October 2009 Archives

October 27, 2009

UNC Medical School Reveals Data Breach of Mammography Registry

October 27, 2009 - The University of North Carolina School of Medicine has recently disclosed that, in the year 2007, internet hackers gained access to a database called the Carolina Mammography Registry. Apparently, some of the records contained personal information about patients, including dates of birth and social security numbers. Information for thousands of female UNC Dome.jpgpatients who had received mammographies in several North Carolina private practices were added to the database, apparently without the knowledge or permission of those patients.

The data was collected by the UNC School of Medicine to conduct research as part of a national study. The database contained information pertaining to approximately 236,000 women. UNC reported that the breach included the records of more 163,000 of those women. The information was retained on a server to be accessible to researchers who were a part of the study. The goals of the study were to improve breast cancer detection, understand risk factors, guide future research, and inform policy makers. The database was part of a national study funded by the National Institute of Health's National Cancer Institute.

 

                                                       It appears that tCMR banner.jpghe IT department at UNC discovered the breach in July, 2009, when researchers could not access the database. Viruses were discovered, which dated back to 2007. UNC's IT department immediately took down the server and removed all of the information that had been previously posted. The UNC School of Medicine then began contacting women who they believed may have been affected by the breach. Two different letters apparently went out to women whose information had been exposed; one letter to women whose Social Security Number was in the database, and one letter to women whose number was not.

Both UNC and outside law enforcement officials are investigating the breach, but thus far have not been able to determine if any information was removed, or who was responsible for the breach. Apparently, the investigation remains open at this point.

 Information Sources: UNC School of Medicine, esecurityplanet.com

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October 26, 2009

Walpole, Massachusetts Fatal Crash on Route 1

October 26, 2009 - George Marcus, 79 from Framingham, Massachusetts, died as a result of serious personal injuries sustained in a single car accident on Saturday. Marcus was driving a 2003 Hyundai Elantra and his passenger Norma Marcus, also 79, was seriously injured. The crash occurred at around 4:10 p.m. on Route 1 South near Fox Hill Drive in Walpole.

According to police, the Hyundai went off the roadway to the right and collided with a telephone pole. Sadly, George Marcus was pronounced dead at the scene. Norma Marcus was transported to Norwood Hospital for treatment.

The crash remains under investigation by the Massachusetts State Police and the Norfolk County District Attorney's Office.

Source: The Sun Chronicle

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October 23, 2009

Milton Retana of Best Diamond Funding Arrested for Allegedly Operating Investment Scam

October 23, 2009 - Milton Retana, 43 from Norwalk, California, was arrested in December 2008 for allegedly running a $62 million Ponzi scheme that involved over 2000 investors.Diamond.jpg Retana perpetrated the alleged scam through his company Best Diamond Funding, a real estate brokerage and mortgage lending firm.

According to the indictment, Retana was able to raise the money by telling potential customers that their money would be invested in real estate purchases and sales. Allegedly, Retana claimed that Best Diamond Funding successfully bought, renovated, and sold homes in the Los Angeles area and employed as many as 60 real estate agents and bought 50 to 60 properties at a time. Retana offered returns of up to 7% a month and guaranteed an 84% yearly return on investment.

Retana, who is of El Salvadoran descent, targeted the Latino community by advertising his company in Spanish-language magazines, internet ads, and held weekly investment seminars throughout Los Angeles. It is alleged that Retana suggested that potential investors use the equity in their homes to secure loans in order to obtain capital to invest with Best Diamond Funding.

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October 21, 2009

David Merrick ( TIRN ) Used mytirn.com for Fraudulent Scheme

October 23, 2009 - The SEC and CFTC have filed civil actions against David F. Merrick and his Trader's International Return Network ( TIRN ), and Merrick's other corporate shells, most of them registered in Florida. The government alleges that Merrick and TIRN operated a $22 million Ponzi scheme, raising money from thousands of unsuspecting investors. 

TIRN.jpgIt is alleged that Merrick, 61, organized a group of "finders" who earned commissions by soliciting  potential new investors touting TIRN"s double-digit monthly returns on investment in foreign currencies, real estate and precious metals. It appears that little or no money was ever invested at all. Rather, Merrick diverted the money to his own use or to paying redemptions to other investors.

Merrick also conducted investment seminars seeking to lure new customers in the U.S. and elsewhere, including Panama, Antigua and Punta Cana (See Youtube video below). It has been reported that Anres representatives were present at some of these seminars. Merrick had plans to export his investment club to many foreign countries, and some Spanish and Portuguese language websites are still active.

