Bankrupt Banker

Rick T. McCullough pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions

Rick T. McCullough, a Phoenix mortgage broker, pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions by unregistered dealers or salesmen. McCullough, 35, was indicted by the Arizona State Grand Jury June 23. As president of licensed mortgage broker CactusCash Inc. McCullough allegedly devised a scheme to secure equity from homes owned by senior residents in Phoenix, according to Attorney General Terry Goddard. McCullough allegedly convinced homeowners to refinance their homes through his business and then persuaded them to invest the equity received into CactusCash. The indictment alleges McCullough said he personally guaranteed the loans, failed to invest the funds in real estate and lacked assets to guarantee the loans. McCullough's next court appearance is scheduled for Aug. 4. He was released on $46,000 bond and faces up to 25 years in prison if convicted on all charges, according to the AG. The indictment is the result of an investigation by the Securities Division of the Arizona Corporation Commission and the Department of Financial Institutions.

Rick T. McCullough pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions

Rick T. McCullough, a Phoenix mortgage broker, pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered...

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s1600-h/hedge.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5218903174117247698" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s400/hedge.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, apparently after having a conversation with his mother.Israel,48, co-founder of a Connecticut based hedge fund-the Bayou Group, is accused of one of longest running frauds of the corporate world who was supposed to report for prison when he went missing. A federal investigation was triggered off when his GMC Envoy was found on a bridge above the Hudson River; with the words “suicide is painless” written in dust on its hood.Ann R. Israel, Samuel’s mother, had informed United States marshals that her son was planning to surrender before Samuel walked into the Southwick police station. Dave Turner, a spokesman for the marshals stated that Mrs. Israel had been in contact with Ed Farrell who is a deputy United States Marshal investigator with the Great Lakes Regional Fugitive Task Force in Illinois. He quoted, “the mother was concerned about her son’s welfare. It appears Mrs. Israel and other family members played an important role in Mr. Israel’s decision to face justice.” He stated that Mrs. Israel indicated to Mr. Farrell that her son was reaching out for help and her advice was to do the right thing and turn himself in. Even though the police found the car keys and a bottle of pills in the vehicle, it was obvious to the authorities that Israel had faked his own death. According to the authorities, Israel left his home in Armonk, N.Y early morning and then abandoned his GMC Envoy and moved to the recreational vehicle at a rest area off Interstate 684.His girlfriend Debra Ryan has already been arrested for being an accomplice to help Israel stage a fake suicide and escape. After the dramatic enactment, Israel arrived later that day at the Prospect Mountain Campground RV Park in Granville, Massachusetts. He apparently spent the last four weeks at this campground, picking up supplies from a small store at the camp. According to the camp’s director Mitch Hayes, Israel signed into the campground under the alias David Klapp. Mr. Hayes who does not recall seeing any visitors for him said that the campground can accommodate more than 200 families. He quoted, “He seemed like a nice guy. There was nothing really suspicious about him when he came to buy food and cigarettes.” Israel, under his mother’s influence, ultimately decided to surrender in Granville, Mass. But the bucolic town of 1,500 has only a part-time police department. When Mr. Israel found the station there closed, he headed seven miles east to Southwick on his scooter. Despite a long history of back pain and other medical problems that were listed in his lawyer’s presenting memorandum, Mr. Israel apparently managed to travel easily on his motorized scooter.After driving up to the police station on a Yamaha scooter, according to Paul Miles, a Southwick police officer, Mr. Israel told officers: “I am a fugitive, I was supposed to go to jail and I’d like to turn myself in.” Mr. Israel was kept in a cell in Southwick before being transferred to the federal courthouse in Springfield, Mass. He is scheduled to appear Thursday before Judge McMahon in Manhattan.Samuel Israel has battled addiction to painkillers and has a pacemaker. The scion of a wealthy New Orleans family, he now faces several more years in jail on top of the 20-year sentence he received in April for defrauding investors.Two former associates of Mr. Israel’s are already behind bars for their role at Bayou. All three had pleaded guilty to their crimes and were sentenced to 20 years in January.In sentencing Mr. Israel in April, US District Judge Colleen McMahon, who referred to him as the "mastermind" of the scheme, said: "Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, appa...

