Bankrupt Banker

Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion, investigated over possible economic crimes.

Police in China have confirmed that they are holding the country's richest man - the head of its largest electrical goods retailer - for investigation over possible economic crimes. No other details have emerged about the questioning of Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion. Gome said that it understood that the 39-year-old tycoon was being investigated for his personal activities and that the company was not linked to any suspicious transactions. Gome has made its chief executive acting chairman in the absence of Mr Huang, who was detained ten days ago. The Chinese business magazine Caijing said that Mr Huang was suspected of insider trading in connection with wild fluctuations in the price of a company controlled by his brother and listed on the Shanghai stock market. However, China's securities regulator said that the reasons for the investigation were far more complicated than stock price manipulation. One newspaper said that Mr Huang was suspected of money-laundering, tax evasion and obtaining illegal loans. The Southern Weekend newspaper ran a two-page article speculating on the reasons behind Mr Huang's apparent fall from grace. It cited his dwindling interest in his core electronics business since its listing in Hong Kong in 2004 resulted in a multiplication of his personal wealth and inspired his interest in the capital markets. Mr Huang, the son of peasants from the southern port of Shantou, left home to make his fortune in northern China and transformed a street stall selling watches and radios into a nationwide empire of 1,300 stores. One question is how Mr Huang made the leap into the big time. Many of China's successful entrepreneurs are so reticent on this point that this moment in the career of a tycoon is now popularly known as “original sin”. In a system in which connections are crucial but credit is rarely available to small businessmen, few of China's new rich are thought to have risen without some shady dealing in their past. Whether the “original sin” ever comes to light often depends on their keeping on the right side of the Government. Since 2004, Mr Huang has spent increasing amounts of time dabbling in capital markets and shifting assets between companies, Southern Weekend said. Quoting sources close to investigations, it said that Mr Huang's disappearance may be related to a corruption inquiry into a Commerce Bureau official. So little information has been available about the disappearance of the man named as China's wealthiest on the Hurun Rich List that even the state Xinhua news agency commented that the media should be kept informed. A state-owned Chinese company, shocked at the risks of international investments, has asked the Government to help it to seek compensation from Belgium over its losses in the state-led carve-up of Fortis, the financial group. A Beijing source said that Ping An Insurance believed that the role of Belgium's Government in dismantling Fortis was tantamount to confiscation.

Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion, investigated over possible economic crimes.

Police in China have confirmed that they are holding the country's richest man - the head of its largest electrical goods retailer - for...

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft, according to a statement from US Attorney for Manhattan, Michael Garcia and New York State Attorney General Andrew Cuomo.Prosecutors say he led a fraud gang known as the "Khan ring" that created false identification documents purporting to have been issued by government authorities, including driver's licenses, resident alien cards, social security cards, and tax identification documents.The gang then built up financial credit for these false IDs - which members called "chickens" - to get bank and home mortgage loans and increased credit card limits.Khan and his ring then defaulted on the loans and credit card debt, "causing millions in losses to numerous financial institutions, including the Bank of America," says the statement.Khan has been in custody since being named as the lead defendant in a 15 person, multi-count indictment unsealed in August last year. He is the tenth defendant to plead guilty. He is scheduled to be sentenced on February 10, 2009 and faces a statutory maximum sentence of 14 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offence, and mandatory restitution to the victims of the offence.

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft, accord...

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even posted his personal tax returns on the Internet.Kolokotronis is already dealing with complaints about cost overruns at his celebrated L Street Lofts project in midtown Sacramento. This new dispute involves a 175-home subdivision he was trying to develop at Sheldon Road and Highway 99 in Elk Grove. The project stalled as the housing market collapsed. In August 2006, Kolokotronis borrowed $17.7 million from Central Pacific Bank to build the infrastructure and model homes for the development, called Sheldon Terrace. The project is owned by Sheldon Terrace LLC, of which Kolokotronis is the principal member.The bank stopped releasing the construction funds for Sheldon Terrace in April and claimed the loan was in default — not because of missed payments but because the land was suddenly worth less than the loan balance.In a highly detailed countersuit filed last week by his lawyer Joseph Genshlea, Kolokotronis describes the bank as a subprime lender that used inflated appraisals and exercised control over his project to the point that it was more like a joint venture.

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even...

Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzDoCKu-ZJjHI1_c3_GRvXt-xCkdJIeuxWgAf2u5BK-veKNNRH0BuRmFkcGE_7KRbhhyphenhyphen4gI4HzH9O0fSeEukOdxm_OVoy6aH3f6wyncYa0MqZzrigB8Pd7Jkeo_05yuT36vXF_eXLaybZv/s1600-h/0,,6372749,00.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5273494011660201186" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzDoCKu-ZJjHI1_c3_GRvXt-xCkdJIeuxWgAf2u5BK-veKNNRH0BuRmFkcGE_7KRbhhyphenhyphen4gI4HzH9O0fSeEukOdxm_OVoy6aH3f6wyncYa0MqZzrigB8Pd7Jkeo_05yuT36vXF_eXLaybZv/s400/0,,6372749,00.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 350px; height: 240px;" /></a> former boyfriend of Australian model Miranda Kerr was charged yesterday in relation to an alleged $7.3 million fraud of the Commonwealth Bank. Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit early yesterday. He was charged with two counts of using a false instrument to obtain a financial benefit and one count of making a false statement.Police allege that part of the fraudulently obtained money was used to buy a commercial property in Darlinghurst.Police alleged Mr Camilleri had used false documents, including a phantom lease and a valuation for the property which was grossly inflated, to obtain the bank loan. The police investigation was triggered after the loan defaulted in early 2008.It is the second arrest in relation to the loan. Sydney businessman Matthew Rhodin was last month arrested and charged with identical offences.Mr Camilleri's first attempt for bail, where he wanted to put the $100,000 surety on a credit card, was rejected.However, a second attempt late yesterday afternoon was successful and Mr Camilleri walked free on conditional bail. Since parting company five years ago, Mr Camilleri and Kerr could hardly have pursued more divergent paths in their careers - and lives.Today she is one of the most sought after models in the world. He is an undischarged bankrupt facing serious criminal charges.

Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit

former boyfriend of Australian model Miranda Kerr was charged yesterday in relation to an alleged $7.3 million fraud of the Commonwealth Ban...

federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDfN__7QZXmxSqYqZt31nVlCerMR3UjPWPX7fN7jIXM9nbLKCGlromolrXFWorPbAYXfUXESahk8zqqv5b5AfU95yC14e0FJhRZBqTBz06cGldaf1mkzseMOhRXi9KHy5Xmq8PJjqCOQp/s1600-h/Christensen.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5272356812207461042" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDfN__7QZXmxSqYqZt31nVlCerMR3UjPWPX7fN7jIXM9nbLKCGlromolrXFWorPbAYXfUXESahk8zqqv5b5AfU95yC14e0FJhRZBqTBz06cGldaf1mkzseMOhRXi9KHy5Xmq8PJjqCOQp/s400/Christensen.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 290px; height: 400px;" /></a> A federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife billionaire Kirk Kerkorian, Lisa Bonder Kerkorian. Today a federal judge sentenced Terry Christenson, 67 to 36 months in prison and levied a quarter-million dollar fine against him in the Anthony Pellicano Wiretap caseChristenson is very lucky at his age to be free on bail pending the lengthy appeal process. We can expect no stone to remain unturned in efforts to win a reversal and new trial. The odds on winning a criminal case during an appeal are 95 to 5 against success on average. I see a tragic end to a brilliant career because of a ruthless PI who employed illegal methods. I can’t imagine the heartbreak Christenson, his friends and family are going through right now. Disgrace and disbarment has brought a cloud over Century City and a family getting ready for the holidays. I somehow don’t feel bad to have never made a case I’d been assigned so important as to place a client at risk for this kind of damage. I’m sure some lawyers would not hire me to work their cases because I would never allow something like what led to today’s event from happening.Those lawyers and Hollywood high rollers that have escaped their involvement now live in fear that the crooked PI they hired may get tired of prison and testify against them. I’m happy to say no lawyer client of mine has ever or will ever face jail, disgrace or disbarment on account on something I’ve done. I will only help my clients, and never place them in that kind of danger. I can and do win cases without unlawful methods.

federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife

A federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife b...

