Bankrupt Banker

Andrew Maxwell Parker bought expensive cars as many as 14 cars in less than three years along with four mansions all with taxpayers' money.

"I was but a cog in this big machine," Parker told the judge. "The truth is I'm caught in a system that, like with many agencies in Washington, is defective," the San Antonio Express-News reported Tuesday in its online edition.Andrew Maxwell Parker was ordered by U.S. District Judge Fred Biery on Monday to pay $10 million in restitution, equal to his profits from the scheme, and $494,822 in back taxes. And the judge ordered him to serve three years of federal supervision after he's released from prison.Parker, 41, pleaded guilty in August to wire fraud, conspiracy, tax evasion, money laundering and filing false tax reports and faced up to 10 years in prison, as part of a plea deal.He downplayed his role in the fraud, which happened between February 2003 to November 2006.Bank officials testified Parker exploited Export-Import Bank's medium-term loan guarantee program, forcing the bank to make good on $107 million in loans that went into default.Parker also allegedly caused another $10 million in losses to Vinmar Finance Ltd., a commercial lender in Houston that Parker turned to in 2005 when the Export-Import Bank stalled in issuing loan guarantees to Parker's clients.Prosecutors said Parker bought expensive cars as many as 14 cars in less than three years along with four mansions all with taxpayers' money.The government is keeping his Hummer and one of his mansions. The remaining cars have been leased, sold or registered to relatives or others. His other homes were sold or leased.

Andrew Maxwell Parker bought expensive cars as many as 14 cars in less than three years along with four mansions all with taxpayers' money.

"I was but a cog in this big machine," Parker told the judge. "The truth is I'm caught in a system that, like with many a...

Darin Layne Kracl met with two investors at his Salt Lake County business, Advanced Trading Solutions LLC, charging documents state.

Darin Layne Kracl pleaded guilty in 3rd District Court to one count each of second-degree felony securities fraud and third-degree felony theft. He could face up to 20 years in prison when he is sentenced Feb. 9 by Judge Randall Skanchy. The fraud began in December 2006, when Kracl met with two investors at his Salt Lake County business, Advanced Trading Solutions LLC, charging documents state. Despite not having a trading license, Kracl offered to trade the investors' money in foreign markets. During the next five months, the investors paid Kracl about $6.7 million. When the investors requested to see account statements, Kracl allegedly told the men the information was confidential. Authorities later learned Kracl spent about $2.1 million on unrelated people and companies, $1.7 million on his own investment funds, and $869,000 on vehicles, including a Porsche, court documents state. Investors have recovered about $2 million of their original investment but are still owed $4.69 million, court documents state.

Darin Layne Kracl met with two investors at his Salt Lake County business, Advanced Trading Solutions LLC, charging documents state.

Darin Layne Kracl pleaded guilty in 3rd District Court to one count each of second-degree felony securities fraud and third-degree felony th...

Serge Guerrier Jr., tried to buy the items with fraudulent information

Serge Guerrier Jr., 17, of East 37th Street, acting with three other people who have not been arrested, entered a P.C. Richard store at 307 ...

Money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah.

Money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah. The wealthy investor on the other end of the telephone line listened closely to three men from Saratoga County, including an attorney, who cast themselves as international financiers with access to billions. The investor, Brent Ferrin, who lives in Park City, Utah, was skeptical. The men making the pitch were speaking in garbled sentences about Latvian banks, Patriot Act restrictions and shadowy European bank executives who, it would turn out, actually lived in Las Vegas. But Ferrin played along. He questioned why the paper work for a major international loan was being handled by a ''personal injury lawyer'' from Saratoga Springs. The attorney, John M. Hogan Jr., jumped in to defend himself.''Let me tell you why,'' Hogan said. ''Because I, I am tenacious. I don't let go of things when I get my hands onto them. I was for, did they say I was an accountant before I was a lawyer? ... And did they tell you that ah, I don't like to lose and that I'm a bulldog? That's what people call me.'' Unbeknownst to Hogan and his partners in the deal, Ferrin was recording every word for the FBI. It wasn't the first time Hogan, 73, a member of a longtime Saratoga Springs law firm, played a role, knowingly or not, in a questionable loan deal, court records show. But like several upstate New York attorneys who figured in recent federal investigations of real estate and mortgage fraud, Hogan was not charged.Indeed, a months-long Times Union examination has uncovered instances in which federal authorities investigated the roles of lawyers and other licensed professionals embroiled in schemes involving mortgage or bank fraud, without bringing charges. It comes as other lawyers and their clients, who have been prosecuted in upstate federal courts, are accusing the Justice Department of being selective in its prosecutions and of failing to pursue potential conspirators due to a mix of whimsical decision-making and limited law enforcement resources. As the U.S. economy is reeling in the wake of years of sloppy mortgage lending, the government's decision to limit its prosecutions has exposed a gap in law enforcement priorities. It also highlights a shift in focus by the FBI and Justice Department toward combating terrorism and child pornography. In June, that issue bubbled up in a federal courtroom in Albany as U.S. District Judge Gary L. Sharpe sentenced two men, Thomas Disonell and Matthew Kupic, to prison for a series of mortgage fraud crimes that could have put them behind bars for much longer than the 24 months they received. Sharpe reacted strongly as the government sought to credit the men for cooperation that was never used to prosecute anyone else. ''This case caused me to crack an eyebrow,'' Sharpe declared on the bench that day. ''How can they do what they did without the complicity of the lawyers that are involved in the closing? ... I'm not oblivious to the fact that the criminal cases filed with the FBI as the investigating agency is almost nil compared to what they were before 9/11. I know where their resources are. And I'm not attacking that one iota. ... But I happen to know that the amount of time and energy invested in white-collar fraud in criminal investigations is not what it was prior to 9/11.'' Andrew T. Baxter, acting U.S. attorney for New York's Northern District, while declining to comment on any specific case, said it is not a matter of being selective. He said that ''attorney-client privilege can make it more difficult to gather evidence.'' ''In investigating a fraudulent scheme, a key issue as to every subject is the strength of the evidence of the knowledge of the fraudulent nature of relevant transactions and the criminal intent of those involved,'' Baxter said. ''The fact that a subject of an investigation is a lawyer or licensed professional may affect our ability to prove knowledge and intent.'' Still, the Saratoga County case and others like it have exposed a trend in which people accused of federal fraud-related charges turned to attorneys and other professionals who, unwittingly or not, allegedly helped them complete their crimes. In 2005, a year after Ferrin recorded his telephone conversation with Hogan, two other men on the conference call that day, Philip Rechnitzer of Clifton Park and Ronald Persaud of Saratoga Springs, were indicted by a federal grand jury in Albany. The indictment accused them of bilking Ferrin and other investors of more than $1.6 million. Persaud's wife, Indranie, his ex-wife, Esther, and their son, Shawn, a student at Albany Law School, also were indicted. The charges allege numerous investors lost money while seeking financing for high-end development projects like theme parks, Caribbean resorts and even a Lake George hotel.The investors have testified in federal court they believed they were dealing with high-powered financiers who had access to billions of dollars in overseas funding, and not a husband-and-wife team from upstate New York who were having financial troubles. In 2004, at a time when Esther Persaud was claiming to be the managing director of at least three overseas banks, she listed her job as an office manager and stated she had $50 cash on hand when she filed for bankruptcy in Albany. Ronald Persaud, whom prosecutors have cast as the ringleader, also filed for bankruptcy that year, claiming assets of under $11,000. It took place at a time when federal prosecutors say he was fabricating official-looking European bank notes purported to be worth billions of dollars and using those, often with local lawyers at his side, to convince investors to give him money to secure multimillion-dollar loans. Defense attorneys in the case say lawyers were integral in the deals. As the ongoing trial of Ronald and Esther Persaud opened two weeks ago, their criminal attorneys cast blame on at least five business attorneys, including Hogan. Their pitch to the jury in Albany is that lawyers approved documents and wire transfers, and handed over the fraudulent bank notes to investors. The only attorney charged in connection with the scheme was William Tessitore, who lost his law license and pleaded guilty to bank fraud Aug. 11, admitting he looted $624,000 from his escrow accounts. Prosecutors agree that the presence of attorneys is exactly why many victims fell for the scheme, but they have been silent on whether any of the other attorneys violated any laws. In their trial briefs and other court filings in the Persaud case, they make clear that ''the subject fraud was advanced through the assistance of attorneys'' and ''attorney accounts were used to receive alleged wire fraud proceeds.'' According to court records in the case, and the testimony of witnesses at Persaud's trial, Hogan played a key role. He served as a point of contact for duped investors and attended at least one purported ''closing'' for a loan in Zurich, Switzerland, that never took place. Also, Hogan's law firm helped Ronald and Esther Persaud file for bankruptcy in 2004. Early that year, Ronald Persaud listed assets of less than $11,000 and his job as a ''mortgage consultant'' while months later he was posing as an overseas banker during conversations with Hogan and investors. The bankruptcy documents make no mention of Persaud's purported work as an international financier. ''Hogan, by virtue of his law license and his status as a member in good standing of the bar, gave the outward appearance of legitimacy to the fraud conspiracy,'' according to a government memorandum filed in Persaud's case. Still, court records and an FBI document shared with the Times Union show Hogan wasn't the only attorney who aided — if unwittingly — in the alleged crimes of Rechnitzer and Persaud. Anthony Ianniello, a well-known real estate lawyer in Clifton Park, handled the closing on a mortgage in which Persaud's wife, Indranie, a $40,000-a-year postal worker, sharply inflated her income on loan documents so her husband could secretly obtain an $890,000 home in Saratoga Springs. Ianniello also set up a partnership through which Persaud purchased a $135,000 Porsche coupe a year after filing for bankruptcy, and with the proceeds of his alleged crimes, according to the indictment. There is no indication that Ianniello knew Indranie Persaud was committing mortgage fraud. Ianniello declined to comment. But the Porsche deal raised suspicions of authorities. A state motor vehicle investigator who examined the Porsche transaction, and Ianniello's files, concluded in a government report that ''the unsatisfactory and illogical explanations provided by the attorney, lead him to the conclusion that the Porsche transaction was 'classic money laundering to hide an asset,' '' according to a memo filed in court by the U.S. Attorney's Office. Ianniello was never charged. Last year, Ianniello was called in for an interview with the FBI and federal prosecutors. He appeared alone. An FBI report detailing Ianniello's responses to questions indicates he gave carefully worded answers about his dealings with the Persauds, for whom he had handled dozens of real estate transactions. The FBI report indicates Ianniello said he was unaware Ronald Persaud and his wife had laundered money through Ianniello's private attorney escrow accounts. ''He also did not know why money would be transferred from Latvia,'' the FBI report states. ''Ianiello advised that he never dreamed there was a Latvian bank involved. ... He did not recall his staff telling him about these transfers. ... He stated that he was busy and preoccupied.'' Both Ianniello and Hogan are listed as witnesses by the government in the ongoing trial of Ronald, Esther and Shawn Persaud in U.S. District Court in Albany. It's unclear whether they will testify. During a conference in court Thursday, U.S. District Judge Thomas J. McAvoy asked prosecutors whether Hogan would be able to testify this week. The judge told the attorneys that based on what has transpired in the courtroom, including new information that Hogan was allegedly a member of the board of directors of at least one of the shell banks controlled by the Persauds in Scandinavia, that Hogan could put himself in legal jeopardy by testifying. ''He's in danger,'' McAvoy told the attorneys, referring to Hogan. Assistant U.S. Attorney Thomas A. Capezza responded that the government had not offered Hogan an immunity deal. ''We will have backup witnesses

Money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah.

