Bankrupt Banker

Bernard Madoff, fallout Investors scrambled to assess potential losses

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2Vn3ApaE3AK8axn-Gk2GF2Zh7NL7bKkLXnuYUgwIr01ABI6ApKPRykUWiESGCZdL2gL6BuHo-zJqfx9ufbxwjIpel466Ph6XcYXtZ8NTEUE6qBsbCsL23c_A7HPGdWR7-0LTv0edFq1z/s1600-h/Bernard-Maddoff-Hedge-Fund-Fraud-Case.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5279414385087555314" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2Vn3ApaE3AK8axn-Gk2GF2Zh7NL7bKkLXnuYUgwIr01ABI6ApKPRykUWiESGCZdL2gL6BuHo-zJqfx9ufbxwjIpel466Ph6XcYXtZ8NTEUE6qBsbCsL23c_A7HPGdWR7-0LTv0edFq1z/s400/Bernard-Maddoff-Hedge-Fund-Fraud-Case.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 191px; height: 200px;" /></a> Investors scrambled to assess potential losses from an alleged $50 billion fraud by Bernard Madoff, a day after the arrest of the prominent Wall Street trader. Prosecutors and regulators accused the 70-year-old, who was chairman of the Nasdaq Stock Market in the early 1990s, of masterminding a fraud of epic proportions through his investment advisory business, which managed at least one hedge fund. Hundreds of people, investing with him through the firm's clients, entrusted Madoff with billions of dollars, industry experts said."Madoff's investors included captains of industry, corporations - some of which are publicly traded - that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds," said Douglas Kass, who heads hedge fund Seabreeze Partners Management."It appears that at least $15 billion of wealth, much of which was concentrated in southern Florida and New York City, has gone to 'money heaven,'" he said. Federal agents arrested Madoff at his apartment on Thursday after prosecutors said he told senior employees that his money management operations were "all just one big lie" and "basically, a giant Ponzi scheme."A Ponzi scheme is an illegal investment vehicle that pays off old investors with money from new ones, and is dependent on a constant stream of new investment. Because the invested capital is not earning a sufficient return on its own, such schemes eventually collapse under their own weight.Madoff is the founder of Bernard L. Madoff Investment Securities LLC, a market-making firm he launched in 1960. His separate investment advisory business had $17.1 billion of assets under management.About a dozen angry investors gathered on Friday in the lobby of the Lipstick Building in midtown Manhattan, where the market-making firm and advisory business are headquartered, demanding to know the fate of their money.One woman said that when she called the firm's offices on Thursday she was told it was "business as usual."Another investor groused, "Business as usual? Of course it's business as usual. We're getting screwed left and right."Police later evicted the small group from the building.Individual investors were feeling the squeeze elsewhere."I expect to get back zero," said Floridian Susan Leavitt, who invested through Madoff. "When he tells the feds he has $200 million to $300 million left out of billions, what can you expect?"Two law firms, Milberg LLP and Seeger Weiss LLP, said Friday they had been retained by "dozens of individual investors" in Madoff Securities.The two most prominent hedge funds that invested with Madoff were the $7.3 billion Fairfield Sentry Ltd, run by Walter Noel's Fairfield Greenwich Group, and the $2.8 billion Kingate Global Fund Ltd, run by Kingate Management Ltd.Fairfield Greenwich Group said it was trying to determine the extent of potential losses and vowed to pursue recovery of any lost assets. The firm said it had been working with Madoff for nearly 20 years.Fairfield Sentry and Kingate Global were among a small group of hedge funds to report positive returns for 2008; the average hedge fund was down 18 percent, according to data from Hedge Fund Research."People who came to us for portfolio construction were often already invested with Bernie Madoff. He had hundreds of clients," said Charles Gradante, who invests in hedge funds as a principal at Hennessee Group LLC. "Now his whole legacy is destroyed. He was God to people."Prior to Madoff's arrest, investors had wondered how he was able to generate annual returns in the low double digits in a variety of market environments. Many questioned how U.S. regulators were able to ignore numerous red flags with regard to Madoff's operations."Many of us questioned how that strategy could generate those kinds of returns so consistently," said Jon Najarian, an options trader who knows Madoff and is a co-founder of optionmonster.com.In May 2001, Barron's reported that option strategists for major investment banks said they could not understand how Madoff managed to generate the returns that he did."We weren't comfortable with Madoff," said Brad Alford, president at investment adviser Alpha Capital in Atlanta. "We didn't understand how his strategy could generate the kind of returns it did. We will walk away from things like that."U.S. stocks tumbled in early trading on Friday, with some investors citing the Madoff case as well as the failure of talks in Congress on a rescue for the U.S. auto industry. The market later rebounded, with the Dow Jones industrial average closing 0.75 percent higher for the day. Investors overseas were reeling from the alleged fraud.Benedict Hentsch, a Swiss private bank, said it had 56 million Swiss francs ($47 million) of exposure to Madoff's investment advisory business.Italian bank UniCredit SpA's fund management unit, Pioneer Investments, has exposure through its Primeo Select hedge fund, two people familiar with the matter said.Bramdean Alternatives Ltd said almost 10 percent of its holdings were exposed to Madoff, sending shares in the UK asset manager crashing.CNBC Television reported that Sterling Equities, which owns the New York Mets baseball team, had accounts managed by Madoff.Madoff said "there is no innocent explanation" for his activities, and that he "paid investors with money that wasn't there," according to the federal complaint.Prosecutors also accused Madoff of wanting to distribute as much as $300 million to employees, family members and friends before turning himself in.Charged with one count of securities fraud, he faces up to 20 years in prison and a $5 million fine. The U.S. Securities and Exchange Commission filed separate civil charges.A hearing had been scheduled for Friday afternoon in U.S. District Court in Manhattan on the SEC's request to grant powers to the court-appointed receiver to oversee the entire firm, as well as on the commission's request for a firmwide asset freeze.But the hearing was canceled after the matter was resolved, said a deputy for U.S. District Judge Louis Stanton. No other details were immediately available. The receiver, lawyer Lee Richards, had been appointed by the judge on Thursday to oversee assets and accounts of the firm held abroad.Madoff's lawyer, Dan Horwitz, said on Thursday: "We will fight to get through this unfortunate set of events." His client was released on $10 million bond. Madoff is a member of Nasdaq OMX Group Inc's nominating committee. His firm has said it is a market-maker for about 350 Nasdaq stocks. He is also chairman of London-based Madoff Securities International Ltd, whose chief executive, Stephen Raven, said the firm was "not in any way part of" the New York-based market-maker.All equity trades involving the market-making firm will be processed as usual, the Depository Trust Clearing Corp told Reuters on Friday