 

 

One unique feature of this scam was Merrick's use of debit cards as a vehicle for investors obtaining interest or principal from the investments. Merrick teamed up with a private Nevada corporation, Anres Technologies Corporation, base in Plano, Texas, to supply the debit cards. Investors used the Anres website to transfer funds to their cards, and were charged fees for the transactions, including link up charges for use of the site.

images[6].jpgIt is alleged that Merrick transferred at least $8.8 million to Anres in order to fund the cards, which appears to have been affiliated with the Palm Desert National Bank, a California bank with branches in Palm Desert and several other California locations. Although some investors successfully used the debit card to make withdrawals, it is unclear how much was distributed using the cards.

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October 19, 2009

Medford, Massachusetts Accident Leaves One Dead

October 19, 2009 - Marianne Murphy, 47 from Medford, Massachusetts, was pronounced dead after suffering serious personal injuries during a car accident on Route 93. Murphy was riding in the front passenger seat. Gerald Murphy, 48 also from Medford, was driving a 2010 Toyota, in which Mrs. Murphy was riding in the front passenger seat. The accident occurred at around 1:02 a.m. Sunday morning on Route 93 in Medford near Roosevelt Circle.

Apparently Mr. Murphy lost control of the sedan, which hit the guardrail on the right side of the highway and then traveled across all four lanes of traffic and collided with a concrete barrier. The car went back across the highway and eventually stopped in the breakdown lane.

Mrs. Murphy was taken to Lawrence Memorial Hospital and then transferred to Massachusetts General Hospital, where she was pronounced dead. Mr. Murphy was taken to Massachusetts General Hospital and treated for serious injuries. Apparently neither was wearing a seatbelt. Two passengers that were riding in the backseats were wearing seatbelts and suffered only minor injuries.

The accident remains under investigation.

Source: WBZ

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October 19, 2009

Bourne, Massachusetts Drunk Driving Accident Leaves Ends in Tragedy

October 19, 2009 - Robert Coffey, 46 years old from Attleboro, Massachusetts, died Sunday as a result of serious personal injuries sustained while he was a passenger in the car of a drunk driver who lost control of his Dodge Durango. Shawn Potrzuski, 32 also from Attleboro and Coffey's step-son, was apparently driving under the influence of alcohol. Karen Coffey, 53 also from Attleboro and the mother of Potrzuski, was seriously injured during the crash.

Apparently, Potrzuski lost control of the Dodge while driving north on Route 28 at the Otis Rotary in Bourne early Sunday morning. The SUV then crossed over Connery Avenue and entered the woods eventually colliding with a tree. Mr. Coffey was sitting in the backseat and was not wearing a seatbelt. He was rushed to Falmouth Hospital, where he unfortunately passed away.

Mrs. Coffey, who was sitting in the front passenger seat and was wearing a seat belt, was also taken to Falmouth Hospital, where she was treated for serious injuries. Potrzuski was also wearing a seat belt and was treated at the scene for minor injuries.

According to the Massachusetts State Police, the three were returning home after attending a wedding. Potrzuski was arrested and charged with motor vehicle homicide, operating under the influence of alcohol and other violations.

The accident remains under investigation.

Source: The Sun Chronicle

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October 15, 2009

Dartmouth, Massachusetts Collision Leaves One Dead, Two Injured

October 15, 2009 - Susan Lepage, 46 from New Bedford, Massachusetts, died Wednesday as a result of serious personal injuries sustained in a head-on collision on Route 195 in Dartmouth. Dakota Jones, 21 from Marston Mills, was driving a 1997 Mitsubishi Diamante that smashed into Lepage's 2005 Ford Mustang. The accident occurred at around 4:45 p.m.

According to the Massachusetts State Police, Jones' vehicle crossed the median from the westbound lane into the eastbound lane and struck Lepage's Mustang head-on. The collision caused the Mustang to hit a 1997 Jeep Grand Cherokee, causing it to rollover. The Jeep, driven by Daniel Allende, 29 of Fairhaven, rolled into 2005 Toyota Prius driven by Amy Lopes, 20 from New Bedford. Lopes was able to pull her vehicle into the breakdown lane.

Sadly, Lepage was pronounced dead at the scene. Jones and Allende were transported via ambulance to St. Luke's Hospital in New Bedford and treated for non-life threatening injuries. Jones was subsequently arrested and charged with vehicular homicide by negligent operation, marked lanes violation, and speeding.

