Bankrupt Banker

Charges Adelphia founder John Rigas and his son, Timothy, faced in Pennsylvania are separate from the fraud charges on which they were prosecuted in

federal judge has refused to dismiss charges of conspiracy and tax evasion against the imprisoned founder of Adelphia Communications Corp. and his son, ruling the charges don't amount to double jeopardy. The charges Adelphia founder John Rigas and his son, Timothy, faced in Pennsylvania are separate from the fraud charges on which they were prosecuted in New York, the judge ruled Friday."In the New York action, the Rigases were charged with agreeing to conceal from investors, analysts and lenders the failing financial condition of Adelphia," District Judge John E. Jones III wrote. "In this action, the Rigases are charged with agreeing to avoid paying income taxes. These two different objectives mark two different conspiracies."John Rigas is serving 12 years in prison and Timothy Rigas, once Adelphia's chief financial officer, is serving 17 years following their 2004 New York convictions on charges including conspiracy, bank fraud and securities fraud.Prosecutors said the Rigases essentially used Adelphia as their personal piggy bank. Once the nation's fifth-biggest cable company, Adelphia collapsed into bankruptcy in 2002.The Rigases were indicted in Pennsylvania in 2005 on federal charges of conspiracy and tax evasion. Prosecutors claim that they obtained about $1.9 billion in Adelphia funds for personal use and failed to report it as income, thus defrauding the government of $300 million in taxes. The Rigases argued that their acquittal on wire fraud and conspiracy charges in New York means they did not scheme to defraud the company by diverting funds for personal use.In his 39-page decision, Jones wrote that while the New York jury "concluded they did not engage in a scheme to defraud Adelphia, this conclusion does not establish that they did not receive funds from the company for personal use."

Charges Adelphia founder John Rigas and his son, Timothy, faced in Pennsylvania are separate from the fraud charges on which they were prosecuted in

federal judge has refused to dismiss charges of conspiracy and tax evasion against the imprisoned founder of Adelphia Communications Corp. a...

Mark Thatcher is said to be looking for a house to buy in Guernsey

Mark Thatcher is said to be looking for a house to buy in Guernsey, believing the Channel Islands might shelter him from the vengeful ruler of a small African state who is alleged to eat the brains and testicles of his enemies. But if you think that is an unenviable situation for Baroness Thatcher's wayward son, consider the plight of his erstwhile friend Simon Mann, who is in one of the ruler's dungeons. It is no place for an Old Etonian and former SAS officer. Both men have admitted a role in the botched 2004 plot to overthrow President Teodoro Obiang Nguema of Equatorial Guinea, once a malarial backwater which is now Africa's third largest oil producer. But Sir Mark told a South African court his participation was "unwitting". Mann, who has just been sentenced to 34 years in Malabo, Equatorial Guinea's capital, claims it was a good deal more important: in fact, he says, Sir Mark was on the "management team" giving the orders to the ex-soldier, whose own part was much less significant, despite being caught in Zimbabwe on his way to Malabo with a shipment of arms and a planeload of mercenaries.So far, so confusing. But then last week, Ely Calil, the London-based oil trader named by Mann as the "cardinal of the plot", broke his silence. For four years he flatly denied any involvement, but on Tuesday he told the Daily Telegraph that he supported only "democratic change" in Equatorial Guinea, and had financed plans by Severo Moto, an exiled opponent of President Obiang, to return. "There was no coup plot," he said, and Sir Mark had "absolutely nothing" to do with it. Mann and his mercenaries were simply hired to protect Moto. Last week, Calil was negotiating with Channel 4 News to put his side of the story on television, but his ground rules for an interview were said to be too restrictive for the broadcaster. All three men in this tale are millionaires with "splodges of wonga", to use Mann's words. The odd thing is that he seems to be the most cheerful of them. Despite being in Malabo's Black Beach prison, which supposedly floods at high tide, Mann says it is better than his last jail, in Zimbabwe. He has a proper bed and meals are sent in from a hotel. He is reported to have told his bank in Guernsey – that place again – to send him his records, hoping to use them to gain leniency. Sir Mark, who has a considerable fortune from various business deals, also banks in the Channel Islands. But if he is seeking to move from his present base, a heavily fortified mansion in southern Spain, it is not to be nearer his money. Though he is safe from Equatorial Guinea's attempts to extradite him, he is said to fear being spirited away illegally, and believes a kidnap squad would be more conspicuous in Guernsey. However, his choice of bolt-holes is limited since his criminal conviction in South Africa. The US will not have him, nor will Monaco or Switzerland – so this small island seems his best bet.

Mark Thatcher is said to be looking for a house to buy in Guernsey

Mark Thatcher is said to be looking for a house to buy in Guernsey, believing the Channel Islands might shelter him from the vengeful ruler ...

plot to steal £72m from inside the London headquarters of one of the world's largest companies, the HSBC banking group

