Bankrupt Banker

Donald H. Allen and his companies H&M Petroleum Corp. and American Energy Resources Corp. raised about $9.9 million from more than 350 investors

Colorado Springs man and his two oil and gas companies have agreed to pay $510,000 to settle civil fraud allegations, the Securities and Exchange Commission said Thursday.The SEC alleged that between March 2002 and December 2006, Donald H. Allen and his companies H&M Petroleum Corp. and American Energy Resources Corp. raised about $9.9 million from more than 350 investors nationwide without disclosing that they had never generated profits for investors.Allen did not immediately respond to a telephone message.Allen was accused of spending $2.3 million of investor funds to pay for items including a custom speedboat, ski vacations, fitness equipment and jewelry.The SEC alleged Allen and his companies touted annual returns of up to 354 percent without disclosing the speculative nature of the projections; incorrectly told investors that AER and H&M invested in their own projects; that securities were improperly sold in unregistered transactions; and that Allen acted as an unregistered broker.Allen and his companies settled the case without admitting or denying the allegations

Donald H. Allen and his companies H&M Petroleum Corp. and American Energy Resources Corp. raised about $9.9 million from more than 350 investors

Colorado Springs man and his two oil and gas companies have agreed to pay $510,000 to settle civil fraud allegations, the Securities and Exc...

Charged with scheming and conspiring to defraud a bank are 31-year-old Michael Vorce of Grand Rapids and 29-year-old James Jett of Byron Center.

Two Michigan men face federal charges in an alleged fraud scheme using stolen personal information to obtain bank loans for purported purcha...

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years,

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years, has appeared in the Port Elizabeth commercial crimes court.Van Tonder, 38, of Hampshire Road, Sherwood, Port Elizabeth, reportedly pocketed R1653254 of the money himself, but the state has charged him with taking the entire amount of R5075552.He is accused of 94 counts of fraud, committed between November 2005 and December last year.He was not asked to plead and no evidence was led. The case was postponed to September 15, possibly to plead to the charges. Van Tonder is out on warning.His duties at Newspaper House included capturing the monthly payroll on the electronic payroll package system and reconciling monthly payments to Discovery Health.Van Tonder allegedly opened four FNB accounts in his name. A fifth one was opened at Nedbank for his life partner. He then allegedly entered inflated payments on the transfer request forms for payment to Discovery Health, and altered the banking details to reflect these amounts, misrepresenting to Avusa Media Ltd that the bank accounts belonged to Discovery Health.

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years,

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years, h...

Bradford & Bingley, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing

Bradford & Bingley, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to c...

Winston Peters said he would be suspended from the post while the country's Serious Fraud Office investigates finances of his New Zealand First Party.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwI8H8Bu95efBCcsS3TyeJm7LDSIYbW6u-cG2vs8qOX7le59C949hAtlyGtonCm-3y5PZL2NPIOREzRbPVtc6Hfbdc9O-lbDuu_yaV201Hu1YKLSPK3ie-ptQ-EUKqUeLnZ6ulznmeFkwt/s1600-h/winston.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5240385656450973858" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwI8H8Bu95efBCcsS3TyeJm7LDSIYbW6u-cG2vs8qOX7le59C949hAtlyGtonCm-3y5PZL2NPIOREzRbPVtc6Hfbdc9O-lbDuu_yaV201Hu1YKLSPK3ie-ptQ-EUKqUeLnZ6ulznmeFkwt/s400/winston.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Winston Peters said he would be suspended from the post while the country's Serious Fraud Office investigates finances of his New Zealand First Party. He also is battling claims that he failed to declare to Parliament a private 100,000 New Zealand dollar (US$70,000) donation from a billionaire. Prime Minister Helen Clark said she would temporarily take over as foreign minister. Clark said she hoped the inquiry ``will address these matters expeditiously,'' noting that Peters had offered ``his total cooperation'' in the investigation, with a first meeting with investigators scheduled for Saturday. Clark said it was ``appropriate'' that he stand aside while the fraud inquiry was held. Since taking office in late 1999, Clark has sacked, suspended or forced the resignations of 11 other ministers. Five redeemed themselves and later returned to Cabinet _ though only three regained their seniority. Serious Fraud Office Director Grant Liddell said Thursday the investigation would focus on allegations that two donations to Peter's New Zealand First Party were not used for their intended purposes. Peters denied all claims of wrongdoing and said earlier Friday that he would not be hounded from office because there was no evidence against him. ``I'll dispose of the Serious Fraud Office in exactly the time it takes them to understand the information,'' he told a meeting of senior citizens, adding that he would forward any necessary evidence ``in the shortest possible time.'' A separate investigation by Parliament's Privileges Committee is checking whether Peters broke parliamentary rules by failing to declare the 100,000 New Zealand dollar (US$70,000) donation by a New Zealand national living in Monaco, called for a fresh hearing on the issue for next Thursday. Peters' lawyer, Brian Henry, said Peters knew nothing of the 2006 donation until he told Peters of it last month. His New Zealand First Party is a key support party for Clark's Labour-led coalition government. Elections are due in New Zealand by mid-November

