The Mafia is the biggest business in Italy, with organised crime netting Mob bosses the equivalent of more than £63bn a year

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguP3qQM7jhKg7Ttxpi1e9Ahrf2CUIURnq0nw3ruu8ERs0XxNP6lYdaQ-zkLI2debVeZVMXQuP2UeWbqPV0lloAFBQOEmL5eStWdDfX-vXVUsGJWmDAk2m1l2afbIJ_GR41poEC_JQaxmPV/s1600-h/CAYBKJET.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5183153275294517282" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguP3qQM7jhKg7Ttxpi1e9Ahrf2CUIURnq0nw3ruu8ERs0XxNP6lYdaQ-zkLI2debVeZVMXQuP2UeWbqPV0lloAFBQOEmL5eStWdDfX-vXVUsGJWmDAk2m1l2afbIJ_GR41poEC_JQaxmPV/s400/CAYBKJET.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />The Mafia is the biggest business in Italy, with organised crime netting Mob bosses the equivalent of more than £63bn a year, or 7 per cent of the country's gross domestic product. Italy's four biggest crime gangs – the 'Ndrangheta in Calabria, the Sacra Corona Unita in Apulia, the Neapolitan Camorra and the Cosa Nostra in Sicily – are increasingly branching out into previously legitimate industries such as food, researchers discovered. Pirated handbags and DVDs accounted for £5bn of Mafia income and the food industry netted the underworld £5.2bn, according to Tano Grasso, the head of Italy's anti-racketeering commission.<br />Roberto Saviano, the investigative journalist in Naples who wrote a bestselling book about the Camorra, disclosed how leading fashion designers' companies regularly outsource orders to sweatshop tailors controlled by the Camorra in Campania. Mr Saviano did not name any of the designers but he revealed how big fashion houses supply competing Mob tailors with raw materials. The skilful underworld tailors win the contract while the others are allowed to flood the market with "counterfeit" clothes tailored to specifications received directly from the Milan or Rome firms seen as spearheading some of Italy's most prestigious exports.Mr Grasso said that in Naples the Camorra runs 2,500 illegal bakeries, while the Cosa Nostra and the 'Ndrangheta have been quick to spot the profits to be made from illegal fishing, especially of endangered bluefin tuna.Campania has long been the capital of the "eco-Mafia" in Italy. Millions of tons of industrial and urban waste are trucked into the region and dumped illegally each year, poisoning farmland and contaminating public waste-disposal sites. The Mafia hides behind apparently legitimate waste-disposal firms, which appeal to unscrupulous companies tempted to remove their waste cheaply.Often the Camorra digs illegally for sand, leaving gaping pits in the countryside. It then dumps toxic waste in those holes. Then it uses the sand dug earlier to build illegally over the toxic waste, or wins government contracts to sanitise the contaminated areas.

The Mafia is the biggest business in Italy, with organised crime netting Mob bosses the equivalent of more than £63bn a year

The Mafia is the biggest business in Italy, with organised crime netting Mob bosses the equivalent of more than £63bn a year, or 7 per cent ...

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Susan Gail Ray stole millions of dollars from her employers. It's where $4.8 million of it is now

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9DQBNBk7ltPvMM6Vsh7pyAgks1kK7kt46YT26ghc2HDrUabxe86l984CoIBt7rGyMu1rRxcjIP1GHnLkxKckSC8fNVDj9AsS05zPvPziR8Wlgg3_6FDBVwafLkFFDTEaVUIrJQIlTMtQw/s1600-h/fl-motels-review.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5183151175055509506" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9DQBNBk7ltPvMM6Vsh7pyAgks1kK7kt46YT26ghc2HDrUabxe86l984CoIBt7rGyMu1rRxcjIP1GHnLkxKckSC8fNVDj9AsS05zPvPziR8Wlgg3_6FDBVwafLkFFDTEaVUIrJQIlTMtQw/s400/fl-motels-review.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0mqWg1vtwvgedQCvuxVCIDrV2LaFzHTCZpYNsej2uFzzOyJe7e3JQ0-O1gdUct-wG9DWI8J9ZYzlPowdqnBc4TjHVJPz4BcficdhjOKqA5DLLYZV5hPVXSMVOx6z6mROWSkNSo04rZ83F/s1600-h/inn.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5183151179350476818" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0mqWg1vtwvgedQCvuxVCIDrV2LaFzHTCZpYNsej2uFzzOyJe7e3JQ0-O1gdUct-wG9DWI8J9ZYzlPowdqnBc4TjHVJPz4BcficdhjOKqA5DLLYZV5hPVXSMVOx6z6mROWSkNSo04rZ83F/s400/inn.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />October 2002 through January 2007, Ray, used her position as controller at the Gasparilla Inn in Boca Grande, Fla., to steal more than $6 million from the owners -- well-known family friends of President George H.W. Bush.She used at least some of that money to build her Dream Cross Ranch near Boonsville in southwest Wise County, as well as to purchase other properties in Texas and Florida.But, in adding up her assets, federal prosecutors found themselves short $4.8 million<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXVREiC4A0JcSW8TUBFqWZByoEqebqSBMwRu-kfFfRILcaSho46sNYbWME8YAw2cgoF3CnyTy9YsmU6KrVC0m2cOXRfmIYRgnJLwMZe8_YiRnm9Jk5ehsnVF-bZlF-OReB3jgpJNn4E1CI/s1600-h/susan.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5183150122788521970" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXVREiC4A0JcSW8TUBFqWZByoEqebqSBMwRu-kfFfRILcaSho46sNYbWME8YAw2cgoF3CnyTy9YsmU6KrVC0m2cOXRfmIYRgnJLwMZe8_YiRnm9Jk5ehsnVF-bZlF-OReB3jgpJNn4E1CI/s400/susan.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>If she doesn't have cash on hand, "then she still owns the horses," said attorney William A. Hoskins, who represents the Farish family, which owns the inn and is prominent in horse-racing circles. "If she made no sales, then where are the horses?"<br />In 2000, the Gasparilla Inn hired Ray as controller. From Oct. 4, 2002, through Jan. 19, 2007, Ray submitted accurate payroll figures to the inn for approval. Once approved, she drafted increased payroll forms and submitted the forms to Englewood Bank in Florida with instructions to transfer the amounts from the inn's general account to its payroll account. Ray wired the excess money from Englewood Bank into personal bank accounts in San Antonio and Tampa, Fla., then moved it from those accounts into her account at The Bank of Weatherford. At least some of the money was spent on livestock and on Ray's Dream Cross Ranch, on Farm Road 920 about six miles south of Lake Bridgeport.Ray's 2007 arrest and indictment were big news in the local quarter horse community. In Florida, the Boca Beacon, Boca Grande's local newspaper, called it the "most talked-about" story of 2007.In court documents, defense attorneys argued that Ray's scheme is atypical for money laundering because it does not attempt to "camouflage" drug sales or other criminal activity, nor does it "plow" legitimized funds into separate criminal activity. Also, Ray refunded $224,608 to the inn before the criminal investigation.Federal prosecutors, however, argued that this was an attempt to cover up the laundering scheme and not done out of remorse.In November, Ray pleaded guilty to one count of money laundering. Her sentencing began a month ago but was extended through Friday morning by U.S. District Judge John McBryde to allow federal investigators time to hunt for missing assets.A March 3 deposition of Ray in a related civil lawsuit filed in Wise County was intended to help the search, but prosecutors said Ray was uncooperative, and the deposition remains incomplete. Ray said she needed access to her computer files -- seized during her 2007 arrest -- before giving better answers.Briefly, McBryde considered further delaying sentencing to allow the deposition to be completed first.But federal prosecutors said the hunt for the money by the U.S. attorney's office was largely limited to computer-based searches until McBryde sentenced Ray and ordered her to make restitution.The office can broaden its post-sentence investigation, lead prosecutor J. Stevenson Weimer said.Based on the crime and Ray's lack of criminal history, prosecutors seemed to expect a five-year sentence.<br />Hoskins asked for the statutory maximum.McBryde gave her the stiffest sentence allowed under a plea agreement: 10 years. She has been in custody since last month.<br />"Frankly, I don't think that's a sufficient upward departure," McBryde said. The aggravating circumstance, he said, was the difficulty Ray created in "locating the fruits of her conduct."He also ordered Ray to make $5,784,892 in restitution to the Gasparilla Inn -- payable immediately.However, McBryde said, the inn's owners might need to spend millions to try to recover the money from the various friends, relatives and associates to whom Ray dispersed the assets.<br />"You're going to end up having to sue all those people," McBryde said."It's almost unbelievable," Hoskins said.Ray apologized to the court and the Farish family Friday.<br />"It was never my intention to harm or hurt anyone," she said. Instead, she said she manipulated funds to secure her retirement. "It was always my intention to pay back my victim."She said she could account for most if not all of the money if she had access to her computer files, which would show all her transactions along with dates and check numbers. She was able to produce one year's worth of such information in court.However, she said, most of her documentation was in a filing cabinet that had not been returned to her by an "Israeli-based moving company" in Florida.<br />The Gasparilla Inn is in Boca Grande, on an island between Charlotte Harbor and the Gulf of Mexico. Travel by golf cart is the norm. It's a tarpon fisherman's paradise. The inn's notable guests dating back to 1913 include Henry Ford, Harvey Firestone, Thomas Edison, Katharine Hepburn and the Bush family.<br />The resort is owned by the family of William S. Farish Jr., grandson of William Stamps Farish II, former president of Standard Oil. William Stamps Farish III served as ambassador to the United Kingdom under President George W. Bush from 2001 to 2004. Farish III, a breeder of thoroughbred horses, once hosted Queen Elizabeth at his Lane's End Farm in Kentucky.Members of the Farish family were in court for the original sentencing hearing, but only attorneys were present Friday.<br />Last month, McBryde seemed to be considering an upward departure from the federal sentencing guidelines -- and possibly rejecting a plea agreement that capped the maximum sentence at 10 years. At the hearing, prosecutors and a Secret Service agent who testified said they could not definitively say where the embezzled money was.<br />There was discussion that the money could be hidden in an offshore account or in Europe. It was revealed that an associate of Ray's had recently traveled to Europe. McBryde delayed sentencing so that the Secret Service could continue to search for the money, requesting an update on March 14.According to that update, Special Agent Jason Buchanan, acting on an anonymous tip submitted to the FBI, traveled to a property where Ray was believed to be hiding assets.He found a climate-controlled horse trailer on the premises. The property owner said Ray and Jimmy Fowler, a former employee of hers, had asked him to store the trailer for them. Fowler told authorities Ray gave him the trailer as payment for work. Tags on the trailer confirm, however, that it belongs to Ray's Dream Cross Ranch.Buchanan also investigated a 100-acre horse ranch in Wise County that Ray's father was negotiating to purchase. The property owner told Buchanan that while he was selling the property to Ray's father, he had been dealing mostly with Ray herself. Buchanan observed about 50 horses, a tractor, two portable trailers, pipe fencing, and four portable horse shelters at the property.Fowler identified the shelters as having been at Dream Cross Ranch and transported to the other ranch. Fencing was also transported from Dream Cross Ranch. Based on a conversation with Wise County Sheriff David Walker, Buchanan believes the transfers were made just after Ray's indictment. The property owner also confirmed that the horses were Ray's.The U.S. Attorney's Office also identified numerous other assets and properties titled to Ray, including five houses in Florida valued at almost $800,000.In court on Friday, attorneys for the Gasparilla Inn said Fowler now claimed to own all of Ray's horses.<br />When McBryde asked how many horses, prosecutors simply said, "Dozens."<br />The supposition by prosecutors is that much of Ray's assets have been placed in the names of others.

Susan Gail Ray stole millions of dollars from her employers. It's where $4.8 million of it is now

October 2002 through January 2007, Ray, used her position as controller at the Gasparilla Inn in Boca Grande, Fla., to steal more than $6 mi...