Jagmeet Channa, a charity volunteer from a middle-class family, who had no previous criminal convictions, was sentenced last week to nine years in prison for attempting to steal the cash from his employers. Yet the mysterious syndicate that conspired with the lowly bank clerk remain at large. Police fear they will strike again, but Channa refuses to utter a word, let alone turn supergrass<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJpGmdOg-8O4gFTIGqCn2ALVbQLtzFbu39scHK4bHpABhS3Fwrb81wvGUsy50VvI7CngULMkMUkJvkzoMUUrt6WnZ-jX83NeYtcBpLV9tnAsAAFUKjK5W5nbeIMvhYHDlxNMyzM0EsPxVt/s1600-h/460x276.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5222291347215696178" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJpGmdOg-8O4gFTIGqCn2ALVbQLtzFbu39scHK4bHpABhS3Fwrb81wvGUsy50VvI7CngULMkMUkJvkzoMUUrt6WnZ-jX83NeYtcBpLV9tnAsAAFUKjK5W5nbeIMvhYHDlxNMyzM0EsPxVt/s400/460x276.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" /></a> Jagmeet Channa may name the shadowy figures behind the biggest attempted fraud in British history. What is more likely is that the 25-year-old will maintain his vow of silence inside his prison cell, preserving his position as the only person caught after a plot to steal £72m from inside the London headquarters of one of the world's largest companies, the HSBC banking group.'He won't say who he was involved with. He won't say how it all happened, who else there was. He is an intelligent guy, has a degree in economics, comes from a very respectable family and has no previous convictions. He knew precisely what he was doing when conspiring to fraud,' said David Levy, assistant director of the Crown Prosecution Service fraud unit and the man who took the decision to charge the young banker.It was shortly after 9am on Friday, 18 April, while working at HSBC's Canary Wharf headquarters, that Channa authorised two seemingly straightforward transactions. But they were made using passwords stolen from colleagues. No one paid much attention - the new clerk from Essex was considered a safe pair of hands. Channa had arrived 10 months earlier on a short-term contract, but his diligence quickly secured a staff job. Yet the ambitions of the bright new recruit were less transparent. Unknown to colleagues, their studious, softly spoken colleague from Ilford was the inside man for a syndicate looking to orchestrate a crime that would have rocked public confidence in the banking system during a period of acute economic uncertainty. That spring morning, Channa wired €60m (£48m) to an account at French bank Société Générale in Casablanca, Morocco, then moments later, he despatched €30m to a branch of Barclays in Manchester. 'It was totally audacious, and said to be the biggest fraud of its kind in the UK, certainly the biggest we've handled. It's probably as big as you'll get in one hit in two directions,' said Levy. As the bank's employees filed home that night, Channa behaved as if nothing had happened. Typically, he spent the weekend at the suburban family home. Yet beneath his calm exterior, Channa was euphoric. Transcripts of telephone calls made from his HSBC landline that Friday reveal a series of calls informing several characters that the fraud was a triumph. Attempts to uncover their identities have proved fruitless because they were using pay-as-you-go handsets. Less clear is what Channa intended to do with his riches. Subsequent investigations found no evidence of plans to flee the country, nor ostentatious spending sprees. The young banker appeared to have planned to carry on living with his father and two brothers in their two-storey terraced house in Essex, where police found computer print-outs of the fraudulent transactions and a memory drive holding information on his colleagues' stolen identities. Channa had pulled off the biggest crime in British history in terms of the amount of cash stolen - more than 27 times that taken during the Great Train Robbery in 1963 and almost £20m more than the used notes stolen in 2006 during an armed raid on a Kent cash depot. Then, just after lunchtime on the Sunday, Channa's plan fell apart. Banking security officials 9,000 miles away in Malaysia had noted a double transaction, prompting 'cause for concern'. Channa had used a global financial holding account where vast amounts are paid in then removed. At the close of daily trading, the account should register zero, but Channa had inexplicably forgotten to change it and his holding account was showing a massive debt. It was an elementary error that, if Channa had avoided it, might have allowed him to pull off his record-breaking crime. Channa's decision to execute the crime on a Friday had compounded his mistake. With trading frozen over weekends, security officials find it much easier to detect anomalies. Had Channa committed the fraud during the frenetic trading of the working week, his scam may have remained undetected for long enough to allow his partners to empty the £72m from the accounts in Manchester and Morocco. Levy said: 'The reality is that the money had gone, that is the incredible thing. The theft had taken place, fulfilled in its entirety.' The £72m was frozen and returned to HSBC. Meanwhile, City of London police arrested, but quickly released, the two colleagues whose identities Channa had stolen. Analysis of the CCTV cameras on the 43rd floor of HSBC's headquarters confirmed that only Channa could be responsible. Levy added: 'He had cheated the system. He had to use deceptive methods to steal those IDs and use them to cover his tracks.' Five days after committing the transaction, Channa was arrested. No explanation was offered, in fact Channa refused to utter a word. He had taken the extraordinary decision to protect his accomplices despite knowing his sentence could be slashed if he named them. 'The fact is the guy just clammed; he didn't help himself. But the question is: why did he clam?' said Levy. The following day Channa was charged with conspiracy to defraud, money laundering and abuse of trust. Within a week of committing the fraud, he was facing jail. Yet for the police and international banks, the inquest had only just begun. Even now, officers have no idea for how long the crime was being planned. Was Channa a 'sleeper', deliberately planted inside HSBC by an international criminal syndicate he had met before joining the bank? Was he deliberately targeted by organised fraudsters? What does seem clear is that his family and friends had no idea of his double life. Some believe he was coerced or threatened into facilitating the crime. Certainly his actions appear out of character. 'He was always a good boy and knew what he wanted to do with his life,' said a close family friend, who requested anonymity, outside the family home last week. He was at a loss to explain why Channa had suddenly decided to sacrifice his career and future. 'He fucking hates [prison]. He's surrounded by the worst criminals. They're in for violent crimes. His wasn't a violent offence. It's not right.' Channa had, after all, toiled throughout his life to realise his dream of forging a career in finance. After leaving Seven Kings High School, Ilford, with four A-levels, Channa went to the University of Hertfordshire, funding his education through part-time positions as a shopfloor assistant. 'He got a glowing reference from Seven Kings. His CV is amazing ,' said the family member. Friends point to his charity commitments as evidence of good character. Months before his arrest, Channa had completed a 30-mile walk for Oxfam and finished the Nike 10K run. The one notable tragedy in his life was the suicide of his mother four years ago. In light of any other explanation, his family are convinced that Channa had been forced to commit the fraud. The family member added: 'I think there are a lot more people involved. It wasn't something he did out of choice. He would have known something like this would come back to haunt him. I can't say whether he was threatened or not. The police might think that they've found their man, but they haven't.' In particular, mystery surrounds the Moroccan link. His family say Channa has never been to the north African country and has no connections there. Detectives, meanwhile, believe that deciphering who set up the account in Casablanca holds the key to the mystery but, despite British investigators requesting information from the Moroccan authorities, no assistance has been forthcoming. Officers are adamant, however, that whoever was behind the Casablanca connection knew what they were doing; Channa appears to have been briefed meticulously on what to do. 'He wasn't the only person, but clearly he was going to benefit, get a cut from it. He had a lot to gain and the bank had an awful lot to lose,' said Levy. 'The case is not closed. Channa knows what it's all about, but he's not going to tell us.'

plot to steal £72m from inside the London headquarters of one of the world's largest companies, the HSBC banking group

Jagmeet Channa, a charity volunteer from a middle-class family, who had no previous criminal convictions, was sentenced last week to nine ye...

Ten people have been charged with mortgage fraud based on an investigation of four separate cases in northeast Ohio.

Ten people have been charged with mortgage fraud based on an investigation of four separate cases in northeast Ohio.Cuyahoga County Prosecut...

Bellevue mortgage company have been indicted on fraud charges for allegedly using straw buyers to purchase dozens of homes at inflated prices

Two former employees at a Bellevue mortgage company have been indicted on fraud charges for allegedly using straw buyers to purchase dozens of homes at inflated prices and siphoning off the extra money for themselves.The federal indictment alleges Christopher Brooks and Amani Moss pocketed at least $1.6 million.The indictment says they obtained more than $27 million in fraudulent loans for the purchases of at least 54 homes beginning in 2005.Prosecutors allege they recruited straw buyers, who would allow the men to falsify loan papers for them and then purchase a house at a price above its actual value.The U.S. attorney's office says the homeowners would rebate the extra money to a company controlled by Brooks and Moss. Later, the buyers would default on the loans, leaving lenders with significant losses.The difference between the inflated price and the actual purchase price of the homes ranged from $30,000 to $778,000 per home.If convicted, Brooks and Moss face up to 20 years in prison and a fine of up to $250,000.Six people have been indicted in Western Washington. Four of them - Mustafa Khosraw, Robert Berandt, Isaac Palmer and Zachary Namie - appeared in federal court last month.

Bellevue mortgage company have been indicted on fraud charges for allegedly using straw buyers to purchase dozens of homes at inflated prices

Two former employees at a Bellevue mortgage company have been indicted on fraud charges for allegedly using straw buyers to purchase dozens ...