Money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah. The wealthy investor on the other end of the ...

Harris Steel Scam, the biggest fraud in the history of country’s banking sector.

Harris Steel Scam, the biggest fraud in the history of country’s banking sector. The former president of Bank of Punjab, Hamesh Khan, fled the country after committing the fraud while the bank and other authorities probing the matter are under immense pressure to hush up the issue. Interestingly, Hamesh Khan sneaked out of the country when his name was on the Exit Control List (ECL). Well-placed sources disclosed that Hamesh Khan had committed the fraud in connivance with Sheikh Muhammad Afzal, the Chief Executive of Harris Steels Industries and Company.They used fake NICs, fake company documents and bogus collaterals of the barren and useless land situated at the banks of rivers having no market value. The Internal Audit Report of the BoP has revealed that during the presidency of Hamesh Khan, 23 fictitious accounts were opened and later huge finance facilities were sanctioned to these accounts. Ironically all the 23 accounts were opened on fake NICs and with inadequate securities.“The accounts were opened in the name of fictitious persons carrying fake ID cards. The collateral/security which were provided against the financial facility, sanctioned to the 23 accounts, were bogus, extraordinarily high valued or based on fake evaluation of properties,” sources revealed, quoting excerpts of the report of the internal auditor. Later, the State Bank of Pakistan constituted an inspection team, which conducted the inquiry and confirmed that the loans were sanctioned to the Harris Steels on fake evaluation. Sources said that the SBP inspection team had also reported that Harris Steel is the leading beneficiary of these borrowings as the amount of Rs 9 billion was sanctioned to the Harris Steels and associated accounts. Following the report of its inspection team, SBP directed the BoP management ‘to close the accounts and go for provision’. The top bank management then did not pay heed to the SBP instruction by using delaying tactics, sources added. Then the SBP issued letters to the BoP management stating that these huge loans were sanctioned against the law and the rules and regulations.Even before these 23 accounts were opened, Sheikh Muhammad Afzal manipulated to open three accounts in the BoP in the name of Harris Steels, Haider Steels and Prime Steels in 2005. The directors and guarantors in these three accounts were also bogus and each was carrying three ID cards at a time with different names and address.The Bank of Punjab sanctioned Rs 5 billion loans to Harris Steels, Haider Steels and Prime Steels on the fake documents in 2005. Later, Sheikh Afzal and company opened 23 fresh accounts, as the bank was not in a position to sanction more loans after lending them Rs 5 billion. The bank later sanctioned another Rs 4.5 billion loan to these 23 accounts. With management highly favourable, Sheikh Afzal and company managed to get loans worth over Rs 9 billion in just two years from the BOP, which was unprecedented as the banks never sanction such a huge loan to an unknown company in such a short span of time. The accused, soon after the NAB started investigations, approached the Lahore High Court and filed various writ petitions for quashing the investigation started by the bureau.The LHC in response to these petitions passed an order dated June 18, 2008 that no uncalled harassment should be caused to the petitioners. The source said that during the course of investigation, the NAB arrested bank employees involved in the fraud and conducted numerous raids on the properties owned by the Harris Steels. During the raids, the NAB recovered fake CINCs, property documents and stationery of various fictitious companies from the properties owned by Sheikh Afzal and others

Harris Steel Scam, the biggest fraud in the history of country’s banking sector.

Harris Steel Scam, the biggest fraud in the history of country’s banking sector. The former president of Bank of Punjab, Hamesh Khan, fled t...

Barclays shunted hundreds of millions of dollars of toxic mortgage assets into two secretive investment vehicles that it had created itself.

Barclays shunted hundreds of millions of dollars of toxic mortgage assets into two secretive investment vehicles that it had created itself. It did this just as the collapse of two Bear Stearns hedge funds last year alerted executives to the extent of the coming troubles in the credit markets, according to a lawsuit. Barclays must decide this week if it will try to persuade a US court to throw out the suit, which alleges that the bank defrauded investors in the two structured investment vehicles "SIV-lites". Both went bust just weeks after the transfers. The bank must file for dismissal by Friday or face a trial. Barclays, under its president Bob Diamond, is now expanding its US investment banking operations aggressively, and the case threatens to hurt its reputation and reveal details of how it responded to the emerging crisis in the credit markets last year. The transfers of toxic mortgage derivatives into its SIV-lites occurred as another division of the bank was facing big losses on its investment in the Bear Stearns funds, which Barclays is now alleging were used by that bank as a dumping ground for toxic assets of its own.Across the world, lawyers have begun to pick through a vast network of inter-connected investment vehicles created during the credit market boom, through which increasingly complex mortgage derivatives were spread around the financial system. Civil lawyers and criminal investigators are looking for evidence deep in the contracts that defined these vehicles and set out the relationships between the banks that created them, the hedge funds that managed them and the investors that bet on them. In the latest case, Barclays is being sued by a French asset manager in a New York court over the collapse of two investment vehicles designed in London and managed out of the tax havens of Jersey and Guernsey. Oddo Asset Management says it lost its $50m (around £30m) investment in two SIV-lites, Mainsail and Golden Key, because of a scheme cooked up between Barclays and its partners.The two vehicles purchased, at face value, several hundred million dollars of mortgage derivatives that had previously been sitting on Barclays' balance sheet and threatened to cause big losses for the UK company.

Barclays shunted hundreds of millions of dollars of toxic mortgage assets into two secretive investment vehicles that it had created itself.

Barclays shunted hundreds of millions of dollars of toxic mortgage assets into two secretive investment vehicles that it had created itself....

Gwendolyn Moyo guilty on all charges in her federal fraud trial

Gwendolyn Moyo guilty on all charges in her federal fraud trial, the third conviction in an international financial scam that brought down former state Sen. Derrick Shepherd, who pleaded guilty and resigned his Senate seat days before the trial began last week.Moyo, a bond broker with two previous convictions who represented herself during trial, displayed no emotion as she sat at a table taking notes while a clerk spent nearly 10 minutes reading the verdict. The jury of six men and six women deliberated for 10 hours over two days before convicting Moyo on 41 counts of fraud, conspiracy and money laundering for selling more than a dozen bogus construction bonds, netting about $2 million in illegal proceeds.Moyo was not allowed to speak to reporters, but she released a one-page handwritten statement saying she respects the jury's verdict but condemns the government for discriminating against her because she is black."This verdict doesn't surprise me whatsoever. After all, this is Louisiana, home of the good ol' boys, " she wrote. "It's just another tragedy in seeking -- not equal justice -- but fair justice when you're an African-American in America."U.S. Attorney Jim Letten noted that nearly all of Moyo's victims were minority contractors and business people."The real irony is that she was not treated differently because she is an African-American, but the people she preyed upon were targeted because they were minorities, " Letten said. "The only people who didn't get a fair shake were the victims who lost millions of dollars to Ms. Moyo and her cronies."Moyo's conviction is sure to sharpen the focus on the alleged roles of U.S. Rep. William Jefferson and his sister, Betty Jefferson, a New Orleans assessor, who are listed as unindicted co-conspirators in Moyo's indictment. Neither has been charged, and Letten declined to say whether the Jeffersons are targets in the ongoing probe.Jurors were universally impressed with the government's case, said jury foreman Danny Keating of Slidell, who attributed the lengthy deliberations to the painstaking task of sifting through hundreds of pages of financial documents to support each charge. "The government was extremely well-prepared, and Ms. Moyo wasn't prepared at all, " he said. "She would have been better served with a trained attorney, but I don't think it would have changed the verdict."Asked whether he could recall a single significant point Moyo made in her own defense during three days of testimony, Keating said, "No, not really."Moyo, who declined a court-offered public defender, had a "standby" attorney to advise her on procedural matters.Moyo drew a rebuke from U.S. District Judge Carl Barbier before jury selection began when she made a show of putting on makeup in court. Moyo cut those antics when the jury was present, but she often seemed befuddled during her rambling cross-examinations, and Barbier continually admonished her to stick to evidence in the case.Moyo, 53, has been held in jail without bond since her arrest a year ago. She faces 15 to 20 years in prison when she is sentenced Jan. 21, according to federal sentencing guidelines.The jury ordered Moyo to forfeit $3.1 million that was obtained by fraud or laundered.Any money collected is to be distributed to the victims, but bank records presented in court show Moyo blew through cash as quickly as she bilked it from a church and numerous small businesses, several of which were shoved to the brink of bankruptcy. She also owes $1.2 million in restitution from a 1989 conviction on similar fraud charges in Arizona. She was convicted again a year later for using fraudulent credit cards to pay $120,000 in legal fees and other expenses related to the first trial, which lasted three months.The phony bonds Moyo sold for $100,000 and up were intended to serve as multimillion-dollar insurance policies that could be cashed if contractors failed to complete major construction projects.The state Department of Insurance began an investigation in the fall of 2006 when it started receiving complaints that Moyo refused to pay off bonds for failed projects.Prosecutors sought to simplify the case by boiling it down to its most basic elements: Moyo was not a licensed bond broker but sold bonds anyway. The fact that the documents were worthless just added a major insult to injury, they said.Moyo, who called no witnesses to testify in her defense, claimed she did not need a broker's license because she acted as an "insurance consultant, " a position not recognized by Louisiana law.Many of the bogus bonds were underwritten by a shell company in Toronto that claimed to have $20 million in cash reserves at a time when the company president was locked out of his office for falling behind in rent payments. Prosecutors said Moyo executed the scam with help from "three dupes, " including two Chinese citizens with student visas and a California retiree whom she had never met in person until he testified against her during the three-day trial.James Zoucha, 67, of Oceanside, Calif., who pleaded guilty Sept. 10 to conspiracy to commit mail and wire fraud, admitted printing phony bonds using a form scanned into his computer. The relatively crude nature of the scheme makes it all the more surprising that three prominent New Orleans area politicians became enmeshed in the case.Shepherd pleaded guilty to conspiracy to commit money laundering Oct. 10, just four days before he was to stand trial with Moyo. The Marrero Democrat, who resigned his 3rd District Senate seat, had been charged with helping Moyo launder $141,000 in ill-gotten gains, keeping $65,000 for himself.

Gwendolyn Moyo guilty on all charges in her federal fraud trial

Gwendolyn Moyo guilty on all charges in her federal fraud trial, the third conviction in an international financial scam that brought down f...

