In case you missed it this week, Facebook tries to get onto offense, a Mafia-linked fraud scheme was taken down by a DUI, and the Department of Education and CFPB break up.
You're not my study partner anymore | The Department of Education is calling it quits with the Consumer Financial Protection Bureau, one of the biggest student loan watchdogs. The CFPB, born in 2011 from the Dodd-Frank Act, had a sweet setup with the DoE, allowing the two to trade pertinent information. This aided the Bureau when they went to bat against potentially shady loan companies, but critics said that with too many cooks in the regulatory kitchen, the CFPB was all talk. The breakup comes months after the Obama-appointed top federal student aid official resigned (suddenly), leaving a former student loan company CEO to take their place.
Getting ahead of the game | This week, bowing to House and Senate demands, Facebook coughed up more than 3,000 ads linked to Russian propaganda that have run on the social media platform. Earlier this month it came out that the Kremlin maybe kinda used social media to influence the 2016 election, and for the last two weeks the ‘Book has been playing defense against congressional committees. Facebook and Twitter have been on center stage with the Russian investigation, and now rumors about heavier regulation have been swirling around.
Pull this thread as I walk away | In something along the lines of a John Grisham novel, a DUI arrest was the catalyst to a global fraud exposé and the arrest of a Toronto mobster. In 2015 Canadian police pulled over and subsequently arrested Giuseppe Gatti, 48, of Ajax, who happened to have $3,700 Cdn. (US$6,800), and 7 credit cards with various names in his possession. This caused an investigation to spiral outwards, culminating in the arrest of 12 people, including Cosimo Commisso, alleged Mafia boss, who were charged with various flavors of fraud.
Bad to worse | You may remember last week the AHCA suspended a Florida nursing home’s license after 8 (now 9) residents died following negligence during hurricane Irma. Now, news of alleged cover-ups have come to light. During an initial probe, investigators found that staff made calls to 911 “far too late”, and then fudged the records. Patients were relocated to a nearby hospital and triaged, some with fevers of more than 108°F—but during that same time, staff from the nursing home recorded those same patients with fevers of 101°F (which is impossible because we haven’t quite discovered how to be in two places at once… yet).
Suddenly, Everything's Compromised | Equifax is kicking back this week as the SEC takes the spotlight for cybersecurity headaches. They announced that last year, hackers took advantage of a weakness in the Electronic Data Gathering, Analysis, and Retrieval System,—or Edgar, for short. This holds some important, non-public info that could have been used for insider-trading. People (specifically consumers) are already fairly on edge with major breaches coming to light more recently. Jury’s out on what this will mean for data protection regulations moving forward.
Nobody is that generous | Liliane Bettencourt, the richest woman in the world and the heiress to L’Oréal, died this week at the age of 94. About 10 years ago her daughter filed a suit saying Liliane wasn’t fit to run her estate—this came after she was allegedly swindled out of more than $1.13b by French society photographer François-Marie Banier and former budget minister Éric Woerth. Team Banier argued that Liliane was just more generous in her old age, but the prosecution argued that the heiress thought she only gave away about $1m—that’s a whole billion off, for those keeping track.
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