Michael Kyereme pled guilty to charges of mail fraud and tax evasion.

Michael Kyereme of Piscataway - New Jersey, pled guilty to charges of mail fraud and tax evasion.In his mail fraud guilty plea, Kyereme admitted defrauding Cisco out of $6.9 million in replacement parts by scamming the Cisco SMARTnet Service program. Here is how Kyereme's SMARTnet scam worked:As an independent contractor hired to provide information technology support to the City of Newark, Kyereme was responsible for assisting Newark employees when computer problems arose that required technical support or trouble-shooting by a computer technician. If it was determined that a computer related problem could not be solved without outside assistance or a replacement part, Kyereme was authorized to contact Cisco for technical assistance and if necessary, to request a replacement part under Cisco SMARTnet. Starting in January 2003, Kyereme would falsely claim that certain Cisco parts in the City of Newark's computer systems were malfunctioning and thus required replacement. In response to those numerous requests, Cisco sent approximately 280 replacement parts to Kyereme on behalf of the City of Newark. Instead of installing the parts into the City of Newark's computer system, Kyereme would sell the parts to a third party in California, pocket the illicit proceeds and return parts of lesser value to Cisco. In all, Kyereme failed to return 148 parts to Cisco and of the approximately 132 parts that he did return, only 33 of those parts matched the type of part originally sent by Cisco to Kyereme.It is interesting to note that upon his arrest by the Federal Bureau of Investigation on March 2 - 2007, Kyereme had $3 million in stolen Cisco parts stashed within his home and car.In his tax evasion guilty plea, Kyereme admitted to not reporting $1.24 million of income that he illicitly derived from the sale of stolen Cisco parts.Sentencing is scheduled for November, meanwhile Kyereme remains free on a $500,000 bail bond.Kyereme faces up to 25 years in prison and fines of $350,000.

Michael Kyereme pled guilty to charges of mail fraud and tax evasion.

Michael Kyereme of Piscataway - New Jersey, pled guilty to charges of mail fraud and tax evasion.In his mail fraud guilty plea, Kyereme admi...

Rauf Ahmad was sentenced Wednesday in Bronx Supreme Court after pleading guilty to grand larceny, conspiracy and scheme to defraud the state

New York City pharmacist has been sentenced to up to 10 years in prison for his role in a $5 million Medicaid fraud ring. Attorney General A...

Citibank customers' accounts were compromised disturbing security hole in the most sensitive part of a banking record

