Bankrupt Banker

Wall Street wunderkind Seth Tobias vodoo sex and a swimming pool.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin8vvDMZ9mSOyySJD_5KGEVFv4OlZGZjat1FcSxO9Sm7gIVxyYwLSZqCcREgf667ECrZDtGz0NCWkFE5UBNIvjP3Mt1Vh2GzKl9YpoyZI2FKP2ovWj-p_NZ3_-qSoJ75nVMjFFla_cQYt5/s1600-h/amd_madamsimbi.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5166165475207713794" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin8vvDMZ9mSOyySJD_5KGEVFv4OlZGZjat1FcSxO9Sm7gIVxyYwLSZqCcREgf667ECrZDtGz0NCWkFE5UBNIvjP3Mt1Vh2GzKl9YpoyZI2FKP2ovWj-p_NZ3_-qSoJ75nVMjFFla_cQYt5/s400/amd_madamsimbi.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>The state attorney's office on Monday shot down tabloid-fueled talk that Wall Street wunderkind Seth Tobias was drugged by his wife and left to die in the swimming pool of their Jupiter home. "Based on the evidence available at this time, including the autopsy and toxicology reports, there is no indication of criminality in the death of Mr. Tobias," Assistant State Attorney Mary Ann Duggan wrote in a letter to Jupiter police. The drowning death of hedge fund guru Seth Tobias is entering the supernatural realm. Tobias' former employee, Bill Ash, now alleges that Tobias' widow, Filomena, hired a voodoo priestess to put a spell on Seth before his death. "[Filomena] believed in dark rituals and would put curses on people that she didn't like," claims Ash, who has asserted that Filomena plotted to kill her wealthy 41-year-old husband because he was going to divorce her. Ash contends that Filomena spent "over $100,000" on a woman he identified as Madam Simbi M'Arue, also known as "Mama." Besides casting curses, Ash says Filomena asked Mama to "remove evil from [the Tobias] homes and bring more money and sex to [Filomena]."According to Ash, Mama told him Filomena had paid her $18,000 "to put a curse on me recently so I would die before [I was able to testify against Filomena]."We couldn't reach the alleged spell-caster, whom Ash says "is afraid to come forward."Filomena's attorney (and ex-husband) Jay Jacknin declined to comment on the curse-casting claim, which he branded "nonsense." Jacknin vigorously denounced Ash's allegation that Filomena admitted to Ash that she'd drugged Seth by putting sleeping pills into his pasta, then lured him into the pool of their Jupiter, Fla., home with the promise he could have "kinky sex" with a male stripper named Tiger. Jacknin maintains his client had nothing to do with Seth's death.On Tuesday, a Palm Beach County judge denied a motion by Filomena's legal team to block Ash from testifying in next month's probate hearings into Seth's estate.Tobias' brothers have tried to get Ash to testify under oath that Filomena hastened Seth's death so that they could prevent her from claiming his $25 million fortune. Ash's attorney, Debra Opri, says, "Seth Tobias' money has never been my client's motivation," but promised Ash would testify as soon as a final toxicology report is in. "That's nonsense," counters Jacknin. "What is he waiting for - to fit his story to the report?" Jacknin contends that attorneys for Filomena and the brothers have tried repeatedly to depose Ash "so he won't come into court at the last minute to make more outrageous statements. I want to prove him to be a liar." Ash denied claims that he'd been looking for money from the brothers or the tabloid media. He did claim Filomena offered him $100,000 not to testify - and that she sent him a $15,000 Franck Muller watch, which Opri is keeping as evidence. "It's a total lie," says Jacknin, who also denies Ash's claim that the attorney sought to coach his testimony. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipQP6FOjdVrJfEI9g3pvqyh2teCGJy0md6LhJekjgXedzuCqhNvjZfUU0olDwO35RFCL20KpXCfH7j4q8o-h_TvCjDQFUqRXEk3nZuQLMfPV3ClSV_dj8JKqM33Z0OOPaFUoz-WH6Vyd8F/s1600-h/seth.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5166165479502681106" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipQP6FOjdVrJfEI9g3pvqyh2teCGJy0md6LhJekjgXedzuCqhNvjZfUU0olDwO35RFCL20KpXCfH7j4q8o-h_TvCjDQFUqRXEk3nZuQLMfPV3ClSV_dj8JKqM33Z0OOPaFUoz-WH6Vyd8F/s400/seth.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>Duggan's one-sentence wrap-up of the investigation stands in stark contrast to the volumes that have been written and said by celebrity gossip columnists, bloggers, society watchers and reporters worldwide.Since Tobias was found floating facedown in the swimming pool of the home he shared with his wife, Filomena, reports of the circumstances surrounding his death and the state of his marriage have made print and broadcast news from London to Los Angeles to Australia. Tales of drug use, kinky sex and marital discord propelled a family fight for the hedge fund manager's millions to the world's newspapers and television screens. Gary Dunkel, an attorney who represents Tobias' widow in the probate battle, said the saga is regrettable. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsX25lqY1R4L5r0LDUpuw1bu_6wG2UuclTd09Fs_OLMPgfPSC3xOg8103FDdzGsm352GTTczpJQwYfcI-pxpsyW27ND4DACG3UVcfh2My414Ek6f-gnxqDdDmfxN-udvMJXQjpWW_35dGl/s1600-h/vodo.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5166165479502681122" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsX25lqY1R4L5r0LDUpuw1bu_6wG2UuclTd09Fs_OLMPgfPSC3xOg8103FDdzGsm352GTTczpJQwYfcI-pxpsyW27ND4DACG3UVcfh2My414Ek6f-gnxqDdDmfxN-udvMJXQjpWW_35dGl/s400/vodo.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiemkZRyqRjK16-FJ9xXQuteOtNmfu43XMkZZTF0fGbEkFdoOWDuTx2oQ51MS8oaq4zhr_Ur0E9p005pq_wk33s7hpwVrPFrY9cTicv4qOyHcGSjeduZGiyUXuEF5tOocDRp3MTn5KC0_jZ/s1600-h/wife.bmp"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5166165483797648434" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiemkZRyqRjK16-FJ9xXQuteOtNmfu43XMkZZTF0fGbEkFdoOWDuTx2oQ51MS8oaq4zhr_Ur0E9p005pq_wk33s7hpwVrPFrY9cTicv4qOyHcGSjeduZGiyUXuEF5tOocDRp3MTn5KC0_jZ/s400/wife.bmp" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Tobias was known as a shrewd self-made millionaire who dispensed financial advice on CNBC's Squawk Box.Now, as a result of stories that surfaced as part of the family fight, he's known as a cocaine-loving party boy who got his kicks watching male strippers and engaging in gay sex."It's sad," Dunkel said. "His brothers seem intent on dragging their brother, Seth Tobias, through the mud." The stage for the fight was set, in a large part, because the man who dispensed financial advice did little of his own financial planning. He didn't have a pre- or postnuptial agreement with Filomena and didn't update his will after he married her in March 2005.Under Florida law, that meant the will he signed in 2004, giving each of his four brothers 15 percent and each of his parents 10 percent of his estimated $25 million estate, was null and void. Instead, Filomena, 41, would get it all. Shortly after his Sept. 4 death, his half brothers Sam and Spence Tobias went to court, claiming Filomena, known as Phyllis, shouldn't get a dime under the state's "slayer statute." The law prohibits someone from inheriting money from someone he or she killed.They then filled the court file with allegations from Billy Ash, who told them and any reporter who would listen that Filomena confessed to him that she fed her husband a combination of cocaine and sleeping pills to kill him. He further said she told him she enticed Tobias into the pool at their $3 million home in the exclusive Bear's Club by promising him sex with a male stripper known as Tiger.With a felony record and arrests in Florida on a variety of charges, including prostitution and writing bad checks, Ash wasn't the best source of information. After traveling to California to interview him, police concluded as much."He's been completely discredited," said Mike Edmondson, a spokesman for the state attorney's office.Though the medical examiner found Tobias had cocaine, alcohol, caffeine and Ambien, a prescription sleeping aid, in his system when he died, Edmondson said that doesn't mean someone drugged him."People die all the time with alcohol and drugs in their system," he said. Before they began the war with Filomena, the brothers suggested her husband died from a heart attack. However, the medical examiner ruled he drowned, Edmondson said. James Pressly, who represents the brothers, didn't return a call for comment. In addition to Ash's statements, in court papers he has raised questions about what he said were conflicting stories Filomena gave about her husband's death. He also filed the transcript of vicious obscenity-laced text messages she sent her husband in March 2006. "Drop dead and rot in hell," she wrote in one exchange. That was the month Seth Tobias filed for divorce, saying he was fed up with her insatiable spending habits. She countered that she had caught him in an affair and was sick of his insatiable appetite for drugs. Ultimately, they reconciled. However, Pressly claimed in court papers, in the weeks before his death Seth told Filomena they were through. He told close friends that he was afraid of his thrice-divorced wife because she often erupted in violence. In February 2006, she was arrested outside Cucina restaurant in Palm Beach after slapping him across the face. Days later, the domestic battery charge was dropped.All of that ugly history, however, doesn't make any difference now, Dunkel said.As part of the probate fight, Pressly has conducted a probe parallel to the police's.However, Dunkel said, unless Filomena Tobias is charged with a crime in connection with her husband's death, there is little chance the brothers can win the probate fight."I've never seen a case where someone maintained a slayer statute case when the person wasn't at least arrested," he said. Still, he acknowledged, it's not over yet. "They have a civil case," he said. "Until they drop it, I guess it's still going on."