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Adebisi Omoyeni alleged forgery and N450 million fraud at Wema Bank

The immediate past Group Managing Director of Wema Bank Plc, Mr. Adebisi Omoyeni, was yesterday arrested by detectives attached to the Police Special Fraud Unit (SFU) in Abuja and flown to Lagos where he is being detained. Omoyeni, a one-time Ekiti State Deputy Governor, was immediately driven to Milverton Road, Ikoyi, Lagos - the annex of SFU - for interrogation over alleged forgery and N450 million fraud at Wema Bank during his tenure. The embattled former GMD, who was accompanied by some relations and friends, was immediately ferried into the SFU annex office by detectives, led by Mr. Dayo Akinbisehin, Superintendent of Police (SP), at George Street, by Ikoyi Club, Lagos, at 3:46 pm. He was said to have been arrested from his temporary abode at Command Guest House, Asokoro, Abuja. Addressing newsmen, Mr Olushola Amore, an Assistant Commissioner of Police, said Omoyeni was arrested following a case of conspiracy against him and the bank's former secretary, Mr Biodun Ogunlade, by the Nigeria Deposit Insurance Commission (NDIC). He explained that they were alleged to have forged and altered the minutes book of the board meeting to read five years upfront housing allowance of N450 million to be written off in five years at N90 million per year. Specifically, he said the amount was meant for the purchase of a house worth N450 million as official residence for the GMD and was to be written off in five years. Amore added that the money had since been collected by the ex-GMD. He also said that on Jan. 8, 2008, the finance division of Wema Bank allegedly withdrew N29 million cash from the Marina branch of the bank and was debited as provision for Productivity Bonus Act No.171050001. <br />"The NDIC examiners got wind of the transactions and sought to know the purpose of withdrawal. And sequel to NDIC's awareness of the irregular transaction, N20 million was refunded on Jan. 9, 2008. "The sum of N9 million was paid to Messrs Olapade Mohammed and Senator Omololu Meroyi with each person receiving N5 million and N4 million respectively," Amore said. He, however, said Omoyeni claimed that the N29 million had already been refunded at a meeting attended by the Central Bank of Nigeria (CBN), NDIC and the bank's board on Jan. 18, 2008. <br />Amore said investigation later revealed that the bank merely debited the account of the two directors, thereby creating an unsolicited credit facility. <br />He added that investigations into the receipt of N450 million by the ex-GMD by CBN and NDIC revealed that he paid about N182, 671,000 to the implementation committee on the lease of Federal Government property and also paid N263 million to StonePavers International Ltd. Earlier yesterday, some of the Wema Bank board members, including Senator Omololu Meroyi, Mr. Biodun Ogunlade, and Olapade Mohammed, were invited by the unit for interrogation on their involvement in the alleged scam. Omoyeni is currently on a forced leave for denying bank examiners unfettered access to the books and records of Wema Bank. <br />He had petitioned President Umaru Musa Yar'Adua last January attaching several documents as evidence to depict that Mr. Ganiyu Ogunleye, Managing Director of the NDIC, its Director, Field Examinations Department, Mr. O.M. Sulaiman, and the CBN Deputy Governor, Mr. Tunde Lemo, were colluding "to kill Wema Bank". Among other allegations levelled against Lemo, who was at the helm of affairs of the bank till 2003, was that he forcibly attempted to acquire the institution along with his cronies. He also claimed that Lemo and his cronies forcibly attempted to acquire Wema Bank and that the Deputy CBN governor contributed to running the bank aground. <br />It was based on this petition that the president through his Secretary, Ambassador Babagina Kingibe, last month among others, directed that the compulsory leave placed on Omoyeni be lifted. He also directed that an independent panel of investigators be set up and that Lemo be asked to respond to the allegations against him "to enable the panel of investigators consider it alongside allegations against Mr. Omoyeni, including from the perspective of a possible insider abuse." But the NDIC in its response to the president's directive, categorically dismissed all the allegations levelled against Lemo, saying Omoyeni's petition was an attempt to confuse serious issues relating to the financial health and continued survival of Wema Bank. The dismissal of these allegations by the Corporation was contained in letter addressed to the President Yar'Adua, which was exclusively obtained and reported by THISDAY Tuesday last week. <br /><br />Commenting on the alleged forcible bid to acquire Wema Bank by Lemo and his cronies, the NDIC specifically pointed accusing fingers at Omoyeni, saying he fraudulently organised a management buy-out of the bank. To execute the plot, the Corporation said: "Mr. Omoyeni approved N3.9 billion loan to staff, and over N28 billion to the bank's subsidiaries mainly to purchase the bank's shares. Thus, as at 31st January, 2008, the subsidiaries of the bank held more than 1.879 billion shares of the bank. That was outside the 2.6 billion shares divested by Odua and another 700 million units that were sold directly by Mr. Omoyeni to his nominees and associates. Simply put, it was Mr. Omoyeni that determined who got what number of shares." Besides, an aggrieved investor, Mrs. Josephine Kuteyi, who is also one of the valued customers of the bank, petitioned the NDIC, to among others, complain that Omoyeni offered her 5 per cent or 444,396,079 units of the bank's shares for which she paid the sum of N1.625 billion to the bank on the 25th of February, 2007. "To her consternation, no share certificate was issued to her. She was later told, about December 2007, that she was allotted only 37.5 million units instead of the 444,396 million shares that she paid for. She also claimed that she has not been paid the balance of her deposit for shares. The forgoing shows that Mr. Omoyeni was the dealer that sold all the divested Odua shares in Wema Bank to his nominees. He would have escaped with all the illicit deals, if the bank had gone to the market to raise fresh funds and if there had been no regulatory intervention," the NDIC said. <br />On the claim that Lemo ran the bank aground during his tenure as the MD/CEO of Wema Bank, the NDIC noted that since Omoyeni had been an Executive Director since 1999, he must have been privy to all decisions taken by the various board and managements of the bank during the period in question. "He (Omoyeni) should not now claim innocence for any error, commission or omission. Indeed, he was at the board meetings in which Suffolk (one of the companies in which Omoyeni alleged Lemo granted non-performing loans to) and related loans that he now blames Mr. Lemo for were approved unanimously. Besides, our review of the loans o Suffolk Engineering revealed that they were in the performing mode when Mr. Lemo left the bank. <br /><br />"From Mr. Omoyeni's letter, one could easily be deceived into thinking that Mr. Tunde Lemo was his immediate predecessor in office. He had underplayed the fact that after Lemo left office, Alhaji Musiliu Adeleke became the MD/CEO of the bank and that he was at the helms for almost two years with himself (Omoyeni) retaining his seat as Executive Director," the Corporation explained. On the issue of fictitious debt recovery placed at the doorstep of Lemo, who had left the bank in January 2004, the NDIC noted that the latter could not have perpetrated the act because "the NDIC had during the 2006 routine examination of the bank reported that Wema Bank purchased a number of cheques from other banks between 13th July and 7th August, 2006, to window dress some loans and make them look like they are performing. Specifically, it said "it was the management led by Mr. Omoyeni, which submitted the said cheques totalling N1.93 billion as evidence of debt recovery." Besides, the report also noted that NDIC's "2006 examination revealed that the bank, under Mr. Omoyeni, delisted some government related loans to evade provisioning while non-performing loans amounting to N4.071 billion were reclassified and booked as other assets." On the alleged connivance of NDIC MD and its Field Examiner in the plot "to kill Wema Bank," the report noted that it was because Omoyeni failed to prevail on the management of NDIC to call of the scheduled statutory examination of Wema Bank, that he resorted to a campaign of denigration in the news media to malign the Corporation. "The report of 2007 routine examination concluded that the bank was in dire need of restoration. Governance process of the bank continued to exhibit unacceptable practices. Such practices, which relate to non-adherence to ethic and professionalism, non-adherence to due process and persistent violation of banking rules and regulations required urgent intervention of the owners and supervisory authorities to protect depositors, investors and the financial system," the report stressed.

Adebisi Omoyeni alleged forgery and N450 million fraud at Wema Bank

The immediate past Group Managing Director of Wema Bank Plc, Mr. Adebisi Omoyeni, was yesterday arrested by detectives attached to the Polic...

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James Kevin Real, a computer programmer for Compass Bank, was indicted on six counts of financial institution fraud

James Kevin Real, a computer programmer for Compass Bank, was indicted on six counts of financial institution fraud, four counts of access device fraud, two counts of aggravated identity theft, and one count of fraudulent possession of access-device-making equipment, the privacy site reports. He was accused of collaborating with Laray Byrd to produce and use counterfeit debit cards based on the customer information he had stolen. At the time of his indictment, the Department of Justice issued a press release about the case, but no mainstream media sources seem to have covered the story back then, PogoWasRight reports. Sites that rely on media reports all missed the breach. "In light of the details now available, the breach appears to be the largest bank breach involving insider theft of data in terms of number of customers whose data were stolen," the privacy site reports. <br />It isn't clear whether Compass Bank ever notified the more than 1 million customers that their data had been stolen, nor has any information been published on how the bank handled disclosure and notification.

James Kevin Real, a computer programmer for Compass Bank, was indicted on six counts of financial institution fraud

James Kevin Real, a computer programmer for Compass Bank, was indicted on six counts of financial institution fraud, four counts of access d...

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Morgan Andersen was convicted of fraud and making false accusations by an Oslo court

Morgan Andersen was convicted of fraud and making false accusations by an Oslo court Wednesday in a case that stemmed from a contract dispute over Chelsea midfielder John Obi Mikel. Andersen appealed on the spot.The Oslo district court sentenced Andersen to one year in prison, but suspended the sentence if he successfully complete a two-year probation period. It also ordered him to pay 20,000 kroner (US$3,875, €2,500) in court costs.Andersen was convicted of two counts of tampering with a 2005 contract between the Oslo soccer club he then managed and Mikel so he could use the document in a lucrative sale of the now 20-year-old Nigeria star to Manchester United. He was also convicted with filing a false police complaint against Mikel's agent, John Shittu.Mikel ended up with Chelsea after the three clubs reached a settlement in the contract dispute"The court is convinced that the accused has knowingly contributed to an illegal act for gain an unjustified right to John Obi Mikel, " the ruling said.On Feb. 11, when the 10-day trial, opened, Andersen pleaded not guilty to all the charges. The prosecutors had demanded that Andersen be sentenced to one-year in prison, and serve half the time in jail.<br />Andersen's attorney, Cato Schiotz, said his client completely disagreed with the sentence, and would appeal."We believe the court did not consider all the questions," said Schiotz. During Among other things, the defense argued during the trial that one of Andersen's subordinate's at Lyn had falsified the contract without his knowledge.The three-member judges panel was split on the sentence, with one judge wanting Andersen to serve six months in jail. However, the other two supported a suspended sentence and probation.Andersen was convicted of tampering with existing contracts to make it appear that Mikel had signed them on his 18th birthday, April 22, 2005, as the first day the soccer player could enter a contract on his own as an adult. Such a contract would have given Lyn rights to Mikel that could have led to a lucrative deal with Manchester United.In 2005, Mikel filed a police complaint against Andersen claiming he had forged Mikel's signature on the contract. Andersen then filed a counter-complaint against Shittu, saying he had forged Mikel's signature on a different contract.<br />Both complaints were later retracted, but police continued their investigation independently.Andersen became manager of Fredrikstad in 2006, but has been on sick leave from that job since October. His defense attorney, Schiotz, said his client would now step down from that job

Morgan Andersen was convicted of fraud and making false accusations by an Oslo court

Morgan Andersen was convicted of fraud and making false accusations by an Oslo court Wednesday in a case that stemmed from a contract disput...

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Philip Neal former director of finance and deputy chief executive officer of the Mid Essex Hospital Services NHS Trust, admitted four counts of forger

Philip Neal, 44, the former director of finance and deputy chief executive officer of the Mid Essex Hospital Services NHS Trust, admitted four counts of forgery. His defence said that he was under “immense pressure” to meet targets set by the Government and wipe out a predicted huge deficit.Chelmsford Crown Court was told that Neal falsified valuations of hospital land to try to make it appear that the trust had achieved bigger profits. If the forgeries had not been discovered, the trust would have recorded a £1 million surplus for the financial year 2005-06. But after the true figures came out it was discovered to be £10 million in deficit.<br />Sentencing Neal, Anthony Goldstaub, QC, said: “You forged bogus land valuation reports designed to present a falsely inflated profit in the revenue account of the trust for that year. In so doing you acted in serious breach of the high level of trust placed on you by virtue of your profession and position at the very top of the financial management of the trust.”He added: “The confidence that was placed in you and which you broke extends not only to the people you were working with but to the trust and Parliament, to the taxpayer at large and the patient at large ? people who were financing your organisation and people who relied on it for the maintenance of their health.”Neal, from Chelmsford, was promoted to director of finance in 2001 and was responsible for the financial management of the organisation.In 2005 the trust predicted that it would be £5 million in debt at the end of the financial year. The Department of Health and the Essex Strategic Health Authority told the trust that it needed to bring in a surplus of £1 million, the court was told.<br />The board of trustees agreed that they would try to claw back some of the deficit by selling land. Neal was responsible for the sales, but he submitted valuations for the land that were inflated.<br />He was awarded a performance-related bonus of about £2,500, taking his pay to more than £105,000. But the external auditors, PricewaterhouseCoopers, uncovered the bogus figures and he was suspended for five months. After an investigation by the NHS counter-fraud team, Neal was arrested last September.His defence team said that he had been working 12-hour days, while coping with underfunding of the health service. They said that it was an “unusual case” because Neal had not committed the forgery for his own financial gain.Alan McGill, of the NHS counter-fraud service, said: “Neal seriously abused his senior position within the trust by forging important financial documents which were used to try to dupe the external auditors into believing that the trust’s financial position was much better than it was.<br />“Had Neal’s criminal misbehaviour not been discovered, he would have been given credit for a positive financial outcome that was based on deception.”