Bernard Madoff, fallout Investors scrambled to assess potential losses

Investors scrambled to assess potential losses from an alleged $50 billion fraud by Bernard Madoff, a day after the arrest of the prominent ...

Tom Petters is now scheduled to go on trial in early February.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiODLwKGc2hTCLfj1AGiV8sHk5HeRXLLD_Wn-4FAbvVMvhBRuros_4CudG1It2IJ0I5YuBoSJb1IwuLF2ZKhm9DuRdUsAik_GXmFg_nnRwhBg_3VpT16ukEanEznplLTrZ0rhTW9XAuo6Ms/s1600-h/20081008_petters_mug_3.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5278722253206234722" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiODLwKGc2hTCLfj1AGiV8sHk5HeRXLLD_Wn-4FAbvVMvhBRuros_4CudG1It2IJ0I5YuBoSJb1IwuLF2ZKhm9DuRdUsAik_GXmFg_nnRwhBg_3VpT16ukEanEznplLTrZ0rhTW9XAuo6Ms/s400/20081008_petters_mug_3.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 225px; height: 300px;" /></a> Tom Petters is now scheduled to go on trial in early February. Petters is facing charges that he masterminded a multi-billion dollar fraud scheme. Petters pleaded not guilty in a federal courtroom in St. Paul Tuesday. St. Paul, Minn. — A little over a year ago, Richard Feldman heard about what seemed to be a great money-making opportunity. It looked like it would consistently provide a 12 to 18 percent annual return. Feldman, a composer living in California, said he's now one of the investors facing a loss from Petters' alleged scheme. The investment opportunity involved financing the sale of surplus consumer electronics and other products. Investors would provide money to a broker who was a middle-man between manufacturers or other vendors and retailers, like Costco and Wal-Mart. It made sense to Feldman, at least then. "When they had excess merchandise or merchandise that had not sold or whatever, they would then use brokers to sell that merchandise," Feldman said. "We were financing that transaction." The profit apparently came from the markup on the sale and interest on the financing. The vendors and manufacturers weren't identified, but it seemed like such an enticing opportunity. At times, the investment was even closed too, apparently because there were too many people ready to put money into such a seemingly sure thing. "Frankly, I don't expect to recover anything."- Richard Feldman, a Petters investor. Feldman put in some serious money, via a Palm Beach firm that invested with Petters. He wouldn't say how much money. "I was led to believe this was a very good investment and very safe because of the safeguards that had been put in place in terms of how the money was invested, with Petters, though I didn't know it was Petters at the time," Feldman said. Like most investors, Feldman didn't take profits from the investment, he let them grow. He said that's what most investors did, happy to see their returns add up. Or so it seemed. "They let it ride for the most part," he said. "There were people who did redeem, and they were presumably paid by other investors in the typical Ponzi scheme." In a Ponzi scheme, a fraudulent operation promises high returns but merely pays off investors with money from other investors. Charles Ponzi, an Italian immigrant, pulled off a grand fraud like that in the 1920s. It was so notorious a plot that such frauds have since been known as Ponzi schemes. Ponzi schemes can have a long run, granted too many people don't ask for their money back. The federal indictment charges that Petters, through two of his companies, Petters Group Worldwide and Petters Co. Inc., defrauded investors out of $3.5 billion in a scheme that lasted more than 10 years. The feds charged that Petters and his co-conspirators told investors their money would be used to buy merchandise that would be resold to retailers at a profit. But, the feds say no merchandise existed and no sales were made. Instead, the money was used to pay off other investors, and bankroll Petters' extravagant lifestyle. <blockquote>In hindsight, Feldman said there were lots of opportunities to detect something was amiss with this investment. Feldman is kicking himself, the firm that directed his money to Petters, auditors, insurance companies and others. There's lots of blame to go around. </blockquote> "The type of sophisticated investors that invested in this should have done better due diligence," Feldman said. "And why wasn't this caught sooner? And all these questions come with hindsight. For example, the insurers should have had pictures of the merchandise, and none of that was provided. Why it wasn't, I don't know." Feldman said he understood the merchandise was insured, or should have been. And a prudent insurer would have wanted evidence that it existed. Problem is, there was no merchandise and Feldman did not know that at the time. Looking back, Feldman said it also doesn't make sense that companies like Costco would buy goods this way. Or, that the brokers allegedly involved would have to pay such high interest rates on the money they borrowed. Cheaper money should have been available elsewhere. Feldman expects there'll be a lot of investor lawsuits in the Petters case. But Feldman doubts there'll be much, if any, money for investors like him when the legal battles end. "Frankly, I don't expect to recover anything. I think there will be very little to recover at the end of the day," he said. Petters is scheduled to stand trial starting February 9, 2009. But his attorney, Jon Hopeman, argued the trial can't start that soon because he'll need much more time to prepare his defense of Petters. Petters maintains his innocence.

