Bankrupt Banker

Big Dig contractor McCourt Construction,Ryan McCourt was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment

Ryan McCourt of Quincy, Mass., was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment, the U.S. attorney's office said in a statement. Kenneth Hartley of California was sentenced to six months in the custody of the US Bureau of Prisons, two years of supervised release, and a $100 special assessment.The two men had pleaded guilty in July to one count each of conspiracy to make false statements regarding a federal highway project, the US attorney's office said.Prosecutors said that McCourt and Hartley, along with Big Dig contractor McCourt Construction, schemed to overbill the multi-billion-dollar project by falsely categorizing apprentice ironworkers, among other workers, as higher-paid journeymen.Prosecutors have said the workers were paid as apprentices and the company pocketed the difference. The overpayments allegedly totaled $314,494.The scheme by the managers of the company's Claims and Changes Department allegedly ran from 2002 through December 2005. Hartley was the department manager from 2001 through June 2004. McCourt had the same job from about July 2004 through the end of the conspiracy, prosecutors said.The company, which was the main contractor on the Interstate 93 tunnel finishing contract, has pleaded guilty in the scheme and will be sentenced on Nov. 7, prosecutors said.

Big Dig contractor McCourt Construction,Ryan McCourt was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment

Ryan McCourt of Quincy, Mass., was sentenced to two years of probation, a $1,000 fine, and a $100 special assessment, the U.S. attorney'...

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case” and many of his victims’ losses were “unintended.”O’Brien, 28, pleaded guilty to one count of mail fraud in February which prosecutors say included sophisticated Ponzi schemes and phantom herding — the selling of cattle to more than one buyer — to cheat more than a dozen victims of more than $5 million in less than one year.“His family is well regarded in the community. His scheme succeeded, in part, because he traded on his family’s reputation,” Assistant U.S. Attorney L. Anna Forbes wrote in a presentencing memorandum. “Some of the victims were banks; a few were relatively wealthy people; but several were just hard-working folks who did business the way it always had been — with a firm handshake and an expectation that the defendant would do what he said he would do.”Defense lawyer Rodney Smith said in his presentencing memorandum to the court that O’Brien began acquiring cattle while still attending Greenbrier East High school, and by the age of 23 was operating a cattle broker business in the county.“He (O’Brien) initially profited by raising cattle and engaging in relatively small cattle deals,” Smith wrote. “When an opportunity presented itself to engage in cattle deals with well-established cattle brokers in the Greenbrier Valley, Mr. O’Brien, against his father’s advice, embraced the opportunity.”Smith said O’Brien participated in several large cattle deals “with cattle dealers around the country,” but “due to poor business decisions ... by 2005, at the age of 25, he soon found himself deep in debt and unable to meet financial obligations.“To keep his business afloat and pay creditors, Mr. O’Brien began engaging in illegal conduct, including ‘kiting’ checks and selling a group of cattle to more than one buyer,” Smith wrote. “For a short period of time, (his) illegal conduct allowed him to remain in the cattle business ... by March 2006, however, (his) tenuous financial situation collapsed.”Smith said an investor stopped payment on a big check and a First National Bank account was frozen to recover funds owed on outstanding loans, thus pushing him into “financial ruin.” “Mr. O’Brien’s illegal efforts to prolong the life of his business resulted in debts that far exceeded his assets, and he had no viable option other than to file for bankruptcy,” Smith wrote. “(His) conduct can be distinguished from ‘typical’ fraud cases because even though the losses were foreseeable, the vast majority of the losses suffered by the victims were unintended.”Smith then argued O’Brien continued cheating people in order to be able to pay back the other people he was already cheating. “He engaged in most of his illegal conduct to allow him to continue to be a cattle broker with the hope that he could pay his investors and make a living,” Smith wrote. For these reasons and others, according to Smith, O’Brien’s prison term should be less than the eight to 10 years that’s been recommended by his probation officer and agreed to by the U.S. Attorney’s Office.Smith also cites O’Brien’s cooperation in helping convict former First National Bank president Charles A. Henthorn and former FNB board president G. Thomas Garten.Henthorn pleaded guilty to taking $9,700 in bribes from O’Brien and Garten pleaded guilty to aiding and abetting those bribes earlier this year.O’Brien wore a tape-recording device when speaking to Henthorn to gain evidence against him for prosecutors.His client has already paid a steep price for his criminal conduct, Smith wrote, by losing respect in his small community, disappointing loved ones and suffering tremendous financial losses of his own that will have a life-long effect.Furthermore, Smith said, O’Brien will never be able to operate the same type of scams again because of his newfound notoriety.“Because (his) criminal prosecution has received a tremendous amount of media coverage in his community, it is highly improbable that individuals will place the trust in him necessary to engage in the same criminal conduct upon his return to the community.” A new twist to the case may also decrease O’Brien’s prison term. Documents filed by the United States last month indicated O’Brien has given evidence which could possibly produce more indictments in this complicated case.O’Brien, along with Henthorn and Garten, is scheduled to be sentenced Friday by U.S. District Judge Thomas E. Johnston in Beckley.O’Brien’s multimillion-dollar bankruptcy cases continues to play out in federal bankruptcy court.

