Bankrupt Banker

Latvian security police, detained Dmitrijs Smirnovs, a 32-year-old economist,for questioning the stability of Latvia’s 26 banks and its currency

The Latvian security police, who usually track down spies and terrorist threats, detained Dmitrijs Smirnovs, a 32-year-old economist, for questioning the stability of Latvia’s 26 banks and its currency, the lats. Freed after two days of questioning, he is still under investigation for spreading “untruthful information” and has been ordered not to leave the country.“All I said was what everyone knows,” he said. He is not alone. A popular musician was also recently hauled in for questioning after cracking a joke about the banks’ stability at one of his concerts. Latvia has long been prickly about financial stability. In 1995, when the country’s biggest bank collapsed, depositors lost £500m and its senior executives were imprisoned.Last year there were rumours that the lats was about to be devalued, prompting a rush into the euro. The security police were called in to investigate the source of the rumours and the culprit turned out to be a drunk, who was released after questioning.This prompted calls for tougher penalties against “reckless” financial chatter and the law was amended to allow jail terms of up to six years for disseminating false information about the financial system.When that system began to crumble in the autumn, police agents began scanning internet chatrooms, newspapers and telephone text messages for economic pessimism. Smirnovs got into trouble for predicting serious problems for Latvia, telling a local newspaper in October: “All I can advise is: don’t keep money in banks and don’t keep money in lats.”Yet his gloom seems justified. Last month Latvia took over Parex, the largest locally owned bank, to save it from collapse. It denied that it needed aid but is now in talks with the International Monetary Fund.

Latvian security police, detained Dmitrijs Smirnovs, a 32-year-old economist,for questioning the stability of Latvia’s 26 banks and its currency

The Latvian security police, who usually track down spies and terrorist threats, detained Dmitrijs Smirnovs, a 32-year-old economist, for qu...

Judge has ruled that the owners of a non-profit Christian investment company committed fraud and called for them to repay $11 million to investors

Judge has ruled that the owners of a non-profit Christian investment company committed fraud and called for them to repay $11 million to investors they swindled in Arizona and 11 other states.The administrative-law judge also said that Chandler residents Ed Purvis and Gregg Wolfe should pay $250,000 in fines for their part in operating Nakami Chi Group Ministries.The judge's ruling must be ratified by the Arizona Corporation Commission, which regulates securities and oversees corporations in the state. The commission is scheduled to vote on the Nakami case before the end of the year. The ruling crowns a three-year investigation by the Corporation Commission into Valley-based Nakami, which investigators say targeted churchgoers as part of a Ponzi scheme, including at least one pastor, church elders and members of Chandler Christian Church and Vineyard Church in Avondale.None of the principals could be reached for comment Friday. Purvis has denied any wrongdoing.Wolfe last year agreed to turn state's evidence and admitted to investigators that he and Purvis for years funneled millions of dollars in investors' money into offshore accounts as part of the scheme.Tony Senarighi of Prescott, a one-time investor who testified against the pair, said he was pleased with the ruling. "They are crooks," said Senarighi, who invested $50,000 with Purvis and later got it back from him. "They took other people's money. ... There was a lot of deception here."The civil ruling could lead to a criminal-fraud investigation into a case that has already involved accusations of fraud, bribery of a police officer, harassment of public officials and a series of bizarre legal filings against lawyers, a judge, investigators and a reporter.A Ponzi, or pyramid, scheme is an investment scam that uses money from new investors to pay old investors. Authorities said that, while he promised investors 24 percent annual returns, Purvis was dipping into their money to buy cars and jewelry, make a down payment on an $800,000 home, and pay gambling debts and other personal expenses. Evidence led the judge, Marc Stern, to set the restitution order at $11 million, but the Corporation Commission could vote to lower or raise the amount.The judge said there was ample evidence to show that Purvis and Wolfe's wives knowingly benefited and ordered Maureen Purvis and Allison Wolfe to share in the fines and restitution. Ed Purvis is serving an 18-month prison sentence at Safford after being convicted in May of bribing a Chandler police officer and on four counts of harassing public officials in an attempt to thwart the Corporation Commission's investigation. Purvis and Wolfe filed so-called admiralty claims against two attorneys investigating the fraud allegations, a judge in the case and the clerk of Maricopa County Superior Court. They also filed liens and lawsuits against a financial adviser who alerted authorities to their scheme and an reporter.Admiralty law concerns ships and commerce on navigable waters, but groups with roots in militia movements have used it to suggest that it supersedes the Constitution. Purvis and Wolfe told investors that their company was worth $170 billion and controlled assets around the world, including gold mines, Australian developments, telecom firms, banks and a Phoenix technology company. A Republic investigation in 2006 raised questions about the size and holdings of Nakami, which used a Scottsdale post-office box as its company business address. State records showed Purvis was a licensed practical nurse and Wolfe is a former roofing contractor. Records also show Purvis and Wolfe do not have brokers', lenders' or banking licenses.