The eastbound lanes of Route 195 were closed for approximately two hours. The accident remains under investigation by the State Police and the Bristol County District Attorney's Office.

Sources: WPRI, ABC6

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October 15, 2009

SEC Sues David F. Merrick and TIRN for Alleged Investment Scam

October 15, 2009 - The SEC has filed an emergency civil action against David F. Merrick, Traders International Return Network (TIRN), MS Inc., GTT Services, Inc., MDD Consulting, Inc., and Go ! Tourism, Inc alleging financial fraud. According to the complaint, Merrick and his business entities operated a $22 million Ponzi scheme since at least July 2008.

Using a website, www.mytirn.com, Merrick allegedly raised funds from at least 2500 investors by promising monthly dividends of TIRN.jpgup to 22% stating that investor money would be used to buy foreign currency trading, international bonds, international stocks and other investments. Merrick and TIRN instructed customers to deposit funds into accounts in the name of MS and GTT, entities controlled by Merrick. Merrick then allegedly transferred money from those accounts into other accounts in the names of MS, GTT Services, MDD Consulting, and Go ! Tourism.

According to the SEC, Merrick and TIRN did not invest in any type of securities but instead used the money for Merrick's personal use and to repay earlier investors. The SEC also claims that Merrick used at least $3.7 million to finance his lifestyle and to pay credit card bills from MS and GTT Services.

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October 15, 2009

Cedars-Sinai Medical Center Admits Error Caused Radiation Overdoses

October 15, 2009 - Cedars-Sinai Medical Center in Los Angeles, California admitted Monday CT Scanner.jpgthat a mistake in default settings on a CT scanner used to perform brain scans on patients resulted in an increase in the amount of radiation emitted by the machine. The mistake occurred in February, 2008 when the hospital changed its protocol for scans used to diagnose strokes.

A specialized type of scan, called a CT brain perfusion scan, is used to diagnose strokes by detecting disruptions to the flow of CT_head_slice.jpgblood to the brain. Doctors apparently decided to override the default settings of the scanner in order to get better data. Changing the settings increased the amount of radiation used by the scanner.

However, as a result of the change, radiation levels were eight times higher than was believed. Although the machine was used for other types of scans, it apparently only affected potential stroke victims because the settings were only changed for the brain perfusion scan.

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October 13, 2009

Fall River, Massachusetts Motorcyclist Involved in Fatal Crash

October 13, 2009 - Scott Coop, 27 years old from Fall River, Massachusetts, has died as a result of serious personal injuries sustained in a motorcycle crash on Sunday. The accident occurred on Route 79 south in Fall River just after 2:30 p.m.

According to police, Coop lost control of his motorcycle shortly after entering Route 79 from the Brightman Street on-ramp. After losing control, Coop traveled across all three lanes of traffic before colliding with the median. Coop was pronounced dead at the scene.

The Massachusetts State Police are investigating the crash but have indicated that speed may have played a factor.

Source: WPRI

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October 9, 2009

Gregory Bell Pleads Guilty for his Involvement in Petters Company Inc. Scam

October 9, 2009 - Gregory Bell, a former Chicago hedge fund manager and owner of Lancelot Investment Management, LLC, pled guilty to one count of wire fraud yesterday in the United States District Court for the District of Minnesota. Wire fraud carries a maximum of 20 years imprisonment and a fine of $250,000. Bell's sentencing will be decided at a later date.

Bell is just one of several defendants in a pending civil action filed by the SEC against Thomas J. Petters, a Minnesota businessman charged with operating a multi-billion dollar Ponzi scheme from 1995 to 2008. Bell started Lancelot in 2001 and from 2002 to 2008 raised over $2.62 billion from hundreds of investors, who sold security interests in hedge funds they managed to Lancelot. According to the SEC's complaint, Bell exchanged almost all of the investor funds for notes from Petters Company Inc. and fraudulently assured that their investments were in safe hands.

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October 9, 2009

Richard M. Harkless Sentenced to 100 Years for Operating MX Factors Ponzi Scheme

October 9, 2009 - Richard M. Harkless, 65 years old from Riverside, California, was sentenced to 100 years in federal prison on September 28, 2009. Harkless was convicted of three counts of mail fraud, three counts of wire fraud, and one count of money laundering. Apparently Harkless operated a multi-million dollar investment scam through his business entities Mx Factors LLC, BBH resources LLC and JTL Financial Group LLC. Harkless' three sales agents, Daniel Berardi, Jr., Thomas Hawkesworth, and Randal W. Harding were all sentenced to 6 years in federal prison for their involvement.