Jack Sousa, the owner of the Academy of Driving arrested

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQsLjcLjg91HiFBuVbHqS_gZP26XynKC58JgPJKIv9U_c44eKeHQjHLsKv_wyOnHkoHzDTbu4WXE1RFJjmOYwwqpW-FUo06kflLBIWDdqsbktnQFJZQCIbE42OlN24MUZxTAxJAgZBOyP0/s1600-h/jack.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5259874487724769778" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQsLjcLjg91HiFBuVbHqS_gZP26XynKC58JgPJKIv9U_c44eKeHQjHLsKv_wyOnHkoHzDTbu4WXE1RFJjmOYwwqpW-FUo06kflLBIWDdqsbktnQFJZQCIbE42OlN24MUZxTAxJAgZBOyP0/s400/jack.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Police arrested Jack Sousa, the owner of the Academy of Driving, his wife and three former employees Tuesday on fraud and forgery charges. State police said they handed out learner's permits without parental consent and altered Department of Motor Vehicle documents."We're disappointed that the investigation led to so many charges," said Sousa's attorney, John Droney, in statement. "There are a whole series of technical violations which we haven't had a chance to review and see if they are true or not."State police served a search warrant earlier this year at the school's Watertown and Waterbury locations. Police said they uncovered dozens of forged consent forms."These are Department of Motor Vehicle documents that, in fact, had inappropriate or improper information attached to them," Lt. Paul Vance said. Academy of Driving instructor Jim Thompson said Tuesday he did not know about the charges."I know something's going on, but I wasn't told specifically what was going on," he said.A father dropping off his son for driving lessons also said he was not aware of the charges."I will tell my wife, and she'll take care of it," he said. "Of course we don't want anything that is not kosher or not legal."The DMV also brought nearly 500 charges against the school itself and issued a summons to the owners. A hearing will whether it can stay open. Until then, school said lessons will continue. The Academy of Driving has more than 50 locations. More than 500 students are in training at any one time.

Jack Sousa, the owner of the Academy of Driving arrested

Police arrested Jack Sousa, the owner of the Academy of Driving, his wife and three former employees Tuesday on fraud and forgery charges. S...

Ted Russell Schwartz Murray, owner of Premier Holdings real estate investments, was found guilty by a jury in U.S.

Ted Russell Schwartz Murray, owner of Premier Holdings real estate investments, was found guilty by a jury in U.S. District Judge Vanessa Gilmore's court of conspiracy, fraud and filing false tax returns.Assistant U.S. Attorney Cedric Joubert told jurors that Murray and his two codefendants, who entered into plea bargains and testified against him, stole $67 million from wealthy investors including Norris, Jim "Mattress Mack" McInvale, retired baseball player Vince Coleman and many Houstonians.Murray and his coconspirators promised investors high interest, low fees, quick cash outs and instead stole most of their money, the prosecutor said. "This is not about bad business practices. This is about fraud, deceit, misrepresentation and lies," Joubert told the jury in final arguments.Jurors also heard about Murray dining with Tiger Woods in Scottsdale, Ariz., but failing to hook him as an investor. And he also was the signatory on a letter handed out at Charles Barkley fundraiser roast touting the investment program. They heard about Murray writing off a $29,000 Rolex as "supplies and equipment" on his taxes and also taking deductions for his mother's rent, her spa treatment, casino gambling and buying small boats.The more complicated evidence they heard was about subprime mortgages and commercial loans failing and Murray and his cohorts misrepresenting the failures and continuing to bring in investors who were duped and eventually lost millions.Murray's lawyer Ed Tomko said it was Murray's codefendants, David Isaac Lapin and Jeffrey Carl Wigginton, who ran a subsidiary of Premiere called Lapin and Wigginton Asset Management, who committed all the fraud and Murray didn't know about it. "We are very disappointed in the verdict. We will ask for a new trial and if that isn't successful, I expect he will appeal," said Tomko. The trial started before the major collapse of Wall Street and was interrupted by Hurricane Ike."I don't think the jury seeing the economy collapse because of bad mortgages could have helped us," Tomko said.Murray, who said he's currently supporting himself by trading natural gas and servicing outstanding mortgages, begged the judge to let him stay free on his $500,000 unsecured bond until his March 2009 sentencing. Gilmore said she will allow him a short period of time to get his affairs in order and but is likely send him to prison before his sentencing date.Lapin and Wigginton have both pleaded guilty to one count of conspiracy and testified that Murray kept them in the dark about some of the fraud. They have yet to be sentenced.The men sold investors on groups of subprime residential mortgages and then later on some commercial loans. They called the investments Premiere 72. According to testimony, the business promised: 72-hour liquidity on investments, though they had no pool of cash to keep that promise; first liens on the real estate, though that was not true; 12 percent interest, which was actually paid out of their own investments; and one percent fees, though fees of 25 percent and more were taken.Evidence showed many of the loans the company held were in default and Murray did not tell investors. Instead the company paid investors regular "interest," letting them think it was a return on investments when it was really just pieces of their original investment.Testimony also indicated Murray ran up regular gambling debts at casinos. But he said he did so in part to cash out chips and use the money to give presents to his children and others.

Ted Russell Schwartz Murray, owner of Premier Holdings real estate investments, was found guilty by a jury in U.S.

Ted Russell Schwartz Murray, owner of Premier Holdings real estate investments, was found guilty by a jury in U.S. District Judge Vanessa Gi...

Tom Petters is not Osama bin Laden, charged with mail fraud, wire fraud, money laundering and obstruction of justice.

"Tom Petters is not Osama bin Laden," said Jon Hopeman, the Minneapolis attorney who was retained three weeks ago to defend Petters against charges of mail fraud, wire fraud, money laundering and obstruction of justice.The charges stem from a stunningly fast investigation into what federal authorities have described as a $3 billion Ponzi scheme, headed by Petters, which attracted investors with promises of high returns through the purchase and sale of consumer electronics that proved to be fictitious.Once one the Twin Cities' best-known entrepreneurs whose holdings include Polaroid, Fingerhut and Sun Country Airlines, Petters has remained in federal custody without bail since his arrest on Oct. 3."Mr. Petters is doing just fine," Hopeman said Wednesday. "He has spent his whole life as a salesman extraordinaire, and he has a very positive outlook."Hopeman reiterated that Petters still believes he is innocent and plans to fight the charges despite guilty pleas from three of his business associates who have agreed to cooperate with prosecutors.Hopeman said he expects a grand jury indictment early next month."Only then are we entitled to see the boxes and boxes of evidence the government took from his business and his home," Hopeman said. "Only then will we know who the witnesses will be." Until then, Hopeman said, "It's like being in a race, but you don't know how far you have to run and what route to take."Petters has spent his time reflecting while sitting in the Sherburne County jail and has taken to reading some religious material and visiting regularly with a pastor, Hopeman said.Much of Petters' business empire has been placed under a receivership. Hopeman described Petters as "mortified" about his companies becoming unstable and about the fact that some employees have lost their jobs in the aftermath of the investigation. Petters also is extremely concerned about his family, his lawyer said.Hopeman released a letter written by Petters' father to Bishop Dennis Schnurr of Duluth over a sermon at a Catholic church in Grand Marais in which the pastor referred to Tom Petters by name as someone who had stolen millions from innocent people.Fredric Petters was attending church at the time. "I never expected to hear such a falsehood from the pulpit of the church that I love," the elder Petters wrote.Schnurr could not be reached for comment Wednesday.Hopeman said he and Petters have been working with court-appointed receiver Doug Kelley to put the various Petters' companies into receivership as well Petters' personal assets. They now will put more attention on the criminal case, Hopeman said.Asked about the three coworkers who last week pleaded guilty, Hopeman said Petters "has some concerns about that.""We'll do a complete investigation of them," Hopeman said.Hopeman said he called several reporters to his office Wednesday afternoon because he felt the need to counteract a serious backlash against his client on the airwaves and the Internet, where bloggers have shown a keen interest in the Petters case."The rush to judgment has been such a tsunami," Hopeman said. Asked why, he said, "It's a spectacular fall from grace and it involves someone going from the board room to jail without much pause in between. The amount of money being talked about would catch anyone's eye, and the economy is a big part of it, too."Hopeman said Petters told him nothing the government does to him will cause more pain than the loss of his son John four years ago when he was murdered in Italy."Right now we wait. For Mr. Petters who is used to facing problems and solving them, this is the hardest thing to do," Hopeman said.

Tom Petters is not Osama bin Laden, charged with mail fraud, wire fraud, money laundering and obstruction of justice.

"Tom Petters is not Osama bin Laden," said Jon Hopeman, the Minneapolis attorney who was retained three weeks ago to defend Petter...

police have raided the headquarters of Microsoft-owned Fast Search and Transfer and charged the firm with accounting fraud.

Norwegian economic crime police have raided the headquarters of Microsoft-owned Fast Search and Transfer and charged the firm with accounting fraud.Police attorney Baard Thorsen told Reuters that evidence was being sought following allegations that Fast inflated its revenues prior to Microsoft’s $1.2bn buyout of the company in January this year."We are raiding Fast's offices now to secure evidence," said Thorsen. "The charge is for accounting fraud."Microsoft confirmed in a statement that the raid had taken place at the company’s offices in Oslo this morning.“Microsoft and its subsidiary FAST Search and Transfer is cooperating fully with the police' enquiries,” said the software giant. “We are not in a position to make any further comments at this time.”Today’s police raid followed a complaint filed by the government Financial Superisory Authority in April.It claimed that Fast had ignored basic accounting and documentation rules by exaggerating its reported revenue by 250m kroner (US$40m)."We are conducting the search based on an order from the Oslo district court. We are going through documents and copying servers, and gathering information and evidence," said Thorsen, according to Associated Press. "There are reasonable grounds for suspicion, and we have to investigate," he said. "This is about manipulating the accounts.

police have raided the headquarters of Microsoft-owned Fast Search and Transfer and charged the firm with accounting fraud.

Norwegian economic crime police have raided the headquarters of Microsoft-owned Fast Search and Transfer and charged the firm with accountin...

Big Dig contractor McCourt Construction,Ryan McCourt was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment

Ryan McCourt of Quincy, Mass., was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment, the U.S. attorney's office said in a statement. Kenneth Hartley of California was sentenced to six months in the custody of the US Bureau of Prisons, two years of supervised release, and a $100 special assessment.The two men had pleaded guilty in July to one count each of conspiracy to make false statements regarding a federal highway project, the US attorney's office said.Prosecutors said that McCourt and Hartley, along with Big Dig contractor McCourt Construction, schemed to overbill the multi-billion-dollar project by falsely categorizing apprentice ironworkers, among other workers, as higher-paid journeymen.Prosecutors have said the workers were paid as apprentices and the company pocketed the difference. The overpayments allegedly totaled $314,494.The scheme by the managers of the company's Claims and Changes Department allegedly ran from 2002 through December 2005. Hartley was the department manager from 2001 through June 2004. McCourt had the same job from about July 2004 through the end of the conspiracy, prosecutors said.The company, which was the main contractor on the Interstate 93 tunnel finishing contract, has pleaded guilty in the scheme and will be sentenced on Nov. 7, prosecutors said.

Big Dig contractor McCourt Construction,Ryan McCourt was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment

Ryan McCourt of Quincy, Mass., was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment, the U.S. attorney'...