Winston Peters said he would be suspended from the post while the country's Serious Fraud Office investigates finances of his New Zealand First Party.

Winston Peters said he would be suspended from the post while the country's Serious Fraud Office investigates finances of his New Zealan...

Srinivasen Pillay will represent himself in an alleged $1.3-million fraud case involving clients’ funds.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijdfibD4mCvB6byW-CtQKEFEw8dKMTisj_EDmvn1N0ZGaV2I4-3dJWw13hIRHxQd8MnoydhOQK1_5P52XIPcGKmB0JwFzb0KYh6ONMaP_7rVH4I3ouTQkLpy6j0G9_lyD289I8Z7uWswbd/s1600-h/hali.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5240384223972909458" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijdfibD4mCvB6byW-CtQKEFEw8dKMTisj_EDmvn1N0ZGaV2I4-3dJWw13hIRHxQd8MnoydhOQK1_5P52XIPcGKmB0JwFzb0KYh6ONMaP_7rVH4I3ouTQkLpy6j0G9_lyD289I8Z7uWswbd/s400/hali.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Srinivasen Pillay will represent himself in an alleged $1.3-million fraud case involving clients’ funds.Mr. Pillay, who was arraigned Thursday in Halifax provincial court, told Judge Marc Chisholm that he would not be hiring a lawyer. On July 23, Halifax Regional Police laid 105 criminal charges of fraud over $5,000, theft over $5,000 and breach of trust against Mr. Pillay. He asked Thursday that the charges against him not be read in court.Crown attorney Andrew Macdonald asked the judge to adjourn the case until Sept. 26 to allow Mr. Pillay time to review the Crown’s evidence against him. The Crown’s disclosure documents will not be available until next week.The Crown alleges that between March 2000 and February 2005, Mr. Pillay, 50, misappropriated and converted client trust funds for his personal use, sometimes using money from some clients to cover shortfalls in the accounts of others.He is free on a $50,000 bond with orders not to gamble or go to any casinos. His mother has posted her home as surety.Mr. Pillay was disbarred May 5, 2005, after the disciplinary committee of the Nova Scotia Barristers’ Society’s found him guilty of stealing $1.3 million from the trust funds of 14 clients. The society compensated clients for the loss.

Srinivasen Pillay will represent himself in an alleged $1.3-million fraud case involving clients’ funds.

Srinivasen Pillay will represent himself in an alleged $1.3-million fraud case involving clients’ funds.Mr. Pillay, who was arraigned Thursd...

Organised mortgage fraudsters cost troubled mortgage lender Bradford and Bingley (B&B) £18m in the first six months of the year

Bradford & Bingley,admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing by criminal gangs and other fraudsters. The sum represents an increase on a £15 million charge taken in June. B&B’s losses may be only the tip of the iceberg. The Association of Chief Police Officers has estimated the scale of mortgage fraud in the UK at £700 million a year, but many believe this to be conservative. Navigant, a consultancy that conducts forensic investigations, has estimated that British mortgage lenders could be sitting on at least £7 billion of fraudulent loans. B&B, which has 3 per cent of the mortgage market, is the first high street bank to disclose the size of its losses due to fraud. Rod Kent, its chairman, said that the bank had not been singled out and was no more vulnerable than other lenders. “We don’t think we are being selected, we are just being more transparent,” he said. Organised mortgage fraudsters cost troubled mortgage lender Bradford and Bingley (B&B) £18m in the first six months of the year, contributing to a £26.7m loss for the bank. B&B’s first half result was well down on the £180.4m profit recorded in the corresponding period in 2007, with the lender struck by a £74.6m credit impairment charge this year - which includes the £18m fraud charge.Its balance sheet was also hit by an increased number of mortgages three months or more in arrears and a 5% deflation in regionally weighted house prices.The bank's restructured £400m rights issue and ownership uncertainty has weighed heavily on investors in recent months, with B&B’s share price currently more than 82% lower than its 52-week high. Chairman Rod Kent says the firm, under new chief executive Richard Pym, has a strong enough capital base to operate effectively in the current economic conditions.“In the light of the turbulence in the banking and housing sectors, the first six months of this year have been very challenging for B&B,” he says.“Although we clearly signalled this at our announcement on 2nd June, the results for the half year are, of course, disappointing. “In the light of continuing weakness in the housing market and the wider economy, we continue to expect arrears and repossessions to increase for the remainder of the year, although we will be putting further resources into tackling the problem.”