Policy Sharking fraudulent schemes as are alleged in lawsuits involving at least $3.5 billion dollars in life insurance policies

Responding to the discovery of an elaborate conspiracy to defraud millions of dollars from senior insurance policyholders, Mark E. Ross, Chairman of the Mark Ross Group of Companies, today announced the formation of the American Seniors Financial Integrity Trust, a non profit association to protect seniors from such “Policy Sharking” and related fraudulent schemes as are alleged in lawsuits involving at least $3.5 billion dollars in life insurance policies. The “Trust” will seek to gather seniors who are prospectively or presently affected by this scheme and provide for the proper disposition of their assets through referrals to a panel of advisors approved by a Committee on Ethical Standards and through the referral of suspected cases of fraud to prosecutors. Mr. Ross described the discovery of criminal “Policy Sharking” fraud in a statement to prospective ASFIT members as follows:On “Policy Sharking”, Bid Rigging and the Theft of Seniors’ Assets as Discovered in Current Cases in Litigation.A statement regarding the discovery of bid fabrication by certain defendants in Jenkins vs. Mutual Credit Corporation involving the theft of more than $ 3.5 BILLION of life insurance policies by a conspiracy involving XE Capital Management KBC Financial Products, a subsidiary of the Belgian banking conglomerate, Mutual Credit Corporation, Sierra Life Solutions, Michael Brown, Anthony Jacobson, A.J. Meade, David Doten et. al.After balancing the relative importance permitting certain information to surface through formal court proceedings against the public’s need to know to prevent ever increasing damage to innocent senior citizens, we have determined that the public’s need to know and the market’s need for integrity outweighs any limited disadvantage that the defendant firms and their principals, might experience from a brief acceleration of this disclosure. We hold that a conspiracy of several firms, including a major international bank, a hedge fund and others, including those mentioned above, as well as certain facilitating professional entities, have engaged in a widespread, premeditated “Policy Sharking” enterprise involving fraud, coercion, deceit and extreme abuse of elders, in order to secure a $200 million profit for the principals of XE Capital Management of New York and their conspirator/partners. Through the sale of notes representing premium loans secured by approximately $3.6 billion of life insurance policies to KBC Financial, an indirect wholly owned subsidiary of KBC of Belgium, a $600 billion bank, senior policyholders have had their assets “sharked” and stolen.These policy loans had a unique feature. The interest rates could not be determined except by reference to the fair market value of the underlying policies at the 24 month maturity date of the loans. While there was an objective protocol set forth in the Notes, this would have produced a fair and true result as envisioned when the policies were initially sold to the public. As this honest and equitable result would not have produced the most advantageous result and profit to either the seller (XE Capital, Brown, Jacobson, Meade and certain family trusts) or to the buyer (KBC Financial Products), we charge that these conspirators masterminded a complex, duplicitous scheme (which we have defined and submitted to several legislative committees and regulatory officials to adopt as terminology, “Policy Sharking”) intended to seize all of the policies that comprise the two corporeal entities (i.e., Special Purpose Vehicles) that hold all of the Notes and eventually the policies when they are wrongfully taken from their rightful owners.The stakes are enormous and the potential impact on the integrity and public perception of the secondary market for life insurance and, by inference, the entire life insurance marketplace is potentially devastating. It is essential that a conspiracy of this breadth and magnitude be uncovered as quickly as possible by ethical market participants committed to this marketplace on a permanent basis. We have rejected an ostrich approach, i.e. awaiting the slower but inevitable hands of justice intervening while hundreds of our nation’s seniors are seriously harmed. We believe that we must show that the industry consists, for the most part, of honest, creative, ethical professionals attempting to provide value to the public and to conduct themselves with principle and integrity.The criminal action is focused within the definition of each policy’s contingent interest calculation. The program starts with a loan to allow seniors to acquire life insurance without posting any collateral, in addition to the life policy itself. The loan was for generally a two year period at which time the policyholder/borrower is told that he can pay off the loan and keep the policy. As an additional inducement to enter this arrangement with MCC/Sierra, the California licensed premium finance entity arranged to advance additional funds equal to 1%, 2% or 3% of the policy’s face amount (e.g. $ 200,000 per $10 million of the policy which, as a non-recourse loan, would never need to be repaid. The interest on these loans is divided into two baskets: 1a. Fixed interest equal to 10% of the amount loaned annual, 1b. Plus a onetime origination fee of 5% of the amount borrowed 2. PLUS, a contingent interest. The contingent interest is a definitive number that cannot be determined until the loan maturity date since the contingent interest is defined as the fair market value of the policy on such date less the financial interest on the same date, but in no event to exceed 10% of the face amount of the policy. Please note that the 10% is a MAXIMUM number that is only expected to be achieved in a select few odd cases, often as the result of a serious morbidity event or a degradation in one’s health status in the 24 months since policy issuance. To prevent any ambiguity or subjectivity in the calculation of this contingent interest, it was necessary to adopt a uniform all purpose protocol that would yield the result in each case with total equilibrium between the parties without the possibility of requiring any negotiation or court intervention in each case. This was critical in the marketing of these policies because it would not have been possible to sell an arrangement where the interest determination (the key to whether a policyholder truly has control and dominion of a policy under these circumstances) was left to the judgment of the asymmetrically superior party (the MCC Group and its backers) or where it depended upon any kind of negotiation (negotiation being implausible when the bargaining powers are at such disequilibrium levels). Therefore, it was a core and essential element in the Notes (as written and hence contracts of adhesion by the lender or MCC) as well as in the Insurable Interest Opinion (written by the law firm of De Castro West et al ) that the protocol for determining the fair market value be included and be inviolable. The protocol was perfectly straightforward and not open to any misinterpretation. Each trust was required to have two trustees, an investment trustee, appointed by the insured, often a family member or trusted friend, who had most of the traditional trustee’s powers and the administrative trustee, who was recommended by MCC and in all cases was accepted by the insured. The primary trustee was David Doten, a former mid level trust officer who had earned no more than approximately $50,000 in any given year before being selected for this role by Mike Brown and Anthony Jacobson. We believe that Mr. Doten’s earnings increased to over $1 million as a result of this “selection for the lottery”. It is beyond doubt that his loyalties were to the program sponsors who included and recommended him for this role (as was the case with the two other administrative trustees). Their job was only to sign forms and to arrange for the filing of trust tax returns. Instead, as part of the conspiracy, they were “ordered” to assume a much larger role to the substantial detriment of the trust and its beneficiaries to whom they owed an undivided loyalty and to the benefit of their sponsors, MCC and its backers. The protocol was simple. The investment trustee, generally aided by an independent broker would obtain bids from two licensed life settlement providers (they did not need to be the highest bids) and submit them to the lender. If the lender did not accept the higher of the two bids, the lender could require that the investment trustee (not the lender) seek a valuation from Coventry First, the named valuator in the documents. Only if Coventry will not provide the service, shall the investment trustee seek to find another Valuator acceptable to the lender. Unknown to any of the borrowers, the XE Capital Group and the Michael Brown and Anthony Jacobson Group that owned all of the Notes that represented the financing of these policies sold the companies (the Special Purpose Vehicles or SPVs) that held all of these Notes to KBC Financial Products, a subsidiary of a huge Belgian financial conglomerate. In so doing, the sellers realized a profit exceeding $200 million. However, they did so dishonestly. In order to perpetrate the required fraud upon the senior citizen policyholder/borrowers that comprised this portfolio, they made pre-arrangements to subsidize their large profit by manipulating the policy fair market valuations and “stole” much of the value that belonged to the real owners and transferred it to the buyers in exchange for their $200 million profit. They accomplished this egregious fraud upon the elderly seniors who were, in general, the individual lives that had been insured and who were included in this portfolio. In order to create this massive and premeditated fraud, MCC and KBC, perhaps with the assistance of their professional advisors and facilitators, entered into a new and secret document called the Servicing and Management Agreement of 2006 (“The SMA”) which required that MCC service all of the loans in the portfolio after the sale of such loans to KBC in a fraudulent and dishonest manner. It has taken us almost two years and millions of dollars (as well as multiple threats to ourselves and to the senior citizens who stood up for themselves, Harry and Anna Jenkins and Donald L. Kueltzo who should be considered the real heroes of this affair) to “discover” this document and the files of the individual borrowers to begin to prove our theories of the case. What this document indicated and what the files confirmed were nothing short of incredible! What is even more incredible will follow next! The SMA completely changed the protocol by which the contingent interest would be determined and did so in a manner designed to cause the buyer of the notes to always win and the clients to always lose. In fact, that is precisely what happened! the new language in the SMA required that a borrower that wished to pay off his/her loan now had to produce two purchase bids from licensed providers that were acceptable to KBC (the document actually names the SPV holders of the notes but they are completely dominated by KBC so it is essentially the same thing) AS GOOD VALUATIONS. Thus, the NOTES have been unilaterally and improperly modified to eliminate the concept of the valuator (Coventry First) and to subject the purchase bids to the condition that they be acceptable to KBC as good valuations. First, there was never a requirement that one succeeds in obtaining permission from KBC and, second, it is IMPOSSIBLE to ever have a purchase bid also be a good VALUATION. As any first year law student can tell you, a bid and a valuation are different commercial documents and can never substitute for each other. As a result, the author of this portion of the SMA very cleverly eliminated every protection that had been built into the system for the senior Citizens and instead built a guaranteed contractual machine to commit fraud in exchange for money.What has been the score after the first 314 loan maturities? As required in the SMA, and as is proscribed or not permitted in the Notes, MCC has demanded in writing from each and every borrower that each must pay the full 10% Maximum contingent Interest in every single case. Of course, this is a mathematical impossibility. In addition, of the first 314 cases, 309 (all but 5 cases) have relinquished their policies to the lenders rather than fight in court. WHY? As an example, when we were asked to represent the Jenkins family, we followed the Note with high fidelity and determined, with a Coventry valuation, that NO contingent interest was due. Despite the requirement that the lender then accept our check in full payment of the debt and return the policy to its rightful owner, MCC “decided” that the bidding was not bona fide and neither was the valuation. This is because they claimed that they had procured purchase bids of 22% and 24.5% of face amount whereas our bids and valuations were all in the approximate 7%-8% of face amount area and therefore no contingent interest was due. It should be noted that for each and every one of these borrowers who relinquishes his/her policy back to these people will have to pay a tax on this 10% or $1 million per $10 million policy (thus, in the case of Mr. Kueltzo he is facing the payment of tax on an additional $4 million of taxable income as a result of this fraud.And now, to justify their argument that they can reject the pricing of contingent interest differently than Mr. Jenkins submitted in complete accord with the notes, MCC/KBC claimed to have purchase bids of 22% and 24.5%. We have studied the depositions of these two well known settlement firms and each admits that they were requested to do a “favor” for Mr. Jacobson in exchange for the promise of large amounts of new settlement business—which never materialized—and prepare “fabricated” term sheets for MCC to utilize to support their outrageous claims. They settlement firms did not craft their own bids—they were not prepared to close these cases—they did not have medical files or life expectancies or insurance policy data or illustrations or even the most basic pre-requisite, a verification of coverage from the insurer.In other words, these were fraudulent purchase bids, acquired and submitted to defraud our clients, advisors to them and the honorable court. We are preparing to prove this in court and in any other forum where this mission will take us. We have sworn an oath to assist these elderly people who have been abused, intimidated and financially assaulted. As a result of this incredible and callous case, we announce the establishment of the ASFIT, the American Senior Financial Integrity Trust, which will provide research and education training to American seniors and, where necessary, will protect and defend seniors from the demoralizing and dehumanizing degradations of financial fraud perpetrated by unscrupulous and morally and ethically challenged individuals.

