporate leadership positions in the state, and a three-year ban on him and his companies receiving bank loans, among other punitive actions.

Manhattan Supreme Court Judge Arthur Engoron fined Trump $454 million in February 2024, after Trump was found liable for financial fraud by inflating his net worth to secure favorable loans.

Last week, a divided appeals court threw out the massive monetary penalty, calling it excessive, but let stand the judgment.

After his financial penalty was erased, Trump claimed “TOTAL VICTORY” online.

“I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was Hurting Business all throughout New York State,” Trump said on his Truth Social media platform.

“It was a political Witch Hunt, in a business sense, the likes of which no one has ever seen before.”

New York State Attorney General Letitia James, who brought the case against Trump, said she will appeal to have the $500 million fine reinstated.

“It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit,” she said Thursday in a statement.

WASHINGTON — Behind a White House effort to saddle President Trump’s political foes with accusations of mortgage fraud is a 37-year-old home construction executive with a deep partisan past.

Bill Pulte, a Florida native, rose in Trump’s orbit toward the end of his first term. After courting Trump for years on social media and through generous donations, he now runs the Federal Housing Finance Agency — a perch that has allowed him to target prominent figures who have crossed the president.

In the last five months, Pulte has referred three claims of mortgage fraud against Trump’s foes to the Justice Department, leveled against Letitia James, the attorney general of New York; Adam Schiff, the Democratic senator from California; and this week, Lisa Cook, a governor on the board of the Federal Reserve.

Each has denied wrongdoing. Trump announced on Monday night that he was moving to fire Cook.

It is an unusual role for a director of the FHFA, which regulates Fannie Mae — the nation’s largest company by assets — and Freddie Mac. The two mortgage financing organizations, which support nearly half of the U.S. residential mortgage market, were taken over by the FHFA during the 2008 economic crisis.

The grandson of one of Michigan’s wealthiest and most prolific homebuilders, Pulte made a name for himself on Twitter in 2019 with public cash giveaways to individuals in need. He dubbed himself the “inventor of Twitter philanthropy,” vowing to give two cars away in exchange for a Trump retweet that year, which he received. He subsequently built a following of over 3 million.

Records show Pulte donated substantially to Trump, the Republican National Committee and related super PACs leading up to the 2024 election.

Pulte’s letters to Atty. Gen. Pam Bondi have been tightly and cautiously written. But his social media posts, celebrating the targeted attacks, have not.

“Trump becomes the first president ever to remove a sitting Federal Reserve governor,” he wrote on X, between retweets of right-wing commentators praising the move. “Mortgage fraud can carry up to 30 years in prison.”

In another post on X, quoting a CNN headline, Pulte wrote that Trump’s firing of Cook was “escalating his battle against the central bank” — seeming to acknowledge that targeting Cook was motivated by Trump’s ongoing grievances with Fed leadership.

Cook’s firing is legally dubious, and her attorney, Abbe Lowell, said in a statement that Cook plans on suing the administration while continuing to perform her duties for the Fed. Lowell also represents James in her defense against the Justice Department case.

While the Supreme Court ruled in May that Trump may fire individuals from independent federal agencies, the justices singled out the Fed as an exception, calling it a “uniquely structured, quasi-private entity.” The Federal Reserve Act of 1913 states that the president may fire a member of its leadership only “for cause.”

But cause has not been definitively established to fire Cook, with Pulte writing in his letter to Bondi that the Fed governor had only “potentially” committed mortgage fraud, accusing her of falsifying bank documents and property records to acquire more favorable loan terms.

Pulte has accused Cook of listing two homes — in Ann Arbor, Mich., and in Atlanta — as her primary addresses within two weeks of purchasing them through financing. Cook said she would “take any questions about my financial history seriously” and was “gathering the accurate information to answer any legitimate questions and provide the facts.”

Pulte’s other accusations, against James and Schiff, have been similarly superficial, publicly accusing individuals of potential criminality before a full, independent investigation can take place.

And whether those investigations will be impartial is far from clear. Earlier this month, Bondi appointed Ed Martin, a conspiracy theorist who supported the “Stop the Steal” movement after Joe Biden’s election victory over Trump in 2020, as a special prosecutor to investigate the James and Schiff cases.

Pulte accused James — who successfully accused Trump of financial fraud in a civil suit last year — of falsifying bank statements and property records to secure more favorable loan terms for homes in Virginia and New York. He made similar claims weeks later about Schiff, who maintains residences in California and the suburbs of Washington, D.C.

Schiff, who led a House impeachment of Trump during the president’s first term and has remained one of his most vocal and forceful political adversaries since joining the Senate, dismissed the president’s claims as a “baseless attempt at political retribution.”

A spokesperson for Schiff said he has always been transparent about owning two homes, in part to be able to raise his children near him in Washington, and has always followed the law — and advice from House counsel — in arranging his mortgages.

In making his claims, Trump cited an investigation by the Fannie Mae “Financial Crimes Division” as his source.

A memorandum reviewed by The Times from Fannie Mae investigators to Pulte does not accuse Schiff of mortgage fraud. It noted that investigators had been asked by the FHFA inspector general’s office for loan files and “any related investigative or quality control documentation” for Schiff’s homes.

Investigators said they found that Schiff at various points identified both his home in Potomac, Md., and a Burbank unit he also owns as his primary residence. As a result, they concluded that Schiff and his wife, Eve, “engaged in a sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020.

The investigators did not say they had concluded that a crime had been committed, nor did they mention the word “fraud” in the memo.

BREAKINGBREAKING,

The US president says Lisa Cook to be removed from position ‘effective immediately’.

United President Donald Trump has ordered the removal of Federal Reserve governor Lisa Cook amid unproven claims of mortgage fraud.

In a letter posted on social media on Monday night, Trump said Cook was being sacked “effective immediately”, in accordance with his powers under the US Constitution and the 1913 Federal Reserve Act.

Citing allegations made last week by the US federal mortgage regulator, Trump said there was “sufficient reason to believe you may have made false statements on one or more mortgage agreements”.

“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and members banks,” Trump said in the letter, which was shared on his platform Truth Social.

“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”

Trump had on Friday threatened to fire Cook, who was appointed by former President Joe Biden, if she did not resign.

Trump’s extraordinary move is set to raise further questions about the independence of the US central bank, which has been under intense pressure from Trump to lower interest rates.

In a letter addressed to US Attorney General Pam Bondi and Department of Justice official Ed Martin earlier this month, Federal Housing Finance Agency director Bill Pulte, a staunch Trump ally, alleged that Cook had listed two properties as her primary home addresses.

The Federal Reserve did not immediately respond to Al Jazeera’s request for comment.

More to follow…