Organised mortgage fraudsters cost troubled mortgage lender Bradford and Bingley (B&B) £18m in the first six months of the year

Bradford & Bingley,admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to co...

Khai Van Nhin age 42 was a baker in San Jose and has just received a nine year sentence along with a $127,000 in restitution for insurance fraud.

Khai Van Nhin age 42 was a baker in San Jose and has just received a nine year sentence along with a $127,000 in restitution for insurance fraud. Nhin was accused of forming an auto insurance fraud ring and he entered a plea agreement where he admitted to heading this insurance fraud ring for three years. If he had not made the plea agreement he would have faced as much as twenty-four years in prison. Nhin was in front of Judge Ron Del Pozzo and his attorney made no statement to reporters. This case was put together that netted Nhin with an investigation that was named “ Operation Cashout” according to Stan Voyles the Deputy District Attorney. Nhin along with twenty-seven other people were indicted by the grand jury in 2006, four other people were charged along with Nhin.  By the way if you happen to live in Chicago, Illinois and require an outstanding Chicago workers comp attorney then might I suggest the esteemed Law Offices of Dworkin & Maciariello. They are indeed some of the leading Chicago workers comp attorneys and they not only service workers comp cases in the city of Chicago but also the surrounding areas.According to prosecutors including the Distric Attorney Nhin and the others that were a part of the auto fraud insurance ring filed as many as 31 auto accident that included at least 12 different vehicles between 2002 and 2005. the way they arranged the fraudulent claims is by purchasing damaged vehicles and then filing claims that they had been forced off the roadway and struck the guardrail. This was said to have totaled an amount in the area of $500,000 that was kept and not used to fix any of the vehicles that were claimed to have been damaged. The other 30 defendants that were involved in the case have also pleaded guilty, their sentences range from three years in prison to community service. Nhin was extradited and returned to Santa Clara County from Seattle where he was found when his car was pulled over because he did not have a license plate on the vehicle.

Khai Van Nhin age 42 was a baker in San Jose and has just received a nine year sentence along with a $127,000 in restitution for insurance fraud.

Khai Van Nhin age 42 was a baker in San Jose and has just received a nine year sentence along with a $127,000 in restitution for insurance f...

Michael Vorce, a former West Michigan boat broker who investigators say is behind a multimillion-dollar loan fraud scam that cost local banks millions

Michael Vorce, a former West Michigan boat broker who investigators say is behind a multimillion-dollar loan fraud scam that cost local banks millions, was taken into federal custody this week. Vorce, 31, was arrested in Chicago late Tuesday, along with a Byron Township man, in what authorities say was another effort to allegedly defraud a bank. A hearing that had been scheduled for Friday in Milwaukee was postponed until next Thursday. Vorce and the other suspect will remain in custody at least until that hearing. Vorce, formerly of Alpine Township, allegedly tried to use the identity of a Milwaukee attorney to secure a $391,450 loan. That loan was ostensibly to buy a 48-foot Sea Ray yacht, according to the case filed in U.S. District Court in Milwaukee. The federal complaint alleges Vorce and James Jett, 29, initiated the scheme with a fraudulent loan application June 30. They face felony charges of bank fraud and conspiracy to commit bank fraud, along with possible identity theft charges. How the situation could be tied to an ongoing criminal investigation of Vorce in Grand Rapids is unclear. In a press release, the FBI said the pair are involved in a multi-state identity theft and bank fraud scheme involving at least $2.6 million at four financial institutions. "The investigation is continuing as the individuals appear to be part of a larger fraud scheme," the statement said. FBI spokesman Leonard Peace said he didn't know whether the larger scheme not detailed in the court complaint included activity in Michigan.

Michael Vorce, a former West Michigan boat broker who investigators say is behind a multimillion-dollar loan fraud scam that cost local banks millions

Michael Vorce, a former West Michigan boat broker who investigators say is behind a multimillion-dollar loan fraud scam that cost local bank...