Brent Beebe, Hosam Amara and Zeev Levi 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers

Federal grand jury has issued a 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers at a kosher slaughterhouse that was the site of one of the nation's largest immigration raids. The indictment includes three new defendants — Brent Beebe, Hosam Amara and Zeev Levi — who haven't previously faced federal charges in connection with the Agriprocessors plant in Postville. The indictment was issued Thursday and unsealed Friday.Former CEO Sholom Rubashkin and human resources worker Karina Freund, who were already facing federal charges, also were named in the indictment. The superseding indictment pulls together a handful of cases pending against Agriprocessors employees and lists charges including conspiracy to harbor undocumented immigrants for profit; harboring and aiding and abetting undocumented immigrants for profit; conspiracy to commit document fraud; aiding and abetting document fraud; aiding and abetting aggravated identity theft; and bank fraud. Federal immigration agents raided the northeastern Iowa plant in May and arrested 389 workers. Arrests of Agriprocessors managers have come in the following months, as have state charges alleging labor and safety violations.Court records show that Beebe, the plant's operations manager, was arrested without incident at noon Friday at the Agriprocessors plant. The U.S. attorney's office said the public's assistance is being sought in the apprehension of Amara and Levi, who were both poultry managers.Calls to attorneys for Rubashkin and Freund were not immediately returned. Beebe was arraigned Friday in Cedar Rapids and released after surrendering his passport and being equipped with an electronic monitoring device. A call to his attorney was not immediately returned.The indictment includes new details of previous allegations, including a meeting in a barn on plant property between Rubashkin and Beebe. The two allegedly discussed loaning money to several workers who could not afford new documents.The indictment also described a discussion between poultry managers Amara and Levi and poultry supervisor Martin De La Rosa-Loera. The managers allegedly told De La Rosa-Loera to help six employees obtain and submit new paperwork after they were fired because of improper documents. A federal judge ruled this week that Rubashkin should remain in federal custody after prosecutors argued he was a flight risk. He was arrested last week on a bank fraud charge and had been arrested earlier on immigration charges.Freund was arrested in September and charged with harboring illegal immigrants. She faces a new charge of conspiracy to harbor undocumented immigrants.The charges are the latest blow for a company that was once the nation's largest provider of kosher meat. The Postville plant sought bankruptcy protection this month and has been forced to halt production.

Brent Beebe, Hosam Amara and Zeev Levi 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers

Federal grand jury has issued a 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers at...

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges and agreed to pay a total of $105 million to the government to settle the fraud case against him.He was also sentenced to one day of probation, federal prosecutors said.Mr. Tollman, 78, and his wife Beatrice Nina Tollman were accused of earning “approximately $18 million in income that he knowingly failed to report to the Internal Revenue Service,” said Michael J. Garcia, the United States attorney for the Southern District of New York.Mr. Tollman entered his guilty plea via video link from London, Mr. Garcia said in a statement. Last year, a British judge refuse to approve Mr. Tollman’s extradition to the United States, citing Mrs. Tollman’s poor health and questions about whether Mr. Tollman could get a fair trial.For much of the 1990s, Mr. and Mrs. Tollman were conspicuous figures in high society in New York, Palm Beach, Fla., and Litchfield County, Conn.Federal prosecutors had pursued the Tollmans for more than six years. They were accused of receiving $18 million in income through offshore bank accounts from 1994 to 1999 that they did not report to the I.R.S. The couple denied wrongdoing. Mr. Tollman was also accused of defrauding lenders.By pleading guilty to tax fraud, Mr. Tollman agreed to pay $60.4 million in restitution to the I.R.S., including back taxes, interest and fraud penalties, Mr. Garcia said.Mr. Tollman also agreed to pay $44.7 million to settle a separate civil forfeiture action brought by the government in 2002 accusing him and six other men of a $100 million bank fraud. Four of the men were convicted in 2004 and two pleaded guilty. As part of the plea agreement, the United States Attorney’s Office dropped the bank fraud charge and other remaining charges against Mr. Tollman and a separate tax fraud charge brought against Mrs. Tollman.

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charg...

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced to 66 months in prison on mail fraud and wire fraud charges to which he pleaded guilty on Sept. 15. The charges arose out of Martin S. Bodner’s theft, between about the middle of 2000 and the end of December 2007, of over $19,090,000 from his employer. Prosecutors said Bodner, 60, of Manhattan, began working at THHB in Manhattan in March 2000, eventually becoming the company’s CFO. Beginning in about the middle of that year, Bodner began stealing money from his employer by secretly increasing the amount of money that he was to be paid in salary and bonus; arranging to be reimbursed by THHB for phony expenses he purportedly had incurred in the course of his employment; adding one of his sons, who did not work for THHB during the years 2004 and 2005, to the company’s payroll and arranging for his son to be paid approximately $225,500 during those years. He also caused hundreds of checks to be issued to various payees for the purpose of paying off Bodner’s personal credit card bills, purchasing a luxury automobile for himself, paid for insurance for a home, apartments, and automobiles owned by Bodner, and paid for decorating services. Bodner also used stolen money in, among other ways, to purchase, decorate, and furnish three Manhattan apartments, two of which were combined into a larger apartment; purchase a home in Sands Point that he was in the process of rebuilding when his fraud was discovered; and purchase luxury cars, including two Jaguars and two Audis. In addition to the prison term, Bodner was sentenced to three years of supervised release, and ordered to pay a fine of $12,500 and $17,347,240.21 in restitution. In connection with his agreement to plead guilty, Bodner agreed to forfeit a home in Sands Point, a Manhattan apartment, cars, and various other property.

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sen...

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.She faced three counts of using a document for pecuniary advantage when she appeared in Wellington District Court on Friday, Radio New Zealand reported. Thompson resigned after being accused of a conflict of interest for allegedly helping family members gain residency in New Zealand. A State Services Commission report, written by chief legal adviser David Shanks, found her family members residency application forms were approved despite being late and against the approving official's advice.Mr Shanks also said Thompson did not advise anyone of her involvement in their immigration and the department failed to investigate properly when concerns were raised.Thompson will reappear in court next month. Thompson headed the immigration service within the Department of Labour from 2004 until resigning in May after a State Services Commission report found that she had helped members of her family from the Pacific island nation Kiribati obtain residence permits in New Zealand. The department's chief executive, Christopher Blake, said then that the behaviour described in the report was 'completely unacceptable,' adding, 'In the interests of the department and the wider public service, Ms Thompson has decided to resign from her position.' At the same time, police confirmed they were investigating a statement by the London School of Economics that Thompson had not graduated with the doctorate she claimed when she first applied to join the public service in 1990. Thompson worked in the prime minister's department before moving to head the immigration service and former prime minister Helen Clark told a news conference in May that she appeared to have been 'sailing through a career in the public service' on a basis of false qualifications. 'I always assumed she had a PhD, because of the title she had given herself,' Clark said.Thompson was regarded as one of the country's most trusted civil servants, having risen to be the highest-ranking female official in the Treasury before working for the prime minister and heading the immigration service.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.She faced three counts of using a document for pecuniary ...

PARDONS:Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King,"

Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King," has formally asked for a pardon from Bush.Milken was indicted on 98 counts of racketeering and securities fraud in 1989 as a result of the government's insider trading investigation of Wall Street. The next year, the San Fernando Valley billionaire pled guilty to six felonies.Milken, 62, paid $200 million in fines and served 22 months in prison. He has since been an active philanthropist, using his $2.1 billion fortune to support medical research, including studies on prostate cancer, of which he is a survivor. Milken submitted his petition in June and has hired Washington power attorney Ted Olsen, who served as Bush's solicitor general. Milken's last pardon attempt with President Bill Clinton failed. Edwin W. EdwardsFormer Louisiana Gov. Edwin W. Edwards has also requested a Bush pardon. Edwards served four non-consecutive terms between 1972 and 1996. He was indicted in 1998 on racketeering, extortion, money laundering, mail fraud and wire fraud.Prosecutors say Edwards, 81, who was known as the "Cajun Prince," was involved in illegal schemes to shake down riverboat casino owners and license applicants. He had been acquitted on separate charges in two other federal trials. In 2000, Edwards was found guilty on 17 of 26 counts and was sent to a federal prison. He is eligible for release in 2011. Former President George H.W. Bush has supported commuting Edwards's prison time and has written a letter to the federal prison parole board.Randy "Duke" CunninghamEx-California Rep. Randy "Duke" Cunningham is seeking a pardon after being caught accepting at least $2.4 million in bribes and underreporting his income for 2004.Cunningham, 66, resigned in 2005 after pleading guilty to conspiracy to commit bribery, mail fraud, wire fraud and tax evasion. As a member of the House Defense Appropriations Subcommittee, tens of millions of dollars worth of defense and intelligence contracts went to Cunningham's benefactors. The congressman was accused of accepting millions of dollars worth of gifts, including limousines, prostitutes and a house boat. Cunningham was sentenced to eight years and four months in prison and ordered to pay $1.8 million in restitution. He is currently incarcerated at a minimum-security prison in Tucson, Ariz., and is expected to be eligible for release in 2013. Cunningham's connections with defense contractors also brought trouble to two others now considered potential pardon seekers: former CIA officer Kyle "Dusty" Foggo and defense contractor Brent Wilkes.Conrad Black Another recent pardon applicant is Conrad Black, the Canadian-born media mogul who was convicted of mail and wire fraud and obstruction of justice a year ago after diverting funds from his company, Hollinger International, for his "personal benefit."Prosecutors say Black and three other executives had taken cash and other company assets without prior approval, scamming shareholders.Black, 62, was convicted in Illinois in 2007 and ordered to serve 78 months in prison and pay a $6.1 million fine. He is currently incarcerated in a federal prison in Orlando and is set to be released in 2013.

