Two years ago we told you about an outrageous diploma fraud scheme that cheated people around the globe out of millions of dollars. Now one of the vice presidents of the company behind the scam will spend 21 months in prison. A Pakistani company called Axact claimed to be one of the world’s leading IT providers. Behind the scenes, the company was running a diploma mill. The FBI called the setup a “breathtaking scam” that involved fake websites and “professors” who were nothing more than actors. Victims forked over more than $140 million for worthless diplomas. At the time of our initial report, the people running Axact claimed the accusations were pure lies. In April, Umair Hamid pleaded guilty to fraud. Now he is headed to prison and must also forfeit more than $5 million earned off the scam.
[Related Whitepaper] Diploma Mills: A High Cost to US Tax Payers and National Security
A new class action lawsuit has been filed against Home Depot. The suit claims the retailer knowingly and willfully violated the Fair Credit Reporting Act by including a waiver of liability in its disclosure and authorization forms. The named plaintiff, Katherine Saltzberg, was applying for a job with a company called Lifetime Solutions. It’s a water treatment company that offers services to Home Depot customers. Saltzberg claims she knew the disclosure she received acknowledging her background check shouldn’t have any extraneous information. She is suing because the consent form allegedly included a waiver of liability. The class hopes to include all job applicants who signed this form over the last five years. Just two years ago, Home Depot agreed to settle another class action suit alleging the same flaws in the disclosure. The company agreed to pay 1.8 million dollars and to get rid of the flawed forms.
[Related Article] FCRA Compliance: What You Need to Know
Michigan State Senator Rick Jones wants to make sure felons do not find their way into the state’s police academy. Right now, the Michigan Commission on Law Enforcement Standards only allows the academy to see if applicants have a criminal history in the state of Michigan. Senator Jones says that not doing a national criminal background check could allow felons to apply, be admitted, and then learn police techniques. If passed, the bill would only allow for an FBI fingerprint check. Both legislators and law enforcement agencies are supportive of the bill.
Jennifer Gladstone is a news anchor and journalist with more than 20 years of experience in front of the camera. She's worked in several markets, large and small, and has performed nearly every task needed in a newsroom. As EBI’s Screening News Editor, she keeps EBI’s customers and blog subscribers up to date on the latest screening news and legislative alerts affecting companies of all sizes.