Tom Petters is now scheduled to go on trial in early February.

Tom Petters is now scheduled to go on trial in early February. Petters is facing charges that he masterminded a multi-billion dollar fraud s...

Elizabeth Monrad, the convicted ex- finance chief of General Reinsurance Corp. who faces possible life in prison

Elizabeth Monrad, the convicted ex- finance chief of General Reinsurance Corp. who faces possible life in prison for her role in a $597 million fraud, said she should have testified at her trial to proclaim her innocence. “I will regret it for the rest of my life,” said Monrad, 54, in an interview with Bloomberg News, her first about the case. “I’m coping. I wall off the normal part of my life from the legal nightmare. I’m still in disbelief. The trial’s outcome was a total shock.” Monrad was convicted Feb. 15 with four other insurance executives of using a sham transaction in 2000 to deceive shareholders at American International Group Inc. None of the defendants testified. All face as much as life in prison when they are sentenced in federal court in Hartford, Connecticut. Monrad spoke about her defense strategy as one of her co- defendants nears the first sentencing. Prosecutors said former General Re Chief Executive Officer Ronald Ferguson joined Monrad and others who illegally helped AIG add $500 million in loss reserves, a key indicator of an insurer’s health. Ferguson will be sentenced Dec. 16. No date has been set for Monrad. Deciding whether to let an executive testify is one of the hardest choices for a defense lawyer, attorneys say. An executive seeking to explain her state of mind must weigh the peril of cross-examination by prosecutors. In earlier trials, jurors convicted former WorldCom Inc. Chairman Bernard Ebbers and ex- Enron Corp. Chief Executive Officer Jeffrey Skilling after they testified. Ebbers is serving 25 years. Skilling got 24 years. ‘I’m Innocent’ “I know I’m innocent,” said Monrad, who said she will appeal. The other four defendants said they intend to appeal.

Elizabeth Monrad, the convicted ex- finance chief of General Reinsurance Corp. who faces possible life in prison

Elizabeth Monrad, the convicted ex- finance chief of General Reinsurance Corp. who faces possible life in prison for her role in a $597 mill...

NovaStar Financial Inc. has agreed to pay $7.25 million to settle a class-action securities-fraud lawsuit

NovaStar Financial Inc. has agreed to pay $7.25 million to settle a class-action securities-fraud lawsuit that originated in April 2004.The ...

Arrest warrant has been issued for former New York Giants star Mark Ingram

Arrest warrant has been issued for former New York Giants star Mark Ingram after he failed to report to federal prison to begin serving near...