Ammaly Sisombath, 26, was arrested on the spot May 19. Her common-law husband, David Bourne, 26, was caught outside in an SUV with the Kitchener coupl

Ammaly Sisombath, 26, was arrested on the spot May 19. Her common-law husband, David Bourne, 26, was caught outside in an SUV with the Kitchener couple's young daughter. Sisombath had 47 white plastic cards on her -- with the PIN for each written on the outside -- and more than 400 more were found in a gym bag in the SUV. The scheme was outlined in Kitchener court yesterday after Sisombath pleaded guilty to fraud under $5,000.While doing that crime, she was already on probation for a 2007 conviction for possession of forgery instruments.Crown prosecutor Neil Dietrich said it's believed Sisombath got the information to make the fake cards from customers at a Cambridge gas station where she worked. The cards were fitted with magnetic strips encoded with data from legitimate bank cards.Also found in the SUV was a list of local businesses with banking machines."It's not hard to imagine what would have been done with the remaining cards," Justice John Lynch said.At the time of the arrests, police described it as one of the largest debit-card scams ever seen in Waterloo Region. Actual losses totalled only about $2,600 before the scheme was discovered.Lynch sentenced Sisombath to the equivalent of a year in jail and two years on probation, calling the scam part of a "new wave of crimes plaguing our society."Sisombath spent more than three months in pretrial custody -- time credited on a two-to-one basis -- leaving her with just over five months to serve.Bourne received a six-month jail term after pleading guilty to fraud under $5,000.

Ammaly Sisombath, 26, was arrested on the spot May 19. Her common-law husband, David Bourne, 26, was caught outside in an SUV with the Kitchener coupl

Ammaly Sisombath, 26, was arrested on the spot May 19. Her common-law husband, David Bourne, 26, was caught outside in an SUV with the Kitch...

Integrity Bank of Alpharetta was closed by the Georgia Department of Banking and Finance.

Integrity Bank of Alpharetta was closed by the Georgia Department of Banking and Finance. Why Fridays? It gives officials a couple of days to assess things and prepare for dealing with consumers.$974 million in deposits at Integrity will be taken over by Regions Bank of Birmingham. The FDIC is reporting that it will end up paying out an estimated $250 million to $350 million for insured deposits. Why another bank failure? It's said that this one can be blamed on the real estate market. Integrity specialized in real estate lending and grew quickly, but as soon as the real estate market got sketchy the problems started. Late last year there was a management shakeup and the bank was delisted from the Nasdaq market early in 2008. More banks are expected to fail this year as the real estate market struggles to recover. Many banks built their businesses in large part based on real estate lending, and until the market for real estate and mortgages stabilizes, some banks will be at risk.Consumers must protect their deposits by educating themselves on the rules for FDIC insurance. The general rule is that an individual is covered for up to $100,000 in all accounts at a bank. But there are certain situations in which more coverage is extended. Carefully learn the rules and split your money between banks to protect yourself. It's wise to have money at more than one bank, not only because of the insurance issue, but because you may be unable to access your cash for a while in the case of a bank failure. Using more than one bank will hopefully mean that you've got access to at least some of your money during a crisis at a particular bank

Integrity Bank of Alpharetta was closed by the Georgia Department of Banking and Finance.

Integrity Bank of Alpharetta was closed by the Georgia Department of Banking and Finance. Why Fridays? It gives officials a couple of days t...

>Casey Anthony is once again behind bars after police arrived at the 22-year-old’s Florida home and arrested her on charges of check fraud

Casey Anthony is once again behind bars after police arrived at the 22-year-old’s Florida home on Friday night and arrested her on charges of check fraud.The charges stem from several instances in July in which Casey Anthony used a friend’s checkbook to buy items at various stores in the Orlando area as well as withdraw cash. She is now back in jail on $3,000 bond and is scheduled to appear in court Saturday.Anthony had been confined to her parent’s house after being released from prison on a $500,000 bond just over a week ago. She had spent a month in an Orlando prison on charges of child neglect and lying to investigators, both charges tied to the case of her missing 3-year-old daughter, Caylee Anthony. Caylee Anthony has been missing for more than two months but Casey only reported her daughter missing one month ago. She has told investigators she left Caylee with a babysitter and when she returned both were gone.While not named a formal suspect in the disappearance of Caylee Anthony, Casey has been named a person of interest. Earlier this week the University of Tennessee “Body Farm” revealed that air sample taken from the trunk of a car Casey had been driving indicated human decomposition and in a separate analysis hair found in the trunk was said to belong to Caylee Anthony.

>Casey Anthony is once again behind bars after police arrived at the 22-year-old’s Florida home and arrested her on charges of check fraud

Casey Anthony is once again behind bars after police arrived at the 22-year-old’s Florida home on Friday night and arrested her on charges o...