Wall Street wunderkind Seth Tobias vodoo sex and a swimming pool.

The state attorney's office on Monday shot down tabloid-fueled talk that Wall Street wunderkind Seth Tobias was drugged by his wife and ...

Convicted Robert J. Lucas Jr., of Lucedale, chief executive of Big Hill Acres Inc., and the two others of 41 charges, including conspiracy.

convicted Robert J. Lucas Jr., of Lucedale, chief executive of Big Hill Acres Inc., and the two others of 41 charges, including conspiracy. Lucas, his daughter, Robbie Lucas Wrigley, an Ocean Springs real estate agent; and M.E. Thompson, a professional engineer from D’Iberville, were accused of selling lots in Vancleave in a wetlands area with unworkable septic systems. In December 2005, U.S. District Judge Louis Guirola sentenced Lucas to nine years in prison. Lucas, Wrigley and Thompson also were ordered to pay more than US$1.4 million to mitigate west Jackson County wetlands. The 5th U.S. Circuit Court of Appeals recently upheld the convictions, rejecting the defendants’ arguments that evidence did not show a violation of the Clean Water Act. Defendants made misrepresentations that directly contradicted inspecting buyers’ observations,” the 5th Circuit said. Wrigley misrepresented the dryness of the site, for example, when buyers noticed wetlands and wetlands vegetation and questioned her about the wetlands.” Lucas’ two corporations were sentenced to five years’ probation and were subject to the US$1.4 million restitution and more than US$5 million in fines. Thompson, who designed and certified septic systems at the Big Hill Acres subdivision in Vancleave, and Wrigley, who sold the wetlands lots, were sentenced to seven years and two months in prison. Federal prosecutors said the defendants knowingly polluted federally protected wetlands and area waterways by installing underground septic systems that malfunctioned in saturated soil; thwarted state and federal health and environmental regulators; and defrauded residents into buying uninhabitable land. Defendants’ attorneys argued there was no proof that area waterways were polluted by the septic systems. They also said the defendants complied with regulators. They argued the mobile home park did not flood during Hurricane Katrina and said homeowners there were selling lots at a profit. “The government presented evidence that defendants, despite warnings from agencies that they were installing septic systems in saturated soils, advertised the lots as ‘high and dry’ and, when asked by owners if there were wetlands on the property, responded that there were none,” the judges said. The ruling was issued by three 5th Circuit judges — Patrick E. Higginbotham, Jerry E. Smith and Priscilla Richman Owen. The decision was written by Higginbotham.

Convicted Robert J. Lucas Jr., of Lucedale, chief executive of Big Hill Acres Inc., and the two others of 41 charges, including conspiracy.

convicted Robert J. Lucas Jr., of Lucedale, chief executive of Big Hill Acres Inc., and the two others of 41 charges, including conspiracy. ...

Trafficking of illegal immigrants could have been the source of the large sums of money

As the trial by jury against a 43-year-old woman and her 23-year-old daughter charged with money laundering continued on Tuesday, the Prosecution focused its attention on the criminal record of their respective husband and father.Carmen Butler and her daughter Stephanie are being charged with depositing large sums of money into a bank account despite they knew the cash was coming from criminal activities, thereby getting involved in money laundering. According to the police investigations, the cash was coming from the criminal activities carried out by Charles Butler, their respective husband and father, who is well-known to the police. Money came from various criminal activities While taking the witness stand, police inspector Paul Vassallo told the Court that Charles Butler was involved in various criminal activities and had been found guilty of theft and falsification. Moreover, the police inspector went on, he had been found guilty of trafficking illegal immigrants in Italy and homicide during one of the trips. The inspector insisted that the trafficking of illegal immigrants could have been the source of the large sums of money. Carmen Butler had asked for social benefits The Court also heard the testimony of an official at the Foreign Affairs Ministry who was involved in the extradition process of Charles Butler to Italy, where he was wanted over human trafficking charges. He recalled how Carmen Butler had talked to him twice over her husband’s case and had asked for social assistance while he was in Italy the face the charges. Caught trafficking illegal immigrants Police superintendent Neville Xuereb told the Court that Charles Butler and Carmelo Buhagiar had been arrested on August 18, 1998 when they were found aboard a boat with six illegal immigrants. The Italian Court had found the two men guilty of human trafficking and given them a suspended sentence. According to the immigrants, they had paid $850 each for the trip. Jailed for 22 years over homicide Following an incident in which an illegal immigrant died in Italian waters, a request had been made for Charles Butler’s extradition to Italy while he was receiving medical treatment in the UK, inspector Sandro Zarb told the Court. The inspector added that the man was wanted over human trafficking and homicide charges, and was eventually sentenced to 22 years imprisonment after he was found guilty in 2006. Investigated over thefts Superintendent Carmelo Bartolo said that Charles Butler had been involved in at least two thefts, one of a vehicle and another of various items. The stolen vehicle had been sold to a Gozitan dealer, who told the police he had purchased it from Charles Butler and Emanuel Buhagiar.