Daryl Batts, who was sentenced to 10 years in prison

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRsxYHENhYJvSbHxi-SmpOMWgGXW2D_NTmlJCSqYdMGrv5Mre4trjb13zbqXWULMchZLTQceljlyfZJNIJF0UrEer-MqVuW4obiS8E2Ay2T0sMi7KFLd2xQUwsYtHMdpQXbB8lbkI57sIK/s1600-h/bats.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5278718036556956322" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRsxYHENhYJvSbHxi-SmpOMWgGXW2D_NTmlJCSqYdMGrv5Mre4trjb13zbqXWULMchZLTQceljlyfZJNIJF0UrEer-MqVuW4obiS8E2Ay2T0sMi7KFLd2xQUwsYtHMdpQXbB8lbkI57sIK/s400/bats.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 318px; height: 241px;" /></a> "May you rot in hell!" investor Russell Burrell yelled to a seated Daryl Batts, who was sentenced to 10 years in prison in the scheme amid a packed federal courtroom in Anderson.Federal marshals surrounded Burrell as he approached Batts, who was seated at the defendants table, and blamed him for ruining his marriage and forcing his son to fight in Iraq instead of pursuing his dream to go to school to become a minister. "I don’t even want to live," Burrell said, at one point growling at Batts loudly. "Do you know what you did to me, man?!"U.S. District Judge Ross Anderson listened to testimony from more than a dozen victims who say that the 46-year-old former youth minister used deceit, religion and the good name of an established insurance company to fool them into giving him money that he never invested. One investor -- Tia Foster, a young kindergarten teacher from Concord, N.C. -- told the judge that she gave Batts all $240,000 of the life insurance left to her when her husband passed away and now can’t pay medical bills related to her diabetes and failing kidneys. Before sentencing him, the judge asked Batts how "in the name of all that is holy" did he think he would be able to sustain what prosecutors have said is a "classic Ponzi scheme." Batts told Anderson that he had no explanation for his actions but that he had a "rationalization" that he would invest the money later in a Palmetto Bank account he owned, pay back his clients and then "wash my hands of it." "I stand before you as a criminal," Batts said, telling the judge that he wants to pay his investors back. Beginning in 2002, Batts owned an investment firm -- Comprehensive Financial Solutions Inc. -- that he used to sell insurance policies, mutual funds and other financial products to about 150 investors but never invested the money. Insurance policies and investment funds provided by MassMutual Financial Group were sold through Batts, but the fraud involved was not known to MassMutal, which wasn’t involved in any criminal activity, U.S. Attorney Walt Wilkins said after court. To fool investors, Batts would submit fake financial statements to mortgage brokers, who secured loans for individual investors in return for commissions paid to him, Wilkins said. Batts told his clients that he would pay the premiums on their life insurance polices and that he would be repaid out of the proceeds of the policy, plus interest, when the person died or the policy matured and paid out, prosecutors said. Instead, Batts converted the money to his own use -- including buying a home at the Reserve on Lake Keowee and Lexus cars that were recently sold. Investors who wanted some or all of their money would be paid from the proceeds of new investors.Thus far, Batts has been ordered to pay $3 million in restitution as attorneys try to identify money and assets to seize. It’s unclear exactly how much can be recovered, Wilkins said, but a receiver for the case has recovered $3 million and found that Batts paid investors $3 million to keep the scheme afloat. The total loss to investors so far is $6 million, Wilkins said, and Batts’ final restitution will be determined after the location of money and assets is complete. There is no parole in federal prison. The investigation into the scheme is ongoing, with some subjects still left to be vetted, Wilkins said. One by one, 20 investors stood to share their stories of loss of betrayal they felt after Batts assured them that their money was safe -- oftentimes praying with them as they shared their skepticism. Some said they had forgiven him, others said they were still trying to. "He did it with a smile on his face and a Bible in his hand and on his knees praying," said investor Joanie Benjamin, who told the judge that she gave Batts $85,000 after going online to view what she thought were legitimate investment statements. "He hid behind God," investor Susan Hunter told the judge, imploring him to send Batts to jail immediately because Batts has spent the past six months having parties while on house arrest. "He used religion every day to swindle people. A thief with a gun ... at least you know what you’re dealing with." "I asked him if this was a Carolina Investors thing," Hunter said, referring to the 8,000 investors who lost about $275 million when Carolina Investors and parent company HomeGold Financial collapsed in 2003. "He told me, ‘absolutely not.’" Frank Eppes, Batts’ defense attorney, told the judge that Batts would pay taxes on his income and donate money to his church, the YMCA and Clemson’s athletics booster club, IPTAY. "I’ve never seen anyone steal so much and profit so little," Eppes said. "He’s frankly one of the most inept criminals I’ve ever seen. He never had a way out of this situation." Before Batts was aware of a federal investigation, Eppes said, he approached him to tell him of his financial situation. The accounts were then frozen, Eppes said, a federal charges were filed shortly after. Eppes asked Anderson to send Batts to the federal prison in Edgefield to be closer to his family, who was present at the sentencing. Anderson said that he couldn’t control where Batts was sent. The crowd clapped as Anderson told Batts that he would be going to jail immediately, but Anderson told the crowd that emotional outbursts weren’t appropriate. Anderson thanked investors for helping tell the story of Batts’ life, which he said "was not a pretty picture." "I think that sentence will serve its purpose," Anderson said.

Daryl Batts, who was sentenced to 10 years in prison

"May you rot in hell!" investor Russell Burrell yelled to a seated Daryl Batts, who was sentenced to 10 years in prison in the sch...

Assemblyman, Anthony S. Seminerio, incorporated his own consulting firm to conceal the illegal payments

Assemblyman, Anthony S. Seminerio, incorporated his own consulting firm to conceal the illegal payments. On Wednesday, a grand jury found enough evidence to indict Mr. Seminerio on one count of mail fraud “to solicit and receive a stream of corrupt payments.” Mr. Seminerio, 73, would face up to 20 years in prison if convicted. Reached on his cellphone on Wednesday evening, Mr. Seminerio declared his innocence. “I’m bewildered by everything,” he said. “I’m not a crook.”The indictment makes claims of fraud that is more extensive than outlined in a complaint in September. The complaint accused the assemblyman of receiving about $500,000 from hospitals and other entities that had business before the state from 2000 through this year. The indictment, however, said that Mr. Seminerio received about $1 million. In exchange, the indictment said, Mr. Seminerio rewarded the businesses by arranging “favorable treatment.”Mr. Seminerio’s case has prompted renewed calls from government watchdog groups to strengthen New York’s ethics laws, which allowed the assemblyman to conceal the payments through a consulting firm that he identified on his financial disclosure forms. Because the Legislature keeps tight control over what it publicly releases about lawmakers’ finances, specific information on the amount of income Mr. Seminerio received is redacted from the forms that are available to the public.The only income that the forms revealed from 2005, 2006 and 2007 were payments of at least $1,000 from an entity identified as Marc Consultants. The indictment asks that Mr. Seminerio forfeit the $1 million that he is alleged to have earned by soliciting the payments.