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case” and many of his victims’ losses were “unintended.”O’Brien, 28, pleaded guilty to one count of mail fraud in February which prosecutors say included sophisticated Ponzi schemes and phantom herding — the selling of cattle to more than one buyer — to cheat more than a dozen victims of more than $5 million in less than one year.“His family is well regarded in the community. His scheme succeeded, in part, because he traded on his family’s reputation,” Assistant U.S. Attorney L. Anna Forbes wrote in a presentencing memorandum. “Some of the victims were banks; a few were relatively wealthy people; but several were just hard-working folks who did business the way it always had been — with a firm handshake and an expectation that the defendant would do what he said he would do.”Defense lawyer Rodney Smith said in his presentencing memorandum to the court that O’Brien began acquiring cattle while still attending Greenbrier East High school, and by the age of 23 was operating a cattle broker business in the county.“He (O’Brien) initially profited by raising cattle and engaging in relatively small cattle deals,” Smith wrote. “When an opportunity presented itself to engage in cattle deals with well-established cattle brokers in the Greenbrier Valley, Mr. O’Brien, against his father’s advice, embraced the opportunity.”Smith said O’Brien participated in several large cattle deals “with cattle dealers around the country,” but “due to poor business decisions ... by 2005, at the age of 25, he soon found himself deep in debt and unable to meet financial obligations.“To keep his business afloat and pay creditors, Mr. O’Brien began engaging in illegal conduct, including ‘kiting’ checks and selling a group of cattle to more than one buyer,” Smith wrote. “For a short period of time, (his) illegal conduct allowed him to remain in the cattle business ... by March 2006, however, (his) tenuous financial situation collapsed.”Smith said an investor stopped payment on a big check and a First National Bank account was frozen to recover funds owed on outstanding loans, thus pushing him into “financial ruin.” “Mr. O’Brien’s illegal efforts to prolong the life of his business resulted in debts that far exceeded his assets, and he had no viable option other than to file for bankruptcy,” Smith wrote. “(His) conduct can be distinguished from ‘typical’ fraud cases because even though the losses were foreseeable, the vast majority of the losses suffered by the victims were unintended.”Smith then argued O’Brien continued cheating people in order to be able to pay back the other people he was already cheating. “He engaged in most of his illegal conduct to allow him to continue to be a cattle broker with the hope that he could pay his investors and make a living,” Smith wrote. For these reasons and others, according to Smith, O’Brien’s prison term should be less than the eight to 10 years that’s been recommended by his probation officer and agreed to by the U.S. Attorney’s Office.Smith also cites O’Brien’s cooperation in helping convict former First National Bank president Charles A. Henthorn and former FNB board president G. Thomas Garten.Henthorn pleaded guilty to taking $9,700 in bribes from O’Brien and Garten pleaded guilty to aiding and abetting those bribes earlier this year.O’Brien wore a tape-recording device when speaking to Henthorn to gain evidence against him for prosecutors.His client has already paid a steep price for his criminal conduct, Smith wrote, by losing respect in his small community, disappointing loved ones and suffering tremendous financial losses of his own that will have a life-long effect.Furthermore, Smith said, O’Brien will never be able to operate the same type of scams again because of his newfound notoriety.“Because (his) criminal prosecution has received a tremendous amount of media coverage in his community, it is highly improbable that individuals will place the trust in him necessary to engage in the same criminal conduct upon his return to the community.” A new twist to the case may also decrease O’Brien’s prison term. Documents filed by the United States last month indicated O’Brien has given evidence which could possibly produce more indictments in this complicated case.O’Brien, along with Henthorn and Garten, is scheduled to be sentenced Friday by U.S. District Judge Thomas E. Johnston in Beckley.O’Brien’s multimillion-dollar bankruptcy cases continues to play out in federal bankruptcy court.

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical f...

Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.

Sentenced Forest Lake minister to 15 years in prison for his role in a multimillion-dollar pyramid scheme Thursday, but he wasn't happy about it. Davis, Minnesota's chief federal judge, upbraided the U.S. Justice Department for its handling of a case in which Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.Terrence Correll, architect of the Ponzi scheme that bilked 519 people of up to $390 million, received a 12-year term.Under the sentencing guidelines, Davis said, "the more you steal, the better off you are." Midkiff, 66, wept as he apologized for his part in the scheme, although he said that he did not realize at the time he was committing fraud.Davis expressed doubt. "You can't hide behind being an unsophisticated person," he said. Midkiff was blamed for at least $18 million lost in the scam."This is such a difficult sentence," said Davis, recalling the testimony of victims who were ruined by the venture. "I heard all the pain and agony."But he called it "absurd" that under sentencing guidelines, Midkiff faced significantly more prison time than the leaders of Enron and WorldCom faced for larger crimes.Davis criticized the Justice Department for having the cases tried in different states. Correll pleaded guilty in Atlanta."It could have been handled in Minnesota," Davis told Assistant U.S. Attorney Timothy Rank.While longer than Correll's, Midkiff's sentence was shorter than it could have been. Sentencing guidelines called for 27 to 33 years. "And that would be totally inappropriate," Davis said.Midkiff was convicted in August of 21 counts of mail and wire fraud and tax evasion. His partner Jerry Watkins has pleaded guilty to fraud and testified against Midkiff.

Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.

Sentenced Forest Lake minister to 15 years in prison for his role in a multimillion-dollar pyramid scheme Thursday, but he wasn't happy ...

Matthew John Rhodin has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheuFb3ck1TwPojBCYQQAJt7TwhQr_2ucgr_Guq3PMLDy32FN_zb9EsCZJ7nAtg55I_AXU0c4JSdyBv20mJuaQnCv8QC_FAyPr7b8UmpG2rURwdZBTmYQx20mA7E5b9n0ICa6Nt2wUDbQaj/s1600-h/470rhodin,0.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5258277082080590626" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheuFb3ck1TwPojBCYQQAJt7TwhQr_2ucgr_Guq3PMLDy32FN_zb9EsCZJ7nAtg55I_AXU0c4JSdyBv20mJuaQnCv8QC_FAyPr7b8UmpG2rURwdZBTmYQx20mA7E5b9n0ICa6Nt2wUDbQaj/s400/470rhodin,0.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Matthew John Rhodin, boyfriend of model-turned-television personality Charlotte Dawson, has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money.Rhodin, 42, appeared in Sydney's Central Local Court today after he was arrested by police in his Kings Cross luxury apartment yesterday morning.He faced three charges including two counts of using a false instrument with intent and one of making a false statement to obtain money. high-flying boyfriend of Australia's Next Top Model judge Charlotte Dawson has denied charges relating to a $7.35 million (NZD$8.1 million) fraud and must post a $100,000 (NZD$164,046) surety before he can be released on bail.However, Ben Clark, lawyer for Matthew John Rhodin, 42, told Sydney's Central Local Court on Friday that his client was not in a position to post the required surety.Rhodin, of Rushcutters Bay in Sydney's east, is accused of providing an inflated property valuation and using two false leases to secure the loan.He pleaded not guilty to two charges of using a false instrument with intent and one charge of making a false statement to obtain money.Dressed in jeans and a long grey t-shirt, with the words Morning Glory written across it, Rhodin clasped his hands together after instructing his lawyer to apply for bail.In granting bail, Magistrate Jane Culver imposed strict conditions, ordering Rhodin to report to Kings Cross police station twice a day, stay away from international departure ports, surrender his passport and provide the $100,000 surety.Ms Culver said the police facts revealed a strong prosecution case and a "very strong likelihood of a significant custodial sentence"."There are some features under the bail act which would suggest this man is a possible flight risk," she said.Officers arrested Rhodin at his luxury apartment at 6.55am yesterday (AEDT) following a three-month investigation.Police allege he used a phantom lease and property valuation to obtain a loan for a commercial property on Darlinghurst Road, Darlinghurst, last year.The vendor of the property agreed to sell it to Rhodin's company NR Marketing for "well below" the estimated value, according to a police statement of facts tendered to the court.Rhodin allegedly submitted an online application to the Commonwealth Bank of Australia for a $7.35 million loan in October 2007 in which he included a $10.5 million (NZD$11.7 million) independent valuation of the Darlinghurst property.Police said he used false lease documents to substantiate to the bank that the property, which contained three vacant floors, would return $385,000 (NZD$427,649) rental income per year between July 2007 and July 2013.But Rhodin's company defaulted last December after failing to make the first repayment of $45,000 (NZD$50,000).Rhodin has recently been spotted at social functions with Dawson, a former model who now stars on the Seven Network reality modelling television show.He is required to appear at Downing Centre Local Court on December 11.

Matthew John Rhodin has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money

Matthew John Rhodin, boyfriend of model-turned-television personality Charlotte Dawson, has been granted $100,000 bail on fraud charges, but...

Ronald Dale Cole,pleaded guilty to two counts of odometer tampering.

Ronald Dale Cole, 55, pleaded guilty on May 30, in U.S. District Court in Atlanta, to two counts of odometer tampering.Cole bought high-mile...

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds, U.S. Attorney Catherine Hanaway said Friday.Hanaway said in a release that Kermit Kingsley Hall and Joseph G. Cooper, who operated the Kingsley Trust from offices at 5494 Brown Road in Hazelwood, Mo., allegedly solicited investments in the Kingsley Trust based on false representations about the safety of investments in the trust.The trust’s Web site falsely described investments in the trust as “guaranteed deposits that post annual rates twice the norm” and contained the assertion that they erase the guesswork with “principal guarantee,” according to Hanaway. Kingsley Trust brochures falsely stated that “deposited amounts are guaranteed with interest benefits locked in at the time of deposit.”“Instead of investing victims’ funds, Hall and Cooper used approximately $345,000 of their funds to purchase a vehicle, pay personal expenses, attorneys’ fees and give money to relatives; and none of the victims’ money was actually invested,” Hanaway said in a statement.Hall, 58, of San Luis Obispo, Calif., was convicted of on one felony count of mail fraud and two felony counts of wire fraud in a four-day trial before U.S. District Judge E. Richard Webber. Hall’s sentencing has been set for Jan. 9, 2009.Cooper, 51, of Florissant, Mo., previously pleaded guilty to related charges and awaits sentencing.Each fraud count carries a maximum penalty of 20 years in prison and/or fines up to $250,000.

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds, U....