Trafficking of illegal immigrants could have been the source of the large sums of money

As the trial by jury against a 43-year-old woman and her 23-year-old daughter charged with money laundering continued on Tuesday, the Prosec...

American International Group five former insurance executives

Prosecutors in the trial of five former insurance executives insisted Monday in closing arguments that the defendants had deliberately mounted a fraud to allow the American International Group to manipulate its financial statements. But prosecutors avoided mention of Warren E. Buffett, the investor whose company Berkshire Hathaway owns the General Re Corporation, which helped A.I.G. on the questionable deal.Instead Eric Glover, a federal prosecutor, told jurors and a packed courtroom that four defendants from General Re knowingly worked with a fifth defendant, from A.I.G., to create a sham transaction that allowed A.I.G. to inflate its loss reserves improperly by $500 million in 2000 and 2001. Mr. Buffett was not accused of wrongdoing.The transaction, whose accounting A.I.G. has acknowledged was improper, helped A.I.G. to assuage analysts that its loss reserves — a crucial indicator — were not too low, which in turn bolstered its flagging share price.A.I.G., the insurance company, paid Gen Re $5 million fee for the deal — an unusual arrangement. In their closing statements, defense lawyers questioned the reliability of two important government witnesses and criticized prosecutors for citing snippets of telephone conversations.The summations, which are expected to continue Tuesday, come after a five-week trial in Federal District Court here. Jurors could begin deliberations as early as Wednesday.The two most prominent defendants are Ronald E. Ferguson, the former chief executive of General Re, and Elizabeth A. Monrad, Gen Re’s former chief financial officer.In the indictment last year, A.I.G.’s former chief executive, Maurice R. Greenberg, was identified as an unindicted co-conspirator who was aware of the details of the deal. Mr. Greenberg has denied any wrongdoing.Prosecutors have treaded lightly with Mr. Buffett, whom they had put on a witness list but did not call to testify. Mr. Buffett has cooperated with investigators.By contrast, defense lawyers highlighted what they contended was Mr. Buffett’s knowledge of the deal.A e-mail message in January 2001 from Mr. Ferguson to Mr. Buffett, released in court papers, says: “Warren, just a quick note to let you know why I hesitated a moment when you mentioned the $5,000,000 fee on the reserve transaction. We are indeed charging a 1% fee but for some reason A.I.G. decided to split the deal in to two $250,000,000 tranches one to be registered in 2000 and one in 2001.”In his closing statement — the first by the defense — Reid Weingarten, who represents Ms. Monrad, put the blame on a low-level, unindicted A.I.G. accountant, whom he said had made an honest mistake that “traveled up the food chain.”Mr. Weingarten derided the prosecution’s description of the questionable transaction. “You think that’s the first time it’s happened in the economic world of America?” he asked the jurors. “There’s a whole industry that does it.”For more than two hours, Mr. Glover, the prosecutor, focused on what he called the secret side agreements and fake documentation intended to hide the lack of real risk transfer between A.I.G. and Gen Re — something needed for the deal to be legitimate.“The defendants knew the true deal and documented the false one,” Mr. Glover said. Avoiding complex arcana, he told the jurors to “follow the money” and to compare the workings of the deal to buying ordinary car insurance. “Remember that no one pays you to insure your car,” he said of the $5 million fee.Mr. Glover played telephone recordings that he said showed that the defendants, in particular Ms. Monrad, knew the deal was improper. In several of them, Ms. Monrad can be heard laughing, saying that with regard to the fee arrangement, “if we ever talked about it, our name would be mud.”Mr. Weingarten, Ms. Monrad’s lawyer, slammed Mr. Glover for what he said was taking calls out of context.Intoning before the jury, Mr. Weingarten repeatedly pointed his finger and swept his arms. He repeatedly said, “Oh, my God!” in mock tones, apparently to illustrate his contention that nothing deliberately fraudulent had occurred. And he suggested that the unusual fee arrangement was in part motivated by Ms. Monrad’s effort to “make up to” A.I.G. for a failed film-financing deal with Gen Re.Mr. Weingarten also questioned the memory and credibility of the two prosecution witnesses — John Houldsworth and Richard Napier, both former senior Gen Re executives, who have pleaded guilty to fraud.Ms. Monrad, who worked briefly as the chief financial officer of TIAA-CREF, a large investment manager, after leaving A.I.G., stood out in a sea of gray suits in a light pink sweater. The defendants are variously charged with 16 counts of conspiracy, including securities fraud, mail fraud and submitting false statements to the Securities and Exchange Commission, over 2000 to 2003.The other defendants are Christian Milton, A.I.G.’s former head of reinsurance; Robert Graham, Gen Re’s former senior vice president and assistant general counsel; and Christopher P. Garand, a former Gen Re senior vice president.

American International Group five former insurance executives

Prosecutors in the trial of five former insurance executives insisted Monday in closing arguments that the defendants had deliberately mount...