Philip Neal former director of finance and deputy chief executive officer of the Mid Essex Hospital Services NHS Trust, admitted four counts of forger

Philip Neal, 44, the former director of finance and deputy chief executive officer of the Mid Essex Hospital Services NHS Trust, admitted fo...

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"Zippy Cheats & Tricks," with Zippy being Chase's in-house automated loan underwriting system. It recommends three "handy steps" to loan approval.

A memo that circulated at JPMorgan Chase provided a menu of options for fooling the banking giant's computer system into approving risky mortgages, according to a story in The Oregonian.Here are some details from the story:<br />The memo was called "Zippy Cheats & Tricks," with Zippy being Chase's in-house automated loan underwriting system. It recommends three "handy steps" to loan approval.<br />1. Lump all of an applicant's compensation as the applicant's base income, rather than breaking out commissions, bonuses and tips.<br />2. Do not disclose use of gifts for down payments.<br />3. If all else fails, simply inflate the applicant's income.<br />"Inch it up $500 to see if you can get the findings you want," the memo says. "Do the same for assets." The memo deals specifically with so-called stated-income loans, which require little or no documentation of income. Chase no longer makes any stated-income loans.A Chase spokesman confirmed the memo was e-mailed from within the bank but said it did not reflect corporate policy. <br />Chase fired Portland account representative who sent the e-mail days after discovering she had sent it.<br />Chase wrote down $1.3 billion in nonperforming mortgages at the end of 2007.

"Zippy Cheats & Tricks," with Zippy being Chase's in-house automated loan underwriting system. It recommends three "handy steps" to loan approval.

A memo that circulated at JPMorgan Chase provided a menu of options for fooling the banking giant's computer system into approving risky...

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largest seller of loose gemstones Jewelry TV is suing famed insurer Lloyds of London due to a jewelry theft scheme which cost the company millions

Satellite dish customers and some cable recipients are familiar with Jewelry Television, a popular 24 hour marketing station selling gemstones, bridal rings, jewelry making, and related gift items. Headquartered in Knoxville, TN, the company manufactures many of the items that they sell at facilities located in Asia.<br />As the largest seller of loose gemstones in the world, Jewelry Television is also one of the largest jewelry retailers, period. But, the company has been having some problems lately as reported by the Rapaport News. Specifically, Jewelry TV is suing famed insurer Lloyds of London due to a jewelry theft scheme which cost the company millions of dollars in lost inventory.Apparently, an unemployed social worker managed to gain access to the City of New York’s Office of the Comptroller Department account, whereby he placed unauthorized orders from Jewelry TV with the department’s funds. When the fraud was finally uncovered, merchant services company Paymentech — a division of JP Morgan Chase — processed $1.41 million in returns which were never shipped to Jewelry TV. Moreover, Paymentech seized $1.48 million in funds from the jeweler’s account.A loophole in Lloyd’s of London’s coverage is leaving Jewelry TV in the lurch, forcing the company to sue Lloyd’s to recover their losses. Jewelry TV is also seeking compensation to cover attorney expenses and plans to file suit against Paymentech and JP Morgan to recover the rest of their losses.<br />The news wires reported the arrest of Tracy Ball in April 2007 who was later convicted in January and sentenced to at least four years in prison. The Office of the Comptroller still hasn’t explained how Ball managed to make more than 600 transactions in a thirteen month period before getting caught.

largest seller of loose gemstones Jewelry TV is suing famed insurer Lloyds of London due to a jewelry theft scheme which cost the company millions

Satellite dish customers and some cable recipients are familiar with Jewelry Television, a popular 24 hour marketing station selling gemston...

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Iceland melting Icelandic expansion

A large current account deficit coupled with high inflation at a time when the housing bubble and consumer credit boom is about to come to a very abrupt standstill are all ingredients which we should be well aware of at this point. As can be expected this has also taken its toll on the financial sector which has played a seminal role in the recent Icelandic expansion. In this way, Iceland's three largest banks (Kaupting, Glitnir, and Landsbanki) have all seen their credit rating being scythed by the rating agencies recently. In one of their recent much appreciated daily digests Eurointelligence reports how credit default swaps have risen to alarming levels even if we should note that the three big Icelandic banks have branches in mainland Europe allowing them to potentially knock down the ECB's door for liquidity.

Iceland melting Icelandic expansion

A large current account deficit coupled with high inflation at a time when the housing bubble and consumer credit boom is about to come to a...

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James Kennedy, a Northbrook art dealer, was among seven individuals indicted last week in an international fraud ring.

James Kennedy, a Northbrook art dealer, was among seven individuals indicted last week in an international fraud ring.His attorney, Michael Mann, said his client was drunk and upset when he made the January call and hadn't really used any language that was directly threatening to Michael Zabrin, who was working undercover for federal authorities. Zabrin, an art distributor also based in Northbrook, was charged as well last week. But the judge quoted a passage from the undercover tape in which Kennedy threatened to beat up Zabrin."How about that language?" she said.<br />Assistant U.S. Atty. Nancy Miller noted that Kennedy faces up to 20 years in prison if convicted and that the scheme involved millions in losses. The ring sold fake limited-edition prints of fine art. To hoodwink buyers, they sometimes handed out certificates that purported to prove authenticity, but those too were fraudulent, authorities said.Miller said Kennedy already had been confronted by federal agents about the alleged wrongdoing when he made the angry phone call, a fact that Kendall said weighed on her decision to find him too dangerous to be released. Kennedy, who has been in custody since January when he was initially charged with threatening Zabrin, pleaded not guilty Monday to the broader fraud charges.

James Kennedy, a Northbrook art dealer, was among seven individuals indicted last week in an international fraud ring.

James Kennedy, a Northbrook art dealer, was among seven individuals indicted last week in an international fraud ring.His attorney, Michael ...

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Charles Head,Jeremy Michael Head ,charged them with mortgage fraud

Scott O'Briant, special agent in charge of IRS Criminal Investigation, said the Head case should serve as a warning to homeowners looking for a quick way out of mortgage problems. O'Briant said homeowners should be wary of any promises of new mortgages or lower monthly payments."As the saying goes, if it sounds too good to be true, it probably is," O'Briant said.FBI and IRS together with other agencies have formally placed charges of running foreclosure rescue scams on 19 persons based out of South California. The agencies, working on an operation code-named Operation HomeWrecker, arrested Charles Head of La Habra and Jeremy Michael Head of Huntington Beach along with 17 others and charged them with mortgage fraud.The arrested individuals were working for a company owned by Charles Head called Head Financial Services and are said to be related to him. They are said to have cheated poor home owners facing foreclosure by offering them a way out.This is how they allegedly ran the scamThey are said to have contacted people listed with foreclosure of their loans. They would offer the home owners a way out, typically days before their eviction. The home owners would be asked to add another person in the title of their property.They explain that the new person, who is an associate, is an investor who was willing to take over the mortgage and pay the loan out on behalf of the house owner. The owners, meanwhile, could continue to live in their homes by this arrangement. In return, they would be asked to pay rent to the investors. This generally is lesser than their loan installments making the offer seem more lucrative for the poor borrowers.Then the company would take out fresh loans against the property without the knowledge of the original owner. After making payment for the loan for a few months, they allow the new loan to foreclose by not continuing with the payments. After foreclosure, they take over the remaining equity of the homes. The original owners would be left with neither a home nor the equity that they had built up over the years.Scam, just the tip of the iceberg, believe expertsLaw enforcement agencies warn that there might be more scams operating in the country. They have asked people who have availed of home loans to be especially careful of them. They are concerned that professional from the industry might be misusing their knowledge and skills for illegal gain.<br />Ill-informed and helpless people might end up being their victims. They may fall for such scams as the last resort. Operation HomeWrecker was launched to prevent this by uncovering financial bungling in the real estate industry. Charles Head of La Habra. He and 18 others face allegations that they preyed on homeowners who were struggling to make payments on adjustable-rate and other mortgages.<br />Under the scam, homeowners facing foreclosure were promised lower house payments and even cash upfront to help pay bills if they agreed to add another name to their home's title, prosecutors said. The victims were led to believe they were paying rent to the investor while they got their finances back in order, prosecutors added.<br />According to the unsealed indictments, Head and the others actually used the scheme to switch the names on the titles, take control of the homes, refinance them and walk away with whatever equity homeowners had built up.<br />Head faces charges of money laundering, mail fraud and conspiracy. If convicted, he could be sentenced to up to 20 years in prison. The other defendants, including his friends and members of his family, face up to 15 years behind bars.<br />Head is in federal custody in Southern California awaiting extradition to Sacramento and does not yet have a lawyer, said U.S. Attorney McGregor Scott.<br />Prosecutors said additional indictments are likely as they continue investigating the brokers, loan officers and banks that did business with Head Financial Services.<br />"The issue of mortgage fraud has become a major national legal and economic problem," Scott said during a news conference announcing the indictments. "We here in the Central Valley of California have experienced the problem firsthand as record numbers of homes go into foreclosure, in large part due to fraudulent activities."<br />Scott said so-called "foreclosure rescue" schemes such as the one Head is accused of orchestrating compound problems stemming from lending practices that have put many families into homes they could not afford to begin with, Scott added.In all, prosecutors said Head defrauded 115 financially strapped homeowners in 22 states of at least $12.6 million. The fraud began in 2004 as the red-hot housing market peaked and continued through 2006 as homeowners began facing ballooning payments on adjustable-rate and interest-only loans, according to prosecutors.<br />The victims were not identified in the indictments, but Assistant U.S. Attorney Ellen Endrizzi said they ranged from first-time home buyers to the elderly.<br />About 90 percent lost their homes, she said. Others were able to keep their homes but were left with even more debt and credit problems, she added.<br />Usually victims had fallen into dire financial straights after adjustable mortgage rates reset at much higher monthly payments. Sometimes, however, victims were longtime homeowners with as much as $400,000 in home equity that were convinced to go along with the Head proposal after finding themselves unemployed or facing large medical bills, prosecutors said.If there was a common theme among the victims, Endrizzi said, they were all "people who were desperate and seeing this as a last-ditch effort and were counting on that," she said.Head's alleged scheme was detailed in two indictments made public on Monday.<br />The first said the 33-year-old Head and other conspirators recruited friends and family members to act as straw buyers for homes beginning in 2004. Sometimes as many as five homes were refinanced in one family member's name, according to the indictment.<br />The second indictment alleged that when Head and other defendants needed more money to keep the scheme afloat, they branched out nationwide, soliciting strangers through the Internet and using referrals from mortgage brokers to identify additional victims, the indictments said.<br />Head and others operated Web sites, including FundingForeclosure.com and $30kperyear.com, that attracted people willing to let the defendants use their names and credit histories to buy homes. In exchange, these buyers were paid thousands of dollars, but they soon began receiving notices that the mortgages were not being paid, the indictments said.<br />Head and other defendants carried out the scam under multiple business names, including Creative Loans LLC and Dynasty Realty Group, according to the indictments.

Charles Head,Jeremy Michael Head ,charged them with mortgage fraud

Scott O'Briant, special agent in charge of IRS Criminal Investigation, said the Head case should serve as a warning to homeowners lookin...