PARDONS:Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King,"

Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond ...

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been ...

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been pressuring state attorney generals to force settlements out of stock brokerage firms, investment bankers and US banks that sold auction rate securities to 145,000 unsuspecting US consumers and 1,000's of businesses, or organizations. While some of the larger sellers of auction rate securities have agreed to at least a retail customer settlements, scores of banks and or stock brokerage firms have yet to do anything. According to the Wall Street Fraud Watchdog, "We think banks or stock brokerage firms are just hoping the auction rate securities mess will simply go away, given the current carnage on Wall Street. Unfortunately for banks like Wells Fargo, Oppenheimer, and numerous other banks or stock brokerage firms, we are notWall Street Fraud Watchdog is describing the $330 billion auction rate securities debacle as the worst single case of fraud in US history, and is demanding that state attorney generals do something about this gigantic problem, for victims whose life savings are still at risk. According to the group, "How does New York, Massachusetts, and Missouri look the other way on institutions like Wells Fargo Bank, Oppenheimer and others, who sold these cash equivalent type products to thousands of unsuspecting US citizens as just like cash and 100% safe? How does that work?" Because of the auction rate securities "con job," the Wall Street Fraud Watchdog is now warning all US investors to avoid any Wall Street cash equivalent investment products, unless the stock broker or bank investment advisor is willing to put in writing the investment is 100% safe & liquid.

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been ...

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison, respectively, for defrauding the Medicare program in connection with a $6.8 million HIV infusion fraud scheme, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced. Judge Federico A. Moreno of the U.S. District Court for the Southern District of Florida also ordered that Contreras and Pichardo be placed on three years of supervised release following their prison terms and that they pay $4.2 million in restitution to the Medicare trust fund. On Sept. 11, 2008, Contreras and Pichardo each pleaded guilty to one count of conspiracy to commit health care fraud. Contreras pleaded guilty in connection with his role as the owner and medical doctor at CNC Medical Corp. (CNC Medical), a Miami-area HIV clinic that purported to provide HIV infusion services to Medicare beneficiaries. Pichardo pleaded guilty in connection with his role as a medical doctor at CNC Medical. In their pleas, Contreras and Pichardo admitted that between November 2002 and April 2004, they conspired with others to file $6.8 million in false claims to the Medicare program for HIV infusion services that were not provided, nor were they medically necessary. As a result of their fraud, the Medicare program paid approximately $4.2 million in fraudulent bills. Contreras admitted that after Medicare proceeds were deposited into the CNC Medical bank accounts, he transferred approximately $1.7 million of the proceeds to sham management, marketing and investment companies owned and operated by alleged co-conspirators Carlos, Luis and Jose Benitez. Carlos Benitez, Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008. According to that indictment, these co-conspirators allegedly provided the money and staff necessary to open HIV clinics, the Medicare patients that the clinics would bill to the Medicare program and transportation for the HIV patients who visited the clinics. Also according the indictment, Carlos and Luis Benitez were the true owners of the clinics. The Benitez brothers and McKenzie were charged for their roles at the clinics and eight other HIV infusion clinics. On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and admitted to his role in a $119 million HIV infusion fraud scheme. Carlos, Luis and Jose Benitez remain fugitives. The cases were prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney John K. Neal of the Criminal Division's Fraud Section, and Trial Attorney Constantine Lizas of the Criminal Division's Asset Forfeiture and Money Laundering Section. The FBI and Department of Health and Human Services, Office of the Inspector General, investigated the cases. The cases were brought as part of the Medicare Fraud Strike Force (MFSF), supervised by Deputy Chief Kirk Ogrosky of the Criminal Division's Fraud Section and U.S. Attorney Acosta of the Southern District of Florida. Since the inception of MFSF operations in 2007, federal prosecutors have indicted 104 cases with 184 defendants in Los Angeles and Miami. Collectively, these defendants fraudulently billed the Medicare program for more than half a billion dollars.

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison, respectively, for ...

Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months.

orthopedic surgeon and two chiropractors were sentenced Thursday to federal prison for cheating insurance companies out of $3 million by mislabeling treatments for back pain. The sentences are the latest in Georgia to result from a back pain treatment known as Vertebral Axial Decompression. The U.S. Attorney’s Office said Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months, and the chiropractors, 67-year-old Arthur Hargraves of Douglasville, Ga., and 52-year-old Daniel Puffenberger of Kissimmee, Fla., each got three years and five months.Berkowitz pleaded guilty and testified against his former partners in the Associated Spinal Care Network, which operated clinics in north Georgia and Tennessee. Prosecutors said the network faked reports to be reimbursed by Blue Cross/Blue Shield of Georgia for the Vax-D procedure, which was not covered by the insurance company.VAX-D is a non-invasive treatment that uses a mechanical table to stretch a patient’s spine. Blue Cross/Blue Shield of Georgia considered it investigational and not medically necessary, and made clear to health care providers that it did not cover the procedure.The three men were convicted of using a different billing code that pertained to surgical nerve decompression, instead of the specific code assigned to VAX-D, to bill the company for more than $3 million from 2001 through 2005.On Nov. 10, a federal jury in Atlanta convicted another chiropractor of a similar scheme. His two partners had already pleaded guilty. Another man pleaded guilty in 2005 to the same scheme at clinics in Albany and Columbus, Ga.In the Northern District of Georgia, seven medical professionals have been convicted, and five were sentenced to a total of over 14 years in prison with monetary judgments topping $7 million.

Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months.

orthopedic surgeon and two chiropractors were sentenced Thursday to federal prison for cheating insurance companies out of $3 million by mis...

Michael M. Hadeed Jr. faces charges of immigration fraud, conspiracy and making false statements to federal agencies

A Springfield lawyer was indicted yesterday on charges that he filed fraudulent documents for illegal immigrants seeking permanent residence...

Retired Pennsylvania appellate judge Michael Joyce was convicted of mail fraud and money laundering

retired Pennsylvania appellate judge was convicted Wednesday of mail fraud and money laundering after prosecutors said he lied about neck and back injuries in a fender bender to collect $440,000 from two insurance companies.Former Superior Court Judge Michael Joyce will be sentenced March 10 on two counts of mail fraud and six counts of money laundering."Michael Joyce made multiple false representations of debilitating injury following a 2001 automobile accident when the evidence showed he was engaging a variety of physical activities, including scuba diving, roller blading and piloting airplanes," U.S. Attorney Mary Beth Buchanan said. "The jury's finding of guilt demonstrates that no person, even a judge, is above the law."Joyce could be ordered to forfeit the money he collected , or the items he purchased with it. The charges carry a maximum of decades in prison, but a shorter sentence is likely for someone such as Joyce, who has no criminal record, and perhaps even probation or house arrest, his attorneys said.Federal prosecutors said Joyce lied about his injuries after another car rear-ended his Mercedes at 2-3 mph in August 2001. Joyce's attorneys contend the accident was more serious and occurred at about 11 mph and aggravated cervical fusion surgery he had in the early 1990s.Joyce's attorneys still say that debilitating pain has caused him to give up golfing and more rigorous forms of scuba diving ever since mid-2002. Saying Joyce was "devastated" by the verdict, the defense attorneys, Philip Friedman and Robert Leight, promised to appeal."You never know what juries are going to do," Friedman said. "We have to respect (the verdict) but we certainly don't agree with it." In a separate matter, the conviction could potentially cause Joyce to forfeit the state pension from his $165,000-a-year judgeship. He opted not to run for a second term on the appellate court after he was indicted in August 2007.Friedman doesn't think the conviction is relevant because it wasn't directly related to his duties as judge.But Assistant U.S. Attorney Christian Trabold said Joyce used his position as judge to influence the insurance settlements, in particular $390,000 Joyce received from his policy with Erie Insurance Co. Trabold said Joyce referred to himself as "Judge Joyce" 115 times in an 18-page letter he submitted to the company detailing his injuries, pain and how they affected his active lifestyle.The other $50,000 came from the other driver's policy with State Farm. Minutes after the crash, Joyce identified himself to the other motorist as a Superior Court judge, Trabold said.Joyce badly needed money to repay money he borrowed from a former girlfriend and other debts before he bought a Harley Davidson motorcycle and made down payments on a $360,000 house and a small airplane, they said.Prosecutors want Joyce to forfeit more than $318,000 he deposited into an Ameritrade account and used to pay off a line of credit; more than $114,000 put toward the house; a $27,000 down payment on the plane; and the $18,700 he spent on the motorcycle, among other purchases cited in the money laundering counts.Whether Joyce can be forced to repay money for the plane or motorcycle, which have already been sold, remains to be decided, his attorneys said. Senior U.S. District Judge Maurice Cohill Jr. ordered Joyce not to liquidate any more of the assets until he rules on the forfeiture request when Joyce is sentenced.The judge's order puts a lien on Joyce's house, Leight said. And Friedman said it's possible the government will try to recoup money Joyce made from selling the motorcycle and airplane."They can try to. That's going to be another battle," Friedman said.It's possible the house might have to be sold to satisfy the lien on it, "but it's too early to think about that now," Friedman said.The six-man, six-woman jury declined to comment on their verdict after the four-week trial. Joyce and his family left the courtroom without comment.

