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Major Frauds Section

SECTION OVERVIEW

The Major Frauds Section investigates and prosecutes some of the most significant white-collar crime cases in the country. The Section is comprised of experienced federal prosecutors, and is nationally recognized not only for the size and sophistication of the cases it handles, but for the breadth of its caseload.

In the area of corporate and securities fraud, the Major Frauds Section has successfully prosecuted significant cases involving corporate embezzlement, securities and accounting fraud, insider trading, and stock manipulation. The Section also prosecutes a wide range of investor frauds, including international mass marketing frauds, Ponzi schemes, boiler rooms, loan modification schemes, and identity theft rings. The cases brought by the Section frequently involve losses to victims totaling tens, if not hundreds, of millions of dollars.

In addition to the cases it brings involving frauds against private individuals and entities, the Major Frauds Section handles a broad array of highly significant cases involving fraud against the government. The section dedicates significant resources to attacking health care fraud, including in particular fraud directed at Medicare and Medi-Cal, and has successfully prosecuted major cases involving hospitals, doctors, home health agencies, diagnostic testing facilities, medical clinics, hospice care providers, and durable medical equipment suppliers. The section also handles significant cases involving procurement fraud, government program fraud, bankruptcy fraud, and tax evasion. In addition, the section handles large dollar mortgage lending and foreclosure rescue frauds.

Members of the Major Frauds Section serve as coordinators and members of a number of task forces and working groups, including the Financial Fraud Enforcement Task Force, the Securities and Commodities Fraud Working Group, the Health Care Fraud Task Force, Operation Canadian Eagle/Project Emptor, the Financial Institution Fraud Task Force, the Bankruptcy Fraud Working Group, and the Identity Theft Task Force.

The Major Frauds Section works closely with investigators from the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service, U.S. Secret Service, Securities and Exchange Commission, Federal Trade Commission, and Commodity Futures Trading Commission, as well as with Inspectors General from a wide number of government agencies.

SECTION LEADERSHIP

George Cardona

George Cardona is the Chief of the Major Frauds Section. From July 2002 to July 2015, George Cardona served as the Chief Assistant United States Attorney for the Central District of California. He began work as an Assistant United States Attorney in 1991, working in the Appeals and Major Frauds sections and serving as a Deputy Chief in the Major Frauds section (1998) and Chief of the Criminal Division (1999-2000). In his time at the United States Attorney’s Office, AUSA Cardona has participated in a number of significant cases including the mortgage fraud trial of the then-sitting governor of Arizona, Fife Symington, and the kickback and false statement prosecution of the Milberg Weiss law firm that resulted in guilty pleas by two partners. Most recently, he was the lead attorney in the government’s civil action against Standard and Poor’s, a case that alleged the ratings agency engaged in a scheme to defraud investors in two types of structured financial products, Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). In February 2015, Standard and Poor’s agreed to the largest penalty ever by a ratings agency, and paid a total of $1.375 billion to settle this and a series of related state actions. AUSA Cardona received an Attorney General’s Award for his extraordinary work. See Five Assistant U.S. Attorneys from Los Angeles Receive Attorney General Awards for Work on Two Massive Fraud Cases.

AUSA Cardona attended Yale University, where he majored in Physics, and Yale Law School, where he received his JD in 1986. After law school, AUSA Cardona clerked for the Third Circuit Court of Appeals in Philadelphia and then worked in private practice in Los Angeles. From 1989 to 1991, AUSA Cardona worked as a Deputy District Attorney in Los Angeles County. From 2000 through 2001, he was a full-time lecturer at the UCLA School of Law, where he has continued to teach as an adjunct faculty member. AUSA Cardona lives in Los Angeles with his wife, a dog, and several cats.

Recent Cases

August 17, 2017
Press Release
Credit Union Employee and her Online Boyfriend Face Charges of Fraudulently Obtaining Lines of Credit Worth over $2.6 Million

August 4, 2017
Press Release
Longtime Con Man Sentenced to 8 Years in Federal Prison for Role in $3 Million Gold Investment Scheme that Bilked 7 Investors

July 18, 2017
Press Release
Director of South Korea’s Earthquake Research Center Convicted in L.A. of Money Laundering Stemming from Million Dollar Bribe Scheme

June 16, 2017
Press Release
Van Nuys Man Named in Federal Fraud Indictment Alleging $7 Million Foreclosure-Delay Scam Targeting Struggling Homeowners

May 18, 2017
Press Release
Manager of Clothing Factory Sentenced to Prison after Offering Bribe to Federal Labor Investigator in Exchange for Closing Investigation

SECTION CONTACT INFORMATION

The United States Attorney's Office
Central District of California
Criminal Division
Attn: Major Frauds Section
312 North Spring Street
Los Angeles, California 90012

Updated September 6, 2017