Hackers broke into Citibank's network of ATMs inside 7-Eleven stores and stole customers' PIN codes, according to recent court filings that revealed a disturbing security hole in the most sensitive part of a banking record.The scam netted the alleged identity thieves millions of dollars.But more importantly for consumers, it indicates criminals were able to access PINs — the numeric passwords that theoretically are among the most closely guarded elements of banking transactions — by attacking the back-end computers responsible for approving the cash withdrawals. The case against three people in U.S. District Court for the Southern District of New York highlights a significant problem.Hackers are targeting the ATM system's infrastructure, which is increasingly built on Microsoft Corp.'s Windows operating system and allows machines to be remotely diagnosed and repaired over the Internet.And despite industry standards that call for protecting PINs with strong encryption — which means encoding them to cloak them to outsiders — some ATM operators apparently aren't properly doing that.The PINs seem to be leaking while in transit between the automated teller machines and the computers that process the transactions."PINs were supposed be sacrosanct — what this shows is that PINs aren't always encrypted like they're supposed to be," said Avivah Litan, a security analyst with the Gartner research firm. "The banks need much better fraud detection systems and much better authentication."It's unclear how many Citibank customers were affected by the breach, which extended at least from October 2007 to March of this year and was first reported by technology news Web site Wired.com. The bank has nearly 5,700 Citibank-branded ATMs inside 7-Eleven Inc. stores throughout the U.S., but it doesn't own or operate any of them.That responsibility falls on two companies: Houston-based Cardtronics Inc., which owns all the machines but only operates some, and Brookfield, Wis.-based Fiserv Inc., which operates the others.A critical issue in the investigation is how the hackers infiltrated the system, a question that still hasn't been answered publicly. All that's known is they broke into the ATM network through a server at a third-party processor, which means they probably didn't have to touch the ATMs at all to pull off the heist. They could have gained administrative access to the machines — which means they had carte blanche to grab information — through a flaw in the network or by figuring out those computers' passwords.Or it's possible they installed a piece of malicious software on a banking server to capture unencrypted PINs as they passed through. What that means for consumers is that their PINs were stolen from machines that showed no signs of tampering they could detect. In previous PIN thefts, thieves generally took steps that might draw notice — sending "phishing" e-mails, for example, or installing false-front keypads or even tiny cameras on ATMs. Getting the PINs is a key step for identity thieves. It lets criminals encode stolen account information onto blank ATM cards and withdraw piles of cash from compromised accounts. Don Jackson, director of threat intelligence for SecureWorks Inc., said he has seen an "alarming" spike in the number of attacks on back-end computers for ATM networks over the past year. "This was fairly large, but I don't think it's anything out of the ordinary — these kinds of scams go on every day," Jackson said. "What makes this case unique is the sheer luck of happening upon these guys and catching them red-handed. But there are a whole lot of other ATM and PIN compromises going on that aren't reported." The alleged plot is outlined in court papers supporting the prosecution of three people — Yuriy Rakushchynets, Ivan Biltse and Angelina Kitaeva. They were indicted in March on two counts each of conspiracy and fraud. Prosecutors say their activities generated at least $2 million in illegal profits. Defense lawyers for all three people did not return calls for comment, and it was not clear where they had been living. The main defendant, Rakushchynets, was described as having Michigan and Florida's driver licenses in a February FBI affidavit for an arrest warrant.Citibank, part of Citigroup Inc., has declined to comment on the technique or how many customers' accounts were compromised. It said it notified affected customers and issued them new debit cards. "We want our customers to know that, consistent with legal requirements, we do not hold them responsible for fraudulent activity in their accounts," the bank said in a statement. Cardtronics said it is cooperating with authorities but otherwise declined to comment. Fiserv spokeswoman Melanie Tolley said the intrusion didn't happen on Fiserv's servers."Fiserv," she said, "is confident in the integrity and security of our system."

Citibank customers' accounts were compromised disturbing security hole in the most sensitive part of a banking record

Hackers broke into Citibank's network of ATMs inside 7-Eleven stores and stole customers' PIN codes, according to recent court filin...

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison was a suitable sentence for his bank fraud conviction. A filing on Monday called for an en banc review of the court's decision -- meaning as many as 21 judges on the appellate court bench should review the facts of the case. The appeal said that the district court gave Witting an unreasonable sentence under sentencing guidelines and that the 10th District Court of Appeals' June 18 decision "rubber-stamped the district court's miscalculated guidepost sentence under a guideline this court twice has held legally and factually inapplicable to Mr. Wittig." Wittig's original sentence for bank fraud was 51 months, an enhanced sentence that had been applied for intended losses and gross receipts exceeding $1 million on his alleged bank fraud conviction. That sentence later was reduced to six months, but U.S. Supreme Court decisions and their effect on federal sentencing guidelines bumped his sentence back up to 24 months. Wittig served more than a year in a Minnesota prison before being released on appeal of his two-year sentence. He was freed in February 2007 on appeal of the bank fraud conviction, which stemmed from an allegation that Topeka banker Clinton Odell Weidner increased Wittig's line of mansion-improvement credit at Capital City Bank by $1.5 million and that Wittig loaned the money back to Weidner to use on an Arizona property deal. Wittig also finds himself awaiting a third trial, along with former Westar Executive Vice President Douglas Lake, on government charges that the two looted the Topeka-based utility (NYSE: WR) for personal purposes. Both men have asked that the case be dismissed after the appeals court's January 2007 overturning of many of the pertinent convictions they were found guilty of in earlier trials. The third trial is expected to begin in September.