Retired Pennsylvania appellate judge Michael Joyce was convicted of mail fraud and money laundering

retired Pennsylvania appellate judge was convicted Wednesday of mail fraud and money laundering after prosecutors said he lied about neck an...

Convicted Alberto W. Vilar of all 12 counts in his securities fraud trial

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfHXIEOskdbzg0k8tSVpdCdDYjLEm5s28IJQdS_K5FoOGgTXYmyqeHD9mDTXgWRJcsdcPzBxZ0vsW35O_N8tMrmP6GmNwaZTvKiubFP3nmZkegj5V46R6b9dQXjTaZQxxC6nmJDdfBP0vy/s1600-h/aa06give.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5270899013902626306" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfHXIEOskdbzg0k8tSVpdCdDYjLEm5s28IJQdS_K5FoOGgTXYmyqeHD9mDTXgWRJcsdcPzBxZ0vsW35O_N8tMrmP6GmNwaZTvKiubFP3nmZkegj5V46R6b9dQXjTaZQxxC6nmJDdfBP0vy/s400/aa06give.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 184px; height: 280px;" /></a> Federal jury in New York convicted Alberto W. Vilar of all 12 counts in his securities fraud trial on Wednesday, a final fall from grace for a man who gave millions of dollars to musical and other causes but was ostracized for falling short on his pledges, The New York Times’s Daniel J. Wakin reports.Mr. Vilar, 67, blinked when the first guilty verdict was pronounced by the foreman in Federal District Court but remained stone-faced. His former partner and co-defendant, Gary A. Tanaka, 65, was convicted of three of the counts.The two men, former partners in Amerindo Investment Advisors, were charged in a 12-count indictment accusing them of conspiracy and securities fraud, investment adviser fraud, mail fraud, wire fraud and money laundering. Mr. Tanaka was found guilty of conspiracy, securities fraud and investment adviser fraud.The verdict came after three and a half days of often heated deliberations. Raised voices were heard inside the jury room, and at one point the panel asked for a half-hour cooling-off period. One woman on the jury was sniffling as she left the courtroom.Mr. Vilar’s lawyer, Herald Price Fahringer, said his client would appeal. “We’re deeply disappointed in the jury’s verdict,” he said. “We expect to be fully vindicated on appeal.” When Mr. Vilar was asked what had gone wrong, he said softly, “I don’t know.”Glenn Colton, Mr. Tanaka’s lawyer, said the nine not-guilty counts showed how troubled the jury was in what role his client had played. The verdict came after a two-month trial.Mr. Vilar faces the possibility of trading life in his opulent United Nations Plaza apartment for a lengthy prison sentence. The judge, Richard J. Sullivan, delayed setting a sentencing date until after post-trial motions were argued. Both defendants remain free on bail.Prosecutors charged that Amerindo gambled with clients’ money in volatile technology stocks instead of the safe investments they promised, and turned to fraud when the market plunged in 2000. Among the most lurid accusations: an Amerindo employee in London cut and pasted a client’s signature to loot her account of $250,000 so Mr. Vilar could pay his mortgage.The defense argued that the investors did not actually lose money until the authorities froze the business with their arrests in May 2005, and that clients like the Los Angeles and Chicago police department pension funds made big profits. They made much of the fact in arguments before the jury that Amerindo had received top ratings as investment advisers. The verdict was the last movement in Mr. Vilar’s fall from grace, which began in 2002 when — amid a plunging stock market — he reneged on a series of promises to give millions of dollars to the Metropolitan Opera, the Los Angeles Opera, the Washington National Opera and others.On Nov. 19, 2008, Alberto W. Vilar was convicted by a federal jury on all 12 counts in his securities fraud trial, a final fall from grace for a man who gave millions of dollars to musical and other causes but was ostracized for falling short on his pledges.Mr. Vilar blinked when the first guilty verdict was pronounced by the foreman in a United States District courtroom but remained stone-faced.Mr. Vilar had been arrested on May 26, 2005, and indicted on charges of defrauding a client of more than $5 million and using some of the money to make donations. The client is Lily Cates, the mother of the actress Phoebe Cates.Mr. Vilar, who controlled the firm Amerindo Investment Advisors, is an opera lover who contributed more than $100 million to cultural and other causes. A federal grand jury in Manhattan charged him with investment adviser fraud, securities fraud, mail fraud, wire fraud and four counts of money laundering. The government alleged that Mr. Vilar diverted the $5 million investment for his personal use and for business expenses, and transferred part of the money to a foreign account. Mr. Vilar denied the charges."I've declared my innocence and my complete intention to defend myself," Mr. Vilar said in a brief telephone interview with The Times after his arrest. He criticized the news coverage of his case, saying it made him seem guilty. "The press has come down hard on me," he said. "Here I was, taken off unexpectedly to jail, presumed innocent."Mr. Vilar’s lawyer, Herald Price Fahringer, said his client would appeal. “We’re deeply disappointed in the jury’s verdict,” he said. “We expect to be fully vindicated on appeal.” When Mr. Vilar was asked what went wrong, he said softly, “I don’t know.” Mr. Vilar was once ranked a near-billionaire by Fortune magazine. He faces the possibility of trading life in his opulent United Nations Plaza apartment for a lengthy prison term. The judge, Richard J. Sullivan, delayed setting a sentencing date until after post-trial motions were argued. The verdict was the last movement in Mr. Vilar’s fall from grace, which began in 2002 when — amid a plunging stock market — he reneged on a series of promises to give millions of dollars to the Metropolitan Opera, the Los Angeles Opera, the Washington National Opera and others.

Convicted Alberto W. Vilar of all 12 counts in his securities fraud trial

Federal jury in New York convicted Alberto W. Vilar of all 12 counts in his securities fraud trial on Wednesday, a final fall from grace for...

Maria Leon was living in section 8 housing, but still owned a home which she didn't declare on the applications year after year.

Maria Leon was living in section 8 housing, but still owned a home which she didn't declare on the applications year after year. "In August of 2008 the Tucson Police Department received information from the city of Tucson's housing management division of a possible fraud violation that had been committed by one of our police officers," says Lt. Rick Middleton.That investigation was turned over to the Attorney General's Office, which prosecutes housing fraud cases. Leon was indicted in late October. According to the Attorney General's Office fraud is a class 5 felony and it carries a half year to two and a half year sentence. She was indicted on six countsTucson police tell us they gave her a notice of intent to terminate earlier this month. They say she had the opportunity to fight it and didn't. Leon was terminated on Tuesday. "It is very disappointing for the Tucson Police Department that one of our employees had to be responsible or be subjected to this type of charge," says Lt. Middleton.Leon began her career as a records clerk in the police department in 1995. In 2006, she became an officer. Her career ended Tuesday when she went to the Pima County jail to get photographed and fingerprinted. After 3 to 4 hours in booking she was released. In an effort to be balanced, we contacted Maria Leon and asked her if she wanted to talk about the indictment. She had no comment. Lieutenant Rick Middleton wants to assure the public, the vast majority of officers are hard working, trustworthy individuals work diligently to protect the public.

Maria Leon was living in section 8 housing, but still owned a home which she didn't declare on the applications year after year.

Maria Leon was living in section 8 housing, but still owned a home which she didn't declare on the applications year after year. "I...