Assemblyman, Anthony S. Seminerio, incorporated his own consulting firm to conceal the illegal payments

Assemblyman, Anthony S. Seminerio, incorporated his own consulting firm to conceal the illegal payments. On Wednesday, a grand jury found en...

former chief of Macedonian Telecommunications, Atila Sendrei and three of his associates charged with power abuse and embezzlement.

Macedonian police on Wednesday charged the former chief of Macedonian Telecommunications, Atila Sendrei and three of his associates with power abuse and embezzlement. All four are suspected for making fictional consulting deals with companies based in Cyprus during 2005. Sendrei this way might have embezzled up to €4 million, the police said at a press conference.Macedonia’s Telecom refused to comment for Balkan Insight and announced a press release for later.“Sendrei is not in the company for more than a year so we have no contact with him what so ever,” Verce Stefkovska from the Telecom’s public relations department said. The fraud cost Macedonia at least €800,000 since at the time the state owned 47 percent of the company shares, police spokesman Ivo Kotevski told local media at the press.Since all four suspected are foreign citizens and are not available to the investigation, the police said that it might later issue international warrants. “The case has been submitted to the public persecution. When it reaches the court the Police will decide on the warrant issue,” Kotevski said.Sendrei came to Macedonia after Magyar Telecom took over the country’s state-owned telecommunications company which had a monopoly in the industry at the time. Macedonians remember Sendrei for the reported record profits the company made while he was its head.Macedonian Telecomunications later re-branded its services and now operates under the brand of Deutsche Telecom’s T-Home.

former chief of Macedonian Telecommunications, Atila Sendrei and three of his associates charged with power abuse and embezzlement.

Macedonian police on Wednesday charged the former chief of Macedonian Telecommunications, Atila Sendrei and three of his associates with pow...

Dirk Minniefield has been charged in an alleged $10 million mortgage scheme in the Houston area

Dirk Minniefield has been charged in an alleged $10 million mortgage scheme in the Houston area.The 47-year-old former NBA player was arrested Tuesday at his home by FBI agents after a federal indictment was unsealed. He and three others each face one count of conspiracy to commit wire fraud and eight counts of wire fraud. The indictment alleges Minniefield was a real estate agent in fraudulent home loans designed to secure payments for expensive upgrades that were never performed. The indictment claims he represented buyers even though he never met them and they never visited the properties they were supposedly buying.Minniefield also is accused of contacting the sellers' agents to propose language that would increase the sales prices of homes by including a substantial payment for the renovations.Phone calls to Minniefield's attorney and officials with more information about the arrest weren't immediately returned.Minniefield played at Kentucky from 1980-83 and remains the school's career assists leader with 646. He spent three seasons in the NBA, playing for Cleveland, Houston, Golden State and Boston.The conspiracy count carries a punishment of up to five years in prison, and each wire fraud count has a maximum 20-year term. All the counts could result in fines totaling $250,000, and the indictment is seeking a forfeiture of $10 million.

Dirk Minniefield has been charged in an alleged $10 million mortgage scheme in the Houston area

Dirk Minniefield has been charged in an alleged $10 million mortgage scheme in the Houston area.The 47-year-old former NBA player was arrest...

Wachovia Corp. (WB) has begun to reimburse victims of a telemarketing fraud

Wachovia Corp has begun to reimburse victims of a telemarketing fraud as part of its April settlement with U.S. banking regulators, mailing nearly 750, 000 checks totaling more than $150 million to the victims.The case involves relationships the bank had with several telemarketers and payment processors that obtained bank-account information over the phone from thousands of elderly and poor consumers by offering to sell them identify-theft certificates, discount travel vouchers and other questionable products or services, according to the Office of the Comptroller of the Currency, a division of the Treasury Department that regulates U.S. banks. The OCC's central allegation against Wachovia was that some of the bank's officials knew about the deceptive telemarketing practices but failed to take quick action to resolve the problem. The regulator said Wachovia "profited from these activities in the form of fees collected from and balances maintained at the bank by the payment processors and telemarketers."In addition to the checks, victims who believe they have been charged bank fees because of unauthorized withdrawals are entitled to compensation. Victims will receive a claim form for bank fees along with the checks. "These victims were lulled by fraudulent telemarketers into a false sense of security to give up their confidential banking information," said Acting United States Attorney Laurie Magid.Wells Fargo & Co. (WFC) agreed to acquire Wachovia in October amid questions about the company's viability.

Wachovia Corp. (WB) has begun to reimburse victims of a telemarketing fraud

Wachovia Corp has begun to reimburse victims of a telemarketing fraud as part of its April settlement with U.S. banking regulators, mailing ...