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison

Former Westar Energy Inc. Chairman David Wittig is appealing a June 18 appellate court finding that two years in prison was a suitable sente...

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizZSnj6TvuQkfGAPmEHxv7Jsca7e8sA7ruU4qGbKkcHGKUmhr0_s1llo3s651S06CaSHmYeuA7Dpq6f3zV5ehbnyzCXSvcn9ZLfzYKOfwFcr1p6t_vlDJO2631qBrijE5q12ObUEQhkzfH/s1600-h/bennette.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5218899580683736354" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizZSnj6TvuQkfGAPmEHxv7Jsca7e8sA7ruU4qGbKkcHGKUmhr0_s1llo3s651S06CaSHmYeuA7Dpq6f3zV5ehbnyzCXSvcn9ZLfzYKOfwFcr1p6t_vlDJO2631qBrijE5q12ObUEQhkzfH/s400/bennette.jpg" style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" /></a> Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion in what U.S. prosecutors said was ``among the very worst'' white-collar crimes. Bennett was also ordered to forfeit the $2.4 billion. U.S. District Judge Naomi Buchwald in Manhattan rejected a government request that Bennett surrender to prison immediately and told him to report on Sept. 4. Until then, he must remain at his home in Somerset County, New Jersey, subject to electronic monitoring. ``You are the architect of the Refco fraud,'' Buchwald told Bennett today at his sentencing in Manhattan federal court. ``Individuals who commit crimes like yours are often staggeringly arrogant.'' Bennett, who turns 60 this month, pleaded guilty in February to bank fraud and money laundering stemming from his eight-year scheme to deceive banks, auditors and investors, including Boston-based buyout firm Thomas H. Lee Partners LP. Once the biggest independent U.S. futures trader, New York- based Refco collapsed in October 2005, two months after raising $670 million in an initial public offering. The company, which provided clearing and prime-brokerage services, filed for bankruptcy after disclosing that a Bennett-controlled firm owed hundreds of millions of dollars to Refco. Some 16 corporate executives have been sentenced to 20 years or more in prison since 2003. Former WorldCom Inc. Chairman Bernard Ebbers is serving 25 years for accounting fraud, and Enron Corp. ex-CEO Jeffrey Skilling got a 24-year term for the same crime. Bayou Group LLC's Samuel Israel was sentenced in April to 20 years for fraud. He jumped bail and fled, only to surrender and start his sentence today in New York. ``I made an unacceptable and appalling error in judgment,'' Bennett told the judge. ``I took the wrong path and crossed a line I never should have crossed.'' A graduate of Cambridge University in England, Bennett built Refco into the largest independent futures brokerage in the U.S. He joined the firm in 1981 and served as president, chief executive officer and chairman since September 1998. With partner Tone Grant, Bennett transformed Refco from a firm that focused on trading for itself to one that executed transactions for clients. He grew rich along the way, becoming a billionaire with a $20 million plane, an $11 million car collection, and works of art worth more than $29 million, the government said. Today, Bennett sought leniency, citing his cooperation with investors who have sued Refco's banks, his offer to cooperate with prosecutors and his willingness to take responsibility for his crimes. He said his scheme stemmed from an effort to save the company from bankruptcy long before the fraud was uncovered. Bennett has paid $1.2 billion to eliminate Refco's debt and repay investors, defense attorney Gary Naftalis said today. ``Did he do wrong things? Absolutely,'' Naftalis told Buchwald. ``Has he stood tall and admitted it? Yes.'' In court, Bennett's voice quavered as he apologized. He'll be deported to his native England after he completes his term. Under federal sentencing guidelines, he faced life behind bars. Assistant U.S. Attorney Neil Barofsky compared Bennett to white-collar offenders such as Ebbers and Bayou Group LLC Chief Financial Officer Daniel Marino, who is serving 20 years for his role in the $400 million fraud at that hedge-fund firm. He said the 20-year sentence Israel received should be a ``guidepost'' in the Bennett case. ``The scope and duration of the fraud, the loss that resulted from it, and Bennett's conduct in service of that fraud places him among the very worst white-collar defendants in this jurisdiction,'' Barofsky and Assistant U.S. Attorney Christopher Garcia wrote Buchwald on June 30. At Grant's criminal trial in April, prosecutors said the roots of the fraud stretch to 1997, when Refco began hiding massive losses sustained by clients in the Asian debt crisis. With its viability threatened, Refco began masking its true performance by moving more than $1 billion in debt off the company's books to a Bennett-controlled entity, Refco Group Holdings Inc., prosecutors said. In return, Refco Group Holdings gave Refco worthless IOUs, prosecutors said.The company hid the scam from Thomas H. Lee, which paid $507 million for a 57 percent stake in Refco in 2004; from banks and debt-holders that extended more than $1.4 billion in financing in 2004; and from investors who paid $583 million for shares when Refco went public. Grant was convicted. He has yet to be sentenced. Bennett and his aides defrauded victims from all walks of life, including his own secretary, who lost $5,000 she invested in the firm, prosecutors said. Testifying for the government at Grant's trial were former Refco finance chief Robert Trosten and Santo Maggio, the ex-CEO of Refco's offshore unit. Both pleaded guilty. Refco's ex-outside lawyer, Joseph Collins, has pleaded innocent to criminal charges. Bennett's lawyer didn't make a request for a specific federal prison. The final choice is made by the U.S. Bureau of Prisons. There is no parole in the federal system, though inmates may reduce their sentence by 15 percent for good conduct.