Federal officials yesterday arrested 16 people who they said were involved in two multimillion-dollar Long Island mortgage fraud schemes

Arrested included Robert Guerrero, 33, who Brooklyn federal prosecutors said controlled Property Cash Inc. of Greenlawn. According to an indictment unsealed yesterday, Property Cash was nominally in the name of his girlfriend, Alison Edelman, 30, who was also charged.Federal officials yesterday arrested 16 people who they said were involved in two multimillion-dollar Long Island mortgage fraud schemes, including one suspected of being tied to a drug distribution ring.The schemes are believed by investigators to have bilked lenders of a total of $13.9 million through finance companies in both Nassau and Suffolk counties.Federal agents also arrested Gary Jacques, 33, who according to court papers controlled Home Cash Inc. of Huntington Station.According to the indictment, Guerrero and Jacques used straw buyers with good credit to fraudulently obtain mortgages to pay for homes in Huntington, Greenlawn, Bay Shore and Uniondale at inflated prices.Guerrero and Jacques gained control of the properties through use of a "foreclosure rescue scheme" in which they promised homeowners in danger of defaulting on their mortgages that they could sign their properties over to Home Cash or Property Cash, a method that stole the equity, the indictment charged.The various straw buyers, who were paid up to $10,000 for their participation, had their credit inflated by Guerrero and Jacques, the indictment stated. Once Guerrero and Jacques got the properties, they flipped them at prices inflated with the help of licensed appraisers, prosecutors charged. The scheme lost lenders $8.8 million, prosecutors said.Straw buyers and two appraisers were also charged with fraud and other crimes.Guerrero and Jacques used some of the properties for cocaine smuggling and distribution, which they were charged with in a separate indictment.A second mortgage fraud scheme that hit lenders for $4.9 million using straw buyers and false loan applications led to the arrest of Michael McEnroe, 37, and Ryan Gosin, 34, who prosecutors said controlled Able Group and related companies, located in Baldwin and East Meadow. Also charged was Gloria Espenas, 43, of Plainview, a former vice president at a JP Morgan Chase bank branch. She's accused of signing bank forms that overstated the assets of straw buyers.Jacques, McEnroe and Espenas pleaded not guilty before a magistrate judge. Only Espenas was released on bail."She is a very honest woman," said Espenas' attorney, Robert Gottlieb.Sixteen people -- including drug smugglers, real estate appraisers and a bank employee -- hatched two multimillion-dollar mortgage fraud schemes involving overvalued suburban homes that were sometimes used as stash houses, authorities said.The defendants, arrested Wednesday, were awaiting arraignment in Brooklyn federal court on bank fraud, money laundering and drug trafficking charges. If convicted, they face up to 30 years in prison.In one scheme, the ring leaders recruited straw buyers to sign contracts on 19 homes in towns on Long Island, an indictment said. Using inflated values set by two crooked appraisers, the buyers applied for fraudulent loans that cheated lenders out of $8.8 million, it said.A second, similar plot on Long Island involved a branch bank vice president charged with overstating the assets of the straw buyers on loan forms on nine homes. That fraud cost lenders $4.9 million.Authorities said some of the defendants were corrupt brokers who used properties for a narcotics operation. They face separate charges of smuggling and distributing more than 5 kilograms of cocaine.

Federal officials yesterday arrested 16 people who they said were involved in two multimillion-dollar Long Island mortgage fraud schemes

Arrested included Robert Guerrero, 33, who Brooklyn federal prosecutors said controlled Property Cash Inc. of Greenlawn. According to an ind...

James Hall IV, 33, of Bel Air, Md., and Paul Negroni, 41, of Mt. Kisco, N.Y., filed nearly $1 million of fake claims

Six people have been charged with participating in a scheme to steal more than $40 million in settlement funds from class-action lawsuits.According to the indictment unsealed in Philadelphia by Acting U.S. Attorney Laurie Magid, the accused submitted numerous false and fraudulent claims in three class-action lawsuits - all of which were eventually settled - between 2001 and 2007.The class-action defendants were Nasdaq OMX Group Inc. (NDAQ), Bank of America Corp. (BAC) and the former Cendant Corp. agreed to pay a combined $4.5 billion in their settlements.In each case, accounting firms were used to administer the massive settlements. But the accused used a number of devices, from setting up fake corporations to creating phony brokerage-account statements and other financial documents in an effort to snatch some of the settlement funds, Magid said."Class-action lawsuits play a vital role in vindicating the rights of thousands of people with legitimate legal claims," Magid said. The defendants " exploited the system and created their own virtual world, full of false names, fake accounts, and bogus corporations. The only thing real in their world was the intent to deceive."One of the accused was a senior accountant with one of the accounting firms. That same person, Christian Penta, 38, of Southhampton, N.J., was also indicted for filing false federal tax returns that underreported his income and claimed deductions from income that he stated was generated from a legitimate business, but was instead from the alleged fraud. Penta faces at least 12 years in jail while the alleged ringleader, Kevin Waltzer, 41, of Washington Crossing, Pa., faces at least 25 years. Both were charged with mail and wire fraud and money laundering.Also involved in the scheme, say federal prosecutors, was Deborah Rice, 47, of Boca Raton, Fla. Waltzer is alleged to have begun working with the attorney in 2004 and "represent" the fake companies and file fraudulent claims on their behalf.Two other men, James Hall IV, 33, of Bel Air, Md., and Paul Negroni, 41, of Mt. Kisco, N.Y., filed nearly $1 million of fake claims and shared the proceeds with Waltzer, while Stephen Porto, 51, of Boca Raton, worked with Waltzer to file other fraudulent claims in the names of fake companies.Robert F. Downey, the Philadelphia FBI Division's acting special agent in charge, called the scheme "particularly serious" in that "the defendants engaged in an organized and long-term effort to steal money from victims within the settlement classes who were dependent on that money to restore the losses that they had suffered."

James Hall IV, 33, of Bel Air, Md., and Paul Negroni, 41, of Mt. Kisco, N.Y., filed nearly $1 million of fake claims

Six people have been charged with participating in a scheme to steal more than $40 million in settlement funds from class-action lawsuits.Ac...

Hawaiian Airlines and William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release

William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release, according to a statement issued by the U.S. Attorney’s Office for the Southern District of New York in Manhattan. Spencer, 74, along with Paul Boghosian, 49, of St. Louis, had placed a bid to reorganize Hawaiian Airlines when the airline filed for bankruptcy in 2003. Spencer and Boghosian submitted sworn affidavits to federal bankruptcy court in Honolulu claiming that Spencer could provide, through a trust that he controlled, $300 million to fund the Hawaiian Investment Partners Group LLC’s reorganization plan.In February 2005, Spencer submitted a false affidavit as proof that he had $500 million in a bank in the Netherlands to fund the investment. Boghosian and Spencer then used the false affidavits to solicit people to support and invest in the plan. To get the court’s approval of the plan, Spencer and Boghosian lied in depositions, at court proceedings and submitted phony documents, prosecutors said. The two apparently sought to make money by convincing legitimate investors to kick back money to them.Boghosian pleaded guilty to bankruptcy fraud on Oct. 29. Spencer and Boghosian are scheduled to appear for sentencing on Jan. 30 in federal court in New York.

Hawaiian Airlines and William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release

William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release, according to a statemen...

Sholom M.Rubashkin, 49, has been in the Dubuque County Jail and under the custody of the U.S. Marshal’s Office since his arrest last Friday

Sholom M.Rubashkin, 49, has been in the Dubuque County Jail and under the custody of the U.S. Marshal’s Office since his arrest last Friday on multimillion-dollar bank fraud. It was his second arrest, the first coming at the end of October on illegal-immigration-related charges.Rubashkin was represented in today’s detention hearing by New York attorney Baruch Weiss, who was granted permission by the court earlier today to practice in the Iowa federal courtroom. Weiss will only represent Rubashkin in relation to the detention hearing. His counsel in the case will be F. Montgomery Brown of West Des Moines.Although prosecuting attorney Peter Deegan argued that Rubashkin is a flight risk and that he has shown a propensity to tamper with case evidence, Weiss said that the man’s significant ties to the Postville community would keep him in the northeastern Iowa town. In response to the tampering accusation, Weiss said that his client could be limited only to his home, or relocation.Rubashkin is accused in this case of redirecting funds that were intended for deposit in an account set up to repay a bank loan. The monies, received from Agriprocessors customers, were placed in accounts to fund the Jewish school and kosher grocery in Postville at least temporarily. Although the funds were later deposited into the correct account, the redirecting allowed the meatpacker’s accounts receivable to appear inflated, and draws on the bank’s line of credit were tied to the accounts receivable total.In addition to the bank fraud charges, Rubashkin also faces federal charges for conspiring to hire undocumented workers.