South African who was a U.S. track star faces prison on fraud charges here.

South African who was a U.S. track star faces prison on fraud charges here. South African media report Sydney Maree was convicted and senten...

Niles Mayor Nicholas Blase was a tireless advocate for his community, even as he faced federal charges that he accepted kickbacks for 30 years

Niles Mayor Nicholas Blase was a tireless advocate for his community, even as he faced federal charges that he accepted kickbacks for more than 30 years.But Blase, 80, said he was just plain tired and had left for a family vacation spot in Wisconsin before formally stepping down as the suburb's 47-year mayor as of 5 p.m. Monday. Village Board members preparing to choose an interim mayor from among their ranks at a Tuesday meeting took Blase at his word."I think he's just generally tired," said Trustee Andrew Przybylo. "He wanted to step away before the political season got up and running."Przybylo called Trustee Robert Callero the logical choice to replace Blase because of his business background as a certified public accountant and his work with the board's finance committee. Callero could not be reached Monday. Blase announced his plans to retire in a message to Niles residents that was posted this weekend on the village Web site.In his statement, Blase said he "had no intention of running again because at 80 years of age and 47 years of Mayoring, I am tired. I am retiring early so a Mayor candidate can start campaigning now without the question 'is Mayor Blase going to run again?' "Village Manager George Van Geem said Monday morning that Blase had left for Wisconsin and was unavailable for comment.A federal trial on mail fraud and tax evasion charges was scheduled to begin Sept. 8 but has been canceled. Prosecutors declined to comment on whether a plea agreement was in the works or if the charges against Blase might be dropped. A status hearing in the case is scheduled for Sept. 11.Blase's lawyer, Sheldon Zenner, also declined to comment on the status of the federal case, which has been hovering over Niles and its mayor for two years."He will not be available for an interview," Zenner said via e-mail.Blase told Przybylo a week ago of his plan to retire, but did not mention any intention to settle the federal case."He always told me he's going to go to trial," Przybylo said.But Przybylo said the pressure of a federal indictment could shake anyone."There's no question," he said. "When the federal government pulls you out of your house in the morning, and takes you to jail in your bedroom slippers, it puts pressure on you."That's what happened on June 8, 2006—on Blase's 78th birthday.Blase has pleaded not guilty to charges that he pressured Niles businesses to buy insurance through Ralph Weiner & Associates, a Wheeling insurance agency. The agency secretly kicked back 20 percent of its commissions from Niles businesses to a shell company effectively controlled by the mayor, the charges allege.Przybylo said he would not throw his hat into the ring for interim mayor when the board meets behind closed doors Tuesday night. But he did not rule out running for the office in April."I would run, maybe, in the future," he said. "I have a contribution to make."He said a state law prohibiting elected officials from holding liquor licenses is open to interpretation. His family owns the White Eagle restaurant and banquet hall in Niles."That is certainly a factor in my decision," he said. "I am not going to walk away from a family business of more than 70 years."Przybylo said he would keep an open mind about the choice for interim mayor but said Callero would be a logical choice because Niles depends so heavily on sales tax for revenue.But Przybylo also suggested longtime Trustees Louella Preston and Bart Murphy were potential interim successors to Blase. Neither could be reached Monday.Trustee Kim Biederman said she would be willing to be considered for mayor. She said Blase's focus on bringing in sales-tax revenue to the village instead of using property taxes has helped make Niles what it is today.Officials said Blase never let the federal allegations affect his job."I think he did a good job dealing with it," Van Geem said. "He didn't come in wringing his hands about it."

Niles Mayor Nicholas Blase was a tireless advocate for his community, even as he faced federal charges that he accepted kickbacks for 30 years

Niles Mayor Nicholas Blase was a tireless advocate for his community, even as he faced federal charges that he accepted kickbacks for more t...