Judge has ruled that the owners of a non-profit Christian investment company committed fraud and called for them to repay $11 million to investors

Judge has ruled that the owners of a non-profit Christian investment company committed fraud and called for them to repay $11 million to inv...

David Flewitt,Auckland barrister is facing 29 fraud-related charges, including accessing the Law Society's website to renew his practising certificate

Auckland barrister is facing 29 fraud-related charges, including accessing the Law Society's website to renew his practising certificate and falsifying legal aid applications to earn nearly $3000.David Flewitt, 43, allegedly accessed the New Zealand Law Society's computer system to issue himself a new practising certificate at a cost of nearly $870, after it lapsed. Lawyers are required to renew their licences each year.Police say he also ran up a bill of close to $2200 on a friend's credit card. He allegedly spent up large on TradeMe, Woolworths, Noel Leeming and adult entertainment online shopping websites buying groceries, an iPod, pornography and pizza. There was also a $90 haircut.He is alleged to have falsified a tenancy agreement, stolen petrol from two service stations and ripped off two users of the online auction site TradeMe.One of the alleged TradeMe victims told the Sunday Star-Times he paid Flewitt for a $350 hand-held computer that never arrived. TradeMe's commercial and regulatory head Mike O'Donnell said the company was working closely with police to build a case against Flewitt.The barrister told the Star-Times most of the allegations came about because he had used his former partner's credit card and she then told police he was not authorised to do so. He said he had used his partner's credit card to renew his practising certificate online in the past and it had not previously been a problem. The police allegations were misleading, he said. The charges would be defended.The charges were "disastrous" and "devastating" for him. He said he realised he would not be able to practice law unless he was cleared.A spokesperson for the Legal Services Agency declined to comment on the allegations of fraudulent legal aid applications, saying the matter was before the courts.However, the agency's records show Flewitt received $7392 in legal aid payments last year. The allegations relate to three legal aid payment applications in May and one in June. Police say the applications earned him at least $2200.

David Flewitt,Auckland barrister is facing 29 fraud-related charges, including accessing the Law Society's website to renew his practising certificate

Auckland barrister is facing 29 fraud-related charges, including accessing the Law Society's website to renew his practising certificate...

Three fugitives from justice who sought refuge in the UAE have been extradited.

Three fugitives from justice who sought refuge in the UAE have been extradited. Lt Col Salem al Khayyal, head of the Interpol section at the Ministry of Interior, said: “The UAE has apprehended a number of runaway criminals that sneaked into the country, and handed them over for trial to the states where they have committed their crimes.”Mr al Khayyal said three people had been extradited from the UAE to Mauritania, Kuwait and France. Oman had agreed to send two people of Asian descent to the UAE on theft charges, the state news agency, WAM, reported.The suspect sent to Kuwait, of Asian nationality, escaped from prison, where he was serving a sentence for selling drugs. He was apprehended in Dubai.The Mauritanian was wanted on perjury charges, and the suspect extradited to France from Abu Dhabi was charged with breach of trust.The extraditions were a sign of the growing relationship between Interpol and UAE security services.In September, three alleged criminals were extradited to Saudi Arabia, Sudan and Egypt over fraud and drug dealing charges, while two were extradited from Qatar and Oman to the UAE on suspicion of fraud and financial crimes.

Three fugitives from justice who sought refuge in the UAE have been extradited.

Three fugitives from justice who sought refuge in the UAE have been extradited. Lt Col Salem al Khayyal, head of the Interpol section at the...

Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion, investigated over possible economic crimes.