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Mischief-making behind the rumour mill SCAM

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijgaYknL-Vjh55ixgHb44i6PmTnqMXoe4Cs-tvBoX4P-Ufi248tLY9SKFmT_Se3CvRFJJQSHd_iyJdlJfr0f9_Qz0de4NJ4WuA49iTaPrswyLGm7ITiJa_DpDgdARi7mbXVOKPrH3ezOJl/s1600-h/032508-1221-paris911fra1.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5181739324816033346" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijgaYknL-Vjh55ixgHb44i6PmTnqMXoe4Cs-tvBoX4P-Ufi248tLY9SKFmT_Se3CvRFJJQSHd_iyJdlJfr0f9_Qz0de4NJ4WuA49iTaPrswyLGm7ITiJa_DpDgdARi7mbXVOKPrH3ezOJl/s320/032508-1221-paris911fra1.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />Sadly, last week events seemed to be threatening to spiral even further out of control, as rumours circulated about various US investment banks, before the UK’s HBOS came under fire. “What is genuinely terrifying for financial markets is the power of market rumour,” said Neil Dwane, CIO Europe at RCM. “The most important thing here is the speed with which this all happened…You can get talked into going bust in these financial markets.”<br />Regulators may suspect mischief-making behind the rumour mill, but the underlying fear that haunts the markets is of a chain reaction of defaults setting in that would see the whole banking system go down, like in the 1930s. “There’s a sense that investors have become more risk averse, and there’s a spiralling effect with that so if one set of investors gets more risk averse the price of the asset falls and that contributes to the general sense of pessimism,” says Simon Ward, chief economist at New Star Asset Management.The credit markets are not functioning particularly well – liquidity is pretty close to zero, and in the bank loan market there is a high mismatch of supply and demand due to deleveraging by hedge funds and the unwinding of SIVs and conduits. “That is putting out prices to levels that have nothing to do with the fundamentals as we are not seeing a lot of defaults,” says James Gledhill, head of fixed income at New Star Asset Management. For example, high yield debt is discounting a default peak of 10 pct, even though defaults are only at 1 pct at present. And even though the Fed has been cutting significantly for some time, the market’s expectations of further rate cuts mean that this is already factored into T-bills: “They are way ahead of where the Fed is, so rate cuts are now just psychological.” BlackRock’s Doll agrees that as equity markets won’t rally until the credit markets stabilise, this will require a sense that the Fed is finally getting ahead of the curve. But the Fed’s rate cutting is making some economists, like Ward, nervous about the impact on inflation. “The rise in energy prices is one of the reasons why the US consumer is under so much pressure,” he says. “I think they should have eased policy more gradually. They should have waited for some weakness in commodity prices and inflationary pressures more generally, and at that point they could have cut more aggressively.” <br />Indeed, there has been an understandable reticence from the Bank of England to cut as aggressively as the Fed as it has to focus on its inflation targets, whereas the Federal Reserve also has a mandate to consider GDP growth. “Inflation is just about to spike up because of rising commodity prices, but once we are past the oil spike we may see more aggressive rate cuts from the Bank of England,” says Toby Thompson, manager of the New Star Higher Income Fund.He suggests that equity markets seem to be expecting an early 1990s-style recession, but he doesn’t see this in the UK, arguing that different factors are at work this time round. “In the 1990s, we saw negative equity fuelled by heavy falls in house prices and significant write offs in bank lending. There were also significant commercial property write offs. It looks like the markets are expecting this again, and therefore see a big hit to banks’ earning capacity,” he says. However, he points to a big difference in the rate of debt expansion this time around as borrowings in real terms have increased by only 5 pct per annum, whereas in the run up to the 1990s recession they were up by 13 pct per annum. The biggest factor in predicting whether this will blow up in the banks’ faces is how much has been piled on at the top of the cycle, and for some analysts, the size of the buy-to-let market in the UK is a key concern. But Thompson also argues that in the 1990s, the UK house-builder market was more fragmented, and house-builders had greater levels of debt. “So they had to sell as many houses as they could to generate cash and worried less about the prices.” Now the top 10 house-builders have control of half the market and are not as significantly indebted. They have also realised that their land holdings are of value, so they prefer to reduce the numbers of houses they build if the market is soft rather than waste that value. “In the 1990s there was a greater degree of speculative build, and house-builders continued to build when the market softened,” Thompson says.<br />However, RCM’s Dwane strikes a more sober note: “We have to remember that in parts of Europe, particularly the UK, the biggest growth in jobs has probably been in finance and housing related industries and we need to remember that many individuals may well lose their financial firepower over the next few years.”

Mischief-making behind the rumour mill SCAM

Sadly, last week events seemed to be threatening to spiral even further out of control, as rumours circulated about various US investment ba...

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Hannaford said that the breach only involved credit- and debit-card numbers, not customers’ names, addresses or phone numbers

Hannaford is the second New England company to disclose a major security breach in the past year. In 2007, Framingham-based TJX Companies Inc. said thieves potentially gained access to tens of millions of customers’ credit- and debit-card data over a four-year period - possibly the largest such lapse ever.<br />Hannaford, which has some two dozen Massachusetts stores, said the breach began Dec. 7 and continued until March 10. Anyone who used a credit or debit card during that period at the chain’s 165 New England and New York stores or 106 Sweetbay outlets in Florida faces potential problems.<br />So do customers who shopped at an undisclosed number of small grocers that stock Hannaford products. “We sincerely regret this intrusion into our systems, which we believe are among the strongest in the industry,” CEO Ron Hodge said in an open letter posted on the Maine-based chain’s Web site. However, Hannaford admitted that it first learned of the security breach nearly three weeks ago. Paul Stephens of the Privacy Rights Clearinghouse said such a delay in disclosing the problem “puts consumers in a difficult position, because they have no way of knowing whether their accounts may have been impacted or not.” But Hannaford Vice President Carol Eleazer defended her firm’s actions, saying the chain “moved with all deliberate speed to get out to customers with information that we could have confidence in.<br />” Hannaford added that the breach only involved credit- and debit-card numbers, not customers’ names, addresses or phone numbers. Still, the chain urged all customers to carefully check account statements and report any suspicious activity to their banks. The Massachusetts Bankers Association also recommended that shoppers watch out for calls or e-mails purporting to come from banks seeking to “verify” personal information to “protect” customer accounts. The U.S. Secret Service, whose enforcement duties include electronic crimes, confirmed that it’s investigating the case, but declined to provide details.

Hannaford said that the breach only involved credit- and debit-card numbers, not customers’ names, addresses or phone numbers

Hannaford is the second New England company to disclose a major security breach in the past year. In 2007, Framingham-based TJX Companies In...

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Major banks are equipping their ATMs with jitter technology

Major banks are equipping their ATMs with advanced security features in a bid to counter skimming devices. Allen Mahadeo, general manager for the self-service channel at Absa Group, said they were preventing financial fraud by implementing new anti-card skimming technology on its ATMs called "Jitter" software. Jitter causes a vibration to the ATM card reader which sends a disrupted signal to any illegal skimming device. This prevents copying from banking cards and makes card skimming impossible. Absa will install the software at all fully branded Absa ATMs and self-service kiosks. This network of 4 357 ATMs excluded third-party, Absa-supported ATMs.Card skimming occurs when fraudsters attach reading devices known as "skimmers" to an ATM card entry to read the magnetic strip data from inserted cards. <br />"By peering over the victim's shoulder, they are able to obtain the pin number keyed in. With the information the syndicates create a duplicate card and empty the victim's account," he said.Leon Barnard, director for secured lending and credit cards at Standard Bank, said according to SA Banking Risk Intelligence Centre card skimming had increased by 42 percent from 2006 to 2007.<br />Barnard said all their newer ATMs were equipped with jitter technology.

Major banks are equipping their ATMs with jitter technology

Major banks are equipping their ATMs with advanced security features in a bid to counter skimming devices. Allen Mahadeo, general manager fo...

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U.S. Bond Funds possible fraud using so-called "credit default swaps"

Investors in conservative U.S. Bond Funds should be on the alert for possible risks in such funds due to the existence of so-called "credit default swaps" in the fund's portfolio. These investments - essentially a futures contract tied to whether a bond issuer's credit rating will get better or worse - are not strictly regulated by the Securities and Exchange Commission and details regarding their risks are not typically explained in the fund's prospectus. <br />Many bond fund managers use these swaps as a way to achieve a slightly higher yield for the fund. Unfortunately, there are various significant risks associated with these types of arrangements. For example, if the bond issuer defaults, the fund, which has essentially agreed to insure against default, is required to pay for the loss. This could result in the fund manager having to sell other fund assets, thereby dragging the fund's performance. Additionally, credit default swaps are carried at values that are unreliable and may result in overstatement of the fund’s Net Asset Value. The price of credit default swaps is based on a "fair value estimate" that may or may not be realized when it comes time to have to sell it. Thus, the valuation of these instruments is inherently unreliable. Finally, fund managers are exposed to the risk that the institution on the opposite side of the transaction, "the counter party" may experience financial problems that would interfere with its ability to pay the premium for insuring the bonds.<br /><br />These risks could pose serious problems to a bond fund's share price, particularly if the bond fund exposes a large portion of the portfolio to these instruments. Investors should monitor the levels of credit default swaps permitted in any bond fund, and how the credit default swap risks are managed.

U.S. Bond Funds possible fraud using so-called "credit default swaps"

Investors in conservative U.S. Bond Funds should be on the alert for possible risks in such funds due to the existence of so-called "cr...

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Floyd Irons,Michael Noll and John Mineo Jr. were all sentenced to at least 12 months in jail

Floyd Irons, former Vashon High School basketball coach, Michael Noll and John Mineo Jr. were all sentenced to at least 12 months in jail on wire and mail fraud charges in connection with a million dollar mortgage fraud scheme, U.S. Attorney Catherine Hanaway announced Tuesday. Irons, who pleaded guilty in September, was sentenced to 12 months in prison and was ordered to pay restitution of $653,147 to the victim lending institutions. Noll, who pleaded guilty in October, was sentenced to 20 months in prison, and Mineo Jr., who pleaded guilty in September, was sentenced to 12 months and 1 day in prison and ordered to pay restitution of more than $1 million. <br />According to the court, during late 2005, Irons and Noll met with Mineo Jr. and told him of their scheme to purchase residential real estate for investment purposes. They told Mineo Jr. that they would obtain mortgage loans for these residential purchases through him at the mortgage brokerage company where he was employed, Midwest Mortgage Consultants LLC, for 10 percent or more of the home sales price to be "kicked back" to them, according to a release from Hanaway's office. Additionally, Irons and Noll told Mineo Jr. that Irons would be identified as the sole purchaser of these residential properties, but that Irons and Noll were in business together, and that the mortgage loans would actually be paid by Noll, the release said. Irons, who won 10 state basketball championships over the course of a 33-year coaching career, was fired in July 2006 after a St. Louis School Board investigation found the Vashon basketball program used faulty accounting practices.

Floyd Irons,Michael Noll and John Mineo Jr. were all sentenced to at least 12 months in jail

Floyd Irons, former Vashon High School basketball coach, Michael Noll and John Mineo Jr. were all sentenced to at least 12 months in jail on...

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Leslie Anderson was part of a telemarketing scam calling itself "First Capital."

Leslie Anderson of Toronto was part of a telemarketing scam calling itself "First Capital."That outfit cold-called U.S. phone numbers, including some in southern Illinois, and offered credit cards to those with less-than-perfect credit.<br />But the U.S. government says that instead of a Mastercard or Visa for their payments of $189 to $219, the victims got a package stuffed with ads.Anderson was convicted of 18 wire fraud counts, five mail fraud counts and a conspiracy count.Sentencing is set for July 11th.

Leslie Anderson was part of a telemarketing scam calling itself "First Capital."

Leslie Anderson of Toronto was part of a telemarketing scam calling itself "First Capital."That outfit cold-called U.S. phone numb...

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Carol Ribauldo,Sonja Ritz guilty of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and nine counts of wire fraud

Carol Ribauldo, 52, was sentenced to 57 months in federal prison, while Sonja Ritz, 28, was sentenced to 37 months, according to U.S. Attorney John L. Ratcliffe's office. The women were also ordered to pay restitution on Monday. <br />In August, a jury found Ms. Ribauldo and Ms. Ritz, both of Clearwater, Fla., guilty of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and nine counts of wire fraud in connection. Ms. Ribauldo and Ms. Ritz operated the travel-related Elite Business Service in McKinney between July 2003 and January 2004. During the trial, prosecutors presented 30 witnesses and nearly 200 exhibits. The two women were accused of accepting payment from prospective cruise clients, but then never contracted with a cruise line.