Raymond Joseph Laprise was sentenced Monday to eight months of house arrest, although the court-imposed conditions will be less stringent than normal

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_c2zjy7F8YL3r8UmkjYsLU6ulf10XrAMvZZ-n0crkfIxfNMfDzC_0w8ZFIeiEsRhESNYsJwAUvFQglVP738737hzUerEZJw76oPZAdLuDRmSjqWeHbepQAfqocX5_GI_Ml1l41RFWUwH8/s1600-h/realestate25.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5239657861801676754" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_c2zjy7F8YL3r8UmkjYsLU6ulf10XrAMvZZ-n0crkfIxfNMfDzC_0w8ZFIeiEsRhESNYsJwAUvFQglVP738737hzUerEZJw76oPZAdLuDRmSjqWeHbepQAfqocX5_GI_Ml1l41RFWUwH8/s400/realestate25.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Raymond Joseph Laprise was sentenced Monday to eight months of house arrest, although the court-imposed conditions will be less stringent than normal to accommodate his new job as a travelling salesman.Superior Court Justice Joseph Donohue said he felt it was important that Laprise keep working so he can make restitution to the finance company he defrauded. Laprise, 54, was convicted in February of fraud and theft for filing bogus paperwork 37 times to get more than $100,000 in loans from "factoring companies" that advance commissions to real estate agents. As new loans replaced old ones, he paid back all but $14,265.Donohue ordered Laprise to pay back the amount by February at a rate of no less than $2,000 a month. When Laprise balked at the payment rate, telling the judge through his lawyer that he is paid by commission, the judge shook his head and criticized Laprise for not having thought of that earlier.You would think that someone who wanted to put themselves in the best light with the court and community would have taken care of that," Donohue said moments earlier in passing sentence.Defence lawyer Roland Schwalm said Laprise is employed selling building supplies throughout Southwestern Ontario. He travels as far away as Woodstock, so he can't be home in Windsor every night to comply with a court-ordered curfew. Donohue agreed to impose house arrest using both Laprise's Windsor home and a friend's residence in London as home addresses. Laprise must be at one of those two places when not working or attending medical appointments. In an order more detailed than judges normally impose, Donohue gave Laprise one hour out of his workday for lunch and two hours -- from 10 a.m. to noon -- on Saturdays to be out of the house for "groceries and grooming." Laprise must also perform 80 hours of community service.Laprise was arrested in 2004 after his friend and fellow real estate agent, Robert Janisse, discovered Laprise's fraud scheme and called police.Laprise operated Integrity Realty until 2003, when, facing bankruptcy, he got Janisse to take over the company so Laprise could continue to sell houses. Janisse was a silent partner who left left the day-to-day operation of the business to Laprise.Janisse discovered Laprise and Laprise's assistant, Linda Eaton, had been keeping two sets of sales records. One set was accurate, kept in case of audits, and one was made up of fraudulent sales transactions used to procure loans.Eaton was charged along with Laprise. She pleaded guilty in September 2005 to theft under $5,000 and was sentenced to three years probation.During his trial, Laprise tried to pin the crimes on Eaton and Janisse, calling himself a "victim of circumstance."Donohue did not believe Laprise and convicted him of all charges.Assistant Crown attorney Elizabeth Brown told the court finance companies may become more stringent because of Laprise's fraud. "They rely on the honesty of real estate agents," Brown said. "This is a breach of trust situation." On Monday, Donohue said Laprise "besmirched" all real estate agents by his conduct. "It's unfortunate that one member of a profession brings down the reputation of all others."Court heard Laprise's real estate licence has been suspended and that it will likely be revoked permanently.

Raymond Joseph Laprise was sentenced Monday to eight months of house arrest, although the court-imposed conditions will be less stringent than normal

Raymond Joseph Laprise was sentenced Monday to eight months of house arrest, although the court-imposed conditions will be less stringent th...

United Arab Emirates bank sued Morgan Stanley, the Bank of New York Mellon Corp and ratings agencies Moody's and S&P on Monday, accusing them of fraud

United Arab Emirates bank sued Morgan Stanley, the Bank of New York Mellon Corp and ratings agencies Moody's and S&P on Monday, accusing them of fraud in operating a fund that collapsed in the U.S. credit crisis.The lawsuit filed by Abu Dhabi Commercial Bank in U.S. district court in Manhattan said a complex deal known as the Cheyne Structured Investment Vehicle (SIV) was marketed by the defendants as highly rated and reliable, but they had hidden the risks."Instead of protecting the SIV and its investors as promised, defendants exposed the SIV to significant undisclosed risks," the lawsuit said. "Defendants knew the assets purchased and held by the SIV were risky and of poor quality. They further knew the models used to generate the high rates were flawed."SIVs, which once held some $350 billion in assets, have played a major role in the U.S. credit crisis, after proving unable to refinance their short-term debts.A series of SIVs are now selling off bank debt and assets such as asset-backed securities to try to pay back investors, a move that many see as further pressuring credit markets.A deal was announced last month to restructure Cheyne, which at receivership was a $7 billion fund. Many investors who elected to stay in the restructured fund now have assets worth less than one-half of their former value, and the Abu Dhabi Commercial Bank's investment is worth zero now, the complaint said.A spokeswoman for Morgan Stanley and a spokesman for Bank of New York Mellon declined to comment.A spokesman for S&P parent McGraw-Hill Cos Inc declined comment, saying the company had not yet been served with the complaint. A spokesman for Moody's Corp was not immediately available for comment.SIVs used short-term funding, such as asset-backed commercial paper, to buy longer-term assets such as bank debt and asset-backed securities.The bank brought the action on behalf of all investors who bought investment grade Mezzanine Capital Notes issued by Cheyne Finance PLC and its wholly owned subsidiary Cheyne Finance Capital Notes from October 2004 to October 2007."The ratings agencies intentionally, recklessly or negligently misled investors in Cheyne," according to the suit. "But for the ratings agencies violations of law, the capital notes never would have been issued."