Police in China have confirmed that they are holding the country's richest man - the head of its largest electrical goods retailer - for investigation over possible economic crimes. No other details have emerged about the questioning of Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion. Gome said that it understood that the 39-year-old tycoon was being investigated for his personal activities and that the company was not linked to any suspicious transactions. Gome has made its chief executive acting chairman in the absence of Mr Huang, who was detained ten days ago. The Chinese business magazine Caijing said that Mr Huang was suspected of insider trading in connection with wild fluctuations in the price of a company controlled by his brother and listed on the Shanghai stock market. However, China's securities regulator said that the reasons for the investigation were far more complicated than stock price manipulation. One newspaper said that Mr Huang was suspected of money-laundering, tax evasion and obtaining illegal loans. The Southern Weekend newspaper ran a two-page article speculating on the reasons behind Mr Huang's apparent fall from grace. It cited his dwindling interest in his core electronics business since its listing in Hong Kong in 2004 resulted in a multiplication of his personal wealth and inspired his interest in the capital markets. Mr Huang, the son of peasants from the southern port of Shantou, left home to make his fortune in northern China and transformed a street stall selling watches and radios into a nationwide empire of 1,300 stores. One question is how Mr Huang made the leap into the big time. Many of China's successful entrepreneurs are so reticent on this point that this moment in the career of a tycoon is now popularly known as “original sin”. In a system in which connections are crucial but credit is rarely available to small businessmen, few of China's new rich are thought to have risen without some shady dealing in their past. Whether the “original sin” ever comes to light often depends on their keeping on the right side of the Government. Since 2004, Mr Huang has spent increasing amounts of time dabbling in capital markets and shifting assets between companies, Southern Weekend said. Quoting sources close to investigations, it said that Mr Huang's disappearance may be related to a corruption inquiry into a Commerce Bureau official. So little information has been available about the disappearance of the man named as China's wealthiest on the Hurun Rich List that even the state Xinhua news agency commented that the media should be kept informed. A state-owned Chinese company, shocked at the risks of international investments, has asked the Government to help it to seek compensation from Belgium over its losses in the state-led carve-up of Fortis, the financial group. A Beijing source said that Ping An Insurance believed that the role of Belgium's Government in dismantling Fortis was tantamount to confiscation.

Huang Guangyu, the chairman of Gome Electrical Appliances, who has a personal fortune of £4 billion, investigated over possible economic crimes.

Police in China have confirmed that they are holding the country's richest man - the head of its largest electrical goods retailer - for...

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft, according to a statement from US Attorney for Manhattan, Michael Garcia and New York State Attorney General Andrew Cuomo.Prosecutors say he led a fraud gang known as the "Khan ring" that created false identification documents purporting to have been issued by government authorities, including driver's licenses, resident alien cards, social security cards, and tax identification documents.The gang then built up financial credit for these false IDs - which members called "chickens" - to get bank and home mortgage loans and increased credit card limits.Khan and his ring then defaulted on the loans and credit card debt, "causing millions in losses to numerous financial institutions, including the Bank of America," says the statement.Khan has been in custody since being named as the lead defendant in a 15 person, multi-count indictment unsealed in August last year. He is the tenth defendant to plead guilty. He is scheduled to be sentenced on February 10, 2009 and faces a statutory maximum sentence of 14 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offence, and mandatory restitution to the victims of the offence.

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft, accord...

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even posted his personal tax returns on the Internet.Kolokotronis is already dealing with complaints about cost overruns at his celebrated L Street Lofts project in midtown Sacramento. This new dispute involves a 175-home subdivision he was trying to develop at Sheldon Road and Highway 99 in Elk Grove. The project stalled as the housing market collapsed. In August 2006, Kolokotronis borrowed $17.7 million from Central Pacific Bank to build the infrastructure and model homes for the development, called Sheldon Terrace. The project is owned by Sheldon Terrace LLC, of which Kolokotronis is the principal member.The bank stopped releasing the construction funds for Sheldon Terrace in April and claimed the loan was in default — not because of missed payments but because the land was suddenly worth less than the loan balance.In a highly detailed countersuit filed last week by his lawyer Joseph Genshlea, Kolokotronis describes the bank as a subprime lender that used inflated appraisals and exercised control over his project to the point that it was more like a joint venture.

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even...

Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzDoCKu-ZJjHI1_c3_GRvXt-xCkdJIeuxWgAf2u5BK-veKNNRH0BuRmFkcGE_7KRbhhyphenhyphen4gI4HzH9O0fSeEukOdxm_OVoy6aH3f6wyncYa0MqZzrigB8Pd7Jkeo_05yuT36vXF_eXLaybZv/s1600-h/0,,6372749,00.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5273494011660201186" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzDoCKu-ZJjHI1_c3_GRvXt-xCkdJIeuxWgAf2u5BK-veKNNRH0BuRmFkcGE_7KRbhhyphenhyphen4gI4HzH9O0fSeEukOdxm_OVoy6aH3f6wyncYa0MqZzrigB8Pd7Jkeo_05yuT36vXF_eXLaybZv/s400/0,,6372749,00.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 350px; height: 240px;" /></a> former boyfriend of Australian model Miranda Kerr was charged yesterday in relation to an alleged $7.3 million fraud of the Commonwealth Bank. Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit early yesterday. He was charged with two counts of using a false instrument to obtain a financial benefit and one count of making a false statement.Police allege that part of the fraudulently obtained money was used to buy a commercial property in Darlinghurst.Police alleged Mr Camilleri had used false documents, including a phantom lease and a valuation for the property which was grossly inflated, to obtain the bank loan. The police investigation was triggered after the loan defaulted in early 2008.It is the second arrest in relation to the loan. Sydney businessman Matthew Rhodin was last month arrested and charged with identical offences.Mr Camilleri's first attempt for bail, where he wanted to put the $100,000 surety on a credit card, was rejected.However, a second attempt late yesterday afternoon was successful and Mr Camilleri walked free on conditional bail. Since parting company five years ago, Mr Camilleri and Kerr could hardly have pursued more divergent paths in their careers - and lives.Today she is one of the most sought after models in the world. He is an undischarged bankrupt facing serious criminal charges.