Sholom M.Rubashkin, 49, has been in the Dubuque County Jail and under the custody of the U.S. Marshal’s Office since his arrest last Friday

Sholom M.Rubashkin, 49, has been in the Dubuque County Jail and under the custody of the U.S. Marshal’s Office since his arrest last Friday ...

Neal Gordon Wall pleaded guilty to bank fraud, mail fraud and money laundering charges

66-year-old Neal Gordon Wall of Newbern, Tenn., obtained a $500,000 loan from the TVA five years ago and a $5 million loan from Citizens Ban...

largest bulk cash smuggling case ever in the eastern district of Michigan.

Eskender Mafarani of Richmond Hill, Ontario, appeared for a detention hearing Monday in federal court in Detroit in what border patrol agents are calling the largest bulk cash smuggling case ever in the eastern district of Michigan.Mafarani, 52, was crossing the Ambassador Bridge into the United States in a blue Volvo truck Friday when a border patrol officer asked him if he had anything to declare, according to a U.S. District Court affidavit. Mafarani said he had nothing to declare and was traveling with $700, the affidavit states. However, border patrol officers used X-ray images to find hidden compartments in the truck. A patrol dog also alerted the officers to two different areas near the side walls of the truck, authorities said.Once they searched the truck, officers found more than $2 million in cash wrapped in 138 bundles in hidden compartments, along with six cell phones, a laptop computer and $1,220 in Canadian cash.It is illegal to conceal more than $10,000 when leaving or entering the United States.Mafarani is accused of smuggling and making a false statement to officers. He is being detained until a Nov. 18 preliminary examination.

largest bulk cash smuggling case ever in the eastern district of Michigan.

Eskender Mafarani of Richmond Hill, Ontario, appeared for a detention hearing Monday in federal court in Detroit in what border patrol agent...

David Partridge, chief operating officer of the Revenue and Customs Prosecutions Office, was sacked for gross misconduct

David Partridge, chief operating officer of the Revenue and Customs Prosecutions Office, was sacked for gross misconduct after awarding his wife a "lucrative" consultancy contract.The Government's tax fraud department has been criticised for internal failures that allowed a senior officer to hire his wife as a consultant and pay her nearly £100,000 of taxpayers' money.A report into the department by the House of Commons Public Accounts Committee (PAC) found that shortcomings in the "internal control system" led to the situation.The director of the Revenue and Customs Prosecutions Office, David Green, was "thrown into the deep end" when appointed from outside the public sector, the group of MPs said. Mr Green lacked the necessary support, training and experience to identify or mitigate any risks that occurred, they added.The Revenue and Customs Prosecutions Office was set up in April 2005 to prosecute fraud and tax evasion offences for the former HM Customs and Excise and Inland Revenue (now HM Revenue and Customs) and from April 2006, for the Serious Organised Crime Agency.PAC chairman Edward Leigh said: "The new director of the Revenue and Customs Prosecutions Office was thrown in at the deep end when appointed from outside the public sector."Mr Green did a good job at concentrating on how the organisation was performing but this was at the expense of establishing robust financial procedures and controls, he said.Mr Leigh said: "A weak control system contributed towards the chief operating officer of the organisation being able, first, to award his wife a lucrative consultancy contract and, secondly, to become company secretary of her newly established limited company."HM Treasury needs to remind departments of the overriding importance of demonstrating propriety in procurement. It must also drive home the message that, where transactions involve conflict of interests, HM Treasury written approval is needed in advance for those transactions."The PAC said that all weaknesses in the department's internal control system - identified by the National Audit Office in 2006 - had now been rectified.

David Partridge, chief operating officer of the Revenue and Customs Prosecutions Office, was sacked for gross misconduct

David Partridge, chief operating officer of the Revenue and Customs Prosecutions Office, was sacked for gross misconduct after awarding his ...

First Curacao International Bank in the Dutch Antilles in the Caribbean

Accountancy firm Griffins tracked down £51m of unpaid tax being laundered through the First Curacao International Bank in the Dutch Antilles in the Caribbean. With the help of law firm Blake Lapthorn and tax and customs investigators, one of the biggest 'carousel fraud' moneylaundering rings has been smashed. This type of fraud relies on the fact that exported goods are not charged VAT, yet the selling company can reclaim the tax. The tax should be repaid when the goods are finally sold, but the last company in the chain collapses or disappears, leaving the Exchequer out of pocket to the tune of hundreds of millions of pounds. Investigators believe that as much as $1 trillion (£600bn) was laundered through the Caribbean bank. 'This was a dream arrangement for all kinds of thieves and drug dealers,' said one source. 'Crooks could anonymously fire money around the world under false names.' Hunt was acting for creditors of a failed British textile company that suddenly saw turnover go from £200,000 to £425m as it sent the same mobile phones back and forth across Europe claiming cash from the taxman each time goods crossed the borders. The team tracked the cash to the Caribbean bank. A deal between authorities in the UK and the Netherlands saw the bank shut and UK creditors won a court order seizing assets.

First Curacao International Bank in the Dutch Antilles in the Caribbean

Accountancy firm Griffins tracked down £51m of unpaid tax being laundered through the First Curacao International Bank in the Dutch Antilles...

Financial Services Authority raided the offices of a firm of stockbrokers with a family link to gangster and jailed killer Kenneth Noye.

Financial Services Authority raided the offices of a firm of stockbrokers with a family link to gangster and jailed killer Kenneth Noye. Bishopsgate Capital Stockbrokers, yards from the City of London Police Economic Crime Unit, is not suspected of firearms or drugs offences, but it has been caught up in a major international police operation led by Kent Police and the Serious Organised Crime Agency. Operation Victory began last Tuesday. Since then, 270 officers have searched more than 50 addresses in Kent, London and Cleveland and made more than 30 arrests, mainly for drug-related offences. They have seized firearms, cocaine and a six-figure sum. Seventeen people have been charged. Separately, but as part of the same overall operation, City Police and FSA investigators have been monitoring the stockbrokers for some months after uncovering links between its owners and the sale of shares in Natrocell, a rat poison company whose shares are not listed on any stock market. Bishopsgate Capital Stockbrokers, which is now in administration, is part-owned by Brett Tremain, a builder from Sevenoaks in Kent. Another huge block of shares in the company was registered to an address in Marbella on the Costa del Sol. Tremain, who uses his mother's maiden name, is the son of Kenneth Noye, serving life for the road rage killing of a driver on the M25 in 1996 after earlier being cleared of the murder of an undercover detective keeping watch on his home in the wake of the 1983 £26m Brink's-Mat bullion robbery at Heathrow. Tremain is also a director of Natrocell, which has addresses in Hornchurch, Essex, and Market Rasen, Lincolnshire. Another director and part-owner is Mark Anthony Blyth, a fully licensed stockbroker and managing director of Bishopsgate Capital. Shares in Natrocell are being offered by several unlicensed offshore boiler room broking firms with addresses in Spain, Switzerland and Germany. Police have searched Tremain's home and offices. He has been arrested but not charged.

Financial Services Authority raided the offices of a firm of stockbrokers with a family link to gangster and jailed killer Kenneth Noye.

Financial Services Authority raided the offices of a firm of stockbrokers with a family link to gangster and jailed killer Kenneth Noye. Bis...

J.V. Huffman Jr., arrested in connection with an investment scheme that allegedly bilked $634,000 from four investors.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5pXj3h_Sm9nqQOnIUu-rCGrBqrKn5Lqe1VR29AMaTC9g4J268VlNshpBblaiTtcW7nHHNINKqqlnHhVCpvDWh507JwsVQPSkq0HR1bm0lIfl22jJBfooI9BNdOIKfM5zJsQFD5Xreafhu/s1600-h/fraud.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5267441827166194882" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5pXj3h_Sm9nqQOnIUu-rCGrBqrKn5Lqe1VR29AMaTC9g4J268VlNshpBblaiTtcW7nHHNINKqqlnHhVCpvDWh507JwsVQPSkq0HR1bm0lIfl22jJBfooI9BNdOIKfM5zJsQFD5Xreafhu/s400/fraud.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 316px; height: 357px;" /></a> J.V. Huffman Jr., 44, of Claremont faces four felony counts of securities fraud. His arrest Friday came after N.C. Secretary of State investigators searched his home on Wishing Well Lane, seizing documents, computer equipment and other electronic devices.J.V. Huffman Jr., arrested in connection with an investment scheme that allegedly bilked $634,000 from four investors.Authorities say Huffman issued various promissory notes through his company, Biltmore Financial Group Inc., claiming clients' investments would be used to buy and sell real estate mortgages or deeds of trust.But rather than investing the money, authorities say, he took it for his own use.Secretary of State officials are still investigating Huffman and his company, and say additional charges are possible. They also have issued a cease and desist order against him and Biltmore Financial, saying neither was registered to conduct financial securities business.Investigators began building their case over the past year after receiving tips about Huffman and his company, which has been in business for some time.The original tipsters told authorities that Huffman's promises sounded too good to be true, Secretary of State Elaine Marshall said in a news release Monday.“In most cases,” the statement said, “when an investment sounds too good to be true, it usually is.”Huffman was in jail Monday in Catawba County under a $1 million secured bond. A phone number listed for his home and business had been changed or disconnected.The case against Huffman and Biltmore Financial is at least the second fraud investigation in the Charlotte area in recent months. Tyrone “Cauzae” McCall of Charlotte pleaded guilty earlier this year to felony charges related to an investment-fraud scheme that scammed $250,000 from a Monroe church and its leaders.