Office of Public Auditor’s investigative unit

THE Office of Public Auditor’s investigative unit completed 22 investigations involving allegations of government fraud in the last three years, starting in 2005, according to documents obtained by Variety Twenty-one of those investigations led to convictions, and one remains open. An agreement with the Federal Bureau of Investigations resulted in the formation of a joint task force on white-collar crime and public corruption, and all investigations by this task force have resulted in convictions in federal court. In 2007, OPA entered into a memorandum of understanding with the CNMI Attorney General’s Office to form a joint task force on white-collar crime and government corruption. Among the procurement appeals that was resolved by the unit was that of the Telesource CNMI Inc. which filed its appeal with OPA after no action was taken on its protest regarding the Commonwealth Utilties Corp.’s request for proposals. OPA ordered that the solicitation be cancelled as, based on the findings set forth in the decision, it was determined that the RFP was not in compliance with CNMI procurement regulations. The appeal was heard on July 20, 2007. In April 2007, OPA denied the appeal of DK Brothers after OPA determined that the cancellation of the RFP was in compliance with the CNMI procurement rules and standards. The same decision was rendered by OPA when One-Call Maintenance filed an appeal regarding the Public School System’s invitation for bids for cleaning services for Kagman High School’s food courts. OPA found that the stated evaluation criteria were reasonable and very specific and that the company admitted failure to submit the labor certification. In June 2006, Island Business Systems & Supplies filed its appeal with OPA after the director of procurement denied its protest regarding the procurement of a copier machine from Xerox Corporation by the Northern Marianas Housing Corp. OPA granted the appeal as it was not procured pursuant to the CNMI procurement regulation and the lease with Xerox appeared to be contrary to the CNMI laws. OPA did not ratify the lease agreement and was remanded to the director for determination and appropriate action. The appeal filed by Kautz Glass Co. against the education commissioner on denial of the company’s protest was also resolved by OPA. Kautz had been awarded a contract under the solicitation and which was subsequently cancelled by PSS after determining that the company did not submitted the lowest responsive bid. Because PSS procurement regulations provide for cancellation as a remedy after award, which appeared to be the basis for the commissioner, OPA denied Kautz’s appeal. OPA, in July 2007, dismissed two appeals filed by Fabriclean CNMI. Inc. that pertained to the solicitation of laundry services for the Commonwealth Health Center

Office of Public Auditor’s investigative unit

THE Office of Public Auditor’s investigative unit completed 22 investigations involving allegations of government fraud in the last three y...

Liberty Life limited number of allegedly fraudulent policies

Liberty Life said it is actively assisting in the investigation of a limited number of allegedly fraudulent policies. "Although details are limited at this stage of the investigation, it appears that a third party in the KZN area may have submitted unauthorised policy applications to Liberty Life. If this is the case, fraud has been perpetrated against both the clients concerned and Liberty Life," it said. "Our primary concern is to address the distress the clients involved have experienced and to assist them as quickly as possible with a thorough investigation and expedient resolution," it added. Liberty Life adopts zero tolerance towards fraud or any other crime. All such allegations are treated seriously, and investigated thoroughly by Group Forensic Services, who will additionally assist the authorities in the investigation and prosecution of offenders. It has already sent a forensic investigator to Durban to engage with the police. "As soon as we have more information we will share it," it said.

Liberty Life limited number of allegedly fraudulent policies

Liberty Life said it is actively assisting in the investigation of a limited number of allegedly fraudulent policies. "Although details...

worldwide credit card scam centred on a village garage

A worldwide credit card scam centred on a village garage may have been carried out by a national crime syndicate, it was claimed today. Hundreds of people fell victim to the crime at the Jet Garage, in Houghton on the Hill, after copies of their credit cards were used as far away as the Philippines, Australia, Canada, Malaysia and India. It is now thought the scam could have been carried out by a gang which carried out similar attacks in Manchester and London. The crime, which came to light on December 10 last year, sucked in most of the 1,500 Houghton villagers, as well as hundreds more drivers who used the garage while passing by. Garage owner Jim Funnell delivered letters to every house in the village apologising for the scam, and urging anyone who had been affected to contact police if they had not already done so. Mr Funnell said: "I can't really say anything now as the police investigation is ongoing."I think the investigation has got a lot bigger than it was thought, and there is talk of it involving a syndicate with links to other scams in Manchester and London."One day, when this is all done, there will be a hell of a story to tell about this, but at the moment we can't do anything but hope that whoever did this is caught soon."The criminals responsible installed a fake card reader at the till inside the garage shop, which they used to get customers' card details.It is thought a tiny camera was installed in the garage to spy on customers - including police officers - as they entered their PINs. The card data and PINs were matched up, then e-mailed to criminals around the world, who created fake cards and used them in cash machines.Last night, a spokeswoman for Leicestershire police said they cannot confirm any comments over the links to London or Manchester.She said she could also not provide a figure for the number of people affected by the scam, as more were still coming in.Many of the victims from outside Leicestershire would report the crime to their local force, meaning accurate figures are hard to gather, she said.The spokeswoman said: "Inquiries are still on-going and we cannot reveal any details.This is a complicated case to investigate."

worldwide credit card scam centred on a village garage

A worldwide credit card scam centred on a village garage may have been carried out by a national crime syndicate, it was claimed today. Hund...

Wachovia Bank and Suntasia Marketing Inc

Wachovia Bank may be on the hook for their role in a massive fraud. Suntasia Marketing Inc. was shut down by the Federal Trade Commission in July. They say it was a scheme that used telemarketers to offer "free" memberships to discount buying groups and travel clubs. The problem was that victims gave the telemarketers their banking information, and the scam artists took money out of their bank accounts without authorization. And here's where it gets really interesting. Promoters of the fraud scheme used bank accounts at Wachovia to commit their frauds and steal millions from the victims. Now Wachovia is being sued for playing an active role in the fraud by providing their banking services. Wachovia even invited the scam artists to bank with them! The authorities say Wachovia knew that the fraudulent telemarketers were committing crimes, but that they didn't do anything about it because they were profiting from the business. Ultimately, the fraudsters stole about $400 million, and Wachovia essentially "helped" them do it because the bank charged Suntasia a large fee each time a victim disputed a fraudulent transaction.

Wachovia Bank and Suntasia Marketing Inc

Wachovia Bank may be on the hook for their role in a massive fraud. Suntasia Marketing Inc. was shut down by the Federal Trade Commission in...

alleged ring-leader Demetrius Eugene, 36, created six bogus child-care facilities

alleged ring-leader Demetrius Eugene, 36, created six bogus child-care facilities under the name of Home Sweet Home Day Care Inc. and listed family members and friends as care providers. According to Los Angeles County Dist. Atty. Steve Cooley, Eugene and fellow defendants recruited individuals qualified for state "welfare-to-work" programs, which provide child-care support for welfare recipients transitioning into employment. One arm of Eugene's corporation provided false employment to parents, while the other claimed to provide child-care to those parents to collect state funds, prosecutors said. The "welfare-to-work" candidates signed fake time cards for themselves and attendance sheets for their children at the operation's headquarters in Los Angeles, and received roughly $300 per child per month in return, authorities said. At most of the facilities, there was no evidence that child-care services were ever provided. Cooley said the case was an indication of a complete lack of accountability and verification in the welfare transition program run by the state Department of Education. "It's not just this crime, the way they perpetrated it, or how much money they got. It's really about the fact that it could have been prevented," Cooley said. "It will occur again and we won't be able to detect it." Dist. Atty. James Baker, who worked on the case, said the ring is one of hundreds of child-care fraud operations that are referred each year to the county Department of Public Social Services. "This might be one of the most sophisticated," he said. "They were able to fool the child-care agencies that they were legitimate." The 55 defendants named in five separate complaints include nearly 50 parents, most of whom said they knew about the scheme, prosecutors said. Eugene, a former employee of the California Department of Corporations, had little difficulty turning the day care center he inherited from his mother into a corporation, Baker said. Most of the fraud alleged in the complaints occurred between 2000 and 2004, Baker said. Among those charged in the case was Kmond Day, 32, who received his child-care license from a state agency and set up a facility shortly before he was convicted of drug trafficking. But even after Day was sent to prison, the state continued to provide welfare funds to his care center. Day and his wife received more than $400,000 in state funds, authorities said. "He surely wasn't there taking care of children, he was in federal prison." Cooley said. About 20 people were arrested Thursday in connection with the fraud scam. Five people were picked up in Nevada, Texas and Pennsylvania and will be extradited, officials said. Letters were sent to many of the parents, ordering them to appear for arraignment.