Adrian Camilleri, 34, of Edgecliff in Sydney, was arrested by detectives from the Sydney Central Fraud Unit

former boyfriend of Australian model Miranda Kerr was charged yesterday in relation to an alleged $7.3 million fraud of the Commonwealth Ban...

federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDfN__7QZXmxSqYqZt31nVlCerMR3UjPWPX7fN7jIXM9nbLKCGlromolrXFWorPbAYXfUXESahk8zqqv5b5AfU95yC14e0FJhRZBqTBz06cGldaf1mkzseMOhRXi9KHy5Xmq8PJjqCOQp/s1600-h/Christensen.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5272356812207461042" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDfN__7QZXmxSqYqZt31nVlCerMR3UjPWPX7fN7jIXM9nbLKCGlromolrXFWorPbAYXfUXESahk8zqqv5b5AfU95yC14e0FJhRZBqTBz06cGldaf1mkzseMOhRXi9KHy5Xmq8PJjqCOQp/s400/Christensen.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 290px; height: 400px;" /></a> A federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife billionaire Kirk Kerkorian, Lisa Bonder Kerkorian. Today a federal judge sentenced Terry Christenson, 67 to 36 months in prison and levied a quarter-million dollar fine against him in the Anthony Pellicano Wiretap caseChristenson is very lucky at his age to be free on bail pending the lengthy appeal process. We can expect no stone to remain unturned in efforts to win a reversal and new trial. The odds on winning a criminal case during an appeal are 95 to 5 against success on average. I see a tragic end to a brilliant career because of a ruthless PI who employed illegal methods. I can’t imagine the heartbreak Christenson, his friends and family are going through right now. Disgrace and disbarment has brought a cloud over Century City and a family getting ready for the holidays. I somehow don’t feel bad to have never made a case I’d been assigned so important as to place a client at risk for this kind of damage. I’m sure some lawyers would not hire me to work their cases because I would never allow something like what led to today’s event from happening.Those lawyers and Hollywood high rollers that have escaped their involvement now live in fear that the crooked PI they hired may get tired of prison and testify against them. I’m happy to say no lawyer client of mine has ever or will ever face jail, disgrace or disbarment on account on something I’ve done. I will only help my clients, and never place them in that kind of danger. I can and do win cases without unlawful methods.

federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife

A federal jury convicted Terry Christenson of conspiracy and wiretapping in connection with legal work performed on behalf of the ex-wife b...

Brent Beebe, Hosam Amara and Zeev Levi 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers

Federal grand jury has issued a 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers at a kosher slaughterhouse that was the site of one of the nation's largest immigration raids. The indictment includes three new defendants — Brent Beebe, Hosam Amara and Zeev Levi — who haven't previously faced federal charges in connection with the Agriprocessors plant in Postville. The indictment was issued Thursday and unsealed Friday.Former CEO Sholom Rubashkin and human resources worker Karina Freund, who were already facing federal charges, also were named in the indictment. The superseding indictment pulls together a handful of cases pending against Agriprocessors employees and lists charges including conspiracy to harbor undocumented immigrants for profit; harboring and aiding and abetting undocumented immigrants for profit; conspiracy to commit document fraud; aiding and abetting document fraud; aiding and abetting aggravated identity theft; and bank fraud. Federal immigration agents raided the northeastern Iowa plant in May and arrested 389 workers. Arrests of Agriprocessors managers have come in the following months, as have state charges alleging labor and safety violations.Court records show that Beebe, the plant's operations manager, was arrested without incident at noon Friday at the Agriprocessors plant. The U.S. attorney's office said the public's assistance is being sought in the apprehension of Amara and Levi, who were both poultry managers.Calls to attorneys for Rubashkin and Freund were not immediately returned. Beebe was arraigned Friday in Cedar Rapids and released after surrendering his passport and being equipped with an electronic monitoring device. A call to his attorney was not immediately returned.The indictment includes new details of previous allegations, including a meeting in a barn on plant property between Rubashkin and Beebe. The two allegedly discussed loaning money to several workers who could not afford new documents.The indictment also described a discussion between poultry managers Amara and Levi and poultry supervisor Martin De La Rosa-Loera. The managers allegedly told De La Rosa-Loera to help six employees obtain and submit new paperwork after they were fired because of improper documents. A federal judge ruled this week that Rubashkin should remain in federal custody after prosecutors argued he was a flight risk. He was arrested last week on a bank fraud charge and had been arrested earlier on immigration charges.Freund was arrested in September and charged with harboring illegal immigrants. She faces a new charge of conspiracy to harbor undocumented immigrants.The charges are the latest blow for a company that was once the nation's largest provider of kosher meat. The Postville plant sought bankruptcy protection this month and has been forced to halt production.