Policy Sharking fraudulent schemes as are alleged in lawsuits involving at least $3.5 billion dollars in life insurance policies

Responding to the discovery of an elaborate conspiracy to defraud millions of dollars from senior insurance policyholders, Mark E. Ross, Cha...

Liu Genshan one of China's richest men, was detained Saturday by police in eastern Zhejiang province on suspicion of taking money from a project

Shanghai tycoon who made his fortune on highways has been arrested on suspicion of fraud, his lawyer said Wednesday, in the latest high-profile corruption case to hit China's economic hub.Liu Genshan, 51, one of China's richest men, was detained Saturday by police in eastern Zhejiang province on suspicion of taking money from a highway project there, his lawyer Wu Yanlei told AFP.The Yongjin highway was worth 7.5 billion yuan (1.1 billion dollars) according to previous state-run press reports. Police were still investigating and prosecutors had yet to lay any charges, Wu said.Several state newspapers reported Liu was arrested on suspicion of money laundering and fraudulent bank loans worth over 600 million dollars, but Wu said he was only accused of taking money from the Yongjin project. Liu, a philanthropist who was named one of China's 15 wealthiest men by Forbes magazine in 2003, is the latest in a long line of high-flying businessmen and politicians in Shanghai to be tarnished by corruption scandals.State media said Liu was a close associate of businessman Zhang Rongkun, who was sentenced in April to 19years in jail for bribery and his part in a massive pension fund scandal that rocked Shanghai in mid-2006.That scandal pulled down the city's former Communist Party chief Chen Liangyu, who was jailed for 18 years in April after being convicted of abuse of power and accepting bribes. More than 20 officials and businessmen have since been convicted in connection with the pension fund scandal.According to his lawyer, police are investigating Liu's transactions in connection with the 185-kilometre (115-mile) Yongjin highway linking Ningbo and the cities of Shaoxing and Jinhua, which opened in 2005. His business strategy was to buy highways using bank loans and turn them into listed companies, the Shanghai Daily said on Wednesday. He reportedly financed seven highways in Shanghai and neighbouring Zhejiang province.Hong Kong's Securities and Futures Commission noticed in 2005 that three billion yuan Liu brought to the territory from the mainland was not transferred through the proper channels, the newspaper sai He allegedly used the money to buy a Hong Kong-listed company, which he renamed Maosheng Holdings, the report said. The company was believed to be the biggest shareholder in a highway linking downtown Shanghai to industrial zones in suburban Qingpu, the report said. Although the road cost 420 million yuan to build, the company's official investment was listed as more than eight times that -- at 3.5 billion yuan, the report said. Investments in other projects were apparently similarly inflated while construction on two was halted due to a lack of funds, the newspaper said. Liu was born in Shanghai but is officially a permanent resident of Hong Kong where he has 1.13 billion Hong Kong dollars (145 million US dollars) invested in a Hong Kong-listed real estate and hotel development company, the report said.

Liu Genshan one of China's richest men, was detained Saturday by police in eastern Zhejiang province on suspicion of taking money from a project

Shanghai tycoon who made his fortune on highways has been arrested on suspicion of fraud, his lawyer said Wednesday, in the latest high-prof...

Tariel Oniani, an ethnic Georgian who is considered among the most influential criminal bosses in the former detained

Russian police swooped in on a helicopter to detain more than 50 reputed crime bosses as they set off for a cruise on a rented boat near Moscow, authorities said Wednesday. Those detained Tuesday included Tariel Oniani, an ethnic Georgian who is considered among the most influential criminal bosses in the former Soviet Union, police said. Angela Kostuyeva, a police spokeswoman, said those detained on a reservoir north of Moscow included 39 «thieves-in-law,» or top figures within the Russian criminal hierarchy. «Thieves-in-law» respect a strict honor-based code that dates back at least to the Stalinist era, when they maintained order in the gulag. Most were released later in the day due to lack of evidence, the spokeswoman said. She refused to say whether Oniani was among those freed. Oniani had called the get-together to discuss a conflict with another crime group that was threatening to lead to a mafia war, the newspaper Kommersant reported. It said Oniani has been wanted in Spain since 2005, when he escaped a sting operation called Wasp that resulted in the arrest of 28 alleged organized crime figures from former Soviet republics on money-laundering charges. Oniani's daughter was among those arrested, Kommersant said. Last month, Spanish police broke up a major Russian organized crime gang, arresting 20 people accused of laundering proceeds from crimes including contract killings and arms and drug trafficking.

