Bankrupt Banker

World Group Securities Inc. charged with securities fraud

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

World Group Securities Inc. charged with securities fraud

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sun Country Airlines filed for bankruptcy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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