Brent Beebe, Hosam Amara and Zeev Levi 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers

Federal grand jury has issued a 12-count indictment alleging that managers were intricately involved in efforts to employ illegal workers at...

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges and agreed to pay a total of $105 million to the government to settle the fraud case against him.He was also sentenced to one day of probation, federal prosecutors said.Mr. Tollman, 78, and his wife Beatrice Nina Tollman were accused of earning “approximately $18 million in income that he knowingly failed to report to the Internal Revenue Service,” said Michael J. Garcia, the United States attorney for the Southern District of New York.Mr. Tollman entered his guilty plea via video link from London, Mr. Garcia said in a statement. Last year, a British judge refuse to approve Mr. Tollman’s extradition to the United States, citing Mrs. Tollman’s poor health and questions about whether Mr. Tollman could get a fair trial.For much of the 1990s, Mr. and Mrs. Tollman were conspicuous figures in high society in New York, Palm Beach, Fla., and Litchfield County, Conn.Federal prosecutors had pursued the Tollmans for more than six years. They were accused of receiving $18 million in income through offshore bank accounts from 1994 to 1999 that they did not report to the I.R.S. The couple denied wrongdoing. Mr. Tollman was also accused of defrauding lenders.By pleading guilty to tax fraud, Mr. Tollman agreed to pay $60.4 million in restitution to the I.R.S., including back taxes, interest and fraud penalties, Mr. Garcia said.Mr. Tollman also agreed to pay $44.7 million to settle a separate civil forfeiture action brought by the government in 2002 accusing him and six other men of a $100 million bank fraud. Four of the men were convicted in 2004 and two pleaded guilty. As part of the plea agreement, the United States Attorney’s Office dropped the bank fraud charge and other remaining charges against Mr. Tollman and a separate tax fraud charge brought against Mrs. Tollman.

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charges

Stanley S. Tollman, a multimillionaire hotel executive who once controlled the Days Inn chain, pleaded guilty on Friday to tax evasion charg...

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced to 66 months in prison on mail fraud and wire fraud charges to which he pleaded guilty on Sept. 15. The charges arose out of Martin S. Bodner’s theft, between about the middle of 2000 and the end of December 2007, of over $19,090,000 from his employer. Prosecutors said Bodner, 60, of Manhattan, began working at THHB in Manhattan in March 2000, eventually becoming the company’s CFO. Beginning in about the middle of that year, Bodner began stealing money from his employer by secretly increasing the amount of money that he was to be paid in salary and bonus; arranging to be reimbursed by THHB for phony expenses he purportedly had incurred in the course of his employment; adding one of his sons, who did not work for THHB during the years 2004 and 2005, to the company’s payroll and arranging for his son to be paid approximately $225,500 during those years. He also caused hundreds of checks to be issued to various payees for the purpose of paying off Bodner’s personal credit card bills, purchasing a luxury automobile for himself, paid for insurance for a home, apartments, and automobiles owned by Bodner, and paid for decorating services. Bodner also used stolen money in, among other ways, to purchase, decorate, and furnish three Manhattan apartments, two of which were combined into a larger apartment; purchase a home in Sands Point that he was in the process of rebuilding when his fraud was discovered; and purchase luxury cars, including two Jaguars and two Audis. In addition to the prison term, Bodner was sentenced to three years of supervised release, and ordered to pay a fine of $12,500 and $17,347,240.21 in restitution. In connection with his agreement to plead guilty, Bodner agreed to forfeit a home in Sands Point, a Manhattan apartment, cars, and various other property.

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sentenced

Former chief financial officer of Tommy Hilfiger Handbags and Small Leather Goods Inc., a licensee of the Tommy Hilfiger Group, has been sen...