Carol Ribauldo,Sonja Ritz guilty of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and nine counts of wire fraud

Carol Ribauldo, 52, was sentenced to 57 months in federal prison, while Sonja Ritz, 28, was sentenced to 37 months, according to U.S. Attorn...

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Counterfeit Euros found in Sofia

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ZFXfjv3CzTeoGiyBlA18MveybDEdDpDw8oPph2tJdU7PM7LTwIrhyphenhyphenX8nC7DprAjLvQju0-l4Grkca7YncpigVjY-nXSbQxuqRB90espg7Gh012_TvPavrgX-k3MzNG3yHyznwH061FDI/s1600-h/drugmoney002_sm.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5180268053704017250" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ZFXfjv3CzTeoGiyBlA18MveybDEdDpDw8oPph2tJdU7PM7LTwIrhyphenhyphenX8nC7DprAjLvQju0-l4Grkca7YncpigVjY-nXSbQxuqRB90espg7Gh012_TvPavrgX-k3MzNG3yHyznwH061FDI/s400/drugmoney002_sm.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />About 350 000 euro in counterfeit bills were found in the possession of two individuals after a police operation in Sofia, the head of Chief Directorate for Combating Organised Crime told reporters on March 21.The two were arrested close to Madara swimming complex in downtown Sofia while closing the deal to sell the counterfeit euro bills. In other places in Sofia, police found another 5000 euro in counterfeit bills as well as a firearm that had not been licensed and 200 dozes of hard drugs.A printing house for fake identifiocation documents was also seized as part of the operation. Police was still investigating the whereabouts of the printing house that printed the counterfeit bills, Georgiev said.The arrest was a result of a joint police operation that involved policemen from Bulgaria, The Netherlands and Austria. It started last spring with the help of Europol. Besides the arrest in Bulgaria, a number of people were detained in other Eeuropean Union countries.

Counterfeit Euros found in Sofia

About 350 000 euro in counterfeit bills were found in the possession of two individuals after a police operation in Sofia, the head of Chief...

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Balbir Singh Sandhu, who had sat at court in Wolverhampton for six years

magistrate who told a businessman friend that he could make a court case against him "go away" has been jailed for 18 months.Balbir Singh Sandhu, who had sat at court in Wolverhampton for six years, told the businessman he knew he was being prosecuted over alleged immigration crimes.Sandhu, 62, told the victim he could face a huge fine and even go to prison.Amjad Mawaz, prosecuting at Birmingham Crown Court, said: "He had access to where the files were kept. He effectively said that he could make it disappear if he would pay him and his associates a sum of £45,000."<br />The pair met to discuss the plan and the victim then began recording his telephone conversations with the magistrate.He eventually told police, who arrested Sandhu as he arrived for another meeting. In his car they found a document that said the file had been destroyed.Sandhu was initially charged with blackmail but pleaded guilty to fraud.Jas Mann, defending, said Sandhu's "stupidity has cost him everything".<br />"He has lost his standing as a magistrate and also his standing in the community," he said. "He is doomed for the future to walk with his head bowed. He was a prominent member of the Sikh community."Sandhu told police that he had wanted to teach the victim a lesson and would not have taken the money.Judge Robert Orme described his actions as a "blatant abuse of a position of authority and trust" and said the fraud had been carried out in a "blatant, prolonged and manipulative" way."Your fall from grace is likely to be all the greater having regard to the pedestal upon which the local community appear to have placed you. You are a prominent member of the Sikh community, a teacher and a highly respected member of the temple."

Balbir Singh Sandhu, who had sat at court in Wolverhampton for six years

magistrate who told a businessman friend that he could make a court case against him "go away" has been jailed for 18 months.Balbi...

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Former Tennessee Titans lineman Reed Diehl was arrested

Former Tennessee Titans lineman Reed Diehl was arrested Tuesday and accused of bilking a developer out of $2.5 million, federal prosecutors said. <br />Diehl, 29, was taken into custody at his home in Coto de Caza on a federal complaint charging him with wire fraud, the U.S. attorney's office said. He faces up to 20 years in prison if convicted. Prosecutors said Diehl offered to secure funding for a construction project in Mexico if the developer deposited $2.5 million into a bank account. Diehl promised to use the money as collateral to secure a line of credit, but instead he withdrew the money to pay other people who made investments with him, the complaint said. Diehl, who works as an offensive line coach at Mater Dei High School, was later released on $75,000 bond. His arraignment was scheduled for April 14. An after-hours call to an R. Diehl in Irvine went unanswered. Diehl briefly played offensive line for the Titans after attending California.

Former Tennessee Titans lineman Reed Diehl was arrested

Former Tennessee Titans lineman Reed Diehl was arrested Tuesday and accused of bilking a developer out of $2.5 million, federal prosecutors ...

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Allegations about malpractice and potential fraud at JE Tudor & Son.

The inquiry has heard further allegations about malpractice and potential fraud at JE Tudor & Son.A series of concerns were raised by an official veterinary surgeon monitoring the abattoir about the security of the official health mark, which was used to stamp meat which had passed its inspection. At the end of 2004, it was kept in a safe, with the keys hanging in the same room.If the health mark is not locked away securely, there is a risk that it could be used to stamp illegally slaughtered animals or animals slaughtered after inspectors had left the premises.The OV, who raised the concerns, wrote at the time, “I cannot take responsibility for the security of the health mark as no adequate security measures are in place at the plant.”And Phillip Stallard, the Meat Hygiene Service’s area manager for South-East Wales, said there was some suspicion of fraud at the plant in relation to the slaughtering of calves.

Allegations about malpractice and potential fraud at JE Tudor & Son.

The inquiry has heard further allegations about malpractice and potential fraud at JE Tudor & Son.A series of concerns were raised by an...

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US banks are likely to fail as a result of the housing crisis

US banks are likely to fail as a result of the housing crisis, Ben -Bernanke said yesterday, warning that his country faced a more difficult situation than in the aftermath of the dotcom bust in 2001."There will probably be some bank failures," the Fed chairman told the Senate banking committee in his second day of biannual testimony to Congress.He said the banks at risk were "small and in many cases de novo [new] banks that are heavily invested in real estate in localities where prices have fallen".But he said: "I do not anticipate any serious problems" at any of the big banks, which played the most important role in the US financial system.The Standard & Poor's financials index declined 3 per cent yesterday.<br />Mr Bernanke, meanwhile, dodged efforts by senators to enlist his support for proposals to reform the bankruptcy code or use taxpayers' money to intervene directly in the mortgage market.He said it was worth "thinking about" additional steps but could not recommend any at this point, beyond existing proposals to modernise the Federal Housing Administration and reform Fannie Mae and Freddie Mac.<br />The Fed chairman said there were "some similarities with the 2001 experience" - in so far as this downturn, like the previous one, was being driven by a sharp fall in asset prices.But he said there were "important differences". The fall in house prices was creating a "much broader set of issues" than the slump in tech stocks did.<br />Falling house prices affected more consumers than falling stock prices, while the house prices had also caused a "sustained disruption in the credit market".Moreover, the US was in a weaker position to respond to the negative growth shock today than it was in 2001.

US banks are likely to fail as a result of the housing crisis

US banks are likely to fail as a result of the housing crisis, Ben -Bernanke said yesterday, warning that his country faced a more difficult...

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Bear Stearns goes belly up

Battered Wall Street brokerage Bear Stearns said Friday that it is receiving short-term emergency funding to prevent its collapse. JPMorgan Chase & Co. and the Federal Reserve Bank of New York said they would provide Bear Stearns funding for up to 28 days, with the Fed providing the money to JPMorgan through its discount window. <br />With the credit crisis worsening, the government took action to prevent the investment bank from going under and igniting widespread panic through the financial markets.Bear Stearns (BSC, Fortune 500) shares plunged as much as 53% before moving off their lows to trade 39% lower in the early afternoon.The announcement did not indicate how much funding Bear Stearns would receive, but executives said in a conference call Friday afternoon that with the money, the firm will "have the ability to fund ourselves every day, to do business as usual."<br />"It's a bridge to a more permanent solution," said Chief Financial Officer Sam Molinaro Jr. During the call, Chief Executive Alan Schwartz said the firm's liquidity crunch hit Thursday, when many customers demanded cash after hearing rumors of trouble at Bear Stearns all week.Bear Stearns had already been working with investment bank Lazard & Co. to explore alternatives when the cash calls came in. The brokerage house decided to secure funding from JPMorgan to give it time to "get some more facts out to the marketplace and give people time to assess them," Schwartz said. The company, which is continuing to work with Lazard, also announced it is moving up the date of its first-quarter earnings release to Monday and provide more information about its current condition. Prior to Friday's announcement, the consensus among analysts was that the New York-based broker would post a profit of $135 million on revenue of $1.35 billion. Executives reiterated that they were comfortable with the range of earnings estimates.Schwartz said the firm's capital position, a measure of its soundness, is in "good shape

Bear Stearns goes belly up

Battered Wall Street brokerage Bear Stearns said Friday that it is receiving short-term emergency funding to prevent its collapse. JPMorgan ...

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Second bank has Bankrupt this year

A second bank has failed this year, the Federal Deposit Insurance Corp. said Friday. The FDIC and the Commissioner of Missouri's Division of Finance closed Hume Bank in Hume, Mo., on Friday, the federal banking regulator announced. <br />It was the second bank to fail this year, the FDIC said. The first was Douglass National Bank in Kansas City, Mo., on Jan. 25. <br />The FDIC didn't give a reason for the failure. <br />Security Bank of Rich Hill, Mo., will assume Hume Bank's insured deposits. The failed bank's sole office will open Monday as a branch of Security Bank. <br />As of Dec. 31, Hume Bank had assets of $18.7 million and total deposits of $13.6 million. Security Bank agreed to assume $12.5 million of the failed bank's insured deposits for a premium of 4.26%, the FDIC said.

Second bank has Bankrupt this year

A second bank has failed this year, the Federal Deposit Insurance Corp. said Friday. The FDIC and the Commissioner of Missouri's Divisio...

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Morgan Crucible Co. Chief Executive Officer Ian Norris extradition NO

Former Morgan Crucible Co. Chief Executive Officer Ian Norris, who is accused by U.S. prosecutors of price-fixing, won a ruling from the U.K.'s highest court that hinders attempts to extradite him for a trial in Pennsylvania. Norris, 65, has been charged in the U.S. with conspiring with other executives to rig the price of carbon products, including brushes, in the 1990s and trying to obstruct an ensuing investigation. The House of Lords today ruled he couldn't be extradited on the antitrust claims because price-fixing wasn't a crime in the U.K. at the time of the alleged misconduct. ``Mere price fixing was not at any time'' a criminal offense in the U.K. when the cartel operated, the House of Lords said in a ruling today. While Norris doesn't have to face U.S. antitrust charges, the Lords said he may be extradited over the obstruction of justice claim and sent the issue to a lower court for review. Britain's business community lobbied the U.K. to prevent the U.S. from using an extradition treaty to prosecute white collar criminals after three former bankers at Royal Bank of Scotland Group Plc's Greenwich NatWest were extradited to Texas to face charges related to the collapse of Enron Corp. ``The House of Lords have signaled that the government should start to change its mind on extradition rules, particularly on America, which is very aggressive in terms of territorial reach,'' Mark Spragg, who represented the NatWest bankers, said in an interview today. His clients eventually pleaded guilty and were sentenced to 37 months in prison. While the U.K.'s Enterprise Act 2002 criminalized cartels, the law wasn't in force until after the alleged cartel activity had stopped in the Norris case. <br />The ruling is ``a huge defeat for the U.S. antitrust division,'' Larry Byrne, a U.S. lawyer for Norris, said today. ``The House of Lords has completely rejected the position of the'' U.S. Department of Justice. Following today's ruling, U.S. prosecutors who pursue British businessmen for antitrust violations must ensure the cartel was operating after the introduction of the Enterprise Act, said Tom Epps, a partner at Russell Jones & Walker. ``The business community needs to remain vigilant,'' Epps said. ``The Department of Justice will continue to flex its muscles in the U.K. by focusing on cartel offenses that have occurred post June 2003.'' <br />Norris retired from Morgan Crucible in 2002 after battling prostate cancer. U.S. prosecutors claim he colluded with rivals to fix prices on carbon parts, to avoid undercutting each other on sales. The cartel, which originally operated in Europe, spread to the U.S. in 1989 and continued until 2000, according to a U.S. indictment. <br />Morgan Crucible, which was founded in 1856, sells ceramic and carbon parts for use in the steel-making industry. Current management has sought to expand the company into other markets such as aerospace, medical equipment and defense, CEO Mark Robertshaw said in an interview in December. A call to the Windsor, England-based company wasn't immediately answered. Morgan Crucible and its North Carolina subsidiary, Morganite Inc., agreed to pay a total of $11 million in fines to settle related antitrust charges in 2002. Norris wasn't covered by that agreement and has been fighting the charges since his arrest in London in January 2005. In a separate ruling today, the House of Lords applied the same principle to a U.K. antitrust case involving a group of generic drug-makers including Goldshield Group Plc for conspiring to defraud the National Health Service of 120 million pounds ($60 million) by fixing prices. The U.K.'s Serious Fraud Office claims that the cartel ran through 2000, prior to the Enterprise Act. The Lords said prosecutors must amend the charges if they want to continue with the case. Keith Hellawell, chairman of Goldshield said in a statement that ``we very much hope'' this will lead to the SFO dropping the charges. SFO spokesman David Jones said he wasn't immediately able to comment.