alleged ring-leader Demetrius Eugene, 36, created six bogus child-care facilities

alleged ring-leader Demetrius Eugene, 36, created six bogus child-care facilities under the name of Home Sweet Home Day Care Inc. and listed...

social network sites magnet for fraud

People using social network sites should take the utmost care to avoid gifting key details to fraudsters, with rising internet use inevitably leading to rising cases of attempted fraud, according to Get Safe Online. A joint initiative between the government, the Serious Organised Crime Agency (SOCA) and leading businesses - the group said that Facebook, MySpace and Bebo users were sometimes lax with security, leaving themselves highly vulnerable. The group said that an estimated £30 billion was spent online last year leading both opportunists and sophisticated criminals to seek gains from complacent web users – with social networks sometimes deemed a security weak point. Tony Neate, managing director of Get Safe Online, said: "Social networking sites are great sites – they’re fantastic, as long as you’re sensible with what you do. Close your profile down, and be careful with the information that you give out." "Your personal identity online is so precious and people can take it over if you lose it. So the less information you can give people, the better." He added that closing a profile down and protecting it were key to safe social networking use, while giving out telephone number and address details were ill-advised in all cases.

social network sites magnet for fraud

People using social network sites should take the utmost care to avoid gifting key details to fraudsters, with rising internet use inevitabl...

former senior executive at Woolworths has been charged with taking more than $3.7 million worth of commissions

A former senior executive at Woolworths has been charged with taking more than $3.7 million worth of illegal commissions after awarding contracts worth $37 million 10 years ago. The 57-year-old was arrested at his Castle Hill home at 5.30pm yesterday and charged with nine counts of fraud. A Woolworths spokeswoman said the charges related to the company's MIS division (management information systems) before the executive left the company in 1999. "I think shareholders should take great comfort that an incident of this nature did come to light and charges have now been laid,'' she said. "It actually goes to the rigour of the internal system of checks and balances.'' The alleged fraud took place during the tenure of chief executive Reg Clairs, although it is not suggested he was aware of any alleged wrongdoing. The accused executive spent nine years at Woolworths in a senior role before leaving in 1999. His most public project during his time at the company was the 1997 roll out of a new $135 million checkout system. The charge comes as part of the on-going investigation, Strike Force Whittlesford, by detectives who have been reconstructing a global money trail since 1999. The strike force investigation required the assistance of numerous overseas law enforcement agencies, judicial bodies and financial institutions and involved travelling to London, Rome and Paris among others, police said. The NSW Police Annual Report for 2003-04 details how two detectives, Detective Inspector Colin Dyson, now the commander of the Fraud Squad, and Detective Sergeant Philip Vicker, were seconded to the United Kingdom as part of the investigation. The executive was charged with three counts of a director or officer cheating or defrauding

former senior executive at Woolworths has been charged with taking more than $3.7 million worth of commissions

A former senior executive at Woolworths has been charged with taking more than $3.7 million worth of illegal commissions after awarding cont...

Val E. Southwick, a smooth-talking businessman who sometimes used his LDS faith to persuade potential investors to part with their money, was charged

Val E. Southwick, a smooth-talking businessman who sometimes used his LDS faith to persuade potential investors to part with their money, was charged Wednesday with nine felonies in what federal and state authorities describe as a massive Ponzi scheme that bilked about 800 investors out of as much as $180 million. Criminal charges filed in state court and a federal civil complaint say the Ogden businessman used a spider web of 150 or so interconnected companies to raise $445 million over 17 years of operation from banks and professional and unsophisticated investors. The latter included at least several elderly investors who, on promises of high returns and that their money was safe, invested their entire life savings with Southwick at a time when his companies were broke. "Mr. Southwick had such enormous personal appeal that they all believed him," said Wayne Klein, the director of the state Division of Securities. The massive fraud may be the largest in Utah history. Among creditors are several hundred Utahns and investors from 29 other states and three foreign countries. The criminal charges and a civil complaint filed in federal court by the U.S. Securities and Exchange Commission were filed after negotiations, said Max Wheeler, Southwick's attorney. Southwick has agreed to plead guilty in the state case and reach an agreement with the SEC over the civil complaint, though details are still pending, Wheeler said. "Val is prepared to acknowledge mistakes were made and has agreed to cooperate with both the state and federal governments to try to get to the bottom of what happened and to make an attempt to minimize the negative impact on investors," said Wheeler. The attorney added that Southwick had been advised not to speak publicly. Several investors said Wednesday they were happy to see the charges but were critical that it had taken state and federal regulators so long to prosecute Southwick. "Here's one of the biggest criminals that has ever been in the history of Utah and they're treating him like he's a VIP or something," said Jonathan Horne, who invested $2.1 million after meeting personally with Southwick in January 2005. Said Brad Hatch, of Spanish Fork, who invested $125,000 in 2002 after getting a sales pitch from Southwick: "There's a bunch of us who feel like if they hadn't been dragging their feet we wouldn't be out of our life savings." Klein said the state has been investigating Southwick since October 2006 but has been hampered by the complexity of the case, the lack of financial records and audits of the companies, and by investors who did not cooperate. Of 817 letters sent to investors seeking information, only about a quarter responded. The majority apparently believed Southwick's promises to repay them and heeded his warning that cooperation with regulators might slow the return of their money. Southwick lured investors with promises of high returns, competent management and promises that their money was safe, according to an investigative summary released by the Division of Securities. He also relied on his membership in the LDS Church, according to investigators and several investors. "Southwick emphasized his membership and ecclesiastical roles in The Church of Jesus Christ of Latter-day Saints during solicitation meetings with investors," the investigative summary says. "Southwick showed his LDS Temple Recommend, or mentioned its existence, to several investors, and his office contains LDS 'memorabilia,' all of which appeared designed to breed a sense of trust between Southwick and investors." Instead of Southwick secure investments paying as much as 24 percent a year, he "operated a massive Ponzi scheme, paying existing noteholders with funds from new investors," the SEC complaint says. The millions of dollars, much of which is not accounted for, often was used to repay earlier investors and cover living expenses for Southwick and his family. Southwick, 62, faces up to 15 years in prison on each state felony count. The SEC is seeking unspecified fines, a return of monies obtained through fraud and to enjoin Southwick and associates from engaging in future fraudulent behavior. Southwick filed for bankruptcy in federal court in Utah through one of his companies, VesCor Capital Inc., in May 2007, about a year after he stopped paying investors promised interest. Other related companies are in bankruptcy court in Nevada. The state investigation is continuing and could lead to criminal, civil and administrative actions against people who sold millions of dollars worth of securities on behalf of Southwick, said Klein, who recently said he would resign his position after questions arose about the operation of the Division of State Securities and his management style.