Darkmarket enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down

online criminal forum that was used by thousands of fraudsters to buy and sell stolen credit card and bank details has been shut down following a two year FBI-led undercover operation.The Dark Market site was used by cyber criminals around the world to buy and sell credit card data, user names and passwords, as well as equipment for carrying out financial crimes. The FBI - which shut the site down earlier this month - says at its peak Dark Market had over 2500 registered members. The FBI infiltrated the forum, gathering intelligence on leading criminals before teaming with other agencies to identify the fraudsters. Around 56 people have been arrested following co-ordinated raids carried out in the US, Germany, Turkey and the UK.Britain's Serious Organised Crime Agency (Soca) arrested 11 people in London, Manchester and Leicester as part of the investigation into the Dark Market Web site. Soca says sites like Dark Market are closely guarded and inaccessible to most Web users as they operate on an exclusive membership basis and by invitation only. The sites use breaking-news style updates on the latest compromised personal information. Sharon Lemon, deputy director, e-crime, Soca says the people involved in this kind of activity are not technical experts but "thieves with keyboards". "They have a certain arrogance - they think they are untouchable," she says."The message today is that no-one should feel confident that these forums are a secure place to operate," adds Lemon. "While some suspects remain at large in the UK and overseas, Soca and its partners will continue to identify these individuals and bring them to justice." Soca says further arrests are expected both in the UK and abroad as the investigation continues.The operation against the Dark Market forum also prevented $70 million in losses through the seizure of compromised victim accounts, says the FBI.Says Shawn Henry, assistant director, cyber division, FBI: "In today's world of rapidly expanding technology, where cyber crimes are perpetrated instantly from anywhere in the world, law enforcement needs to be flexible and creative in our efforts to target these criminals."Leads in many of these investigations take us to the online world of Internet forums, where criminals go to engage in the business of selling and trading innocent person's credit card numbers and other personal information."Henry says the arrests "are a good demonstration of the coordination taking place today between the FBI, the Serious Organised Crime Agency, and other law enforcement agencies around the globe". Sixty people across the globe have been arrested in connection with the "Darkmarket" website, including Britons from Leicester, Manchester, Humberside, South Yorkshire and London.The international forum that enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down by the Serious Organised Crime Agency (Soca).The site allowed criminals to exchange information on how to commit online fraud, as well as offering the sensitive data contained on the magnetic strips of credit cards.Soca said one of the people arrested had spent £250,000 buying personal data on the site, which could have been used to make £10m from identity fraud.Police used international crime specialists to infiltrate the website and identify its users.A spokesman said: "People were exchanging information about how to commit online fraud."(The site) enabled a whole range of criminal activities, from how to go about stealing data to how to make the best use of it once it had been stolen."The website had been in operation for three years and could only be accessed by invitation.Greg Day, security analyst from McAfee, told Sky News Online the arrests were a "great step forward", but added that as numbers of online shoppers grow, identity theft is a growing problem."We spend more of our lives now in the digital world - and so do criminals," he said."On the high street, we understand the risks and take steps to manage them."Online there are different risks and people need to be prepared to deal with them appropriately."Mr Day added online fraud is becoming increasingly difficult to stamp out.He said: "It's much harder to really understand the true origins - to infiltrate and co-ordinate these raids on a global basis - which is what we have to do with cyber threats."What's very significant about this case is that it was a syndicate that stole the information, educated people on how to use it and then converted it into cash.

Darkmarket enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down

online criminal forum that was used by thousands of fraudsters to buy and sell stolen credit card and bank details has been shut down follow...

World Group Securities Inc. charged with securities fraud

The brokers -- Guillermo Haro, Kederio Ainsworth, Jesus Gutierrez, Gabriel Paredes and Angel Romo -- worked out of Los Angeles. The SEC alleges the five paid themselves high commissions on both the subprime mortgages and the securities purchases. The customers generally were of modest means, had little prior investment experience, and had little or no formal education beyond high school. Some of the investors did not speak English fluently or at all.Securities and Exchange Commission has charged five California brokers who worked for Duluth, Ga.-based World Group Securities Inc. with securities fraud, alleging they put customers at risk by refinancing their homes with subprime mortgages that they could not afford in order to fraudulently sell unsuitable securities.The SEC alleges the brokers sold unsuitable securities to customers, primarily variable universal life policies (VUL). Most investors who bought these securities lacked the cash or income to do so, but were urged by their brokers to raise the money to pay for the purchases and the monthly payments required for these products by refinancing their fixed-rate mortgages into subprime adjustable-rate negative amortization mortgages. Each defendant was a mortgage broker and a registered representative and collected compensation from the mortgage refinancings and the sales of securities. The brokers allegedly misrepresented the expected returns from the securities, the liquidity of VULs, the nature of the VULs, and the terms of the new mortgages while failing to disclose material facts about the products. The defendants also allegedly falsified client account forms and order tickets relating to the securities sales.

World Group Securities Inc. charged with securities fraud

The brokers -- Guillermo Haro, Kederio Ainsworth, Jesus Gutierrez, Gabriel Paredes and Angel Romo -- worked out of Los Angeles. The SEC alle...

Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud

Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud the federal government of income taxes.According to the U.S. Attorney's Office, the alternative banking system, known as The members were involved in the so-called Patriot Movement and were generally anti-government and did not pay federal taxes. Some schemed to overthrow the federal government, according to prosecutors.Hicks promoted the alternative banking system at seminars and membership grew from about 800 in January 2005 to 3,000 members by April 2007, according to prosecutors.Hicks, who operated the Liberty Tree restaurant in Berryville, is also associated with the "Liberty Dollar," an alternative currency. Americans for Lawful Financial Independence and Information operated out of an office in Berryville and maintained several bank accounts, according to prosecutors. Services included bank-like accounts and the use of electronic money orders to pay bills and transfer funds. Members were not required to provide Social Security numbers and were able to get out of the traditional banking system, conceal their financial transactions from the IRS and avoid paying taxes.Members would deposit money into their accounts by mailing deposits or by wire transfers. They would access their accounts at a Web site and by printing digital money orders that could be used just like traditional checks.Membership was by invitation only, new members had to be referred by an existing member, according to prosecutors. That arrangement allowed the system to operate for several years without government detection.Hicks promoted the scheme at Pinnacle Quest International seminars in Mexico, on anti-government Web sites and through a newsletter with a built-in e-mail system, according to prosecutors. Pinnacle Quest International provided speakers who would present various schemes and information on how to avoid paying federal income taxes. Hicks maintained bank accounts at Bank of the Ozarks, Bank of Eureka Springs, Security Pacific Bank and ANB Financial for short periods of time to house accounts, according to prosecutors. Each bank became suspicious of the financial transactions being conducted and asked Hicks to close the accounts.Money in the accounts was co-mingled and the only way to know who the money actually belonged to was through the records Hicks maintained at his business location. Those records were seized by the IRS on May 10, 2006, according to court records. Hicks has since provided additional records, including transactions from May 10, 2006, through April 2007. Hicks admitted the last tax return he filed with the IRS was for the tax year 1992 and he agreed he owes taxes on income he received from 2003 through 2006. Hicks will be sentenced at a later date. He is free on $10,000 bond but was required to turn over his passport and restrict his travel to parts of Arkansas and Missouri, unless given prior approval from the U.S. Probation Office.Hicks faces up to five years in prison, a fine of up to $250,000 or both. He may also be required to pay restitution.There have several related lawsuits filed involving Hicks and the scheme. The Arkansas Securities Department issued a cease and desist order against Hicks and MYISCIS on Feb. 23, 2007.N.R. Smith, LLC won a default judgment, alleging fraud, conversion and fraudulent transfer of funds against Hicks for $607,663, interest of $79,612 and costs of $850.JP Morgan Chase Bank won a default judgment against Hicks, MYICIS and another person who was never located for $157,559, plus interest and attorney fees, alleging fraud.Another case, seeking a $1 million lien against Hicks was stayed after ANB Financial went into receivership May 9.A Web site was created in October 2007 aimed at recovering funds deposited with Hicks and then frozen by the government.

Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud

Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud the fed...

Delecia Holt, 46 is accused of committing welfare fraud; officials are trying to determine how much may have been stolen,

Delecia Holt, 46 is accused of committing welfare fraud; officials are trying to determine how much may have been stolen, the Orange County district attorney's office said.Holt, whose most recent address is in Aliso Viejo, was a Republican write-in candidate for the 48th Congressional District in Orange County in a special primary election in 2005; the seat became vacant when Rep. Christopher Cox was named chairman of the Securities and Exchange Commission.She ran again as a GOP candidate in 2006 in the 53rd Congressional District in San Diego County.According to thedistrict attorney's office, Holt wrote a check for about $13,000 as a down payment on a $32,000 Mercedes-Benz in July 2005. Authorities say the check bounced and that she never made a payment for the car.Holt also is accused of skipping out on a Lake Forest hotel after accumulating a $5,000 bill between July and September 2007.In October 2007, she allegedly was the host of a comedy night fundraiser at a Dana Point hotel, claiming the money was for Habitat for Humanity.But no money was raised, prosecutors said, and Holt is accused of defrauding the hotel of $15,000 and four comedians of $2,000.Authorities said the checks she wrote to the hotels and comedians bounced.Prosecutors have requested $55,000 bail and want proof that the money comes from a legitimate source before Holt is released. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9vUKvrrExuxP9wrkjAoaHfc0Em977cvd4ccIpdb2_2L_4bds6d7P9I7xs9Cy2Il-B2Hdc2I_-WwLq2_lXMSeEa4IjYjRRCdiSDk688slMqweiqZNYo6JKQyRfDH_8pNZoURhpMUrUUrig/s1600-h/untitled23.bmp"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5255340924432552482" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9vUKvrrExuxP9wrkjAoaHfc0Em977cvd4ccIpdb2_2L_4bds6d7P9I7xs9Cy2Il-B2Hdc2I_-WwLq2_lXMSeEa4IjYjRRCdiSDk688slMqweiqZNYo6JKQyRfDH_8pNZoURhpMUrUUrig/s400/untitled23.bmp" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>

Delecia Holt, 46 is accused of committing welfare fraud; officials are trying to determine how much may have been stolen,

Delecia Holt, 46 is accused of committing welfare fraud; officials are trying to determine how much may have been stolen, the Orange County ...

Darren Cahill (35) and Stephen Doyle (36) were involved with others in the elaborate fraud which continued over eight months

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhreph9BeMyJrswrgRQ7XDWPGe3RkrIlRPA52u0hjhCH7n64PWTTqC50j4qWh6u29VuHaCyjHHyX5FyjegWx-yzHWYPGNaMvy3RN-4OAiEbgS2XHsEi3M-bodGeRgiVQw2v6efCYCEDP_KG/s1600-h/untitled.bmp"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5255340020512620530" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhreph9BeMyJrswrgRQ7XDWPGe3RkrIlRPA52u0hjhCH7n64PWTTqC50j4qWh6u29VuHaCyjHHyX5FyjegWx-yzHWYPGNaMvy3RN-4OAiEbgS2XHsEi3M-bodGeRgiVQw2v6efCYCEDP_KG/s400/untitled.bmp" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Darren Cahill (35) and Stephen Doyle (36) were involved with others in the elaborate fraud which continued over eight months and its victims included multinationals as well as one Irish businessman who had to close one of his companies after being duped out of €423,000.Cahill, Howth Road, Clontarf Dublin, and Doyle, Main Street, Beaupark, Clongriffin, Dublin, each pleaded guilty to 10 counts of dishonestly obtaining goods and other related offences in 2002.Insp Declan Daly told prosecuting counsel, Dominic McGinn, that both men used fake names and driving licences as part of the operation. Cahill used the name “Darren Bradley” and Doyle used both “Richard Wright” and “Stephen Dunne”. Insp Daly said that various business names used in the massive deception were registered at the Companies Registration Office “by people with fake names”. These names included Enviro Products, Lambra, Stormway, Priority Executive Services and Bradley Roche.Insp Daly said a number of legitimate companies were approached to do business with the fake firms. Fake referees and a credit history were used to secure new business with the references being given over the phone by the fraudsters themselves.He said they claimed to represent one company that had ceased trading a decade earlier and another whose directors had emigrated in 1979.Insp Daly said five companies agreed to supply goods to the fraudsters. Payment for the goods was to be made by direct debit, and mandates were supplied from bank accounts also set up in false names. The direct debits were cancelled after deliveries were made and the goods were sold on.Big multinationals were defrauded, including Robert Roberts, which lost €161,387.82; Coca Cola, which is owed €53,744.18; Lever Faberge, which was defrauded out of €78,981; and Johnson Brothers, which lost €18,592.51. Insp Daly told Mr McGinn that the biggest sufferer was Inter Euro Services and GW Continental, two small companies both directed by the same man, William Gaff, whose losses at €423,186 were so great that Inter Euro Services had to cease trading. Insp Daly said landlords of various premises leased by the fake companies were also defrauded. He said company cars were obtained illegally. Stormway acquired a black 3 Series BMW on hire purchase from Murphy and Gunne Ltd at a cost of €36,000. A fake licence and utility bill in a fake name were used to secure the finance through Bank of Scotland.A red BMW 5 Series was got in the same way, at a cost of €30,500. The creditor was GE Capital Woodchester Ltd. This car was later found abandoned in Donegal and returned to GE.Cahill told gardaí he had been persuaded by “an old friend” to invest €4,000 in setting up a supply business. He said he wasn’t paid much at the start, but got bonuses of thousands every now and again. “In the end, he lost his €4,000,” Insp Daly said.Doyle said he didn’t know to begin with that “the company wasn’t legitimate” and he’d used a false identification only to fit in. He told gardaí his role was just loading and unloading goods, although he did sign some Stormway cheques to himself as back-pay.Insp Daly agreed with Michael O’Higgins SC, defending Cahill, who described his client as a “foot soldier” in the operation and “very gullible” that he was on the “bottom rung of the ladder”. Conor Devally SC, defending Doyle, suggested that his client “didn’t gain out of the massive fraud and was horrified to find out so many people were stung.”Mr O’Higgins said Cahill had brought €5,000 to court for Mr Gaff and committed to bringing another €5,000. Mr Devalley said Doyle, who now works as a teacher, and his wife had put together €20,000 for Mr Gaff.