Morgan Crucible Co. Chief Executive Officer Ian Norris extradition NO

Former Morgan Crucible Co. Chief Executive Officer Ian Norris, who is accused by U.S. prosecutors of price-fixing, won a ruling from the U.K...

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Sexton Lofts: Joseph Huebl of Burnsville pleaded guilty to mail fraud and conspiracy

The Sexton, a downtown Minneapolis condominium development already caught up in foreclosure and a tangle of lawsuits among its partners, now is at the center of a mortgage fraud investigation by the U.S. Attorney's Office.<br />On Monday, Joseph Huebl of Burnsville pleaded guilty to mail fraud and conspiracy for his role in a scheme to illegally profit from the sale of one of the Sexton's 123 condo units. In his plea agreement, Huebl said he was involved in the scheme along with an unspecified agent of the project's developer, Sexton Lofts.As part of his plea, Huebl, 28, has agreed to cooperate with an ongoing investigation of others suspected of taking part in mortgage fraud at the Sexton, including the unnamed agent of the developer.The project, at 521 S. 7th St., was developed by Sexton Lofts LLC, a partnership of JJT Development, Heather Enterprises II and Medved LP.<br />Ben Houge, JJT's attorney, declined to comment. Mary Yeager, attorney for Heatherand Medved, said neither of her clients has been contacted in connection with any investigation.In the plea agreement, Huebl said he bought a unit in the Sexton in March 2007 for $366,756 at the direction of the developer's agent. Huebl resold the unit the same day for $700,000 to another person he had recruited to be part of the scheme. Huebl admitted helping the new buyer falsify financial information in order to qualify for a mortgage. The developer's agent provided an inflated appraisal to justify the mortgage amount, the plea agreement said.The $333,244 profit from the fraudulent transaction was split between Huebl and the developer's agent, with Huebl receiving $272,980 in two wire transfers, according to the plea agreement.<br />Neither the plea agreement nor the U.S. Attorney's Office identified the seller in the first transaction. The buyer in the second transaction and the lender that supplied the mortgage also were not identified. Hennepin County property records identify Sexton Lofts LLC as the seller in the first purchase by Huebl's company, St. Joseph's Financial Inc. Assistant U.S. Attorney Joseph Dixon declined to comment on whether the case against Huebl is connected with other lawsuits in which the Sexton's partners have accused each other of a variety of misdeeds. JJT, which holds a 50 percent interest in the development, has accused Heather and Medved of mismanaging a $26 million construction loan that played a part in the project's foreclosure.Heather and Medved have accused JJT of selling condo units for more than the advertised prices and paying real estate agents inflated commissions.U.S. District Judge Patrick Schiltz accepted Huebl's plea but did not sentence him. Huebl faces penalties of 18 to 24 months in prison, two to three years of supervised release and a fine of $4,000 to $40,000 under sentencing guidelines.

Sexton Lofts: Joseph Huebl of Burnsville pleaded guilty to mail fraud and conspiracy

The Sexton, a downtown Minneapolis condominium development already caught up in foreclosure and a tangle of lawsuits among its partners, now...

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Scot Ian Clark paid in bogus cheques to NatWest accounts then, before the bank had time to return them, sent millions overseas in a weekend.

Scot Ian Clark, 38, was part of a gang who were given sentences totalling more than 20 years.They had exploited a flaw in the banking system to set up the massive bogus cheque fraud, a court was told.A letter from the NatWest alerted the fraudsters to a loophole which meant funds showed up on computers even though the money was not actually in the account.They paid in bogus cheques to NatWest accounts then, before the bank had time to return them, sent millions overseas in a weekend.Southwark Crown Court heard they moved the cash to accounts in Latvia but the cash was intercepted before it could reach its ultimate destination in Dubai.Lee Quincey, 41, from Manchester, who admitted conspiracy to steal, was jailed for five years and 11 months.Clark, from Paisley, and company directors Darren Lee, 35, and Martin Williams, 29, both from Liverpool, had denied the charge but were convicted.Lee and Williams were both sentenced to five years and nine months.The court was told Clark had the "limited but crucial" role of paying in cheques.Police have managed to recover more than 95 per cent of the money.Judge Anthony Pitts said: "The fraudsters identified a potential weakness in the way that Natwest allowed business customers to pay out money to their suppliers using the computer system."Natwest rather helpfully told all their business clients using the system that after two days all credited funds would show on the computer as being available.

Scot Ian Clark paid in bogus cheques to NatWest accounts then, before the bank had time to return them, sent millions overseas in a weekend.

Scot Ian Clark, 38, was part of a gang who were given sentences totalling more than 20 years.They had exploited a flaw in the banking system...

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African Arms dealer Viktor Bout

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyrWR_lLxFRuYemMcKF-gVh4mx50LgyABLXQm5Igg6noUNd7WRgVe5jyUWNu2mOZG5jnbrhCkBvPHbIi1XTEW2Ijb21aaBYUEveg6x7NPH4_HmggkN4qHMPOjNvdPCQePkk9gdYLW6pS5n/s1600-h/topics_viktorbout_190.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5175841174466764786" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyrWR_lLxFRuYemMcKF-gVh4mx50LgyABLXQm5Igg6noUNd7WRgVe5jyUWNu2mOZG5jnbrhCkBvPHbIi1XTEW2Ijb21aaBYUEveg6x7NPH4_HmggkN4qHMPOjNvdPCQePkk9gdYLW6pS5n/s320/topics_viktorbout_190.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />Viktor Bout is a larger-than-life figure on the African stage, where he has for close on two decades been a well-known figure in Africa's hotspots and at one stage lived in Sandhurst, Johannesburg.His airlines were regular visitors to South African airports, notably the more porous Lanseria and Polokwane airports.An airline linked to Bout's business empire made news when it was revealed it had arrived in the dead of night at the Waterkloof military base and whisked away Khalid Rashid, the Pakistani whose controversial "deportation" resembling a rendition rocked the South African government. Bout has known a variety of African heads of state and rebel leaders across the continent and the world.These include the Afghan northern forces leader Ahmed Shah Massoud; former Zairean dictator Mobutu Sese Seko, whom Bout claims to have whisked to safety; now deceased Angolan Unita leader Jonas Savimbi; the notorious Charles Taylor of Liberia; Congolese opposition leaders; and, closer to home, the Swazi royal house.He admitted in a rare interview his clients included two notorious arms dealers, Alexander Islamov and Leonid Minin.But Bout has also flown UN peacekeepers to East Timor and Somalia and claims he flew in French troops during the Rwandan genocide. Bout was reliably reported to have been flying to Iraq for both private contractors and the US military.The extremely private Bout, a linguist fluent in half a dozen languages, was university-educated in Moscow but as part of the Soviet air force found himself in Mozambique during the dying days of the Soviet empire. His aviation empire then began with the purchase of a few ageing Antonovs, allegedly funded by illicit sales of abandoned Soviet weaponry. <br />Arms traffickers inherited the Soviet Cold War weapons supply along with clandestine routes of transport and finance, which Bout is said to have used to good effect.<br />The trade involves falsified end-user certificates, bribes, swapped cargos, ever-changing tail numbers on planes and big, big rewards whether in cash or diamonds.<br />Bout soon set up an aviation base in Sharjah, an airport of convenience in the United Arab Emirates, where he paired up with the founder of Sharjah's free-trade zone, Richard Chichakli, said to be a nephew of top Syrian politicians of yesteryear.<br />Sharjah, which stands at the crossroads of Europe, the Middle East and Africa, has continued to be the centre of Bout's empire, albeit via a bewildering network of companies and airline outfits run by alleged surrogates.When he came under scrutiny from Belgian authorities in 1996, Bout moved from that country to South Africa where he lived in style for a few years.<br />Bout's Liberian-registered company, Air Cess, moved from Belgium and then entered a joint venture with a South African freight company called Norse Air.<br />A new company called Pietersburg Aviation Services and Systems (Pty) Ltd was set up in 1997 and operated under the name Air Pass.One of the directors was Valerii Naido, who after leaving South Africa ended up being listed by the US along with Chichakli for his alleged Bout connections.<br />Although Bout stopped operating directly in South Africa at the end of the 1990s, the US-based Centre for Public Integrity's International Consortium of Investigative Journalists claimed he continued to operate in southern Africa via surrogates who included smaller Russian operators.<br />However, South African authorities closed in on Bout and accused him of breaching civil aviation law as well as busting UN sanctions by sending supplies to Unita in Angola.He had meanwhile registered a number of aircraft in neighbouring Swaziland and registered more airlines in other African countries.These listed companies include three Bout outfits that were targeted by South African authorities in the late 1990s - the apparently defunct Pietersburg Aviation Services and Systems (Pty) Ltd, Cess Air and Air Pass.

African Arms dealer Viktor Bout

Viktor Bout is a larger-than-life figure on the African stage, where he has for close on two decades been a well-known figure in Africa'...

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Morikazu Tanaka,Guardian of the Underworld

Former Tokyo District Public Prosecutors Office special investigation squad member Morikazu Tanaka, who recently received a three-year prison term for his involvement in a promissory note fraud, is facing further troubles of a financial nature due to investments he solicited for his geographic survey firm Terra Matrix Co., which later failed, The Yomiuri Shimbun learned Saturday. <br />According to sources, Tanaka had raised several hundred million yen in exchange for issuance of the firm's stocks, promising investors that he would buy back the stocks if the firm failed to get listed on a stock exchange in the future. <br />However, the president of Terra Matrix said the firm had gone insolvent due to a shortage of funds. After stints on the Tokyo and Osaka District Public Prosecutors Offices' special investigation squads, Tanaka became a lawyer and represented a Yamaguchi-gumi gang leader. However, he was found guilty of swindling an oil wholesaler out of about 17.9 billion yen in promissory notes and sentenced to three years in prison on Feb. 28. He was disbarred as a lawyer and is expected to begin his jail term in the near future. Tanaka had published a best-selling autobiography, titled "Hanten--Yamishakai no Shugoshin to Yobarete," (Reversal--Called Guardian of the Underworld), in which he strongly criticized investigation policies and methods employed by prosecutors. Due to the financial problems afflicting Terra Matrix, a portion of the book royalties has been seized by one of the failed firm's investors. <br />According to Terra Matrix's president, the company was established in December 2000. Its main business was to create three-dimensional geographical data based on those collected from airplanes. It had planned to purchase the rights to use the technology for the business in Japan from a U.S. company at about 15 million dollars, or about 1.8 billion yen at the then exchange rate. Tanaka owned about 60 percent to 70 percent of Terra Matrix stocks, after purchasing them at the president's request in 2001. However, because Terra Matrix was only able to raise 8.3 million dollars, its office closed down in May 2005. <br />Around 2003, about 10 people from the Kansai and other regions each invested amounts ranging from 1 million yen to 5 million yen into the firm, for a total of about 20 million yen. When they were invited to invest in Terra Matrix, Tanaka showed them a company brochure, saying, "Its stocks are scheduled to become listed on a [Japanese] stock market in spring 2006." They also received a written pledge from Tanaka that he would buy back the stocks they purchased if the firm failed to get listed. <br />Because the firm's stock never became listed, some investors requested via certified mail that Tanaka fulfill his buyback pledge, but they did not received a reply. <br />The wife of Mamoru Mori, astronaut and director of the National Museum of Engineering Science and Innovation, served as a member of the firm's board for three months beginning in June 2001. After learning that a photograph of Mori dressed in a spacesuit and his words to recommend the firm were used in the firm's brochures without permission, his wife resigned and received no pay.

