Federal prosecutors Monday said a Los Gatos video game developer has pleaded guilty to conspiracy to commit mail, wire and bank fraud.

But the man told this newspaper that part of the government’s announcement of the crime was inaccurate.

David Foley, 46, said he had agreed to sell his company, UltraCade Technologies, in 2005 to Global VR, a larger game developer based in San Jose. The $1.4 million cash deal included a provision for Foley to join Global VR as chief technology officer, he said.

In a statement, U.S. Attorney Melinda Haag said that after taking the new job, Foley continued to produce and sell “game packs” — thumb drives containing video game software that could be loaded onto arcade game machines for the home market — under the UltraCade name.

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In Florida, affecting many cities including Orlando and Jacksonville auto insurance, two bills are in the works to cut down the amount of auto insurance fraud plaguing the state of Florida. The article “Florida Senate Panel Advances Auto Insurance Bills” by Brent Kallestad found on Business Week’s site discusses some of the details of the two bills.
The Senate Banking and Insurance Committee approved the bills after much debate over what was the right direction. They are trying to get a handle of how much fraud is going through the state of Florida. Auto insurance fraud not only causes losses to the auto insurance companies, but these losses are passed on to consumers in the form of higher insurance rates. Read more…

There is a serious mortgage paper fraud bubbling to the surface. I was aware of this several years ago, but I was not aware of the magnitude. It is so serious that I think it can easily turn the whole world up side down (for the second time, I guess).

Some background first. The US bankers and Wallstreet or more properly called “fraudsters” first selling all the worthless “mortgage-back” securities back by phantom 100% financing loans from 2005 to 2007, cheating the entire world out of savings. They turned the world up side down with the financial crisis, and then had Paulson from Goldman Sachs being the US treasurer at that time, saving their ass with taxpayers’ money, transforming or rather downloaded all the worthless mortgage paper onto Fannie Mae, Freddie Mac, and AIG. Of course

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