United Arab Emirates bank sued Morgan Stanley, the Bank of New York Mellon Corp and ratings agencies Moody's and S&P on Monday, accusing them of fraud

United Arab Emirates bank sued Morgan Stanley, the Bank of New York Mellon Corp and ratings agencies Moody's and S&P on Monday, accu...

Richard Pundt, 64, was arrested Thursday by the Federal Bureau of Investigation and appeared Friday in U.S. District Court

Richard Pundt, 64, was arrested Thursday by the Federal Bureau of Investigation and appeared Friday in U.S. District Court on three counts of mail fraud, six counts of wire fraud and one count of conspiracy.The indictment was filed in U.S. Central District of California.Pundt said there is “absolutely no basis for the allegations. I am a victim in this case and once the evidence is in, I expect to be fully exonerated.”The indictment claims Pundt and others promoted a fraudulent high-yield investment scheme. Pundt and the others are accused of telling undercover agents that they could place them in a “safe ... no-risk, secret program.”The undercover agents were told they would have to undergo a “compliance” process and be subjected to “due diligence” scrutiny by the Central Intelligence Agency, the indictment says. Pundt is the president and CEO of Enlighten Technologies Inc., a private legal communications network with voice, videoconferencing and data capabilities. Pundt is a former FBI agent and former assistant Linn County prosecuting attorney, according to the Enlighten Web site. Pundt isn’t listed as practicing on the Linn County or Iowa Bar association Web sites.

Richard Pundt, 64, was arrested Thursday by the Federal Bureau of Investigation and appeared Friday in U.S. District Court

Richard Pundt, 64, was arrested Thursday by the Federal Bureau of Investigation and appeared Friday in U.S. District Court on three counts o...

Martha Vernon, 53, and her daughter, Tiffany Dunbar, 29, were both sentenced to time in prison. They pleaded guilty in April to tax fraud.

Martha Vernon, 53, and her daughter, Tiffany Dunbar, 29, were both sentenced to time in prison. They pleaded guilty in April to tax fraud.Ve...

Martin Wirick and Vancouver real estate developer Tarsem Singh Gill.Ex-lawyer, real estate developer arrested on multiple counts