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical fraud case

Kevin Scott O’Brien, the central figure in the multimillion-dollar Greenbrier County cattle and banking scandal, say it’s not the “typical f...

Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.

Sentenced Forest Lake minister to 15 years in prison for his role in a multimillion-dollar pyramid scheme Thursday, but he wasn't happy about it. Davis, Minnesota's chief federal judge, upbraided the U.S. Justice Department for its handling of a case in which Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.Terrence Correll, architect of the Ponzi scheme that bilked 519 people of up to $390 million, received a 12-year term.Under the sentencing guidelines, Davis said, "the more you steal, the better off you are." Midkiff, 66, wept as he apologized for his part in the scheme, although he said that he did not realize at the time he was committing fraud.Davis expressed doubt. "You can't hide behind being an unsophisticated person," he said. Midkiff was blamed for at least $18 million lost in the scam."This is such a difficult sentence," said Davis, recalling the testimony of victims who were ruined by the venture. "I heard all the pain and agony."But he called it "absurd" that under sentencing guidelines, Midkiff faced significantly more prison time than the leaders of Enron and WorldCom faced for larger crimes.Davis criticized the Justice Department for having the cases tried in different states. Correll pleaded guilty in Atlanta."It could have been handled in Minnesota," Davis told Assistant U.S. Attorney Timothy Rank.While longer than Correll's, Midkiff's sentence was shorter than it could have been. Sentencing guidelines called for 27 to 33 years. "And that would be totally inappropriate," Davis said.Midkiff was convicted in August of 21 counts of mail and wire fraud and tax evasion. His partner Jerry Watkins has pleaded guilty to fraud and testified against Midkiff.

Neulan Midkiff, the minister, will serve more time than the fraud's ringleader.

Sentenced Forest Lake minister to 15 years in prison for his role in a multimillion-dollar pyramid scheme Thursday, but he wasn't happy ...