Jail Bars.jpgIn addition to jail time, Harkless was ordered to pay over $42 million in disgorgement, civil penalties, and prejudgment interest. The judgment ordered Berardi and Hawkesworth, managing members of BBH Resources, LLC, to pay over $11 million and Harding, managing member of JTL Financial Group, LLC, to pay over $17 million.

According to the SEC, between 2000 and 2003 Harkless and his sales agents induced approximately 600 investors from all over the country to invest over $60 million. Mx Factors offered potential investors 14% returns on short term 2 to 3 month investments. Most of Mx Factors' clients were construction contractors, wholesalers, and manufacturers who sought accounts receivable financing.

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October 8, 2009

Marblehead, Massachusetts Woman Dies in Crash on Route 128

October 8, 2009 - Jill Matsumoto, 61 from Marblehead, Massachusetts, has died as a result of serious personal injuries sustained in an automobile accident on Route 128 in Burlington on Wednesday morning.  Coming from Route 3A in Burlington, Matsumoto's 1996 Lexus struck a traffic sign on the side of the entrance ramp to Route 128 North.  Her vehicle then traveled across all four lanes of Route 128 and collided with the guardrail. 

 

The Lexus spun back into the traffic and crashed into a 1996 Chevrolet Blazer driven by James Martin, 60 years old from Seabrook, New Hampshire.  Matsumoto's Lexus continued to spin and was struck by a Chevrolet C5500 Box Truck driven by Christopher Brundrett, 34 from Plainville.  Finally, Matsumoto's car and Brundrett's truck stopped in the left two lanes near the median. 

 

Matsumoto and Brundrett were both transported to the Lahey Clinic in Burlington, where Matsumoto was pronounced dead.  Brundrett was treated for serious injuries. 

 

The accident, specifically what initially caused Matsumoto to hit the traffic sign, is still under investigation by the Massachusetts State Police.

Source: Salem News

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October 7, 2009

Cape Cod Mothers' Exposure to PCE May Increase Risk of Birth Defects and Breast Cancer

PCE Formula.jpgOctober 7, 2009 - PCE, also known as perchloroethylene, is a chemical solvent often used in dry cleaning. In the early 1960's several Cape Cod towns, including Barnstable, Bourne, Falmouth, Mashpee, Sandwich, Provincetown, Brewster and Chatham, intentionally used PCE in a vinyl plastic spray, which was applied to coat the interior of town water pipes. The aim had been to improve the taste of the towns' water supply.

However, a recent study conducted by the Boston University School of Public Health suggests that mothers who drank the PCE contaminated water had a three times greater risk of bearing children with birth defects, including cleft palates or neural tube defects. The study suggests that these women also had an increased risk of breast cancer.

Cape Cod.jpgThe five year study, lead by Boston University epidemiologist, Ann Aschengrau, first examined water pipes in the Cape Cod towns where the vinyl plastic coating was applied and found that large amounts of the PCE remained in the pipes and leaked into the drinking water. Manufacturers incorrectly believed that the PCE would disappear during the drying process. Upon discovery, the towns have taken steps to clear the pipes through a flushing process, but citing excessive costs, the pipes were never replaced.

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October 7, 2009

Lynn, Massachusetts: Teen Bicyclist Struck by Elderly Driver

October 7, 2009 - Kirstie Gillette, 16 years old, suffered personal injuries when she was hit by a car while riding her bike Saturday morning. Stanley Hinds, 81 from Lynn, Massachusetts, was the driver of the car. According to police, the accident occurred at 11:13 a.m. as Hinds was turning from Boston Street onto Washington Street in Lynn.

Hinds told police that he was unable to stop his car in time to avoid colliding with Gillette. Police said that she was not wearing a helmet when she was hit.

Gillette was first taken to Salem Hospital and then transferred to Massachusetts General Hospital for further treatment. According to her father, Scott Gillette of Lynnfield, she suffered a fractured skull and a severely sprained left ankle.

Gillette is currently a 10th grader at Lynn Vocational Technical Institute and according to her father it is unclear when she will be able to return to school.

The accident remains under investigation.

Source: The Daily Item of Lynn

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