Val E. Southwick, a smooth-talking businessman who sometimes used his LDS faith to persuade potential investors to part with their money, was charged

Val E. Southwick, a smooth-talking businessman who sometimes used his LDS faith to persuade potential investors to part with their money, wa...

The dream robbers

Eleven government employees and a local landlord were indicted Wednesday on charges they scammed a federal housing assistance program in Miami-Dade County out of tens of thousands of dollars. All of the government employees reported that they earned little or nothing when, in fact, they were drawing government salaries. ''The people indicted pretended to be needy, pretended to be poor . . . thereby they kept the needy from getting the help they deserved,'' said Miami-Dade State Attorney Katherine Fernández Rundle in announcing the indictments. ''They are dream robbers,'' she said. All 12 defendants were charged with fraud and theft from the federal Section 8 program, which gives out vouchers to help low-income residents pay their rent. The government employees included two Miami-Dade elementary school teachers, a Broward high school counselor, a Miami-Dade parks employee, a Miami-Dade Transit Agency driver, a former Department of Children & Families employee, and two state corrections officers. Some earned as much as $50,000 a year while they were receiving vouchers. Meanwhile, 35,000 people were on a waiting list to get housing assistance. according to the indictment:ome of the defendants lied on their applications for rental assistance checks, showing less income so they would qualify for the program. Others submitted accurate applications, but then failed to report when they got new jobs and lied during their annual recertification process. Two of the government employees also committed additional scams by buying homes and then continuing to draw rental assistance from the Section 8 program. Among the most egregious examples was Debbie Page, say prosecutors. She bought a house with the help of Habitat for Humanity, a national charity that helps people buy their own homes by letting them pay a portion through ''sweat equity,'' actually working on the homes. Habitat then sells the homes at cost and gives the new homeowners zero percent loans. Page, a Broward schools employee, bought the Habitat home on NW 77th Street in August 2005 and moved into it, but continued to draw Section 8 vouchers for the residence she was supposedly renting. Fernández Rundle called her case ''shameful and heartbreaking'' because Habitat is a charity. Anne Manning, executive director of Habitat for Humanity of Greater Miami, was appalled at Page's alleged actions. ''It's terribly disappointing that someone has received something out of the goodwill of the people and would do this,'' said Manning, who said she and her staff will look into ways to avoid similar problems in the future. ''If someone has a Section 8 voucher and is buying a house, do we need to notify the Section 8 office here,'' she asked. ``That's what didn't happen. We'll have to go talk to them about how we do that.'' Another woman, Catrina Brown, an employee at Jackson Memorial Hospital, bought a house with assistance from the Metro Miami Action Plan, a county anti-poverty program. After buying her own home, she continued to receive a Section 8 voucher for rental assistance. She sublet the home that Section 8 was helping her pay for, collecting money from the new tenant. The landlord who was indicted, Armando Valdes, charged Section 8 recipients more than he had agreed to. He also filed papers claiming a homestead exemption for one of the homes he was renting, illegally lowering his property taxes.

The dream robbers

Eleven government employees and a local landlord were indicted Wednesday on charges they scammed a federal housing assistance program in Mia...

VesCor Capital Inc: Bilking 817 investors out of $140 million

Val E. Southwick was charged in state court today with nine felony charges for allegedly bilking 817 investors out of $140 million in what is described as a massive Ponzi scheme involving a web of real estate development and financing companies. Southwick's attorney, Max Wheeler, said the filing of state charges and a civil complaint by the Securities and Exchange Commission took place after negotiations. Southwick will plead guilty to at least some of the charges and will cooperate with authorities still trying to unravel his financial affairs and trace where investors' money went, Wheeler said. A court appearance set for Friday has been postponed and not yet rescheduled, the attorney said. The SEC complaint filed in federal court alleges Southwick engaged in fraud through the creation or use of 150 companies. He allegedly received $180 million from investors, according the SEC, assuring them their money was secured and that the projects were profitable. "Instead, Southwick operated a massive Ponzi scheme, paying existing noteholders with funds from new investors," the SEC complaint says. In more than 17 years in business, Southwick raised more than $445 million from banks and professional and unsophisticated investors. Money from investors often was used to repay other investors and pay Southwick and his family's living expenses, the SEC said. Southwick, 62, has been under investigation by state and federal regulators, the IRS and Securities and Exchange Commission since at least 2006. He faces up to 15 years in prison on each felony count. Southwick filed for bankruptcy in federal court through one of his companies, VesCor Capital Inc., in May 2007, about a year after he stopped paying investors promised interest. According to court testimony, the interlocking companies were used as vehicles through which Southwick or company officers moved funds around to pay investors or bills, depending on which entity had money at the time. Money from investors went into various companies and was used to pay obligations not necessarily related to the manner in which investors were told their funds were to be used. Among creditors are several hundred Utahns and investors from 29 other states and three foreign countries

VesCor Capital Inc: Bilking 817 investors out of $140 million

Val E. Southwick was charged in state court today with nine felony charges for allegedly bilking 817 investors out of $140 million in what i...

welfare fraud

Julie Stanton, 36, of Richmond was arrested Monday and charged in neighboring Henry County with two felony counts of welfare fraud that carr...