Tariel Oniani, an ethnic Georgian who is considered among the most influential criminal bosses in the former detained

Russian police swooped in on a helicopter to detain more than 50 reputed crime bosses as they set off for a cruise on a rented boat near Mos...

David Dench was jailed for four months over his role in a multi-million dollar fraud

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij-rBJ6qRxQ4bnaJ-YRK_fcgseLJdQFW3CgZa355rwkdIKajbS0cePGDQPINhw6Mv8O9Eyid1rFvWBlxKnZTtawHYWIpUggej3HawpP98MdDEUsb480lKPyxlkEQvl-e636hET_B8Q1aal/s1600-h/dench.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5221163463204283890" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij-rBJ6qRxQ4bnaJ-YRK_fcgseLJdQFW3CgZa355rwkdIKajbS0cePGDQPINhw6Mv8O9Eyid1rFvWBlxKnZTtawHYWIpUggej3HawpP98MdDEUsb480lKPyxlkEQvl-e636hET_B8Q1aal/s320/dench.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" /></a> The Hall of Fame inductee's stellar football career and clean record were not enough to spare him time behind bars after a judge said he had shown no remorse. Dench, 56, was brought into a long-running scam at Victoria University by his employer, John Mario Cappellin, in 1999. The County Court heard corrupt university insiders rubber-stamped invoices for Cappellin's maintenance company, which included work never done or done at inflated prices. Dench's lawyer Bernie Balmer said outside court his client had paid a heavy price for his relationship with Cappellin and had netted a "ridiculously small" share of less than $5500. The North Melbourne great was found guilty by a jury last month of nine counts of obtaining property by deception and two of aiding and abetting the receipt of a secret commission, which related to between $60,000 and $75,000. Judge Tim Wood said though Dench's role was small it did "constitute a cog in the machine" to defraud the institution. "Your fraud was a sophisticated one, involving elaborate measures of concealment, vast amounts of documents . . . "It was an inherently difficult crime to detect and required vast resources to unearth it," he said. Judge Wood acknowledged testimonials by former teammate Wayne Schimmelbusch and coach John Kennedy, who painted Dench as a role model. "You have led a blameless life in terms of the criminal law, were a contributor to society in a positive sense, a devout and supportive family man and achieved an illustrious football status," he told Dench. But Judge Wood noted Dench had denied guilt in the face of strong evidence, which included work carried out at Dench's home billed to the university. Mr Balmer said his client was holding up well and would not appeal against his sentence. "He's a fellow who's used to pressure, but he worries about family and friends and the shame that it brought them as well as himself," he said. "It's a heavy price to pay. "He just wants to get the next 3 1/2 months out of the road, settle with the university and get on with life." Mr Balmer said Dench regretted crossing paths with Cappellin. "You meet people in your life who just drag you down using your reputation," he said. "That's regrettable. He should perhaps have been a titchy bit smarter about that." Mr Balmer said Dench had hoped for a suspended sentence but understood the penalty. "You've got to send a message to others -- regrettably, it's a fellow that this town's known or loved for a long, long time," Mr Balmer said. Judge Wood suspended a further 10 months of Dench's sentence for two years.

David Dench was jailed for four months over his role in a multi-million dollar fraud

The Hall of Fame inductee's stellar football career and clean record were not enough to spare him time behind bars after a judge said he...

Keith Cowell, 52, his son Matthew, 17, and 33 year old Tony Dulieu from Billericay, were executed by sub-machine in living room of the Cowells' home in Plaw Hatch Close, Bishop Stortford

murder victim Keith Cowell was "perturbed" about a drug deal his teenage son was involved in, a court heard today (Wednesday July 9). Brian "Jumbo" Johnstone said his golfing friend Keith, formerly of Buntingford, told him about a row over the quality of cocaine supplied to an Asian man called Mike. He told St Albans Crown Court he had worked with Keith Cowell for 10 to 12 years in security at the London Arena and Wembley Stadium, and had known Matthew since he was a boy.Asked by prosecutor Stuart Trimmer if Keith had been involved in drugs, he said: "Yes, I knew he had something to do with drugs. "As far as I was concerned I was aware he sold a little bit of grass - that's all, nothing exciting."But he said that Keith told him about a deal involving high grade cocaine, known as 'Shine'. He said: "He was a bit perturbed that his son Matthew had been approached at a funeral by an Asian guy called Mike who wanted to buy Shine - high grade cocaine. It sparkles - that is why it is called Shine."Keith got in touch with his nephew Ian Jennings. Ian deals in drugs. Keith told me they did a deal and Michael was not happy. He wanted his money back and Ian was very loath to give him his money back. "Mr Johnstone said the first deal had been for half a kilo of the drug. Later he said Mike had wanted a kilo of the drug. "I though after the row it seemed a strange thing to do." He added: "I saw Keith on the day he died. He had been playing golf. He came to my house and we went to the golf shop in Nazeing and I bought a golf club as a birthday present for him. He was a very, very good friend." Keith Cowell, 52, his son Matthew, 17, and 33 year old Tony Dulieu from Billericay, were executed by sub-machine in living room of the Cowells' home in Plaw Hatch Close, Bishop Stortford on August 28 last year. Keith sister's Christine Jennings, 54, was shot and stabbed in the living room. Matthew's girlfriend Claire Evans, 23, was stabbed in a bedroom as she protected her three-year-old daughter. The Cowells pet Staffordshire puppy called Gorgeous was also shot dead.Ian Jennings, 32, who had brought a kilo of cocaine to the house managed to escape the slaughter by hiding in the back garden. He had been in the kitchen of the house when two men burst in.Miran Thakrar was allegedly armed with the sub-machine gun and was accompanied by his brother Kevan.The prosecution sasy Miran was angry that he had been supplied with half a kilo of 'Repress', the lowest quality of the drug. He had been expecting Shine.Cross examined by Brendan Kelly QC for Miran Thakrar - the man known as Mike - Mr Johnsstone said he had not told the police about his conversation with Keith in his first interview with them because he had needed permission from his widow Nicky to tell them about the drugs."I did not want to bad mouth Keith without speaking to her first. We had just lost three people shot and two wounded over a piece of stupidity."Miran Thakrar, 24, and Kevan Thakrar, 21, plead not guilty to the murder of Keith and Matthew Cowell and Tony Dulieu, from Billericay, Essex at the Cowells' home in Plaw Hatch Close, Bishop's Stortford on August 28 last year.Miran Thakrar, of no fixed address, and Kevan, of Lomond Way, Stevenage, also deny the attempted murders of Claire Evans and Christine Jennings in the house on the same day and having an Ingram Mac 10 sub-machine gun with intent.Their brother Jay Thakrar, 25, of Lomond Way, Stevenage, has pleaded not guilty to two counts of assisting an offender. One relates to providing petrol between August 27 and August 30 for the burning of a car used by Miran Thakrar and the other alleges he assisted Kevan Thakrar to evade arrest. Their father Atul Thakrar, 47, of Compton Place, Northwood, Middlesex, has pleaded not guilty to assisting Kevan Thakrar to attempt to leave the UK between August 28 and September 5.Co-defendant Amanda Dansie, 21, of High Street, Buntingford, has pleaded not guilty to assisting in the escape of Miran Thakrar from the UK between August 28 and September 9.Yilay Tufensoy, 20, of Nags Head Road, Enfield, denies two charges of assisting an offender. In one charge he is alleged to have assisted Miran Thakrar flee the UK and in the other he is accused of assisting Kevan Thakrar's attempts to flee the UK.