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.She faced three counts of using a document for pecuniary advantage when she appeared in Wellington District Court on Friday, Radio New Zealand reported. Thompson resigned after being accused of a conflict of interest for allegedly helping family members gain residency in New Zealand. A State Services Commission report, written by chief legal adviser David Shanks, found her family members residency application forms were approved despite being late and against the approving official's advice.Mr Shanks also said Thompson did not advise anyone of her involvement in their immigration and the department failed to investigate properly when concerns were raised.Thompson will reappear in court next month. Thompson headed the immigration service within the Department of Labour from 2004 until resigning in May after a State Services Commission report found that she had helped members of her family from the Pacific island nation Kiribati obtain residence permits in New Zealand. The department's chief executive, Christopher Blake, said then that the behaviour described in the report was 'completely unacceptable,' adding, 'In the interests of the department and the wider public service, Ms Thompson has decided to resign from her position.' At the same time, police confirmed they were investigating a statement by the London School of Economics that Thompson had not graduated with the doctorate she claimed when she first applied to join the public service in 1990. Thompson worked in the prime minister's department before moving to head the immigration service and former prime minister Helen Clark told a news conference in May that she appeared to have been 'sailing through a career in the public service' on a basis of false qualifications. 'I always assumed she had a PhD, because of the title she had given herself,' Clark said.Thompson was regarded as one of the country's most trusted civil servants, having risen to be the highest-ranking female official in the Treasury before working for the prime minister and heading the immigration service.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.

Immigration service boss Mary Anne Thompson has appeared in court on fraud charges.She faced three counts of using a document for pecuniary ...

PARDONS:Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King,"

Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King," has formally asked for a pardon from Bush.Milken was indicted on 98 counts of racketeering and securities fraud in 1989 as a result of the government's insider trading investigation of Wall Street. The next year, the San Fernando Valley billionaire pled guilty to six felonies.Milken, 62, paid $200 million in fines and served 22 months in prison. He has since been an active philanthropist, using his $2.1 billion fortune to support medical research, including studies on prostate cancer, of which he is a survivor. Milken submitted his petition in June and has hired Washington power attorney Ted Olsen, who served as Bush's solicitor general. Milken's last pardon attempt with President Bill Clinton failed. Edwin W. EdwardsFormer Louisiana Gov. Edwin W. Edwards has also requested a Bush pardon. Edwards served four non-consecutive terms between 1972 and 1996. He was indicted in 1998 on racketeering, extortion, money laundering, mail fraud and wire fraud.Prosecutors say Edwards, 81, who was known as the "Cajun Prince," was involved in illegal schemes to shake down riverboat casino owners and license applicants. He had been acquitted on separate charges in two other federal trials. In 2000, Edwards was found guilty on 17 of 26 counts and was sent to a federal prison. He is eligible for release in 2011. Former President George H.W. Bush has supported commuting Edwards's prison time and has written a letter to the federal prison parole board.Randy "Duke" CunninghamEx-California Rep. Randy "Duke" Cunningham is seeking a pardon after being caught accepting at least $2.4 million in bribes and underreporting his income for 2004.Cunningham, 66, resigned in 2005 after pleading guilty to conspiracy to commit bribery, mail fraud, wire fraud and tax evasion. As a member of the House Defense Appropriations Subcommittee, tens of millions of dollars worth of defense and intelligence contracts went to Cunningham's benefactors. The congressman was accused of accepting millions of dollars worth of gifts, including limousines, prostitutes and a house boat. Cunningham was sentenced to eight years and four months in prison and ordered to pay $1.8 million in restitution. He is currently incarcerated at a minimum-security prison in Tucson, Ariz., and is expected to be eligible for release in 2013. Cunningham's connections with defense contractors also brought trouble to two others now considered potential pardon seekers: former CIA officer Kyle "Dusty" Foggo and defense contractor Brent Wilkes.Conrad Black Another recent pardon applicant is Conrad Black, the Canadian-born media mogul who was convicted of mail and wire fraud and obstruction of justice a year ago after diverting funds from his company, Hollinger International, for his "personal benefit."Prosecutors say Black and three other executives had taken cash and other company assets without prior approval, scamming shareholders.Black, 62, was convicted in Illinois in 2007 and ordered to serve 78 months in prison and pay a $6.1 million fine. He is currently incarcerated in a federal prison in Orlando and is set to be released in 2013.

PARDONS:Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond King,"

Wall Street financier Michael Milken, who created the market for high-yield bonds in the 1980s, leading to his nickname the "Junk Bond ...

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been ...