J.V. Huffman Jr., arrested in connection with an investment scheme that allegedly bilked $634,000 from four investors.

J.V. Huffman Jr., 44, of Claremont faces four felony counts of securities fraud. His arrest Friday came after N.C. Secretary of State invest...

Joseph Baumeister operated a scheme to defraud several mortgage lenders of $364,523 through his company, Prophet Development

Joseph Baumeister, 55, of St. Louis, operated a scheme to defraud several mortgage lenders of $364,523 through his company, Prophet Development, located at 50 Crestwood Executive Center in St. Louis, prosecutors said.The indictment alleges that Baumeister used straw purchasers to buy 16 residential properties based on misrepresentations to lenders. He then took money from the closings of the properties by artificially inflating the sales price or by falsely claiming that various home improvements had been made.After the closings on these properties, Baumeister allegedly found tenants for the properties, collected rent and made mortgage payments on occasion. Eventually, mortgage payments fell behind or were not made, and the majority of these properties went into foreclosure.The funds Baumeister made went to personal expenses. He is expected to appear in federal court early next week.If convicted, each count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1,000,000; each count of mail fraud carries a maximum penalty of 20 years prison and/or fines up to $250,000.

Joseph Baumeister operated a scheme to defraud several mortgage lenders of $364,523 through his company, Prophet Development

Joseph Baumeister, 55, of St. Louis, operated a scheme to defraud several mortgage lenders of $364,523 through his company, Prophet Developm...

Michael Vorce West Michigan boat broker now faces 15 federal criminal counts, ranging from bank fraud to using a false identity to open bank accounts.

The former West Michigan boat broker now faces 15 federal criminal counts, ranging from bank fraud to using a false identity to open bank accounts.The 24-page indictment filed Thursday in U.S. District Court outlines how Vorce, 32, allegedly used fraud to obtain more than $27 million in loans from lenders in West Michigan between 2002 and 2007."It's a pretty complex fraud because you have about 80 different loans and because it just takes time to collect all the information," said Tim VerHey, Assistant U.S. attorney.Vorce faces 10 counts of financial institution fraud, three charges of money laundering, one count of wire fraud and one count of aggravated identity theft.The maximum penalty he faces for each bank fraud count, if convicted, is up to 30 years in prison and a $1 million fine.The identity theft charge carries a mandatory two-year sentence to be tacked on to any other sentence he receives, if convicted. The federal indictment for Michael Vorce includes: • 15: Total number of charges for bank fraud, money laundering, identity theft and wire fraud • $27.9 million: Value of alleged loan fraud • 10: Number of local banks and credit unions • 30: Maximum years in prison per count of bank fraud • $1 million: Maximum fine per count of bank fraud Source: U.S. Department of Justice indictment Michael Vorce's federal indictment issued Thursday in U.S. District Court in Grand Rapids lists these loans*: • Macatawa Bank Corp.: $9.2 million for 26 boats (22 did not exist) 2002-06 • Irwin Union Bank and Trust Co. (Irwin Financial Corp.): $8.6 million for 30 boats (24 did not exist) 2002-06 • Lake Michigan Credit Union: $4.7 million for 16 boats (13 did not exist) 2006-07 • LaSalle Bank (now Bank of America): $2.2 million for unspecified number of "fictitious" boats 2003-06 • Bank of America: $1.975 million for unspecified number of "fictitious" boats 2005-05 • National City Bank: $370,000 for 1 boat that did not exist 2006 • Wachovia Bank: $250,000 for 1 boat did not exist 2005 • Founders Bank & Trust: $292,000 for unspecified loan 2002 • Independent Bank: $200,135 for 1 boat that did not exist 2007 • Michigan State University Federal Credit Union: $100,000 for 2 unspecified loans 2007 *Lenders may have lost less than these amounts or nothing since Vorce repaid some of the loans.Source: U.S. Department of Justice Nov. 6 indictment Verhay declined comment on whether anyone else will face charges related to the case or if Vorce could face additional charges.The alleged fraud touched many West Michigan financial institutions.The indictment outlines loans totaling $9.2 million from Macatawa Bank Corp., of Holland Township;, $8.6 million from Irwin Financial Corp., of Columbus, Ind.; and $4.7 million from Lake Michigan Credit Union, of Kentwood.Vorce even obtained a $300,000 loan from a Greensboro, N.C., man, the indictment alleges.Other lenders mentioned in the indictment include National City Corp., of Cleveland; Wachovia Corp., of Charlotte, N.C.; Independent Bank Corp., of Ionia; Michigan State University Federal Credit Union, of East Lansing; Bank of America Corp., of Charlotte, N.C.; LaSalle Bank Co., of Chicago, now part of Bank of America; and Founders Bank & Trust Co., of Ada Township.Vorce had been paying back some of the loans after securing them.For example, Macatawa was left with $5.2 million in outstanding balances on its loans to Vorce by the time the bank realized what was happening.Further recovery efforts, including proceeds from asset seizures, cut Macatawa's Vorce-related losses to $4.5 million.The indictment seeks a monetary judgment of $16.16 million, which represents the amount Vorce still owes lenders. Some of the loan money was used to finance Vorce's high-rolling lifestyle that included a condo in Miami, his Alpine Township home, yachts, SUVs and an exotic Aston Martin Vanquish, according to the indictment.In 2005, Vorce defrauded Macatawa of $225,000 and, later that day used the money to write a $20,276 check to buy new clothing at A.K. Rikk's Menswear in Cascade Township, according to the indictment. Vorce has been held in a Milwaukee jail since late August, when he and a friend, James Jett, of Byron Township, were arrested near Chicago.Both have been charged with attempting to defraud a bank and stealing the identity of a Milwaukee-area attorney as part of another apparent boat loan scheme.Vorce's return to face federal charges in West Michigan will depend on how the federal judge and U.S. attorney in Milwaukee proceed with their case.A Press investigation in 2007 found a trail of documents showing how Vorce used bogus paperwork to secure titles for boats he didn't own or that did not exist.Those titles then were used as collateral by Vorce to borrow millions of dollars from banks.Vorce apologized to the banks, which had seized and auctioned his assets.But until Thursday, he had not been criminally charged in the Michigan cases and continued to live in a gated mansion in Alpine Township.In September, Bank of America foreclosed on the house, which Vorce had been trying to sell to Jett. The furniture, artwork and electronics he had restocked the home with since the first auction were liquidated last week.The Chicago arrest and Milwaukee case occurred despite Vorce's apparent cooperation with law enforcement in the West Michigan case..According the a complaint, Vorce and Jett applied for a boat loan online in June, using the identity of a Milwaukee lawyer whom they did not know.Federal investigators began investigating that case when bank officials alerted them to the suspected fraud.

Michael Vorce West Michigan boat broker now faces 15 federal criminal counts, ranging from bank fraud to using a false identity to open bank accounts.

The former West Michigan boat broker now faces 15 federal criminal counts, ranging from bank fraud to using a false identity to open bank ac...

Gregory Jaunich 21 months in prison and three years supervised release on one count of mail fraud

U.S. District Judge Paul Magnuson sentenced 47-year-old Gregory Jaunich of North Oaks to 21 months in prison and three years supervised rele...