Matthew John Rhodin has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheuFb3ck1TwPojBCYQQAJt7TwhQr_2ucgr_Guq3PMLDy32FN_zb9EsCZJ7nAtg55I_AXU0c4JSdyBv20mJuaQnCv8QC_FAyPr7b8UmpG2rURwdZBTmYQx20mA7E5b9n0ICa6Nt2wUDbQaj/s1600-h/470rhodin,0.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5258277082080590626" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheuFb3ck1TwPojBCYQQAJt7TwhQr_2ucgr_Guq3PMLDy32FN_zb9EsCZJ7nAtg55I_AXU0c4JSdyBv20mJuaQnCv8QC_FAyPr7b8UmpG2rURwdZBTmYQx20mA7E5b9n0ICa6Nt2wUDbQaj/s400/470rhodin,0.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Matthew John Rhodin, boyfriend of model-turned-television personality Charlotte Dawson, has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money.Rhodin, 42, appeared in Sydney's Central Local Court today after he was arrested by police in his Kings Cross luxury apartment yesterday morning.He faced three charges including two counts of using a false instrument with intent and one of making a false statement to obtain money. high-flying boyfriend of Australia's Next Top Model judge Charlotte Dawson has denied charges relating to a $7.35 million (NZD$8.1 million) fraud and must post a $100,000 (NZD$164,046) surety before he can be released on bail.However, Ben Clark, lawyer for Matthew John Rhodin, 42, told Sydney's Central Local Court on Friday that his client was not in a position to post the required surety.Rhodin, of Rushcutters Bay in Sydney's east, is accused of providing an inflated property valuation and using two false leases to secure the loan.He pleaded not guilty to two charges of using a false instrument with intent and one charge of making a false statement to obtain money.Dressed in jeans and a long grey t-shirt, with the words Morning Glory written across it, Rhodin clasped his hands together after instructing his lawyer to apply for bail.In granting bail, Magistrate Jane Culver imposed strict conditions, ordering Rhodin to report to Kings Cross police station twice a day, stay away from international departure ports, surrender his passport and provide the $100,000 surety.Ms Culver said the police facts revealed a strong prosecution case and a "very strong likelihood of a significant custodial sentence"."There are some features under the bail act which would suggest this man is a possible flight risk," she said.Officers arrested Rhodin at his luxury apartment at 6.55am yesterday (AEDT) following a three-month investigation.Police allege he used a phantom lease and property valuation to obtain a loan for a commercial property on Darlinghurst Road, Darlinghurst, last year.The vendor of the property agreed to sell it to Rhodin's company NR Marketing for "well below" the estimated value, according to a police statement of facts tendered to the court.Rhodin allegedly submitted an online application to the Commonwealth Bank of Australia for a $7.35 million loan in October 2007 in which he included a $10.5 million (NZD$11.7 million) independent valuation of the Darlinghurst property.Police said he used false lease documents to substantiate to the bank that the property, which contained three vacant floors, would return $385,000 (NZD$427,649) rental income per year between July 2007 and July 2013.But Rhodin's company defaulted last December after failing to make the first repayment of $45,000 (NZD$50,000).Rhodin has recently been spotted at social functions with Dawson, a former model who now stars on the Seven Network reality modelling television show.He is required to appear at Downing Centre Local Court on December 11.

Matthew John Rhodin has been granted $100,000 bail on fraud charges, but will spend the weekend in jail as he needs time to come up with the money

Matthew John Rhodin, boyfriend of model-turned-television personality Charlotte Dawson, has been granted $100,000 bail on fraud charges, but...

Ronald Dale Cole,pleaded guilty to two counts of odometer tampering.

Ronald Dale Cole, 55, pleaded guilty on May 30, in U.S. District Court in Atlanta, to two counts of odometer tampering.Cole bought high-mile...

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds, U.S. Attorney Catherine Hanaway said Friday.Hanaway said in a release that Kermit Kingsley Hall and Joseph G. Cooper, who operated the Kingsley Trust from offices at 5494 Brown Road in Hazelwood, Mo., allegedly solicited investments in the Kingsley Trust based on false representations about the safety of investments in the trust.The trust’s Web site falsely described investments in the trust as “guaranteed deposits that post annual rates twice the norm” and contained the assertion that they erase the guesswork with “principal guarantee,” according to Hanaway. Kingsley Trust brochures falsely stated that “deposited amounts are guaranteed with interest benefits locked in at the time of deposit.”“Instead of investing victims’ funds, Hall and Cooper used approximately $345,000 of their funds to purchase a vehicle, pay personal expenses, attorneys’ fees and give money to relatives; and none of the victims’ money was actually invested,” Hanaway said in a statement.Hall, 58, of San Luis Obispo, Calif., was convicted of on one felony count of mail fraud and two felony counts of wire fraud in a four-day trial before U.S. District Judge E. Richard Webber. Hall’s sentencing has been set for Jan. 9, 2009.Cooper, 51, of Florissant, Mo., previously pleaded guilty to related charges and awaits sentencing.Each fraud count carries a maximum penalty of 20 years in prison and/or fines up to $250,000.