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been pressuring state attorney generals to force settlements out of stock brokerage firms, investment bankers and US banks that sold auction rate securities to 145,000 unsuspecting US consumers and 1,000's of businesses, or organizations. While some of the larger sellers of auction rate securities have agreed to at least a retail customer settlements, scores of banks and or stock brokerage firms have yet to do anything. According to the Wall Street Fraud Watchdog, "We think banks or stock brokerage firms are just hoping the auction rate securities mess will simply go away, given the current carnage on Wall Street. Unfortunately for banks like Wells Fargo, Oppenheimer, and numerous other banks or stock brokerage firms, we are notWall Street Fraud Watchdog is describing the $330 billion auction rate securities debacle as the worst single case of fraud in US history, and is demanding that state attorney generals do something about this gigantic problem, for victims whose life savings are still at risk. According to the group, "How does New York, Massachusetts, and Missouri look the other way on institutions like Wells Fargo Bank, Oppenheimer and others, who sold these cash equivalent type products to thousands of unsuspecting US citizens as just like cash and 100% safe? How does that work?" Because of the auction rate securities "con job," the Wall Street Fraud Watchdog is now warning all US investors to avoid any Wall Street cash equivalent investment products, unless the stock broker or bank investment advisor is willing to put in writing the investment is 100% safe & liquid.

$330 billion auction rate securities debacle as the worst single case of fraud in US history

The Wall Street Fraud Watchdog is the premier private Wall Street investor advocate in the world. For nearly nine months the group has been ...

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison, respectively, for defrauding the Medicare program in connection with a $6.8 million HIV infusion fraud scheme, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced. Judge Federico A. Moreno of the U.S. District Court for the Southern District of Florida also ordered that Contreras and Pichardo be placed on three years of supervised release following their prison terms and that they pay $4.2 million in restitution to the Medicare trust fund. On Sept. 11, 2008, Contreras and Pichardo each pleaded guilty to one count of conspiracy to commit health care fraud. Contreras pleaded guilty in connection with his role as the owner and medical doctor at CNC Medical Corp. (CNC Medical), a Miami-area HIV clinic that purported to provide HIV infusion services to Medicare beneficiaries. Pichardo pleaded guilty in connection with his role as a medical doctor at CNC Medical. In their pleas, Contreras and Pichardo admitted that between November 2002 and April 2004, they conspired with others to file $6.8 million in false claims to the Medicare program for HIV infusion services that were not provided, nor were they medically necessary. As a result of their fraud, the Medicare program paid approximately $4.2 million in fraudulent bills. Contreras admitted that after Medicare proceeds were deposited into the CNC Medical bank accounts, he transferred approximately $1.7 million of the proceeds to sham management, marketing and investment companies owned and operated by alleged co-conspirators Carlos, Luis and Jose Benitez. Carlos Benitez, Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008. According to that indictment, these co-conspirators allegedly provided the money and staff necessary to open HIV clinics, the Medicare patients that the clinics would bill to the Medicare program and transportation for the HIV patients who visited the clinics. Also according the indictment, Carlos and Luis Benitez were the true owners of the clinics. The Benitez brothers and McKenzie were charged for their roles at the clinics and eight other HIV infusion clinics. On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and admitted to his role in a $119 million HIV infusion fraud scheme. Carlos, Luis and Jose Benitez remain fugitives. The cases were prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney John K. Neal of the Criminal Division's Fraud Section, and Trial Attorney Constantine Lizas of the Criminal Division's Asset Forfeiture and Money Laundering Section. The FBI and Department of Health and Human Services, Office of the Inspector General, investigated the cases. The cases were brought as part of the Medicare Fraud Strike Force (MFSF), supervised by Deputy Chief Kirk Ogrosky of the Criminal Division's Fraud Section and U.S. Attorney Acosta of the Southern District of Florida. Since the inception of MFSF operations in 2007, federal prosecutors have indicted 104 cases with 184 defendants in Los Angeles and Miami. Collectively, these defendants fraudulently billed the Medicare program for more than half a billion dollars.

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison

Miami physicians Carlos Contreras, 61, and Ramon Pichardo, 58, were sentenced today to 37 months and 48 months in prison, respectively, for ...

Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months.

orthopedic surgeon and two chiropractors were sentenced Thursday to federal prison for cheating insurance companies out of $3 million by mislabeling treatments for back pain. The sentences are the latest in Georgia to result from a back pain treatment known as Vertebral Axial Decompression. The U.S. Attorney’s Office said Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months, and the chiropractors, 67-year-old Arthur Hargraves of Douglasville, Ga., and 52-year-old Daniel Puffenberger of Kissimmee, Fla., each got three years and five months.Berkowitz pleaded guilty and testified against his former partners in the Associated Spinal Care Network, which operated clinics in north Georgia and Tennessee. Prosecutors said the network faked reports to be reimbursed by Blue Cross/Blue Shield of Georgia for the Vax-D procedure, which was not covered by the insurance company.VAX-D is a non-invasive treatment that uses a mechanical table to stretch a patient’s spine. Blue Cross/Blue Shield of Georgia considered it investigational and not medically necessary, and made clear to health care providers that it did not cover the procedure.The three men were convicted of using a different billing code that pertained to surgical nerve decompression, instead of the specific code assigned to VAX-D, to bill the company for more than $3 million from 2001 through 2005.On Nov. 10, a federal jury in Atlanta convicted another chiropractor of a similar scheme. His two partners had already pleaded guilty. Another man pleaded guilty in 2005 to the same scheme at clinics in Albany and Columbus, Ga.In the Northern District of Georgia, seven medical professionals have been convicted, and five were sentenced to a total of over 14 years in prison with monetary judgments topping $7 million.