Keith Cowell, 52, his son Matthew, 17, and 33 year old Tony Dulieu from Billericay, were executed by sub-machine in living room of the Cowells' home in Plaw Hatch Close, Bishop Stortford

murder victim Keith Cowell was "perturbed" about a drug deal his teenage son was involved in, a court heard today (Wednesday July ...

Jagmeet Channa tried to steal $141 million from HSBC was sentenced to nine years in jail.

British bank clerk who tried to steal $141 million from HSBC was sentenced Monday to nine years in jail.Jagmeet Channa, 25, who worked at the bank's London headquarters, had admitted charges of conspiracy to defraud and money laundering.Channa had sent 60 million euros ($94 million) to an account in Morocco and 30 million euros ($47 million) to an account in Britain in April. The fraud was detected by an HSBC (nyse: HBC - news - people ) employee in Malaysia."There is no mitigation aside from age, stupidity and his plea," said his lawyer, Peter Corrigan.Prosecutor David Levy said that although HSBC Holdings PLC recovered the money, it lost about 54,000 pounds ($107,000) in interest during the time the funds were in other accounts. He said Channa has not provided any information about the others involved in the crime."Others were involved, perhaps several others, and in the absence of any explanation from you I must assume this was a planned and sophisticated criminal enterprise," Judge Geoffrey Rivlin told Channa."You say you had no idea who these people were or what was going to happen to the money. I regret I cannot accept this statement."

Jagmeet Channa tried to steal $141 million from HSBC was sentenced to nine years in jail.

British bank clerk who tried to steal $141 million from HSBC was sentenced Monday to nine years in jail.Jagmeet Channa, 25, who worked at th...

Sadia Nasir, a director of Ilford-based London Mortgage and Financial Services, is the 12th mortgage broker to be banned by the Financial Services Authority this year, but the first to date to be both banned and fined for mortgage fraud.

Sadia Nasir, a director of Ilford-based London Mortgage and Financial Services, is the 12th mortgage broker to be banned by the Financial Services Authority this year, but the first to date to be both banned and fined for mortgage fraud.The regulator said Ms Nasir, whose firm traded as House of Finance, had entered her own bank account details on four mortgage applications submitted for clients.She also submitted seven mortgage applications containing false information about her own employment and earnings, with these supported by falsified documents including payslips, financial statements and accountant's certificates. The FSA said she also deliberately withheld sections of an application form from its investigators, failed to disclose information about a County Court Judgment made against her and also failed to disclose the true extent of her assets when she applied for authorisation.It said the six-figure fine she received aimed to take back the profits she had made from the fraud, as well as to deter other brokers from submitting fraudulent claims.Margaret Cole, director of enforcement at the FSA, said: "Ms Nasir's actions were particularly serious and blatant, and she poses an immediate risk to lenders."We have banned a number of mortgage brokers and others this year in connection with mortgage fraud but the problem persists." She said the FSA had made a commitment to increase fines in the retail sector to act as a deterrent.She said: "We will continue with this new policy and intensify our crackdown on mortgage fraud. Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit gains."

Sadia Nasir, a director of Ilford-based London Mortgage and Financial Services, is the 12th mortgage broker to be banned by the Financial Se...

Steve Brownell allegations that the Kansas City man defrauded three investors out of about $574,000 in a trucking investment scheme.

Steve Brownell allegations that the Kansas City man defrauded three investors out of about $574,000 in a trucking investment scheme. In a release Wednesday, Nixon said that he filed the charges May 28 in Jackson County Circuit Court and that Brownell hasn't turned himself in to authorities. Nixon's charges allege that Brownell persuaded three Kansas City-area individuals to invest in the purchase of dump trucks, which Brownell said would be used to haul rock, sand, asphalt and salt. Brownell allegedly represented that in return for their investments, investors would get a percentage of the profits from each truck. Instead, Nixon alleged, investors received little if any return on their investments. Nixon's office encourages anyone who has seen Brownell or has information on his whereabouts to contact Nixon's office at 816-889-5029 or 573-751-0702. Brownell is described as a white male, 51 years old, 6 feet tall and about 185 pounds, with a medium build and blue eyes. Securities fraud is an unclassified felony under Missouri law, punishable by as much as 10 years in prison for each count, as much as a $10 million fine, or both

Steve Brownell allegations that the Kansas City man defrauded three investors out of about $574,000 in a trucking investment scheme.

Steve Brownell allegations that the Kansas City man defrauded three investors out of about $574,000 in a trucking investment scheme. In a re...

Rick T. McCullough pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions

Rick T. McCullough, a Phoenix mortgage broker, pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions by unregistered dealers or salesmen. McCullough, 35, was indicted by the Arizona State Grand Jury June 23. As president of licensed mortgage broker CactusCash Inc. McCullough allegedly devised a scheme to secure equity from homes owned by senior residents in Phoenix, according to Attorney General Terry Goddard. McCullough allegedly convinced homeowners to refinance their homes through his business and then persuaded them to invest the equity received into CactusCash. The indictment alleges McCullough said he personally guaranteed the loans, failed to invest the funds in real estate and lacked assets to guarantee the loans. McCullough's next court appearance is scheduled for Aug. 4. He was released on $46,000 bond and faces up to 25 years in prison if convicted on all charges, according to the AG. The indictment is the result of an investigation by the Securities Division of the Arizona Corporation Commission and the Department of Financial Institutions.

Rick T. McCullough pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions

Rick T. McCullough, a Phoenix mortgage broker, pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered...