Fraud activities involving the Black Disciples and Black P Stone Nation gangs

More than two dozen people have been indicted following what began as a federal investigation into the laundering of drug money through Chicago real estate transactions, authorities said Wednesday. The FBI said the investigation began in 2005 when agents and U.S. postal inspectors started looking into alleged fraud activities involving the Black Disciples and Black P Stone Nation gangs. Investigators were targeting the use of drug money to buy and renovate properties, according to the FBI. A host of loan officers and processors, property managers, real estate investors and straw purchasers were indicted Tuesday for allegedly taking part in a mortgage fraud scheme uncovered by authorities. Those indicted are expected to appear in court next week, according to the U.S. attorney's office. The investigation expanded after agents found questionable activity at a mortgage brokerage known as Equity Express and traced property transactions in Chicago, Harvey and Chicago Heights. According to the indictment, defendant Augustus Wright owned a car company known as South Shore Imports and accepted money from an individual he knew to be a narcotics trafficker. "Individual A wanted Wright to 'clean up' the money by using it to purchase and renovate real estate," the indictment said. Funds were shared with defendants Nowell Lando and Raymie Henderson, who owned and operated R&P New Development, the indictment said. Agents and postal inspectors eventually located some 100 properties tied up in mortgage fraud that cost lenders millions of dollars. Some defendants allegedly recruited others to act as buyers, sometimes telling them they would have no mortgage payments if they agreed to attend closings. Fraudulent loan applications were created, authorities said, and loans paid out to participants who pocketed the money. A number of the properties involved in the scheme were "abandoned or in poor condition," according to court records.

Fraud activities involving the Black Disciples and Black P Stone Nation gangs

More than two dozen people have been indicted following what began as a federal investigation into the laundering of drug money through Chic...

multi-billion dollar losses have become the aggressive focus of the Securities and Exchange Commission and the U.S. attorney in New York’sConrad Black

Conrad Black was told by a Chicago judge that he couldn’t delay his March 3rd jail date. Despite having worked out of his historic 10 Toronto Street address, Canadian enforcement officals never found Lord Black wanting - even though Canadian equity research analysts had long figured out that most of Hollinger’s profit wound up in the hands of Ravelston shareholders. One doesn’t even need to raise the name Garth Drabinsky, who never caught the OSC’s eye until the FBI came calling, to get a sense that we do things differently in Canada. For whatever reason, the recent billions of lost shareholder wealth at the hands of Canadian bankers hasn’t raised any gumshoe eyebrows, either. France’s Societe Generale called police authorities as soon as they discovered that Jerome Kerviel had cost them US$7.1 billion. Societe Generale CEO Daniel Bouton called the unauthorized trading “a fraud” on the bank. Mr. Kerviel was preliminarily charged with “breach of trust'’ by Paris prosecutors. Time will tell if supervisors were unaware of the activities of their junior trader, who claims his book was up $1.5 billion on December 31st. In Canada, the blame game has had a familiar ring. BMO (BMO:TSX) announced last April that it had suffered its largest writedown in their 190 year history. One quiet hurricane season resulted in massive trading losses in natural gas options and two employees were quickly fired. Shareholder losses already exceed $850 million. Bay Street skuttlebut is that the situation is being explained away internally as a “fraud”. The same description as at “Shock Gen”, above. Strangely, Canada’s Integrated Market Enforcement Team trucks have not rolled up to Toronto’s First Canadian Place to investigate, even though the Canadian Criminal Code has an entire section devoted to monetary fraud. Did BMO call the RCMP and get a busy signal? In New York City, the recent multi-billion dollar losses have become the aggressive focus of the Securities and Exchange Commission and the U.S. attorney in New York’s Eastern District in Brooklyn. Firms with international stature are being asked to explain how they priced their subprime portfolios last year. UBS (UBS:NYSE) and Merril Lynch (MER:NYSE) are both feeling the heat, according to The Wall Street Journal. For their part, the F.B.I. is looking into the origination component of the subprime meltdown, with active investigations of 14 different firms. The question: did the folks doing the originating, packaging and selling of mortgage-related products cut corners and break the law? At CIBC (CM:TSX), shareholders recently suffered a $3.5 billion kiss as their bank wrote off a pile of subprime investments, a portion of which came unglued as a portion of their position had been hedged with flakey U.S. insurance outfits. The $3.5 billion figure is in stark contrast to the “US$330 million exposure” that CIBC told Barron’s it had last summer (”It’s all about ‘alchemy’” July 21-07). In a July article, Barron’s put CIBC’s subprime risk at $2 billion, which elicited a srong denial from a CIBC spokesperson. “Only US$330 million”. A few months later, and CIBC’s saying the figure was now US$1.7 billion (see prior post “When US$330 million of subprime becomes US$1.7 billion at CIBC” November 13-07). That revised amount doubled soon, forcing CIBC to raise $2.5 billion of new equity, 12% dilution to those shareholders that didn’t sell last summer — believing CIBC’s story about the US$330 million subprime figure. Even though every arm of American law and oversight (SEC, FBI, California and NY District Attornies) has their teeth into the issue, we haven’t heard a investigatory peep out of Canada’s regulators and white collar crime enforcement teams. Despite seeing the pain that comes from “fraud”, “untimely disclosure”, and business decisions that have ravaged shareholders for more than $5 billion of losses between BMO, CIBC and RBC over the past 12 months. The pattern shouldn’t come as a surprise, however. It may well be that Canada, at the end of the day, is just more of a free market than our southern neighbour. Where the phrase “buy beware” really means something. In the United States, if smart people do stupid things, the U.S. culture of winning doesn’t allow the alleged wrong-doers to go untouched. Screw up in a big way, expect a suponea. In Canada, Lord Black, Garth Drabinsky, BMO’s trader and the other alleged fraudsters saunter freely through our marketplace, enjoying the spoils of their activities. Until, that is, a guy/gal with a U.S. badge shows up with some tricky questions. Then the rubber hits the road with our enforcement teams, except they have to stay their prosecutions until the FBI is finished with their quarry. As for the poor shareholder sods that suffered by the alleged bad behaviour, our regulators can only say that “you’re on your own”. What else can we assume? $5 billion of losses after shareholders had been told not to fuss. Massive trading frauds have been alleged against specific individuals. And not a single Canadian investigation has begun. The Americans, however, are working overtime to find out if charges are warranted. And making sure that investors are aware of what they’re up to. Has no one learned a single lesson from the regulatory ostrich approach that was so embarrassing in the end at Hollinger and Livent?

multi-billion dollar losses have become the aggressive focus of the Securities and Exchange Commission and the U.S. attorney in New York’sConrad Black

Conrad Black was told by a Chicago judge that he couldn’t delay his March 3rd jail date. Despite having worked out of his historic 10 Toront...