Marc Dreier prominent attorney was ordered jailed without bail

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXTp6FbuSfV_Q79Oot8ovUZBXYoWrLr-lL5g1SUZNv1iY2leVY7CC9qzyHn2H5zChW5XL-McFpydcm37O8dYIxhHeJeKEM09Wb2vfoOxkkMU-A-ymHNw4fqrxpP_mZPh83yOD5Z9AJEUoh/s1600-h/data.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5278715541565969922" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXTp6FbuSfV_Q79Oot8ovUZBXYoWrLr-lL5g1SUZNv1iY2leVY7CC9qzyHn2H5zChW5XL-McFpydcm37O8dYIxhHeJeKEM09Wb2vfoOxkkMU-A-ymHNw4fqrxpP_mZPh83yOD5Z9AJEUoh/s400/data.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 295px;" /></a> Marc Dreier prominent attorney was ordered jailed without bail Thursday after a federal prosecutor estimated losses of $380 million in an alleged hedge fund fraud. Magistrate Judge Douglas Eaton denied bail for Marc Dreier, whom prosecutor Jonathan Streeter called a "Houdini of impersonation."Streeter said Dreier was "in a desperate situation and the only way out of the desperate situation is to flee." "His life has completely unraveled," said the prosecutor, adding that the fraud has been going on since at least 2006 and Dreier had duped "some of the most sophisticated investors in the world."Dreier had traveled extensively in the last year and had contacts abroad where money might be hidden, said Streeter. Dreier's lawyer, Gerald Shargel, who calls the case "very complicated," had sought a $10 million bail package with electronic monitoring.The scandal has stunned Dreier LLP, a mid-size law firm that has represented celebrities, including retired football star Michael Strahan and former News Corp. publishing executive Judith Regan.Dreier LLP partner Joel Chernov said in court papers that many lawyers have left the firm, rent is overdue and BlackBerry service is being terminated. He says $27 million appears to be missing from the firm's escrow accounts.Dreier also is charged in Toronto with impersonation in connection with the attempted sale of $45 million of notes to a hedge fund.Streeter cited "over $380 million actual loss." "There's a large amount of money completely unaccounted for," said Streeter, who did not elaborate further. A judge denied bail on Thursday for a prominent New York lawyer accused of selling sham investments to hedge funds, a scheme that prosecutors now say may have been much larger than originally thought. The case against Marc Dreier, founder and sole equity partner at the 250-attorney law firm Dreier LLP in New York, has stunned the city's legal community. The Harvard Law School graduate is a 30-year veteran lawyer, whose firm has specialties in bankruptcy, litigation and employment law.Assistant U.S. Attorney Jonathan Streeter said in court the actual monetary losses in the case may now exceed $380 million, compared with about $100 million when the case was announced on Monday. He said the fraud has likely been going on since January 2006.Dreier was ordered to remain in custody. He was arrested on Sunday for what authorities called a "stunning" and "brazen" scam.Streeter said Dreier had been fooling some of the world's most sophisticated investors. He is accused of scheming to market fake debt from a New York-based real estate developer to hedge funds and other institutional investors. Prosecutors say he cajoled his way into real estate and pension fund offices and created fake documents to try to convince investors that the worthless debt securities he touted were real. <blockquote>"I'm going to order detention based on risk of flight," U.S. Magistrate Judge Douglas Eaton said at a hearing.</blockquote> Eaton said he may revisit that ruling at a later date, but that for now, too much is unknown about Dreier's finances, such as whether the attorney has access to money abroad or has close associates who could potentially help him flee. "The investigation is just beginning," the judge said. Dreier, 58, faces federal criminal securities and wire fraud charges, as well as civil fraud charges brought by the U.S. Securities and Exchange Commission. He has not yet responded to the charges in court, but his lawyer, Gerald Shargel, told the judge his client would cooperate fully with the court-appointed receiver hired to oversee the law firm's finances.Dreier looked disheveled and unshaven, wearing a dark blue jail uniform and orange tennis shoes. His lawyer said he has been held under "inhuman" conditions at a Manhattan detention center and has been only allowed to shower infrequently. Shargel had sought to have Dreier released on a $10 million bond and offered to have him placed under house arrest at Dreier's large home in Quogue, a village in Long Island, New York, with two armed guards on the premises at all times.But Streeter said Dreier should remain in custody, calling him a scam artist of "exceptional ingenuity." "Mr. Dreier is in a desperate situation and the only way for him out of the desperate situation is for him to flee," he said, calling him a "Houdini of impersonation and false documents."

Marc Dreier prominent attorney was ordered jailed without bail

Marc Dreier prominent attorney was ordered jailed without bail Thursday after a federal prosecutor estimated losses of $380 million in an al...

Bernard L. Madoff, who helped start the Nasdaq Stock Market and has been a force in Wall Street trading for nearly 50 years, was arrested by federal a

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyGP6NA4A9u2j3fTh2FniQK9Rj-69QaJucUbaIpHn21V_Pge0z39wyhP8aEVe8P48DElpNYXnUT-TZQWiJfbWkc6vBvuVGrS5XNVZtvLlLDeQ3JSAQ48tBiBRQRP5U0Ai7OjaOuUz_zFfZ/s1600-h/mad.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5278711725280369106" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyGP6NA4A9u2j3fTh2FniQK9Rj-69QaJucUbaIpHn21V_Pge0z39wyhP8aEVe8P48DElpNYXnUT-TZQWiJfbWkc6vBvuVGrS5XNVZtvLlLDeQ3JSAQ48tBiBRQRP5U0Ai7OjaOuUz_zFfZ/s400/mad.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 76px; height: 76px;" /></a> Bernard L. Madoff, who helped start the Nasdaq Stock Market and has been a force in Wall Street trading for nearly 50 years, was arrested by federal agents Thursday, a day after allegedly telling two senior employees that his business was "a giant Ponzi scheme.The extent of investor losses alleged by federal prosecutors wasn't immediately clear, the alleged scheme involved the asset-management unit of Bernard L. Madoff Investment Securities LLC, a New York firm owned mostly by the 70-year-old Mr. Madoff.