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_W-vcURRSBWx4xuBJChGGVDLMUjDrKk9raxrXGn7hHqamQTuBuxZ66HdC-Qvx49KpudQeARWU0Q46s3BLcPO7EBeUwtAQXBu2M_Yx3cQS_cZCSH_bXcRsh8eDsrvvZRMA1wz9cT1pUeWp/s1600-h/sunwirick08a.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5239654177747243298" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_W-vcURRSBWx4xuBJChGGVDLMUjDrKk9raxrXGn7hHqamQTuBuxZ66HdC-Qvx49KpudQeARWU0Q46s3BLcPO7EBeUwtAQXBu2M_Yx3cQS_cZCSH_bXcRsh8eDsrvvZRMA1wz9cT1pUeWp/s400/sunwirick08a.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> A marathon investigation into one of the biggest financial frauds in B.C. history concluded Tuesday with multiple charges against former Vancouver lawyer Martin Wirick and Vancouver real estate developer Tarsem Singh Gill.Wirick was arrested at his Vancouver workplace, Koko's Gourmet Pet Foods in North Vancouver, and Gill near his Ross Street home in South Vancouver on Tuesday by members of the special RCMP-Vancouver police task force that conducted the six-year investigation. Both men were later released. They are scheduled to make their first court appearance on Sept. 15.Martin Wirick faces multiple charges as a result of a six-year investigation into one of the biggest frauds in B.C. history. Vancouver Sun filesWirick and Gill are charged with two counts of fraud and theft against 77 different homeowners, and two counts of fraud and theft against lenders in 30 different loan transactions.Wirick is also charged with two counts of uttering false documents and Gill with one count of possession of stolen property. The total amount of money alleged to have been unlawfully taken from homeowners and lenders exceeds $30 million.The biggest victim, however, was the B.C. Law Society. Its special compensation fund, which insures clients for lawyer fraud, paid out $38.4 million in claims on account of Wirick's alleged misconduct."As far as we know, not a single person lost their home over this," society president John Hunter said in an interview. "We are quite proud of that." To pay for the claims, the law society imposed special assessments of $600 per year on each of its 10,000 lawyer members. (That assessment has since been reduced to $150 per year.)Gill's method of operation -- as described in the Benchers' Bulletin (the law society's in-house publication) -- was to develop a property and sell it to one of his nominees. The nominee would arrange a mortgage on the property and then sell it to an innocent purchaser.The purchaser, in turn, would arrange financing from his lending institution and forward the money to Wirick on his undertaking to pay off the original mortgage loan and register a new first mortgage. But rather than disburse the money as promised, Wirick simply paid the funds to Gill and his Vanview group of companies.In many cases, Wirick would provide false discharge documents, and a portion of the purloined money would be used to keep the original mortgage payments current, so neither the purchaser nor the original mortgage lender would be any wiser.The new mortgage lender, meanwhile, naturally assumed he had obtained a first mortgage against the property. But since the original mortgage hadn't really been discharged, he was actually in second position.In some cases, this process was repeated, enabling Gill to mortgage the property many times over and generate more money than it was worth. Eventually the scheme collapsed, revealing a tangled web of transactions, mortgages and competing claims.When the scheme was uncovered, law society officials took over Wirick's practice and audited his books and records. They also obtained access to Gill's records through the court, which gave them a good idea of where the money went.

Martin Wirick and Vancouver real estate developer Tarsem Singh Gill.Ex-lawyer, real estate developer arrested on multiple counts

A marathon investigation into one of the biggest financial frauds in B.C. history concluded Tuesday with multiple charges against former Van...

Steve Warshak, 42, founder of Berkeley Premium Nutraceuticals, also was ordered to pay $93,000 in fines. He was convicted in February on 93 counts

Steve Warshak, 42, founder of Berkeley Premium Nutraceuticals, also was ordered to pay $93,000 in fines. He was convicted in February on 93 counts of conspiracy, fraud and money laundering.Federal prosecutors accused the company of bilking customers out of $100 million through a series of deceptive ads, manipulated credit card transactions and refusal to accept returns or cancel orders. U.S. District Judge S. Arthur Spiegel ordered the company, along with other defendants, to forfeit more than $500 million. He said it was impossible to calculate exactly how much money was lost by customers, so he accepted a figure based on how much Warshak and the company took in. Berkeley distributes various products alleged to boost energy, manage weight, reduce memory loss and aid sleep. The company's main product, Enzyte, which promises sexual enhancement, has ads featuring "Smiling Bob," a happy man with an exaggerated smile. "This is a case about greed," Spiegel said as he reviewed the case. "Steven Warshak preyed on perceived sexual inadequacies of customers."Spiegel said one aspect of the fraud relied on the reluctance of customers to come forward, which would mean admitting they ordered the sexual enhancement pills. "I don't see any evidence of remorse or concern for anyone but himself," Spiegel said.Allowed to make a statement, Warshak said that was not true. "I do feel deep remorse and would like to apologize to any customer who ever had a bad experience with my company," he said. "I apologize to all the great people, the employees of Berkeley — they've given their heart and soul. I let them down." Spiegel said the company, which likely will be hit with the majority of the forfeiture, will be allowed to remain in business.Spiegel denied Warshak's request to remain free on bond pending appeal, but gave him 30 days to wrap up personal business and report to prison.Warshak's mother, Harriet Warshak, was sentenced to two years in prison. She was convicted of conspiracy and other charges.Spiegel allowed her to remain free pending appeal and acknowledged that she is 75, has cancer and likely will never be incarcerated because of the time it takes appeals to work through the courts. "It probably will take some years before that is accomplished," Spiegel said. She had pleaded with the judge not to send her to prison. "I have grandchildren," she said. "The time I have left, I'd like to spend with them. I don't think it's fair to take me away from them."

Steve Warshak, 42, founder of Berkeley Premium Nutraceuticals, also was ordered to pay $93,000 in fines. He was convicted in February on 93 counts

Steve Warshak, 42, founder of Berkeley Premium Nutraceuticals, also was ordered to pay $93,000 in fines. He was convicted in February on 93 ...