Merrill Lynch and Co., Inc. charged with fraud and misrepresentation related to about $14 million worth of subprime securities

Merrill Lynch and Co., Inc. charged with fraud and misrepresentation related to about $14 million worth of subprime securities it sold to the city of Springfield. The complaint also charges Merrill agents Carl Kipper and Manuel Choy. "This complaint is focused on Merrill Lynch's (MER:Merrill Lynch & Co., Inc sale, through agents Kipper and Choy, of certain esoteric financial instruments known as collateralized debt obligations (CDOs) to the City of Springfield Massachusetts, which were unsuitable for the city and which, within months after the sale, became illiquid and lost almost all of their market value," the state said in its complaint. See full complaint The charges come a day after Merrill Lynch reimbursed the city for its investment, and related legal fees, and said it had determined that the securities were bought without explicit permission from the city. See full story at WSJ.com (subscription required) The complaint concurred, and said, "The city did not authorize these specific CDO purchases in advance." The complaint seeks a cease and desist order against the firm and its agents and, a return of any profits from the deals and an unspecified fine. According to the complaint, the relationship between Merrill and agents Kipper and Choy sprung from a longstanding friendship between Kipper and Stephen Lisauskas, the executive director of Springfield's Financial Control Board. So, in November of 2006, the city hired Merrill to invest its surplus cash, the state said. "The accounts, at least by the terms of the Merrill account documents, were not discretionary accounts," The complaint said. That means that any purchases made for the accounts have to be approved by authorized accountholders, not by the agents selling the securities. "It was understood that Merrill was supposed to invest only in safe money-market-like investments authorized by city personnel that would protect the city's investment," the complaint reads. But, the state argues that Kipper and Choy invested about $14 million of the city's money without the proper authorization, from the firm's own inventory, "circulated periodically to its agents for them to sell." The largest position Springfield bought was in something called the Centre Square CDO, for which Merrill earned fess as an underwriter, and earned further fees for selling it on to the secondary market. The complaint further states that Springfield was not even told the investment was in CDOs until months after the sale and, and that Kipper and Choy never evaluated their suitability for Springfield, "nor did they make any attempt to understand what these CDOs were collateralized with." Greg Morcroft is MarketWatch's financial editor in New York.

Merrill Lynch and Co., Inc. charged with fraud and misrepresentation related to about $14 million worth of subprime securities

Merrill Lynch and Co., Inc. charged with fraud and misrepresentation related to about $14 million worth of subprime securities it sold to th...

Wesley Snipes has been cleared of federal tax-fraud

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjNCvyvOV0TTEFbjTNAEDMV8Eu6oiUqsDQpJ3Q1n9inwmUsKukRGqvrjEgXfwgEo63dg22j79JdkKjm1wkbSEhcXCPZ8Emm6t4c3fQoVrOKQEbipYsh6P0uUSPLvgOBlqgKFoisciCWQIBE/s1600-h/wesley_snipes_mugshot.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5162770538629841250" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjNCvyvOV0TTEFbjTNAEDMV8Eu6oiUqsDQpJ3Q1n9inwmUsKukRGqvrjEgXfwgEo63dg22j79JdkKjm1wkbSEhcXCPZ8Emm6t4c3fQoVrOKQEbipYsh6P0uUSPLvgOBlqgKFoisciCWQIBE/s400/wesley_snipes_mugshot.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Wesley Snipes has been cleared of federal tax-fraud and conspiracy charges on Friday, but was convicted on three misdemeanor counts of failing to file a tax return. From one perspective, it's a huge victory for Snipes as he has just reduced his potential jail time from 16 years to three, and even then, he is unlikely to do any time at all. But he still has some problems. First, the bizarre arguments that he put up - that he was a victim of crooked advisers, that the Internal Revenue Service had no legal authority because it's not a proper government entity and that he himself was a "nonresident alien" and therefore not subject to tax laws - have not exactly done his reputation the world of good. As Columbia law professor Michael Dorf points out in his blog, the whole case has left Snipes with enormous problems starting with the $14 million in back taxes, plus interest charges and penalties on unpaid taxes. "As in all such instances, we cannot know the precise outcome without further information; but it at least seems plausible that Snipes will be required to pay another $10 million or more,'' Dorf writes. "His attorneys' fees surely added up to millions of dollars as well. Finally, he is now a convicted criminal, which is not only a blot on his record but can cause problems in a variety of circumstances (such as foreign travel, which is particularly important to a movie actor). In short, even if Snipes manages to avoid jail time (which I hope he won't), the price he will pay is steep. In an attempt to evade $14 million in taxes, Snipes must now pay that amount in full plus interest plus penalties probably exceeding $10 million, plus legal fees, all while now carrying a criminal record. Add in the years of uncertainty that this prosecution caused Snipes, as well as the personal toll of a trial carrying the possibility of 16 years in prison, and this does not look like an advertisement for getting into the tax denial game." Still as Professor Ellen S Podgor says in the White Collar Crime Prof blog, the acquittal must be making the Government wonder whether it was worth the time, cost and effort and whether it would have been better to proceed with civil penalties. Nevertheless, it's not exactly a great result for the Internal Revenue Service, although it can still sue him in civil court for back taxes for the years in which he didn't file returns, from 1999 through at least 2004. The government says Snipes earned almost $38 million during that time.

Wesley Snipes has been cleared of federal tax-fraud

Wesley Snipes has been cleared of federal tax-fraud and conspiracy charges on Friday, but was convicted on three misdemeanor counts of faili...

Conrad Black heading for prison

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgV1nKdXds45bvEDZrPmqN-8zJNcbAgoYvAXrcaON_Gg0lo5hKXvIi-_VP8AQojR0-zm4yw9KJbG8BN1XW5HKv_VBHe-KcdjfHgn7XvtXtAFeaaErq_gN6p_2puw05Y6WHSG1QsiR_29qQk/s1600-h/oldGuy-751943.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5162768885067432274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgV1nKdXds45bvEDZrPmqN-8zJNcbAgoYvAXrcaON_Gg0lo5hKXvIi-_VP8AQojR0-zm4yw9KJbG8BN1XW5HKv_VBHe-KcdjfHgn7XvtXtAFeaaErq_gN6p_2puw05Y6WHSG1QsiR_29qQk/s400/oldGuy-751943.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> A US judge has denied fallen press lord Conrad Black's long-shot request to remain free on bond pending appeal of his fraud and obstruction of justice conviction. Black, 63, was convicted in July of illegally siphoning $US6 million ($6.7 million) out of the Hollinger International newspaper empire under the pretence that they were so-called non-compete payments from buyers of the company's assets. The former chief executive officer of Hollinger International was also convicted of spiriting boxes of documents out of his offices in Toronto, Canada to keep them out of the hands of investigators. District Judge Amy St Eve said in her order on Thursday that Black's lawyers failed to show his grounds for appeal were likely to result in a reversal or a new trial. Black has until March 3 to report to prison and begin his 6½-year sentence. Hollinger International was once one of the world's largest newspaper holding companies. Its papers included London's Daily Telegraph, the Chicago Sun-Times and The Jerusalem Post as well as hundreds of small community papers across the United States and Canada. During the 1990s the group was the largest shareholder of Fairfax newspapers, publisher of The Sydney Morning Herald.

Conrad Black heading for prison

A US judge has denied fallen press lord Conrad Black's long-shot request to remain free on bond pending appeal of his fraud and obstruct...

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