Bernard L. Madoff, who helped start the Nasdaq Stock Market and has been a force in Wall Street trading for nearly 50 years, was arrested by federal a

Bernard L. Madoff, who helped start the Nasdaq Stock Market and has been a force in Wall Street trading for nearly 50 years, was arrested by...

Marc Dreier, 58, is accused of selling promissory notes that did not belong to him to three hedge funds

Marc Dreier, 58, is accused of selling promissory notes that did not belong to him to three hedge funds, starting in October"Marc Dreier allegedly used his law license and his access to institutional investors to perpetrate a brazen fraud," said Acting United States Attorney Lev L. Dassin.Dreier is the founder and managing partner of Dreier LLP, a law firm of more than 250 attorneys with its principal office in New York City and additional offices in Los Angeles and elsewhere in the country, federal officials said.According to the U.S. attorney's office, Dreier told a Connecticut hedge fund in early October that a New York City real estate development company had a "note program" by which the developer sold promissory notes to investors. Dreier purportedly said some investors who had bought notes wanted to sell them because they needed money due to the current financial crisis. Authorities say Dreier also told the hedge fund that he represented the selling investors and the developer and that the Connecticut hedge fund could buy those notes at a significant discount.Dreier sent the hedge fund purportedly audited financial statements, authorities say, and the hedge fund wired approximately $13.5 million in late October to an account controlled by Dreier to pay for a note with a face value of $25 million.He also negotiated in October with a New York-based hedge fund that agreed to buy notes purportedly issued by the developer, the authorities said. That hedge fund ultimately wired about $100 million to the Dreier account, the U.S. attorney's office alleges in a seven-page complaint unsealed Monday.During the course of the negotiations with the New York hedge fund, officials said, Dreier arranged a conference call with hedge fund personnel and an individual he said was the developer's chief executive officer. However, the developer's CEO told authorities he did not issue any of the notes, that his signature on certain of the purported promissory notes was a forgery and that he did not participate in a conference call with the New York hedge fund.Police in Toronto, Canada, arrested Dreier on December 2 on suspicion that he impersonated a Canadian company employee in connection with the sale of notes with a face value of more than $40 million to a third hedge fund, the U.S. attorney's office said."Dreier was charged with one count of impersonation with intent," according to Toronto police spokesman Tony Vella. U.S. officials arrested Dreier on Sunday night when his plane landed at LaGuardia Airport, the U.S. attorney's office said in a news release.He is charged in federal court with one count of securities fraud and one count of wire fraud, and was appearing before a U.S. magistrate judge in the Southern District of New York on Monday.The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum sentence of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater.

Marc Dreier, 58, is accused of selling promissory notes that did not belong to him to three hedge funds

Marc Dreier, 58, is accused of selling promissory notes that did not belong to him to three hedge funds, starting in October"Marc Dreie...

Stein Bagger, sought by Interpol on alleged fraud and conspiracy charges turned himself in Saturday at a Los Angeles police station,

head of a Danish software company who was sought by Interpol on alleged fraud and conspiracy charges turned himself in Saturday at a Los Angeles police station, according to a newspaper report.Stein Bagger, CEO of Danish software and services company IT Factory, had not been seen since he disappeared Nov. 27 while on vacation with his wife and daughter in Dubai in the United Arab Emirates.On Saturday morning, he walked into a police station in downtown Los Angeles and said, "I am Stein Bagger. I'm a fugitive from Europe, and I'm here to turn myself in," according to a report in The Los Angeles Times.Police were initially skeptical but took him more seriously after noticing his Armani suit and $65,000 Rolex wrist watch, the newspaper said. He was turned over to federal authorities on Saturday night and held at the Metropolitan Detention Center. Bagger told police he landed in New York from Dubai on Nov. 28, borrowed a friend's credit card and Audi sports car and drove to Los Angeles. On Saturday morning, he typed "police" into the car's navigation system and turned himself in at the first police department that showed up on the list, the Times said.It's the latest twist in a drama that has made national headlines in Denmark over the past week.IT Factory was an IBM business partner that provided hosted software services built on IBM's Lotus platform. The company reported soaring revenue and profit for the past few years, and Bagger was recently named "Danish Entrepreneur of the Year" by Ernst & Young LLP.But last early last week, following investigative reports about the company by Computerworld Denmark, IT Factory filed for bankruptcy. Chairman Asger Jensby estimated that 90% of the company's turnover had been fictitious.IT Factory allegedly created contracts for nonexistent products with companies that did not exist, and sold the contracts to banks and other investors. Denmark's largest bank, Danske Bank AS, said on Tuesday that IT Factory has debts with it of 350 million Danish krone ($60 million U.S.). Bagger apparently went to some lengths to cover up the unfolding scandal. When questions were asked about the authenticity of a Ph.D. he claimed to have received from "San Francisco Technical University," Bagger allegedly hired an American actress to pose as a university employee and verify his qualifications for reporters.

