Fraud Roundup

Article

High Profile Attorney Scruggs Sentenced to 5 Years

A high-profile Mississippi lawyer, who became unpopular on Wall Street for battling powerful companies, was sentenced to five years in prison after pleading guilty to conspiring to bribe a judge.

Richard “Dickie” Scruggs made millions through landmark lawsuits against tobacco, pharmaceutical and construction companies. He also sued insurance companies after Hurricane Katrina devastated New Orleans.

U.S. District Judge Neal Biggers ordered Scruggs to pay a $250,000 fine, as well as for the cost of his incarceration, which was due to start Aug. 4, according to a local television journalist who attended the hearing.

It was the maximum sentence possible under a plea deal worked out with government prosecutors.

“I cannot be more ashamed. I’ve disappointed everyone in my life,” Scruggs told U.S. District Court in Oxford, Miss., adding that his conduct was a “scar and stain” on his soul.

Scruggs appeared to cry at one point during the hearing and left the courtroom without speaking to reporters. The judge told him he should continue to cooperate with prosecutors over the case.

Police Say 7 Reports of Airbag Theft Support Concern for New Target

Police in Ocean City, Md., say they received seven reports recently of airbags being stolen from cars.

Police say that in each case, the airbag was stolen from a General Motors vehicle parked in a motel or condominium parking lot. Police say a rear window was broken in each case and only the airbag was stolen while other valuables in the cars were not taken.

Airbags cost between $500 and $1,200 and are a popular target for thieves. According to the National Insurance Crime Bureau, more than 50,000 airbags are stolen annually.

Imprisoned Insurance Executive Charged With Bribery

A former Tennessee insurance executive is accused of trying to buy his way out of prison.

Federal authorities charged James Michael Foley of Germantown with bribery of a government official and obstruction of justice.

Drug Enforcement Administration agent George Stauffer met with Foley while wired to record the meeting.

The government said in an affidavit Foley offered Stauffer $20,000 if he recommended a sentence reduction, claiming Foley had given him tips about drug dealers.

Foley previously worked for disability insurer Unum.

In December 2006 he pleaded guilty to mail fraud and making false statements on federal documents and is serving a 51-month prison sentence in Millington, Tenn.

Information from: The Commercial Appeal, .

Wisconsin Man to Serve Prison Time for DUI That Killed Son

A 56-year-old West Bend, Wis., man will serve five years in prison for drunk driving and causing the death of his 9-year-old son.

John B. Ibeme will also serve seven years of extended supervision and two years of probation following his sentence in Fond du Lac County Circuit Court.

Judge Robert Wirtz says prison time was necessary to address the seriousness of the crime. He pointed out Ibeme’s blood alcohol level was .144 – nearly double the legal limit – at the time of the crash.

Authorities say in March 2007, Ibeme was driving and crossed the center line and hit a SUV. The crash killed his son, John Ibeme Jr., and injured two of his children, now 7 and 9. Also injured was a Kewaskum couple in the SUV.