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds

Kermit Hall, one of the owners of the Kingsley Trust, was convicted of wire and mail fraud charges involving the theft of investor funds, U....

Darkmarket enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down

online criminal forum that was used by thousands of fraudsters to buy and sell stolen credit card and bank details has been shut down following a two year FBI-led undercover operation.The Dark Market site was used by cyber criminals around the world to buy and sell credit card data, user names and passwords, as well as equipment for carrying out financial crimes. The FBI - which shut the site down earlier this month - says at its peak Dark Market had over 2500 registered members. The FBI infiltrated the forum, gathering intelligence on leading criminals before teaming with other agencies to identify the fraudsters. Around 56 people have been arrested following co-ordinated raids carried out in the US, Germany, Turkey and the UK.Britain's Serious Organised Crime Agency (Soca) arrested 11 people in London, Manchester and Leicester as part of the investigation into the Dark Market Web site. Soca says sites like Dark Market are closely guarded and inaccessible to most Web users as they operate on an exclusive membership basis and by invitation only. The sites use breaking-news style updates on the latest compromised personal information. Sharon Lemon, deputy director, e-crime, Soca says the people involved in this kind of activity are not technical experts but "thieves with keyboards". "They have a certain arrogance - they think they are untouchable," she says."The message today is that no-one should feel confident that these forums are a secure place to operate," adds Lemon. "While some suspects remain at large in the UK and overseas, Soca and its partners will continue to identify these individuals and bring them to justice." Soca says further arrests are expected both in the UK and abroad as the investigation continues.The operation against the Dark Market forum also prevented $70 million in losses through the seizure of compromised victim accounts, says the FBI.Says Shawn Henry, assistant director, cyber division, FBI: "In today's world of rapidly expanding technology, where cyber crimes are perpetrated instantly from anywhere in the world, law enforcement needs to be flexible and creative in our efforts to target these criminals."Leads in many of these investigations take us to the online world of Internet forums, where criminals go to engage in the business of selling and trading innocent person's credit card numbers and other personal information."Henry says the arrests "are a good demonstration of the coordination taking place today between the FBI, the Serious Organised Crime Agency, and other law enforcement agencies around the globe". Sixty people across the globe have been arrested in connection with the "Darkmarket" website, including Britons from Leicester, Manchester, Humberside, South Yorkshire and London.The international forum that enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down by the Serious Organised Crime Agency (Soca).The site allowed criminals to exchange information on how to commit online fraud, as well as offering the sensitive data contained on the magnetic strips of credit cards.Soca said one of the people arrested had spent £250,000 buying personal data on the site, which could have been used to make £10m from identity fraud.Police used international crime specialists to infiltrate the website and identify its users.A spokesman said: "People were exchanging information about how to commit online fraud."(The site) enabled a whole range of criminal activities, from how to go about stealing data to how to make the best use of it once it had been stolen."The website had been in operation for three years and could only be accessed by invitation.Greg Day, security analyst from McAfee, told Sky News Online the arrests were a "great step forward", but added that as numbers of online shoppers grow, identity theft is a growing problem."We spend more of our lives now in the digital world - and so do criminals," he said."On the high street, we understand the risks and take steps to manage them."Online there are different risks and people need to be prepared to deal with them appropriately."Mr Day added online fraud is becoming increasingly difficult to stamp out.He said: "It's much harder to really understand the true origins - to infiltrate and co-ordinate these raids on a global basis - which is what we have to do with cyber threats."What's very significant about this case is that it was a syndicate that stole the information, educated people on how to use it and then converted it into cash.

Darkmarket enabled fraudsters to buy and sell credit card details, and learn how to convert them into cash, was shut down

online criminal forum that was used by thousands of fraudsters to buy and sell stolen credit card and bank details has been shut down follow...

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 ...

Top