Morikazu Tanaka,Guardian of the Underworld

Former Tokyo District Public Prosecutors Office special investigation squad member Morikazu Tanaka, who recently received a three-year priso...

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Countrywide Financial Corp. is being probed by the U.S. Federal Bureau of Investigation for possible securities fraud

The FBI said on Jan. 29 that it was investigating 14 companies for possible accounting fraud and other crimes related to the subprime lending crisis. It didn't identify any of the 14 by name. Countrywide Financial Corp. is being probed by the U.S. Federal Bureau of Investigation for possible securities fraud, the Wall Street Journal reported, citing unidentified law enforcement officials and finance industry executives. <br />The probe, which is at an early stage, is focusing on whether Countrywide officials made misrepresentations about the company's financial position and the quality of its mortgage loans in securities filings, the newspaper reported, citing four unidentified people with knowledge of the matter. Countrywide spokeswoman Jumana Bauwens said the company was unaware of an FBI probe. Bank of America Corp., which is in the process of buying Countrywide, declined to comment, spokesman Scott Silvestri said. Fifteen other subprime companies are under scrutiny by federal agents and prosecutors in relation to possible mortgage- origination fraud, conflicts of interest and practices used to package mortgage-backed securities for sale to investors, the newspaper said. The investigation is being handled in New York and overseen in Washington, the Journal said. Washington-based FBI spokesman Richard Kolko declined to identify any of the 16 financial institutions the Bureau is investigating along with the Securities and Exchange Commission. Countrywide yesterday declined 13 cents, or 2.5 percent, to $5.07 a share, 20 percent lower than its closing price on Jan. 11 when Bank of America, the nation's second-biggest bank by assets, offered to buy the company for about $4 billion in stock. The stock has declined 86 percent in the past year in New York Stock Exchange trading. Countrywide Chief Executive Officer Angelo Mozilo testified yesterday before the House Oversight and Government Reform committee, which questioned why CEOs received hundreds of millions of dollars in compensation while shareholders took the brunt of millions in writedowns from subprime mortgages. ``Countrywide is the focus of politicians and others who often are looking for people they can paint as villains,'' said Gary Townsend of Chevy Chase, Maryland-based Hill-Townsend Capital, which invests in financial industry stocks. ``Congress could be the motivator if the FBI is taking this action

Countrywide Financial Corp. is being probed by the U.S. Federal Bureau of Investigation for possible securities fraud

The FBI said on Jan. 29 that it was investigating 14 companies for possible accounting fraud and other crimes related to the subprime lendin...

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Cost of borrowing euros for three months rose to the highest level in seven weeks

The cost of borrowing euros for three months rose to the highest level in seven weeks, adding to evidence central bank attempts to ease a shortage of cash in the money markets are misfiring. The euro interbank offered rate, or Euribor, for the loans climbed 7 basis points to 4.50 percent today, the European Banking Federation said. It was the biggest gain since Jan. 25. The one-week rate was little changed at 4.11 percent. The Federal Reserve said today it plans to increase loans to banks this month to offset ``heightened liquidity pressures'' and a deepening credit crisis. Money-market rates are rising as banks hoard cash after at least $188 billion in credit losses and writedowns linked to the U.S. subprime-mortgage collapse since the beginning of 2007. Credit-default swaps showed bank debt hasbecome more risky than corporate bonds. ``Nothing has actually been solved,'' said Padhraic Garvey, head of investment-grade debt strategy in Amsterdam at ING Bank NV, a unit of the biggest Dutch financial-services company. ``An elevated Euribor is an indication of stress in the financial system. Very clearly, things haven't been sorted out and the U.S. subprime story continues to reverberate throughout the market.'' Today's increase pushed the difference, or spread, between the three-month euro money-market rate and the European Central Bank's benchmark rate to 50 basis points, compared with an average of 25 basis points in the first half of 2007.

Cost of borrowing euros for three months rose to the highest level in seven weeks

The cost of borrowing euros for three months rose to the highest level in seven weeks, adding to evidence central bank attempts to ease a sh...

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Europe's biggest bank unloaded $24 billion (U.S.) of opaque mortgage securities in a fire

Faltering credit markets have tipped over into a new and more dangerous phase – and everyone from municipalities trying to get sewers fixed to people shopping for a car loan will pay the price.Yesterday, Alabama's most populous county teetered on the verge what could become the United States' largest municipal bankruptcy. A pair of financial companies said they received default notices from banks nervously looking for loan payments. Reports swirled that Europe's biggest bank unloaded $24 billion (U.S.) of opaque mortgage securities in a fire sale.Those on the front lines – from bond traders to investment managers – say the latest batch of bad news indicates a harrowing new time in the credit crisis. And that could send a shock wave through the U.S. economy as consumers feel their own version of the pain.<br />"We are in historic scarier-than-all-hell territory," said T.J. Marta, an analyst who monitors the fixed-income markets for RBC Capital Markets. "I am hearing many people say that the market is more broken now than it ever has been.''<br />Problems are popping up on multiple fronts and all have different implications.<br />Alabama's Jefferson County is considering a bankruptcy filing to resolve a financial crisis surrounding $3.2 billion of sewer debt. The county is in talks with banks to work out a solution to its liquidity crisis.<br />Meanwhile, the insurance cities were able to purchase to protect their bonds is losing its lustre. Ratings agencies worry a rise in defaults on bonds backed by riskier debt would cost bond insurers so much they would no longer be worthy of their highest ratings. Those pristine ratings are essential to keep bond insurers in business."The problem now with insurance products is their value is only as good as the perceived view on the insurer," said Richard Tortora, president of Capital Markets Advisors, which provides bond advisory services. Those negative perceptions could last for years, he said.It demonstrates that credit markets are facing a new round of tightening, hitting parts of the market deemed relatively safe months ago.<br />Many of the largest investment banks are due to report results in two weeks, amid fears of a new round of massive writedowns.<br />Paul Lueken, president of 1st Advantage Mortgage in Lombard, Ill, said mortgage loan costs are rising as conditions worsen.In the past few weeks, the "spread" of a home loan's interest rate over the interest rate on a Treasury bond – a key measure of the cost of a mortgage – has spiked to a 25-year high.

Europe's biggest bank unloaded $24 billion (U.S.) of opaque mortgage securities in a fire

Faltering credit markets have tipped over into a new and more dangerous phase – and everyone from municipalities trying to get sewers fixed ...

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Lehman Brothers has suspended two traders in its London offices

Lehman Brothers has suspended two traders in its London offices amid an inquiry into how trades were handled or priced in its equities unit, according to people familiar with the situation. UK markets regulator, the Financial Services Authority, has been apprised of the situation and the firm is cooperating with its inquiry, these people said.The inquiry is focused on the valuation of securities, likely those tied to equity derivatives, in markets that have seen a significant drop in liquidity, these people said.The two traders were suspended a week ago and the trades were identified by Lehman through internal risk systems, these people said.<br />The FSA declined comment, and top traders at Lehman's equity derivatives desk weren't immediately available for comment.Equity derivatives in plain vanilla form allow investment banking clients or a bank's in-house trading desk to navigate volatile stock markets by locking in prices using either indexes or specific stocks.<br />For many banks, the trading and selling of credit and equity derivatives has become a staple of their European-based operations. The rapid growth, though, also has drawn the attention of regulators who have pressed banks to better handle the paperwork behind such trades. Lehman has taken steps to bolster its equity derivatives trading in Europe.The disclosure of problems in equity derivatives could spark a fresh round of regulatory questions about how banks monitor and check complex trading. Those concerns increased this year after French bank Société Générale disclosed that Jérôme Kerviel, a low-level trader on the bank's equity derivatives desk, handled trades that allegedly led to a $7.2bn loss.<br />But for now, the Lehman matter is not seen as material, said people familiar with the trades. The US investment bank is scheduled to report first-quarter results on March 18.

Lehman Brothers has suspended two traders in its London offices

Lehman Brothers has suspended two traders in its London offices amid an inquiry into how trades were handled or priced in its equities unit,...

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Viktor Bout arrested Merchant of Death: Money, Guns, Planes, and the Man Who Makes War Possible

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIxpoqPBRbk3tQI6u1ieP5a81llzdbuvFuMRWDA1bZufNNwB-KX0xZdU4pqG6lvcMPl0wY6mw7RlJVGfO26TWpBrcPY8Edc55rGhtAOzSAwEFO3T9WGBSZvkNVbb7PD60b3zqzRATqTkmY/s1600-h/bout.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5174925165537192994" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIxpoqPBRbk3tQI6u1ieP5a81llzdbuvFuMRWDA1bZufNNwB-KX0xZdU4pqG6lvcMPl0wY6mw7RlJVGfO26TWpBrcPY8Edc55rGhtAOzSAwEFO3T9WGBSZvkNVbb7PD60b3zqzRATqTkmY/s320/bout.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>The United States is seeking the extradition of suspected Russian arms dealer Viktor Bout, but he will remain in Thailand pending an investigation into whether he used the Southeast Asian nation as a base to negotiate arms deals, officials said Friday. <br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUwQ4UlYYFG9Lo9n7dBPNUmUnSwU5z4qXLbjfcAWDt_enf-KhyphenhyphensCcP0pEoNc8_5aXDZLuLDVx2cESaiBo6b4rC3DHfQul1axcmqUgzjOWTRcYZGzbPwiPUXPLlzDYgIo0LXfkg333P_myW/s1600-h/P1TA.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5174924980853599250" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUwQ4UlYYFG9Lo9n7dBPNUmUnSwU5z4qXLbjfcAWDt_enf-KhyphenhyphensCcP0pEoNc8_5aXDZLuLDVx2cESaiBo6b4rC3DHfQul1axcmqUgzjOWTRcYZGzbPwiPUXPLlzDYgIo0LXfkg333P_myW/s400/P1TA.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" /></a>Bout, 41, dubbed "The Merchant of Death" for supplying weapons for bloody conflicts in Africa, was arrested at a Bangkok hotel on Thursday, just hours after flying into the country from Moscow, Thai police said. He faces up to 10 years in prison in Thailand if found guilty on charges of procuring weapons for terrorists, police Lt. Gen. Aidsorn Nontree told a news conference. Police believe he was planning to negotiate arms deals in Thailand. <br />Thai authorities issued an arrest warrant for Bout at the request of the U.S. Drug Enforcement Administration. "We do intend to extradite him," Thomas Pasquarello, regional director of the DEA, told the news conference. But the timing still has "to be worked out between the two nations." Handcuffed and expressionless, Bout was paraded before journalists at the news conference but refused to answer questions. <br />"He is called the 'Merchant of Death' and 'Man of War' for a reason," Pasquerello said. Regarded as one of the world's most wanted arms traffickers, Bout's list of alleged customers in Africa includes former dictator Charles Taylor of Liberia, the Libyan leader Moammar Gadhafi, the late dictator Mobutu Sese Seko of Zaire, now known as Congo, and both sides of the civil war in Angola. <br />One of his companies also served as a subcontractor involved in transporting U.S. military personnel and private U.S. contractors in Iraq, according to a book about Bout by journalists Douglas Farah and Stephen Braun published last year. <br />The 2007 book about Bout, "Merchant of Death: Money, Guns, Planes, and the Man Who Makes War Possible," also says that a plane in Bout's fleet made several airdrops of weapons to FARC guerrillas between December 1998 and April 1999. <br />It says the flights dropped about 10,000 weapons to the rebels, "enabling them to greatly enhance their military capabilities." Bout has been investigated by police in several countries, but has never been prosecuted for arms dealing. <br />In 2005, the U.S. Treasury Department said "Bout has the capacity to transport tanks, helicopters and weapons by the tons to virtually any point in the world. The arms he has sold or brokered has helped fuel conflicts and support U.N.-sanctioned regimes in Afghanistan, Angola, the Democratic Republic of Congo, Liberia, Rwanda, Sierra Leone and Sudan." U.N. reports say he set up a network of more than 50 aircraft around the world, owned by shadowy companies with names such as Bukavu Aviation Transport, Business Air Services and Great Lakes Business Co. <br />A U.N. travel ban imposed on Bout that was still current as of last November said he supported former Liberian President Charles Taylor's regime in efforts to destabilize Sierra Leone and gain illicit access to diamonds, which became known as "blood diamonds" for the warring they inspired. In October 2006, U.S. President George W. Bush issued an executive order freezing the assets of Bout and several associates and warlords in Congo and barring Americans from doing business with them. They were accused of violating international laws involving targeting of children or violating a ban on sales of military equipment to Congo. Bout had been under similar sanctions since 2004. A U.S. Treasury sanctions announcement in 2005 said air transport companies controlled by Bout "played a key role in supplying arms to Charles Taylor's regime in Liberia and the Sierra Leone rebel group, the Revolutionary United Front," both of which were accused of conducting atrocities against civilians. "In exchange for these supplies, Bout received payment from Liberia's international ship registry as well as diamonds and other valuable commodities acquired illegally by Taylor's associates and the RUF," it said. <br />Liberia's maritime registry provides a "flag of convenience" for shipping companies the world over, and is a major legitimate source of revenue for the country. <br />In 2002, Belgium issued an international arrest warrant through Interpol, the international police agency, on charges of money-laundering and criminal conspiracy. <br />Bout won his nickname in November 2000, when Peter Hain, then Britain's Cabinet minister for African affairs, called him "the chief sanctions-buster" flouting U.N. arms embargoes against warring parties in Angola and Sierra Leone and dubbed him "a merchant of death." Bout is believed to have served in an air transport outfit of the Russian military until about 1991. He built his business on the huge drawdown of weapons and aircraft in the communist Eastern bloc as the Cold War <br />After Bout's arrest, U.S. federal authorities in New York unsealed a criminal complaint charging that Bout conspired to sell millions of dollars worth of weapons, including 100 surface-to-air missiles and armor-piercing rockets, that he thought were going to the Revolutionary Armed Forces of Colombia. The FARC has been fighting Colombia's government for more than four decades, and funds itself largely through the cocaine trade and kidnapping for ransom. Thai police Col. Petcharat Sengchai said a second suspect identified as Andrew Smulian was also being sought. The DEA complaint filed in New York federal court said Bout's arrest stemmed from a sting operation over several months in which DEA agents posing as FARC rebels negotiated with Bout for the purchase and delivery of millions of dollars (euros) of armaments and surface-to-air missiles. In New York, U.S. Attorney Michael Garcia would not say how much the weapons involved in the alleged deal were worth but said the cost of transporting them alone was set at $5 million (£á3.26 million). He said the weapons were to be parachuted to FARC fighters in Colombian territory. The arrest "marks the end of the reign of one of the world's most wanted arms traffickers," Garcia said. <br />Bout's best-documented activities have been in Central and West Africa, where he has been accused of funneling weapons since the early 1990s. Bout's business, centered around a fleet of transport aircraft owned and operated by several closely held companies, also reportedly involved him in supplying warring parties in Afghanistan before the 2001 fall of the Taliban.