Stein Bagger, sought by Interpol on alleged fraud and conspiracy charges turned himself in Saturday at a Los Angeles police station,

head of a Danish software company who was sought by Interpol on alleged fraud and conspiracy charges turned himself in Saturday at a Los Ang...

Juan Luis Llamas,room manager of a telemarketing call center operating out of Costa Rica was sentenced today to 11 years in prison

A room manager of a telemarketing call center operating out of Costa Rica was sentenced today to 11 years in prison for his participation in a massive, Costa Rica-based, telemarketing fraud scheme that targeted thousands of U.S. residents, resulting in victim losses of more than $10 million, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced today. Juan Luis Llamas, 33, of Yuba City, Calif., was sentenced today by U.S. District Judge Frank D. Whitney of the Western District of North Carolina. Judge Whitney also ordered Llamas to pay restitution of $4.2 million jointly and severally with co-conspirators. Llamas is the 30th defendant to be sentenced on conspiracy and wire fraud charges from a series of indictments returned by federal grand juries in Charlotte and Asheville, N.C. Llamas pleaded guilty on Nov. 26, 2007. The indictments in this case charge the defendants with conspiring to defraud U.S. residents, most over the age of 55, out of millions of dollars by deceiving them into believing they had won a large monetary prize in a "sweepstakes contest." According to the indictments, calls to victims were made from Costa Rica using Voice over Internet Protocol (VoIP), which utilized computers to make telephone calls over the Internet, disguising the originating location of the calls. Victims were informed that the callers were purportedly from the "Sweepstakes Security Commission" and that to receive their "prize," they were to wire thousands of dollars to Costa Rica for a purported "refundable insurance fee." According to the indictment, as long as the victims continued to pay, the co-conspirators continued to solicit them to send more money. To date, 33 defendants have pleaded guilty and three have been convicted by jury trials. On Sept. 24, 2008, telemarketing room owner Giuseppe Pileggi, 48, of Montreal, Canada, was sentenced to 50 years in prison, and ordered to forfeit $8.3 million. An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt. The investigation is being conducted by a multi-agency task force comprised of law enforcement authorities from Costa Rica, the U.S. Postal Investigative Service, the Departments of Justice and Commerce, along with the Immigration and Customs Enforcement Division of the Department of Homeland Security. The case was prosecuted by Fraud Section Senior Trial Attorney Peter B. Loewenberg and Senior Litigation Counsel Patrick M. Donley, with assistance from Paralegal Specialist Oneika Duncan and Legal Administrative Specialist Pamela Washington.

Juan Luis Llamas,room manager of a telemarketing call center operating out of Costa Rica was sentenced today to 11 years in prison

A room manager of a telemarketing call center operating out of Costa Rica was sentenced today to 11 years in prison for his participation in...

CEO of Julius Baer, Switzerland's biggest private bank, has died unexpectedly.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLKmMpKZN8ihe8wW3MrL4USCB93JJgY2fm3Ego5EUTiatdWLu_iDeE8KjB4gEW12_7KNG0UXoLkdNpmqcW4T8WliPFkAsfVwjxe9wKYiJLJnZRIFJ4zsAs_g3Sfib7-Qujg4TWJesceEQf/s1600-h/widmer.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5277109578716745874" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLKmMpKZN8ihe8wW3MrL4USCB93JJgY2fm3Ego5EUTiatdWLu_iDeE8KjB4gEW12_7KNG0UXoLkdNpmqcW4T8WliPFkAsfVwjxe9wKYiJLJnZRIFJ4zsAs_g3Sfib7-Qujg4TWJesceEQf/s400/widmer.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 220px; height: 400px;" /></a> CEO of Julius Baer, Switzerland's biggest private bank, has died unexpectedly. Alex Widmer, a widower, died aged 52, leaving behind three children.It has been reported that close friends of Mr Widmer's family said he committed suicide, though Swiss police will not confirm this.The CEO of Julius Baer, Switzerland's biggest private bank, has died unexpectedly.Alex Widmer, a widower, died aged 52, leaving behind three children.It has been reported that close friends of Mr Widmer's family said he committed suicide, though Swiss police will not confirm this.Julius Baer dates back to the 19th century and manages more than 360billion Swiss franch in assets for wealthy individuals and institutions.Shares in Julius Baer have lost some 60 per cent this year as markets have worried about outflows at its hedge fund GAM.However a spokesman for the bank said there was no link between Mr Widmer's death and the group's current activities, but declined to give further details on the cause of death on Wednesday night.A source said employees at the bank had been told Widmer had died from an unspecified illness. In an interview with Bloomberg conducted the day before his death, Mr Widmer said: 'Even if global wealth creation is getting slower, we should do better than the rest.'A Zurich-based trader who did not want to be named said: 'It is a great shame. It is very sad. He [Mr Widmer] embodied Julius Baer. He was the most important person in private banking.'Following the news, shares in Julius Baer fell 6.5 per cent to 34.60 Swiss francs, underperforming a 1.5 per cent drop in the DJ Stoxx index of European banking stocks.

CEO of Julius Baer, Switzerland's biggest private bank, has died unexpectedly.

CEO of Julius Baer, Switzerland's biggest private bank, has died unexpectedly. Alex Widmer, a widower, died aged 52, leaving behind thre...

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...

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