Darren Cahill (35) and Stephen Doyle (36) were involved with others in the elaborate fraud which continued over eight months

Darren Cahill (35) and Stephen Doyle (36) were involved with others in the elaborate fraud which continued over eight months and its victims...

Deanna Coleman, vice president of operations for Petters Co. Inc., confessed to her involvement and offered to help authorities investigate Petters.

Federal investigators' first inkling of a possible investment fraud involving Twin Cities businessman Tom Petters came Sept. 8, when one of his longtime employees approached them and said she had helped him bilk more than $3 billion from unwitting investors.Joe Dixon, an assistant U.S. attorney in charge of white-collar crime prosecutions in Minnesota, said the government knew nothing about the scheme until Deanna Coleman, vice president of operations for Petters Co. Inc., confessed to her involvement and offered to help authorities investigate Petters.Coleman, 42, of Wayzata, wearing a navy suit with orange pinstripes, stood nervously before U.S. District Judge Paul Magnuson on Wednesday morning and pleaded guilty to a single charge of conspiracy to commit mail fraud.Her guilty plea was one of three Wednesday. Robert Dean White, 67, of Excelsior, and Michael Catain, 52, of Shorewood, also admitted to their roles in the scheme, which involved the creation of false bank statements and other documents that were used to trick investors into funding what they called a giant Ponzi scheme.White, looking gaunt in a gray sportcoat and a scruffy white beard, said he got involved as a consultant in 1998, when Tom Petters -- one of the Twin Cities' best-known entrepreneurs, with holdings that include Polaroid, Fingerhut and Sun Country Airlines -- asked him to create a false bank statement. "It was used to convince a lender that we had spent the money appropriately," White said.White said he created the document and soon went to work for Petters. He said he later learned from Coleman that all of the loan documents for Petters Co. Inc., or PCI, were false. White said that about the time he joined the company, PCI had used false documents to obtain about $100 million in loans. As of Sept. 24, when the government investigation became public, White said the total "exceeded $3 billion."Catain pleaded guilty Wednesday afternoon to one count of conspiring to commit money-laundering. He faces a maximum of 20 years in prison, but has agreed to help authorities.Between 2002 and 2008, Catain said, he helped Petters launder more than $12 billion through a shell company called Enchanted Family Buying Co., which he set up at Petters' direction.Catain testified he knew that investors believed they were buying electronic merchandise. In fact, the money was being transferred through the company back to Petters. There were no products, he said. Catain earned more than $3 million in "commissions" for the transactions. Individual investments in Enchanted ranged from $2 million to $25 million, Catain said. He declined to comment after the hearing.According to the plea agreements, which were affirmed by White, Coleman and Catain, here's how the scheme worked:At the direction of Petters, who was owner and president of PCI, Coleman and White would fabricate documents for Petters and others to use to obtain billions of dollars in loans. The phony records were used as proof that PCI was buying merchandise, generally electronic goods, from two suppliers: Nationwide International Resources Inc. (NIR), run by co-defendant Larry Reynolds, and Enchanted, Catain's shell company.White and Coleman said that PCI would tell lenders it was selling the goods through big-box retailers and provided purchase orders to substantiate the deals. They said the deals were phony and the documents were fakes.Most of the money lent to PCI was secured by promissory notes and sometimes security agreements, the plea documents say. The lenders would wire the money to NIR or Enchanted, which would pass it on to PCI, less a commission. "Reynolds and Catain were paid millions of dollars for the use of their respective company bank accounts to conceal the fraudulent nature of the transactions," the plea agreements say. "Lenders oftentimes 'rolled' their loan to PCI from one fraudulently obtained loan into another without repayment. To the extent payments were made by PCI to lenders, it was with funds derived from other victim lenders who were also fraudulently induced to fund the Ponzi scheme," the agreements say."The vast majority of the fraud proceeds went to PCI and to Petters, and were then used to fund the operations of other companies owned by Petters, to pay others who assisted in the fraud scheme, and for Petters' extravagant lifestyle."

Deanna Coleman, vice president of operations for Petters Co. Inc., confessed to her involvement and offered to help authorities investigate Petters.

Federal investigators' first inkling of a possible investment fraud involving Twin Cities businessman Tom Petters came Sept. 8, when one...

Henry Hung Nguyen, 39, could face up to 20 years in prison after pleading guilty to 10 counts of false notary certification.

Henry Hung Nguyen, 39, could face up to 20 years in prison after pleading guilty to 10 counts of false notary certification.The U.S. Immigration and Customs Enforcement and U.S. Citizenship and Immigration Services in a joint investigation found that Nguyen notarized information on applications for immigrant visas knowing the information was false, according to the U.S. Attorney’s office in Honolulu. Nguyen admitted in court this week that he falsely certified information on visa applications submitted to the federal government.Nguyen listed individuals as “joint sponsors” without their permission and then notarized their signatures. Joint sponsors assume legal responsibility for financially supporting an immigrant until he or she becomes a citizen or secures a permanent job; without sufficient income or a sponsorshop, immigrants can’t get visas.Nguyen will be sentenced Jan. 26, 2009, before U.S. District Court Judge David Ezra. He could be sentenced to prison for up to two years and a fine of up to $250,000 for each count.

Henry Hung Nguyen, 39, could face up to 20 years in prison after pleading guilty to 10 counts of false notary certification.

Henry Hung Nguyen, 39, could face up to 20 years in prison after pleading guilty to 10 counts of false notary certification.The U.S. Immigra...

Ed Okun was indicted, along with Lara Coleman, by a federal grand jury in Richmond, Va., and charged with conspiracy to commit mail fraud

Ed Okun was indicted, along with Lara Coleman, on July 10, 2008, by a federal grand jury in Richmond, Va., and charged with conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, wire fraud, mail fraud, money laundering, bulk cash smuggling and forfeiture. Okun is also charged with one count of making false statements.The new lawsuit by the 1031TG Trustee alleges that Wachovia aided and abetted breaches of fiduciary duty by Edward Okun and Lara Coleman against the 1031 Tax Group Debtors, and seeks to recover more than $140 million of damages arising from such actions.According to a lawsuit filed in the Southern District of New York on October 2, 2008, by the Trustee for the bankrupt tax-deferral company, “Wachovia was entwined in all aspects of the 1031 debtors’ operations, Okun’s personal finances and Okun’s other businesses” and assisted in the fraud by transferring $240 million to “inappropriate” accounts before the tax firm collapsed and Okun was arrested.The lawsuit seeks recovery of more than $43 million of conveyances allegedly made to Wachovia in the form of cash and mortgage liens, and the imposition of equitable liens and constructive trusts on several properties in which Wachovia continues to hold liens.The complaint also asserts that Wachovia housed more than 250 bank accounts for the 1031 Tax Group Debtors as well as other Okun Entities; provided several personal loans to Okun; and made commercial loans to Okun-related entities, such as IPofA affiliates. The lawsuit further alleges that during the course of this relationship, Wachovia learned that Okun and others were misappropriating funds of the 1031 Tax Group Debtors, but did nothing to stop the misappropriations, and in fact took steps that furthered the misconduct.Wachovia Corp., the troubled banking and financial services company that was the subject of a bidding war between Citigroup Inc. and Wells Fargo & Co., the target of a $60 billion lawsuit from Citigroup, and that has also been linked to money laundering by Mexican and Columbian drug cartels, has now been sued by the victims of  a fraudulent scheme to steal millions of dollars in client funds held by The 1031 Tax Group LLP (1031TG), a 1031 exchange qualified intermediary scam operated by Ed Okun.

Ed Okun was indicted, along with Lara Coleman, by a federal grand jury in Richmond, Va., and charged with conspiracy to commit mail fraud

Ed Okun was indicted, along with Lara Coleman, on July 10, 2008, by a federal grand jury in Richmond, Va., and charged with conspiracy to co...

Carlos, Luis and Jose Benítez , wanted in the United States on charges of swindling US$110 million from the Social Security system

Justice Ministry’s Anti-laundering Unit received 21 offers to rent the businesses seized from the Benítez brothers, wanted in the United St...