Viktor Bout arrested Merchant of Death: Money, Guns, Planes, and the Man Who Makes War Possible

The United States is seeking the extradition of suspected Russian arms dealer Viktor Bout, but he will remain in Thailand pending an investi...

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European Union and the United States launched a case against China

The European Union and the United States launched a case against China at the World Trade Organisation Monday over the way Beijing regulates foreign providers of financial information.“Competitive and open financial services information markets are the lifeblood of a strong financial sector, but China's rules have tipped the balance against foreign companies,” EU Trade Commissioner Peter Mandelson said in a statement.“I trust the EU and China will be able to resolve this issue amicably and to mutual benefit.”The WTO umpires the world trade system.Brussels and Washington object to rules that require data suppliers such as Reuters Group, Bloomberg and Dow Jones, part of Rupert Murdoch's News Corp., to operate in China through the state news agency Xinhua – which is also their competitor – instead of dealing directly with customers.“We take note that the European Union has brought up the issue in the dispute settlement system and we will respect any other members' rights under the mechanism,” said an official at China's WTO mission.“We shall study the request forconsultations and deal with it according to WTO procedures,” the official, who declined to be named, told Reuters.U.S. Trade Representative Susan Schwab said the current rules placed U.S. and other foreign suppliers of information at a serious disadvantage. Although Washington had raised the issue repeatedly it had not been resolved.“It is not in China's interest to restrict access to the high-quality, comprehensive financial information provided by foreign service suppliers,” Ms. Schwab said in a statement.Ms. Schwab noted that the rules introduced in 2006 were more restrictive than those prevailing when China joined the WTO.The two trade powers clearly hope this could lead to a swift resolution at the consultation stage of the case as WTO members are not supposed to restrict market access unilaterally.<br />Chinese officials have argued that national security interests require China to regulate the flow of news internally.But the EU and the United States say the dispute is about financial data, such as stock prices and currency rates, rather than news. Financial experts say the Chinese market for financial information was worth over $100-million (U.S.) in 2006 and is still expanding.“We are confident that consultations between the U.S., EU and Chinese governments within the WTO framework will result in an outcome that will support the development of China's financial markets by ensuring the effective flow of financial information,” a Reuters spokesman said.The case is likely to add to strains between Beijing and Washington and Brussels stemming from China's record and still expanding trade surpluses with both the European Union and the United States.China suffered its first loss in a WTO dispute earlier this month in a case involving imported auto parts, brought jointly by the United States, the European Union and Canada.It is facing several other cases, brought mainly by the United States.<br />But China, whose international trade has benefited greatly since it joined the WTO in 2001, settled a case with the United States and Mexico over tax breaks in November without going to a dispute panel, and has used the WTO to bring its own cases.Under WTO rules, the European Union and the United States would hold consultations with China for 60 days. If those fail to resolve the conflict, Washington and Brussels would seek the formation of a panel.

European Union and the United States launched a case against China

The European Union and the United States launched a case against China at the World Trade Organisation Monday over the way Beijing regulates...

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Conrad Black began his 6 1/2-year federal prison sentence in Florida as inmate 18330-424.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7tpdsk4iOBWugssCWv9vqWJ_mAzCBX3c4TmqdgQEpia63D2P8g5T5wGc5EzvpgoM5R8HsXhKC9VL1gEkMITRJM5ddLE8zRpVvfAc0Va0X7CUanlsQ9cH46cg92O6zVeGwCXBMvcMc-sv1/s1600-h/ALeqM5iOIbjndzxy2M4KwZPQUkJpeEoSjQ.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5173660747610794210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7tpdsk4iOBWugssCWv9vqWJ_mAzCBX3c4TmqdgQEpia63D2P8g5T5wGc5EzvpgoM5R8HsXhKC9VL1gEkMITRJM5ddLE8zRpVvfAc0Va0X7CUanlsQ9cH46cg92O6zVeGwCXBMvcMc-sv1/s400/ALeqM5iOIbjndzxy2M4KwZPQUkJpeEoSjQ.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br /> Disgraced media baron Conrad Black on Monday began his six-and-a-half year prison term imposed for a multi-million dollar fraud and obstruction of justice,``If I had committed any of the offenses charged, I would have pleaded guilty and asked for a sentence that would enable me to atone for my crime and assuage my guilt and shame,'' Conrad Black, the convicted former chairman of Hollinger International Inc. and a member of the U.K.'s House of Lords, began his 6 1/2-year federal prison sentence in Florida as inmate 18330-424. <br />Black, 63, turned himself in today to the federal prison at Coleman, Florida, said Charles Ratledge, a spokesman for the facility, located about 50 miles northwest of Orlando. Black was found guilty last year of fraud and obstruction in a scheme to defraud his company and investors. A federal court last week denied his bid to remain free while he appeals. ``I cherish my liberty as all people do, but I am unafraid. I have faith in American justice,'' Black said in a column published today by the New York Sun, a newspaper which identifies him as a founding director. Black maintained he is innocent. A jury of nine women and three men in Chicago convicted Black in July for his role in the theft of $6.1 million from the Chicago-based newspaper publisher now known as the Sun-Times Media Group Inc. He was also found guilty of knowingly removing documents sought by U.S. authorities from his Toronto office. Black led Hollinger for eight years both as chairman and chief executive officer, during which time the company became the world's third-biggest publisher of English language newspapers, including the Chicago Sun-Times, Canada's National Post, the Jerusalem Post and the U.K.'s Daily Telegraph. In November 2003, amid allegations of corruption, he was forced to resign as CEO and was fired as chairman two months later. Born in Montreal, Black relinquished his Canadian citizenship in 2001 to accept a life peerage in Britain's Upper House of Parliament, where he holds the title Lord Black of Crossharbour. He is married to journalist Barbara Amiel Black, and has three children from his first wife, Joanna Black MacDonald. The Coleman Federal Correctional Complex includes one low, one medium and two high-security facilities surrounded by wire fencing, its location demarcated by blue and white signage. The main gate through which Black entered sits perpendicular to the four-lane federal highway U.S. 301, along which reporters, photographers and television news crews began gathering before dawn today. Across the highway from the main gate sits a narrow strip of grass, dirt and gravel bounded by a barbed wire fence, blocking access to the woodlands beyond. Black's low-security lock-up is about a three-hour drive from his home in Palm Beach. As of Feb. 21, that unit had a population of 1,997, Washington-based U.S. Bureau of Prisons spokesman Mike Truman said in a telephone interview. Black will live behind a razor wire-topped double fence and will be forced to wear the prison's standard-issue khaki shirts and pants, as well as a pair of steel-toed shoes, Ratledge, the Coleman Complex spokesman, said. Inmates occupy double-bunked cubicles with small, sealed windows. Each inmate has a chair and shares a common desk, said Ratledge. <br />Visitation by family members and friends is limited to 8 a.m. to 3 p.m., and only from Friday through Monday. ``We have non-contact visiting,'' Ratledge said. ``They get to hug when they enter and they get to hug before they leave.'' <br />All prison inmates are required to work unless they are deemed medically unfit, said Truman. Duties include scrubbing toilets, waxing floors, washing pots and cooking and serving food, Truman said. Prisoners receive a starting wage of 12 cents per hour. Prison lights come on at 6 a.m. Breakfast is served a half hour later and inmates are required to be at work by 7:30 a.m. They receive three meals per day and are counted five times, said Truman. Every prisoner must be back in his cell by 9 p.m. and lights are turned off at 11 p.m. Prison amenities include separate law and leisure libraries, a jogging track and a basketball court. ``Coleman is an excellent facility,'' said Chicago attorney Jeffrey Steinback, who joined Black's defense team to assist with sentencing matters. Black may participate in a program that allows inmates to teach other inmates, the lawyer said. ``He's an outstanding guy for a purpose like that,'' said Steinback. <br /><br />Black has written biographies of U.S. presidents Richard Nixon and Franklin Roosevelt, as well as Quebec Premier Maurice DuPlessis. Because Black renounced his Canadian citizenship and was then convicted of a felony, he may have difficulty returning to his native country when his sentence is finished. ``If he tried to come back to Canada, he could be deported to Britain,'' said Mariel Grant, a history professor at the University of Victoria in British Columbia. <br />Grant, who holds a doctoral degree in modern British history from Oxford University in England, said Black wouldn't be the first member of the House of Lords to be jailed. Novelist Jeffrey Archer in 2001 was jailed for four years after being convicted of perjury. ``There's no legal precedent to strip somebody of their title except in cases of treason,'' she said. ``He can keep his title because he hasn't committed treason.'' <br /><br />Black's time in prison may be marked by an adjustment period during which he experiences depression at his circumstance and becomes accustomed to a world in which the former corporate chairman must take orders, not give them, said Robert Morgan, a professor of correctional mental health and forensic psychology at Texas Tech University in Lubbock. ``There is always an adjustment period once somebody is incarcerated, especially a person of his caliber that's never been in prison before,'' said Morgan, who does not know Black personally. ``If he remains productive and goal-oriented and future- focused,'' the adjustment period will be easier, Morgan said. ``Give this man a typewriter in his cell and 6 1/2 years can fly by relatively quickly.'' <br />In his New York Sun column today, Black said, ``I believe in the confession and repentance of misconduct, as well as in the punishment of crimes,''

Conrad Black began his 6 1/2-year federal prison sentence in Florida as inmate 18330-424.

Disgraced media baron Conrad Black on Monday began his six-and-a-half year prison term imposed for a multi-million dollar fraud and obstruc...

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