Dr. Howard Berkowitz, 58, of Atlanta was sentenced Thursday to 18 months.

orthopedic surgeon and two chiropractors were sentenced Thursday to federal prison for cheating insurance companies out of $3 million by mis...

Michael M. Hadeed Jr. faces charges of immigration fraud, conspiracy and making false statements to federal agencies

A Springfield lawyer was indicted yesterday on charges that he filed fraudulent documents for illegal immigrants seeking permanent residence...

Retired Pennsylvania appellate judge Michael Joyce was convicted of mail fraud and money laundering

retired Pennsylvania appellate judge was convicted Wednesday of mail fraud and money laundering after prosecutors said he lied about neck and back injuries in a fender bender to collect $440,000 from two insurance companies.Former Superior Court Judge Michael Joyce will be sentenced March 10 on two counts of mail fraud and six counts of money laundering."Michael Joyce made multiple false representations of debilitating injury following a 2001 automobile accident when the evidence showed he was engaging a variety of physical activities, including scuba diving, roller blading and piloting airplanes," U.S. Attorney Mary Beth Buchanan said. "The jury's finding of guilt demonstrates that no person, even a judge, is above the law."Joyce could be ordered to forfeit the money he collected , or the items he purchased with it. The charges carry a maximum of decades in prison, but a shorter sentence is likely for someone such as Joyce, who has no criminal record, and perhaps even probation or house arrest, his attorneys said.Federal prosecutors said Joyce lied about his injuries after another car rear-ended his Mercedes at 2-3 mph in August 2001. Joyce's attorneys contend the accident was more serious and occurred at about 11 mph and aggravated cervical fusion surgery he had in the early 1990s.Joyce's attorneys still say that debilitating pain has caused him to give up golfing and more rigorous forms of scuba diving ever since mid-2002. Saying Joyce was "devastated" by the verdict, the defense attorneys, Philip Friedman and Robert Leight, promised to appeal."You never know what juries are going to do," Friedman said. "We have to respect (the verdict) but we certainly don't agree with it." In a separate matter, the conviction could potentially cause Joyce to forfeit the state pension from his $165,000-a-year judgeship. He opted not to run for a second term on the appellate court after he was indicted in August 2007.Friedman doesn't think the conviction is relevant because it wasn't directly related to his duties as judge.But Assistant U.S. Attorney Christian Trabold said Joyce used his position as judge to influence the insurance settlements, in particular $390,000 Joyce received from his policy with Erie Insurance Co. Trabold said Joyce referred to himself as "Judge Joyce" 115 times in an 18-page letter he submitted to the company detailing his injuries, pain and how they affected his active lifestyle.The other $50,000 came from the other driver's policy with State Farm. Minutes after the crash, Joyce identified himself to the other motorist as a Superior Court judge, Trabold said.Joyce badly needed money to repay money he borrowed from a former girlfriend and other debts before he bought a Harley Davidson motorcycle and made down payments on a $360,000 house and a small airplane, they said.Prosecutors want Joyce to forfeit more than $318,000 he deposited into an Ameritrade account and used to pay off a line of credit; more than $114,000 put toward the house; a $27,000 down payment on the plane; and the $18,700 he spent on the motorcycle, among other purchases cited in the money laundering counts.Whether Joyce can be forced to repay money for the plane or motorcycle, which have already been sold, remains to be decided, his attorneys said. Senior U.S. District Judge Maurice Cohill Jr. ordered Joyce not to liquidate any more of the assets until he rules on the forfeiture request when Joyce is sentenced.The judge's order puts a lien on Joyce's house, Leight said. And Friedman said it's possible the government will try to recoup money Joyce made from selling the motorcycle and airplane."They can try to. That's going to be another battle," Friedman said.It's possible the house might have to be sold to satisfy the lien on it, "but it's too early to think about that now," Friedman said.The six-man, six-woman jury declined to comment on their verdict after the four-week trial. Joyce and his family left the courtroom without comment.

Retired Pennsylvania appellate judge Michael Joyce was convicted of mail fraud and money laundering

retired Pennsylvania appellate judge was convicted Wednesday of mail fraud and money laundering after prosecutors said he lied about neck an...

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