Gerald McAfee more than 21 years after being indicted in absence for bilking College Hospital out of $1.6 million in federal court

Gerald McAfee was hired as comptroller of a small hospital in Downey two decades ago, he quickly convinced his new boss to let him move $1.6 million of the hospital's money from low-risk, low-yield CDs into a more aggressive bond fund, authorities said. Four months after that authorization, hospital officials were shocked to learn that the account McAfee set up contained just $11, according to court documents. And McAfee, who was supposedly dealing with a family emergency in Illinois, was nowhere to be found. Barry Weiss, the hospital's executive director, later learned that McAfee, operating under an assumed identity, had allegedly converted the hospital's money to bearer bonds and fled the country, authorities said. On Monday afternoon, more than 21 years after being indicted in absence for bilking College Hospital out of $1.6 million, McAfee appeared in federal court in downtown Los Angeles to face the charges. "They say we always get our man," said FBI Agent Scott Schofield, who was 10 years old when McAfee allegedly absconded with the money. "This one just took a little while." Schofield and another agent flew to Thailand to retrieve McAfee, whom authorities said had been living there for years under yet another name. According to an indictment filed in U.S. District Court in Los Angeles, as well as interviews with authorities, McAfee began making preparations to rip off College Hospital before he was even hired.In August 1985, while working for a company called Hospital Home Care, he stole the identity of a man named David Nathan Ward of Van Nuys, prosecutors allege. A month later he applied for the comptroller job and got it. Several months after he started working at the hospital, McAfee obtained a Colorado driver's license and a U.S. passport bearing Ward's name and his own photo, according to court papers. In the meantime, he'd contacted a PaineWebber broker in Mission Viejo and told him he would soon be coming into a substantial amount of money, court records show. In July 1986, he transferred $1.3 million to a PaineWebber account in the name of a bogus company, telling the broker he was president of the firm, authorities allege. A month later, McAfee allegedly arranged for the transfer of $300,000 to another account and had lunch with the broker, telling him he was thinking about buying a hospital in Lucerne, Switzerland, according to the indictment. After lunch, authorities say, McAfee took possession of $1.3 million in bearer bonds -- payable to whoever possesses them. He casually asked if such bonds could be traced, authorities allege. That fall, McAfee allegedly hopscotched the globe making preparations to convert the bonds to cash and laying the ground work for his imminent departure from the country, law enforcement officials said. All the while, McAfee had been showing College Hospital officials dummied up PaineWebber statements indicating that their investment was doing fine, according to the indictment and authorities. But by November, Weiss had apparently grown suspicious. The hospital director had been trying for some time to get the PaineWebber broker on the phone, but none of the numbers McAfee gave him seemed to work, authorities said. He finally got through and the news was not good: Just $11 remained in the account. By that time, McAfee had shipped all his belongings to Europe and was nowhere to be found, authorities allege. Over the years, the FBI periodically sought the public's help in locating McAfee. At one point the bureau put the handsome, wavy-haired former swimming coach on a wanted poster that listed five of his alleged aliases. But the case was essentially gathering dust until last year when a tipster informed the bureau that McAfee was living in Thailand. Special agents at the U.S. Embassy in Bangkok, working with Thai police, traced McAfee to a condominium purchased under the name David K. Smyth. A check of immigration records revealed that Smyth's passport bore McAfee's photo, authorities allege. McAfee was arrested late last year and was being held in a Thai prison pending extradition to the U.S. Schofield, the FBI agent, said McAfee, 65, was polite and friendly during the 14-hour flight to Los Angeles. McAfee was happy to be coming back to the U.S., Schofield said. He said McAfee intimated that prison in Thailand "is not very pleasant."

Gerald McAfee more than 21 years after being indicted in absence for bilking College Hospital out of $1.6 million in federal court

Gerald McAfee was hired as comptroller of a small hospital in Downey two decades ago, he quickly convinced his new boss to let him move $1.6...

Trial of Arcadi Gaydamak starts in Paris on charges of illegal arms trafficking, fraud, money laundering, fraudulent receipt and tax evasion

Trial of Arcadi Gaydamak starts in Paris on charges of illegal arms trafficking, fraud, money laundering, fraudulent receipt and tax evasion. The indictment also states that Gaydamak and his former partner Pierre Falcone gave perks to senior members of the French government to promote their business deals. As far as is known, Gaydamak will not appear in court, although in the past he has said he would. Gaydamak claims that he is a victim of French political power struggles. The charges allege that mainly from 1993 to 1995, Falcone and Gaydamak used various intermediaries and sold weapons and ammunition worth $790 million from Russia and Slovakia to Angola, during that country's civil war. They also allegedly established a branch of the Slovak arms company ZTS OSOS without the necessary permits. Falcone, who severed his ties with Gaydamak several years ago after financial disagreements, told Haaretz he had not decided whether to appear for the trial. Around 40 former senior French officials are to stand trial, among them former interior minister Jean-Christophe Mitterand - the son of former president Francois Mitterand - and General Jean-Charles Marchiani, a senior member of the French security services. From the indictment, sources and documents in Israel, it appears that Gaydamak had connections with intelligence officials in various countries. One of the defendants in the current case, Jean-Bernard Curial, is quoted by the indictment as saying that Falcone told him the arms company had connections with the KGB or was owned by former KGB officers "who knew Gaydamak well, as a former KGB colonel." GSC, a security consulting firm established by Gaydamak in partnership with former Mossad chief Danny Yatom, and senior Mossad officer Avi Dagan, operated in Israel until 2002. Police sources told Haaretz that investigators for the Israel Police's international crimes unit had the impression that Gaydamak had connections with the defense establishment and that the former head of security in the Defense Ministry, Yehiel Horev, had tried to intervene in various money-laundering investigations by the unit into Gaydamak. Horev confirmed that there had been contact with the police about Gaydamak, but denied any attempts to interfere in investigations.

Trial of Arcadi Gaydamak starts in Paris on charges of illegal arms trafficking, fraud, money laundering, fraudulent receipt and tax evasion

Trial of Arcadi Gaydamak starts in Paris on charges of illegal arms trafficking, fraud, money laundering, fraudulent receipt and tax evasion...

Michael Benson former head of the Maricopa County Sports Commission is facing nine theft counts

Michael Benson, 47, who served as the head of the Maricopa County Sports Commission for a little more than a year, is facing nine theft counts, some of which are felonies that carry more than a two-year jail sentence. After Benson resigned on July 16, 2007, an audit flagged more than $40,000 in questionable spending from the commission's account, which had dwindled from $144,284, to $23,339, during Benson's tenure. In February, the commission asked the County Attorney's Office to investigate, said County Attorney Andrew Thomas.The query includes: A $2,270 trip to Grand Cayman Islands, where Benson stayed at a Ritz-Carlton and ran up dinner and lunch bills worth hundreds of dollars. He attended an NFL event there with a personal friend who is a sports agent. Three different stays at Scottsdale resorts, including one with a tab for $544 from Sky Bar.Two gym memberships at Lifetime Fitness for his daughter's lacrosse coach and her coach's boyfriend. A $200 cash withdrawal from an ATM at Bourbon Street Circus, a Phoenix strip club. Because the withdrawals were coming from a debit card that the commission had not given Benson permission to open, the purchases were not being cross-referenced, Thomas said.

Michael Benson former head of the Maricopa County Sports Commission is facing nine theft counts

Michael Benson, 47, who served as the head of the Maricopa County Sports Commission for a little more than a year, is facing nine theft coun...

Michael John Connally,used 30 fictitious names and several forms of false identification - including licenses, payslips, learner driving permits

Michael John Connally, 36, appeared at a presentence hearing before the County Court today on 72 charges, including obtaining a financial advantage by deception, obtaining property by deception, theft and dishonestly obtaining a passport. Eleven of the offences were committed while Connally was on bail and Judge Leslie Ross described his behaviour as "breathtaking in its scope''. The court heard that between October 2003 and May 2007 Connally used 30 fictitious names and several forms of false identification - including licenses, payslips, learner driving permits and a false passport - to apply for bank loans and credit cards, including one bank loan for $35,000.He used a false name to get a lease on two properties in where he did not pay rent, used a false cheque to buy plasma televisions worth $18,600, and on 23 occasions applied for loans using false documents.When nabbed by police Connally explained that he made false payslips and birth certificates on his computer and using photocopies of driving licenses.Defence lawyer Simon Zebrowski told the court that Connally had a long-standing gambling addiction and a loan shark had lent him $2000 at Oaks Day in 2002.He said the debt had climbed to $120,000 at the time of the offences.The loan shark had shown Connally a photo of his twin sons as a warning and beaten him so viciously that his nose was broken and he now wore false teeth, he said.Mr Zebrowski said Connally had good prospects of rehabilitation but Judge Ross disagreed: "Can you expect me, as someone who is reputed to have a little bit of common sense ... to have any faith in his plans?''Connally, who was originally charged with 400 offences, pleaded guilty to 69 charges of obtaining and attempting to obtain financial advantage and property by deception.He also pleaded guilty to two counts of theft and one count of dishonestly obtaining an Australian passport

Michael John Connally,used 30 fictitious names and several forms of false identification - including licenses, payslips, learner driving permits

Michael John Connally, 36, appeared at a presentence hearing before the County Court today on 72 charges, including obtaining a financial ad...

National Century CEO Lance Poulsen 65, is standing trial in U.S. District Court in Columbus on charges of securities fraud, wire fraud

National Century CEO Lance Poulsen 65, is standing trial in U.S. District Court in Columbus on charges of securities fraud, wire fraud and money laundering relating to the firm’s 2002 collapse into bankruptcy. The government has alleged as much as $2.84 billion in investor money was missing when National Century collapsed, a result of alleged self-dealing on the part of Poulsen and other National Century executives. Considered a lender of last resort, National Century purchased accounts receivable from health-care providers at a discount in exchange for quick cash the provider could use to pay bills. National Century then packaged the receivables as bonds to sell to investors. For some companies, however, National Century didn’t actually purchase receivables, Bily said. It just advanced funds. Six companies that were either owned completely or partially by Poulsen and National Century’s two other owners often received such advances, Bily said.The government has alleged National Century over-funded health-care companies owned by Poulsen and other company principals in a ploy to enrich themselves.When National Century advanced cash to a health-care company without collateral, Bily said her department made sure to process the requests just as it would legitimate ones so as not to “raise any red flags” with bank trustees who oversaw reserve accounts designed to protect investors. By late 1999 and early 2000, Bily said Poulsen directed her finance department to plug fake numbers into a National Century mainframe computer to make sure that the company’s books remained balanced.

National Century CEO Lance Poulsen 65, is standing trial in U.S. District Court in Columbus on charges of securities fraud, wire fraud

National Century CEO Lance Poulsen 65, is standing trial in U.S. District Court in Columbus on charges of securities fraud, wire fraud and ...

Norman Hsu used investor funds to compensate sales agents, make political campaign contributions, and support his luxurious lifestyle.

Norman Hsu used investor funds to compensate sales agents, make political campaign contributions, and support his luxurious lifestyle.Hsu is in federal custody awaiting trial after he was indicted in December for mail fraud, wire fraud and violating the Federal Election Campaign Act.His arrest prompted former Democratic presidential candidate Clinton to return $850,000 in contributions last year. A Legal Aid Society lawyer representing Hsu did not immediately return a call seeking comment."As alleged in our complaint, Hsu and his company used investor funds to make significant political contributions to prominent politicians," said SEC enforcement director Linda Thomsen in a statement. "He allegedly then used the veneer of respectability created by his political connections to persuade his investors that the investments he offered were legitimate."The SEC said Hsu presented himself as an international businessman with high-level contacts at overseas businesses, particularly in the Chinese apparel and technology industries. Hsu hosted dinners for investors at expensive four-star restaurants and provided them with invitations to exclusive society functions, such as presidential political fund-raising events, the SEC said.

Norman Hsu used investor funds to compensate sales agents, make political campaign contributions, and support his luxurious lifestyle.

Norman Hsu used investor funds to compensate sales agents, make political campaign contributions, and support his luxurious lifestyle.Hsu is...

Sun Country Airlines filed for bankruptcy

Sun Country Airlines filed for bankruptcy after it ran into a cash squeeze following fraud charges brought against the parent company's ...

Garri Zhigun, his mom Galina Zhigun, and their employee Maryann Furman all face up to 30 years in prison

A man and his mother pleaded guilty to defrauding home lenders of more then $200 million while they ran subprime mortgage broker AGA Capital, now known as Lending Universe. Garri Zhigun, his mom Galina Zhigun, and their employee Maryann Furman all face up to 30 years in prison at their Jan. 5 sentencings.Twenty-six other people have been charged in this mortgage fraud ring, and eight have pleaded guilty, federal prosecutors said. They are accused of lying on loan documents, using straw buyers and coordinating the scam with an attorney, real estate appraisers and loan officers. The defendants got millions of dollars of fees for arranging the dishonest loans, the U.S. Attorney's Office said.AGA Capital operated out of Brooklyn from 2004 to 2006, then changed its name to Lending Universe. Galina Zhigun, 54, was the owner and registered broker; her son supervised the operations and Furman was the office manager. Garri Zhigun also was ordered to forfeit $2.5 million; his mom and Furman must forfeit $1 million apiece.