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s1600-h/hedge.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5218903174117247698" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s400/hedge.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, apparently after having a conversation with his mother.Israel,48, co-founder of a Connecticut based hedge fund-the Bayou Group, is accused of one of longest running frauds of the corporate world who was supposed to report for prison when he went missing. A federal investigation was triggered off when his GMC Envoy was found on a bridge above the Hudson River; with the words “suicide is painless” written in dust on its hood.Ann R. Israel, Samuel’s mother, had informed United States marshals that her son was planning to surrender before Samuel walked into the Southwick police station. Dave Turner, a spokesman for the marshals stated that Mrs. Israel had been in contact with Ed Farrell who is a deputy United States Marshal investigator with the Great Lakes Regional Fugitive Task Force in Illinois. He quoted, “the mother was concerned about her son’s welfare. It appears Mrs. Israel and other family members played an important role in Mr. Israel’s decision to face justice.” He stated that Mrs. Israel indicated to Mr. Farrell that her son was reaching out for help and her advice was to do the right thing and turn himself in. Even though the police found the car keys and a bottle of pills in the vehicle, it was obvious to the authorities that Israel had faked his own death. According to the authorities, Israel left his home in Armonk, N.Y early morning and then abandoned his GMC Envoy and moved to the recreational vehicle at a rest area off Interstate 684.His girlfriend Debra Ryan has already been arrested for being an accomplice to help Israel stage a fake suicide and escape. After the dramatic enactment, Israel arrived later that day at the Prospect Mountain Campground RV Park in Granville, Massachusetts. He apparently spent the last four weeks at this campground, picking up supplies from a small store at the camp. According to the camp’s director Mitch Hayes, Israel signed into the campground under the alias David Klapp. Mr. Hayes who does not recall seeing any visitors for him said that the campground can accommodate more than 200 families. He quoted, “He seemed like a nice guy. There was nothing really suspicious about him when he came to buy food and cigarettes.” Israel, under his mother’s influence, ultimately decided to surrender in Granville, Mass. But the bucolic town of 1,500 has only a part-time police department. When Mr. Israel found the station there closed, he headed seven miles east to Southwick on his scooter. Despite a long history of back pain and other medical problems that were listed in his lawyer’s presenting memorandum, Mr. Israel apparently managed to travel easily on his motorized scooter.After driving up to the police station on a Yamaha scooter, according to Paul Miles, a Southwick police officer, Mr. Israel told officers: “I am a fugitive, I was supposed to go to jail and I’d like to turn myself in.” Mr. Israel was kept in a cell in Southwick before being transferred to the federal courthouse in Springfield, Mass. He is scheduled to appear Thursday before Judge McMahon in Manhattan.Samuel Israel has battled addiction to painkillers and has a pacemaker. The scion of a wealthy New Orleans family, he now faces several more years in jail on top of the 20-year sentence he received in April for defrauding investors.Two former associates of Mr. Israel’s are already behind bars for their role at Bayou. All three had pleaded guilty to their crimes and were sentenced to 20 years in January.In sentencing Mr. Israel in April, US District Judge Colleen McMahon, who referred to him as the "mastermind" of the scheme, said: "Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, appa...

Michael Kyereme pled guilty to charges of mail fraud and tax evasion.

Michael Kyereme of Piscataway - New Jersey, pled guilty to charges of mail fraud and tax evasion.In his mail fraud guilty plea, Kyereme admitted defrauding Cisco out of $6.9 million in replacement parts by scamming the Cisco SMARTnet Service program. Here is how Kyereme's SMARTnet scam worked:As an independent contractor hired to provide information technology support to the City of Newark, Kyereme was responsible for assisting Newark employees when computer problems arose that required technical support or trouble-shooting by a computer technician. If it was determined that a computer related problem could not be solved without outside assistance or a replacement part, Kyereme was authorized to contact Cisco for technical assistance and if necessary, to request a replacement part under Cisco SMARTnet. Starting in January 2003, Kyereme would falsely claim that certain Cisco parts in the City of Newark's computer systems were malfunctioning and thus required replacement. In response to those numerous requests, Cisco sent approximately 280 replacement parts to Kyereme on behalf of the City of Newark. Instead of installing the parts into the City of Newark's computer system, Kyereme would sell the parts to a third party in California, pocket the illicit proceeds and return parts of lesser value to Cisco. In all, Kyereme failed to return 148 parts to Cisco and of the approximately 132 parts that he did return, only 33 of those parts matched the type of part originally sent by Cisco to Kyereme.It is interesting to note that upon his arrest by the Federal Bureau of Investigation on March 2 - 2007, Kyereme had $3 million in stolen Cisco parts stashed within his home and car.In his tax evasion guilty plea, Kyereme admitted to not reporting $1.24 million of income that he illicitly derived from the sale of stolen Cisco parts.Sentencing is scheduled for November, meanwhile Kyereme remains free on a $500,000 bail bond.Kyereme faces up to 25 years in prison and fines of $350,000.

Michael Kyereme pled guilty to charges of mail fraud and tax evasion.

Michael Kyereme of Piscataway - New Jersey, pled guilty to charges of mail fraud and tax evasion.In his mail fraud guilty plea, Kyereme admi...

Rauf Ahmad was sentenced Wednesday in Bronx Supreme Court after pleading guilty to grand larceny, conspiracy and scheme to defraud the state

New York City pharmacist has been sentenced to up to 10 years in prison for his role in a $5 million Medicaid fraud ring. Attorney General A...

Citibank customers' accounts were compromised disturbing security hole in the most sensitive part of a banking record

Hackers broke into Citibank's network of ATMs inside 7-Eleven stores and stole customers' PIN codes, according to recent court filings that revealed a disturbing security hole in the most sensitive part of a banking record.The scam netted the alleged identity thieves millions of dollars.But more importantly for consumers, it indicates criminals were able to access PINs — the numeric passwords that theoretically are among the most closely guarded elements of banking transactions — by attacking the back-end computers responsible for approving the cash withdrawals. The case against three people in U.S. District Court for the Southern District of New York highlights a significant problem.Hackers are targeting the ATM system's infrastructure, which is increasingly built on Microsoft Corp.'s Windows operating system and allows machines to be remotely diagnosed and repaired over the Internet.And despite industry standards that call for protecting PINs with strong encryption — which means encoding them to cloak them to outsiders — some ATM operators apparently aren't properly doing that.The PINs seem to be leaking while in transit between the automated teller machines and the computers that process the transactions."PINs were supposed be sacrosanct — what this shows is that PINs aren't always encrypted like they're supposed to be," said Avivah Litan, a security analyst with the Gartner research firm. "The banks need much better fraud detection systems and much better authentication."It's unclear how many Citibank customers were affected by the breach, which extended at least from October 2007 to March of this year and was first reported by technology news Web site Wired.com. The bank has nearly 5,700 Citibank-branded ATMs inside 7-Eleven Inc. stores throughout the U.S., but it doesn't own or operate any of them.That responsibility falls on two companies: Houston-based Cardtronics Inc., which owns all the machines but only operates some, and Brookfield, Wis.-based Fiserv Inc., which operates the others.A critical issue in the investigation is how the hackers infiltrated the system, a question that still hasn't been answered publicly. All that's known is they broke into the ATM network through a server at a third-party processor, which means they probably didn't have to touch the ATMs at all to pull off the heist. They could have gained administrative access to the machines — which means they had carte blanche to grab information — through a flaw in the network or by figuring out those computers' passwords.Or it's possible they installed a piece of malicious software on a banking server to capture unencrypted PINs as they passed through. What that means for consumers is that their PINs were stolen from machines that showed no signs of tampering they could detect. In previous PIN thefts, thieves generally took steps that might draw notice — sending "phishing" e-mails, for example, or installing false-front keypads or even tiny cameras on ATMs. Getting the PINs is a key step for identity thieves. It lets criminals encode stolen account information onto blank ATM cards and withdraw piles of cash from compromised accounts. Don Jackson, director of threat intelligence for SecureWorks Inc., said he has seen an "alarming" spike in the number of attacks on back-end computers for ATM networks over the past year. "This was fairly large, but I don't think it's anything out of the ordinary — these kinds of scams go on every day," Jackson said. "What makes this case unique is the sheer luck of happening upon these guys and catching them red-handed. But there are a whole lot of other ATM and PIN compromises going on that aren't reported." The alleged plot is outlined in court papers supporting the prosecution of three people — Yuriy Rakushchynets, Ivan Biltse and Angelina Kitaeva. They were indicted in March on two counts each of conspiracy and fraud. Prosecutors say their activities generated at least $2 million in illegal profits. Defense lawyers for all three people did not return calls for comment, and it was not clear where they had been living. The main defendant, Rakushchynets, was described as having Michigan and Florida's driver licenses in a February FBI affidavit for an arrest warrant.Citibank, part of Citigroup Inc., has declined to comment on the technique or how many customers' accounts were compromised. It said it notified affected customers and issued them new debit cards. "We want our customers to know that, consistent with legal requirements, we do not hold them responsible for fraudulent activity in their accounts," the bank said in a statement. Cardtronics said it is cooperating with authorities but otherwise declined to comment. Fiserv spokeswoman Melanie Tolley said the intrusion didn't happen on Fiserv's servers."Fiserv," she said, "is confident in the integrity and security of our system."