Don Haidl testified Thursday that he bribed former Orange County Sheriff Michael S. Carona and former Assistant Sheriff George Jaramillo with cash

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHPjeTg4rDRKq8BUxP1vL0SKhlg0leyRY9qqfdURQi2sqq_upjjF34qPyMwd_A1hnwnrC3DsAE4rEwSKjdcAx12j55MeBSGL_Pz9AG3W5IOwwfBPVyQoKhH9UfmgiYlHejovodcNFIsAJg/s1600-h/untitled.bmp"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5266051728297726786" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHPjeTg4rDRKq8BUxP1vL0SKhlg0leyRY9qqfdURQi2sqq_upjjF34qPyMwd_A1hnwnrC3DsAE4rEwSKjdcAx12j55MeBSGL_Pz9AG3W5IOwwfBPVyQoKhH9UfmgiYlHejovodcNFIsAJg/s400/untitled.bmp" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 300px; height: 366px;" /></a> Don Haidl testified Thursday that he bribed former Orange County Sheriff Michael S. Carona and former Assistant Sheriff George Jaramillo with cash payments of $1,000 a month each for more than three years.Initially, the money was handed over in envelopes to the two men near the beginning of each month, usually at Haidl's hilltop home in Newport Beach, he testified. Eventually, Haidl said, he made quarterly payments of $3,000 as it became more difficult to obtain cash on such a regular basis. Haidl, who became one of Carona's assistants, has been cooperating with the prosecution and is one of the government's key witnesses in the corruption case against the former sheriff.During Haidl's testimony, prosecutors played portions of audiotapes that the businessman secretly recorded during conversations with the sheriff. The recordings, which were hard to hear in the courtroom, allegedly capture Carona acknowledging he took the cash payments and expressing confidence they would get away with it as long as they kept their stories straight. Haidl agreed to tape the conversations, which are filled with racial slurs and crude language, as part of a plea deal with the government."He's saying if we both get the same story, and if we both lie, we won't get caught," Haidl said as he interpreted one of the recorded exchanges with the sheriff.Carona and his longtime mistress, Debra V. Hoffman, are charged with selling access to the sheriff's office for cash and gifts. Carona's wife also has been charged but awaits a separate trial. Haidl pleaded guilty to tax fraud and has been cooperating with the government for nearly two years. Jaramillo also pleaded guilty to tax charges and is also expected to testify against Carona.

Don Haidl testified Thursday that he bribed former Orange County Sheriff Michael S. Carona and former Assistant Sheriff George Jaramillo with cash

Don Haidl testified Thursday that he bribed former Orange County Sheriff Michael S. Carona and former Assistant Sheriff George Jaramillo wi...

Melindathee Hill, 42, was a personal banker at the bank at 10 S. Dearborn St. when the thefts took place, the charges alleged

Melindathee Hill, 42, was a personal banker at the bank at 10 S. Dearborn St. when the thefts took place, the charges alleged. She will be a...

Grant G. Gaspard, 51, faces about three years in prison when he is sentenced Jan. 30

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijFvkrTbUsxYrSjY1uxWRwmXpz7rbB7WcYIk1CmiD0AUrjG28gu0iwg4ifD3RphlYar5JNptg_9wQ0DSsgjdOXlNxrs6uXb5RKB-4LLLKu9ckK1TxSUtf2gv-G-xxva8oPhSbIC_EJ8VJn/s1600-h/grant.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5266049451756109058" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijFvkrTbUsxYrSjY1uxWRwmXpz7rbB7WcYIk1CmiD0AUrjG28gu0iwg4ifD3RphlYar5JNptg_9wQ0DSsgjdOXlNxrs6uXb5RKB-4LLLKu9ckK1TxSUtf2gv-G-xxva8oPhSbIC_EJ8VJn/s400/grant.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 320px; height: 240px;" /></a> Grant G. Gaspard, 51, faces about three years in prison when he is sentenced Jan. 30. former assistant chief for South King Fire and Rescue who took hundreds of thousands of dollars from the department pleaded guilty to mail fraud in federal court in Seattle.It was just expensive phone calls and a mystery high-definition television that raised the initial suspicions, but federal agents say their investigation found that Gaspard bilked his department out more than $500,000.In a federal complaint, Gaspard was accused of multiple counts of mail and wire fraud related to thefts spread out over a period of several years.Gaspard was so efficient with the fraud, the complaint said, that even state auditors missed the thefts in the their regular inspections and, as recently as July 9, 2008, noted that the fire district's "internal controls were adequate to safeguard public assets."When confronted in July by the department chief about the questionable phone bills and TV purchase, Gaspard was placed on paid leave and a private law firm was hired to check the stations finances.The law firm brought in the FBI, whose agents believe Gaspard used phony invoices, fake work orders, and improper department credit card purchases to obtain cash and personal items.Gaspard, 51, was the department's chief financial officer, and oversaw business operations and the department computer system. Writing in the federal complaint, FBI Special Agent Glenn Conca said Gaspard obtained about $330,000 from the department by approving purchase orders for nonexistent communications equipment from a company called Atwrx.The payments were mailed to a private mailbox rented by Gaspard at a UPS store in Tumwater, and most of the checks were deposited into a bank account controlled by Gaspard.In addition to the fake orders, investigators say Gaspard purchased hundreds of thousands of dollars worth of personal property with his department credit card and submitted falsified expense reports.When he was confronted by the chief in mid-July, Gaspard allegedly destroyed large volumes of e-mail that contained documentation he submitted to justify the fraudulent purchases. Gaspard resigned from the department July 31

Grant G. Gaspard, 51, faces about three years in prison when he is sentenced Jan. 30

Grant G. Gaspard, 51, faces about three years in prison when he is sentenced Jan. 30. former assistant chief for South King Fire and Rescue ...

Arrest warrant was issued on Monday for a currency broker Thomas Qualls

arrest warrant was issued on Monday for a currency broker who is currently on trial for commodities fraud in Brooklyn, N.Y., after he failed to show up in court for closing arguments in his case.U.S. District Judge Dora Lizette Irizarry approved a warrant for the arrest of Thomas Qualls after his lawyer said the defendant's sister told him Mr. Qualls had taken his belongings out of her Long Island home, where he was staying during the trial. "He's been cooperative up until now, so I'm concerned something happened to him," said Mr. Qualls' court-appointed lawyer, Zachary Margulis-Ohnuma. He added that his office has been contacting local hospitals and police departments.Mr. Qualls, who pleaded not guilty, was free on a $250,000 bond secured by his parents' home in Florida, "so I can't imagine he would have run off under those circumstances," Mr. Margulis-Ohnuma said.Mr. Qualls' trial began in mid-October and is expected to conclude tomorrow, whether or not he shows up, Mr. Margulis-Ohnuma said.Mr. Qualls, a Florida resident, is charged with bilking investors out of hundreds of thousands of dollars by having them invest in a Garden City, N.Y. firm he ran, which purported to trade in the spot foreign exchange market. Mr. Qualls, who also is charged with obstructing an investigation of his firm by the U.S. Postal Inspection Service and another government agency, allegedly created account statements reflecting currency trades purportedly conducted by his firm, but many of the trades never occurred, according to the indictment. The U.S. Commodity Futures Trading Commission got a default judgment against Mr. Qualls in a related civil case, his lawyer said. Mr. Qualls had been a broker at Evergreen International Spot Trading Inc., where some managers were convicted of using deceptive and high-pressure sales tactics to solicit investors, and Mr. Qualls used a similar scheme when he set up his own firm, International Foreign Currency Inc., according to the indictment. Robert Nardoza, a spokesman for the U.S. attorney's office in Brooklyn, which brought the charges, confirmed that an arrest warrant had been issued but declined to comment further.

Arrest warrant was issued on Monday for a currency broker Thomas Qualls

arrest warrant was issued on Monday for a currency broker who is currently on trial for commodities fraud in Brooklyn, N.Y., after he failed...

The Financial Services Authority (FSA) hit Sindicatum Holdings Limited (SHL) with a £49,000 fine

The Financial Services Authority (FSA) hit Sindicatum Holdings Limited (SHL) with a £49,000 fine, and gave an additional fine of £17,500 to Michael Wheelhouse, as the company’s money laundering reporting officer. The fine comes after the FSA found inadequate anti-money laundering systems and controls in use for verifying and recording clients’ identities. The FSA found that Sindicatum Holdings Limited hadn’t implemented appropriate procedures for verifying the identity of its clients. Sufficient records had not been kept of clients’ identities and Mr Wheelhouse had not taken reasonable steps to implement procedures for controlling money laundering risk.This case marks the first instance where the FSA has fined a money laundering reporting officer.Head of retail enforcement at the FSA, William Amos, stated: "It is vital to the integrity of the UK’s financial markets that regulated firms are not used by criminals to launder money. Senior management must implement and follow procedures that meet our requirements so that the risks their firms face are properly managed.” He went on to say: "This fine is a warning to firms and individuals about the importance of complying with our rules in this area and we will not hesitate to clamp down on failures, where necessary." Although the FSA found no evidence of money laundering at SHL, it stated that the penalty would have been “significantly larger” if it weren’t for the limited financial resources of the firm and its ability to pay the fine.

The Financial Services Authority (FSA) hit Sindicatum Holdings Limited (SHL) with a £49,000 fine

The Financial Services Authority (FSA) hit Sindicatum Holdings Limited (SHL) with a £49,000 fine, and gave an additional fine of £17,500 to ...

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