Garri Zhigun, his mom Galina Zhigun, and their employee Maryann Furman all face up to 30 years in prison

A man and his mother pleaded guilty to defrauding home lenders of more then $200 million while they ran subprime mortgage broker AGA Capital...

Apple and AT&T Mobility's five-year exclusive voice and data service provider agreement for the iPhone violates anti-monopoly provisions

Federal judge in California upheld a class action claiming that Apple and AT&T Mobility's five-year exclusive voice and data service...

Los Angeles brokers charged with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages

Securities and Exchange Commission has charged five Los Angeles brokers with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages which they could not afford, to fraudulently sell them unsuitable securities."This case demonstrates the SEC's commitment to halting fraudulent sales practices by brokers and others in the securities industry," SEC Division of Enforcement director, Linda Chatman Thomsen said.The SEC has alleged that at a time when investors were already losing their homes in record numbers, these brokers pushed their customers into risky and unsustainable subprime mortgages as a means of financing a fraud.Not only was the whole scheme fraudulent, but the brokers profited by charging commissions at each stage, SEC said in a statement. The SEC would relentlessly pursue unscrupulous brokers and other securities industry professionals who seek to line their own pockets at their customers' expense, it added.The Commission has alleged that the five registered representatives, who worked for World Group Securities Inc, paid themselves high commissions on both the subprime mortgages and the securities purchases.While the customers generally were of modest means, had little prior investment experience, little or no formal education beyond high school and some of them did not speak English fluently or at all, the statement added

Los Angeles brokers charged with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages

Securities and Exchange Commission has charged five Los Angeles brokers with securities fraud, alleging they had put their customers at risk...

Helio Castroneves is accused of using offshore accounts to avoid paying taxes to the Internal Revenue Service.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEaREIuHb1DG9GHU7NN0RoG1Nm5OK3jDkqAXA_t9ODy4PS9I7Da7dBrmSF5b5efbERzniu7SRkrEWKAUm-WFLZram0LFGfNiauIX9mElODL4MEVmQN9JnMXykkljpPo36Ox6njG4LEIdUo/s1600-h/helio_castroneves.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5253325700524380370" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEaREIuHb1DG9GHU7NN0RoG1Nm5OK3jDkqAXA_t9ODy4PS9I7Da7dBrmSF5b5efbERzniu7SRkrEWKAUm-WFLZram0LFGfNiauIX9mElODL4MEVmQN9JnMXykkljpPo36Ox6njG4LEIdUo/s400/helio_castroneves.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Two-time Indy 500 champion Helio Castroneves wasn't at Road Atlanta on Friday for qualifying. Instead he was in federal court in Miami facing charges of tax evasion and tax fraud. The Associated Press reports that the Indy Racing League star from Sao Paulo, Brazil, who is expected to participate in today's Petit Le Mans, is accused of using offshore accounts to avoid paying taxes to the Internal Revenue Service. The AP reports that Castroneves, 33, pleaded not guilty to six counts of tax evasion for allegedly failing to report to the IRS about $5.5 million in income between 1999 and 2004. Each count carries a maximum five-year prison sentence. Penske Racing vice president Bud Denker said Castroneves was scheduled to return to Georgia on Friday night and prepare to co-drive the team's No. 5 Porsche with Australian Ryan Briscoe. Briscoe qualified the car first in the LMP2 class and fourth overall for today's race. Denker declined to speculate on what effect the court proceedings would have on Castroneves' relationship with the team.

Helio Castroneves is accused of using offshore accounts to avoid paying taxes to the Internal Revenue Service.

Two-time Indy 500 champion Helio Castroneves wasn't at Road Atlanta on Friday for qualifying. Instead he was in federal court in Miami f...

Bermuda Telephone Company ,Yvonne Simmons, 54 and Jacqueline Laidlow, 67 – admitted operating an unauthorised lending scheme.

The swindle involving at least seven employees came to light when two of them – Yvonne Simmons, 54 and Jacqueline Laidlow, 67 – admitted operating an unauthorised lending scheme.15-year fraud resulting in a $1.29 million loss to the Bermuda Telephone Company landed two women with year-long jail sentences yesterday. They were the only people prosecuted, pleading guilty to stealing more than $140,000 from the company during a court hearing last month. Five other employees have been fired but not brought to court.The circumstances of the theft, which involved lax accounting procedures, prompted criticism of BTC by a judge during the sentencing yesterday for letting it go on for so long."You would like to believe that public companies are doing right. You like to know that they are properly managed and you can trust them," said Puisne Justice Carlisle Greaves."You like to know that when you pay your telephone bills or your interest rates our whatever the product is, that you're paying a fair price because the company's managed properly."Detailing the case yesterday, Crown counsel Brett Webber told Mr. Justice Greaves: "Yvonne Simmons and Jacqueline Laidlow were employed by the Bermuda Telephone Company for many years as banking administrators."Together, they controlled the department that was responsible for banking the cash that had been received by the cashiers at the Hamilton office of BTC. They were supposed to account for, and bank the receipts on a daily basis. In September 2005 it was reported that a deposit of $142,233.06 was missing. Following inquiries into where the money had gone, it was discovered that there were no procedures in place to reconcile cash receipts with money that had been banked."As a result, in October 2005 new procedures were installed in an attempt to tighten financial controls. The prosecution's case is that these new measures would have inevitably lead to the discovery of the defendant's role in the loss to BTC of $1.29 million."Mr. Webber said on October 13 2005, Simmons called JoAnne Raynor, the Assistant Vice President of Finance, and told her that she and Laidlow needed to speak to her.During the meeting, Simmons admitted that for the past 15 years, she and Laidlow operated an IOU scheme whereby cash would be loaned to staff for IOU's or post-dated cheques."She had hidden some of the IOU's and others would be torn up and thrown in the trash. She personally borrowed sums of money between $200 and $300 but would pay it back."On October 19, 2005 she wrote a letter of apology to the Chief Executive Officer, enclosing her un-banked severance pay cheque," said Mr. Webber.Laidlow admitted that she also operated the scheme for 15 years and had been covering up the shortages of loans that were made but never repaid."She herself had stolen about $30,000, but she did not know the exact amount," said Mr. Webber, explaining she admitted making false entries in the accounts to ensure that the excel spreadsheet agreed with the summary report.He continued: "As a result of the admissions, the desk and work area of the defendants were searched. IOUs and large quantities of cash were discovered in the drawers of both defendants."The cash totalled $139,783. There was no legitimate reason for the cash to be kept in this manner as it should have been banked."An internal audit by the company revealed a shortfall of $1,292, 940, almost exactly the sum agreed by Yvonne Simmons."Mr. Webber told the court that a KPMG accountant commenced an external audit of the accounts. There was a shortfall of no less than $1.29 million discovered by the internal audit pre-dating April 2005."The scheme depended for its success upon weaknesses in the accounting system that enabled the timing of depositing cheques and cash to be manipulated, and with reconciliations occurring on a monthly basis, there was enough time for large quantities of cash to be held back."He told the court that it was not possible to identify an exact amount of money taken from BTC prior to April 2005 as internal and external audits arrived at different figures. The $1.29 million represents the lowest sum."This is in part due to an accounting system called Virtuoso that had been introduced and then later abandoned several years before."The first charge that the duo pleaded guilty to, conspiring to defraud BTC between December 21 1989 and April 1 2005 was, said the prosecutor "designed to reflect the agreement made between the two defendants to risk BTC's money on an unauthorised and badly monitored private lending scheme" through to April 2005."Save for the amounts the defendants admitted to taking for themselves, the prosecution do not allege this scheme was designed to enrich the defendants personally."Rather, they set out to lend cash dishonestly and were forced to cover up their losses as more people defaulted, and the paperwork became lost," said Mr. Webber."But as things spiralled out of control, the defendants should have called a halt to it, rather than continue."The second charge, stealing $140,0371.85 from the company, relates to the period between April and August 2005, said Mr. Webber "for which there were no excuses regarding the accounting system. In this phase the shortfall was readily identified."Defence lawyer Rick Woolridge said: "These ladies come before you not as young people who made silly mistakes but as people who began their careers at the Bermuda Telephone Company and were indoctrinated into an existing culture of deceit, mismanagement, misappropriation and fraud."He complained that five others had been allowed to pay the company back and were not prosecuted.He said the women were "almost as much victims as they are culprits" and were "not criminal minds" but rather "spokes in the wheel" of a wider enterprise reflecting the culture they worked in at BTC.The IOUs, he said, were for employees "paid a pittance for the service that they did" who spent the money on feeding their children and paying their bills. He begged the judge to consider non-custodial sentences that would enable to women to work with youths at risk of crime.Both women apologised for what they had done, but also blamed others.Laidlow, a mother of three, said two accounting systems made it impossible for them to get the books to balance, and complained about managers who would not help them."No, we wasn't taking for 15 years. We was covering for 15 years but we wasn't taking for 15 years," she told the judge.Simmons said: "It was not 15 years taking for ourselves. It was 15 years of us trying to balance a system, going home, pulling your hair, and not knowing what to do."She said she knew they had not taken $140,000 but had pleaded guilty for their part in the scheme. The women have never been before the courts before.Mr. Justice Greaves said he viewed as "a sad case" and described the pair as "righteous thinking people" without "any real criminal intent."He told them that looking at them in the dock hurt him, especially as Laidlow, at 67, is just two years younger than his own mother.He said that for 15 years at least, BTC allowed itself to be ripped off, "not by one or two employers but it appears that so many must have participated in this programme that it became an epidemic." However, he said that although he had looked hard at imposing a non-custodial sentence, having given the women credit for admitting to the con, there were no exceptional circumstances that would allow him to do so.The laws about embezzling employers, he told the women, were based on the principle that doing so "is to put in danger not only your employer but others in society who may be affected by your acts. Companies crumble, people lose their jobs, people you may not be thinking about".In addition to a one year jail sentence, each of the women must complete 300 hours of community service within six months of their release.In a statement after the case, a BTC spokeswoman said: "In October 2005 BTC discovered irregular activity that had been carried out over a period of years by some long-term employees who had acted together to overcome BTC's system of internal controls over the handling of cash."The full financial impact to BTC of the fraud was recorded in BTC's financial year to 31 March 2006."The subsequent investigation and review by an external forensic auditor resulted in the implementation of a further enhanced internal control framework designed to mitigate the risk of any recurrence of such an event."The staff involved were dismissed and additional follow-up to this incident included strengthening the anti-fraud environment by reviewing controls in a number of related operational areas, and re-emphasising BTC's policy regarding zero tolerance for fraud."

Bermuda Telephone Company ,Yvonne Simmons, 54 and Jacqueline Laidlow, 67 – admitted operating an unauthorised lending scheme.

The swindle involving at least seven employees came to light when two of them – Yvonne Simmons, 54 and Jacqueline Laidlow, 67 – admitted ope...

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