Citibank customers' accounts were compromised disturbing security hole in the most sensitive part of a banking record

Hackers broke into Citibank's network of ATMs inside 7-Eleven stores and stole customers' PIN codes, according to recent court filin...

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison was a suitable sentence for his bank fraud conviction. A filing on Monday called for an en banc review of the court's decision -- meaning as many as 21 judges on the appellate court bench should review the facts of the case. The appeal said that the district court gave Witting an unreasonable sentence under sentencing guidelines and that the 10th District Court of Appeals' June 18 decision "rubber-stamped the district court's miscalculated guidepost sentence under a guideline this court twice has held legally and factually inapplicable to Mr. Wittig." Wittig's original sentence for bank fraud was 51 months, an enhanced sentence that had been applied for intended losses and gross receipts exceeding $1 million on his alleged bank fraud conviction. That sentence later was reduced to six months, but U.S. Supreme Court decisions and their effect on federal sentencing guidelines bumped his sentence back up to 24 months. Wittig served more than a year in a Minnesota prison before being released on appeal of his two-year sentence. He was freed in February 2007 on appeal of the bank fraud conviction, which stemmed from an allegation that Topeka banker Clinton Odell Weidner increased Wittig's line of mansion-improvement credit at Capital City Bank by $1.5 million and that Wittig loaned the money back to Weidner to use on an Arizona property deal. Wittig also finds himself awaiting a third trial, along with former Westar Executive Vice President Douglas Lake, on government charges that the two looted the Topeka-based utility (NYSE: WR) for personal purposes. Both men have asked that the case be dismissed after the appeals court's January 2007 overturning of many of the pertinent convictions they were found guilty of in earlier trials. The third trial is expected to begin in September.

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison was a suitable sente...

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizZSnj6TvuQkfGAPmEHxv7Jsca7e8sA7ruU4qGbKkcHGKUmhr0_s1llo3s651S06CaSHmYeuA7Dpq6f3zV5ehbnyzCXSvcn9ZLfzYKOfwFcr1p6t_vlDJO2631qBrijE5q12ObUEQhkzfH/s1600-h/bennette.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5218899580683736354" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizZSnj6TvuQkfGAPmEHxv7Jsca7e8sA7ruU4qGbKkcHGKUmhr0_s1llo3s651S06CaSHmYeuA7Dpq6f3zV5ehbnyzCXSvcn9ZLfzYKOfwFcr1p6t_vlDJO2631qBrijE5q12ObUEQhkzfH/s400/bennette.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" /></a> Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion in what U.S. prosecutors said was ``among the very worst'' white-collar crimes. Bennett was also ordered to forfeit the $2.4 billion. U.S. District Judge Naomi Buchwald in Manhattan rejected a government request that Bennett surrender to prison immediately and told him to report on Sept. 4. Until then, he must remain at his home in Somerset County, New Jersey, subject to electronic monitoring. ``You are the architect of the Refco fraud,'' Buchwald told Bennett today at his sentencing in Manhattan federal court. ``Individuals who commit crimes like yours are often staggeringly arrogant.'' Bennett, who turns 60 this month, pleaded guilty in February to bank fraud and money laundering stemming from his eight-year scheme to deceive banks, auditors and investors, including Boston-based buyout firm Thomas H. Lee Partners LP. Once the biggest independent U.S. futures trader, New York- based Refco collapsed in October 2005, two months after raising $670 million in an initial public offering. The company, which provided clearing and prime-brokerage services, filed for bankruptcy after disclosing that a Bennett-controlled firm owed hundreds of millions of dollars to Refco. Some 16 corporate executives have been sentenced to 20 years or more in prison since 2003. Former WorldCom Inc. Chairman Bernard Ebbers is serving 25 years for accounting fraud, and Enron Corp. ex-CEO Jeffrey Skilling got a 24-year term for the same crime. Bayou Group LLC's Samuel Israel was sentenced in April to 20 years for fraud. He jumped bail and fled, only to surrender and start his sentence today in New York. ``I made an unacceptable and appalling error in judgment,'' Bennett told the judge. ``I took the wrong path and crossed a line I never should have crossed.'' A graduate of Cambridge University in England, Bennett built Refco into the largest independent futures brokerage in the U.S. He joined the firm in 1981 and served as president, chief executive officer and chairman since September 1998. With partner Tone Grant, Bennett transformed Refco from a firm that focused on trading for itself to one that executed transactions for clients. He grew rich along the way, becoming a billionaire with a $20 million plane, an $11 million car collection, and works of art worth more than $29 million, the government said. Today, Bennett sought leniency, citing his cooperation with investors who have sued Refco's banks, his offer to cooperate with prosecutors and his willingness to take responsibility for his crimes. He said his scheme stemmed from an effort to save the company from bankruptcy long before the fraud was uncovered. Bennett has paid $1.2 billion to eliminate Refco's debt and repay investors, defense attorney Gary Naftalis said today. ``Did he do wrong things? Absolutely,'' Naftalis told Buchwald. ``Has he stood tall and admitted it? Yes.'' In court, Bennett's voice quavered as he apologized. He'll be deported to his native England after he completes his term. Under federal sentencing guidelines, he faced life behind bars. Assistant U.S. Attorney Neil Barofsky compared Bennett to white-collar offenders such as Ebbers and Bayou Group LLC Chief Financial Officer Daniel Marino, who is serving 20 years for his role in the $400 million fraud at that hedge-fund firm. He said the 20-year sentence Israel received should be a ``guidepost'' in the Bennett case. ``The scope and duration of the fraud, the loss that resulted from it, and Bennett's conduct in service of that fraud places him among the very worst white-collar defendants in this jurisdiction,'' Barofsky and Assistant U.S. Attorney Christopher Garcia wrote Buchwald on June 30. At Grant's criminal trial in April, prosecutors said the roots of the fraud stretch to 1997, when Refco began hiding massive losses sustained by clients in the Asian debt crisis. With its viability threatened, Refco began masking its true performance by moving more than $1 billion in debt off the company's books to a Bennett-controlled entity, Refco Group Holdings Inc., prosecutors said. In return, Refco Group Holdings gave Refco worthless IOUs, prosecutors said.The company hid the scam from Thomas H. Lee, which paid $507 million for a 57 percent stake in Refco in 2004; from banks and debt-holders that extended more than $1.4 billion in financing in 2004; and from investors who paid $583 million for shares when Refco went public. Grant was convicted. He has yet to be sentenced. Bennett and his aides defrauded victims from all walks of life, including his own secretary, who lost $5,000 she invested in the firm, prosecutors said. Testifying for the government at Grant's trial were former Refco finance chief Robert Trosten and Santo Maggio, the ex-CEO of Refco's offshore unit. Both pleaded guilty. Refco's ex-outside lawyer, Joseph Collins, has pleaded innocent to criminal charges. Bennett's lawyer didn't make a request for a specific federal prison. The final choice is made by the U.S. Bureau of Prisons. There is no parole in the federal system, though inmates may reduce their sentence by 15 percent for good conduct.

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion i...

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