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion

Former Refco Inc. Chief Executive Officer Phillip Bennett was sentenced to 16 years in prison for defrauding investors out of $2.4 billion i...

Home of Carlos and Brenda Brown finally sold at auction for $108,000 after the house and all of its contents were seized

Former home of Carlos and Brenda Brown finally sold at auction for $108,000 after the house and all of its contents were seized following the Browns' drug trafficking convictions last year. More than 1,000 people attended the auction at 4712 Hayes Road in Ravenna Township on Saturday, generating a total of $141,000 in proceeds to benefit the Portage County Drug Task Force, said Portage County Prosecutor Victor Vigluicci. The 2,375-square-feet home sits on 4.2-acre irregular lot, that was filled with rows of the former belongings of the Browns. Among the hundreds of items sold at the 10-hour affair, a John Deere tractor with the price tag still attached sold for $1,800; an ATV sold for $4,000; and nearly 20 bottles of laundry detergent sold for $17.50 apiece. All of the items sold totaled approximately $33,000, Vigluicci. Motorists parked where ever they could find a patch of grass. Cars lined Hayes Road and S.R. 5; some neighbors allowed eager participants to park on their property, others charged $3. Even children got in on the action, setting up lemonade and soda stands adjacent to the auction site. People shuttled back and forth from the auction to their cars, often carrying boxes full of items or large items such as computers or other electronics. Auctioneer Jerry Cross said there were 500 people registered to participate in the auction, and another 500 who came along to watch. His crew had three different auction sites set up on the property. Everything from appliances, yard equipment and dozens of electronics were sold at the auction. "It's been overwhelming to see this many people," Cross said. Vigluicci said the proceeds will be split several ways, with the majority benefiting the drug task force. First, he said, the cost of the sale will be paid as well as utilities and maintenance, and a share going to the prosecutors office. "This has been a good success for law enforcement," said Vigluicci. "This sends a good message to the community showing what happens to your house and belongings if you sell drugs. This is the best example I can show." In what was once a bedroom of the home, a broken safe laid on its side with door torn off after the raid. It was found to be loaded full of cash and drugs. As part of their plea deals, the Browns forfeited $92,000 in cash, as well as their home and belongings. Carlos Brown, 78, and his wife Brenda, 54, both pleaded guilty in October to charges stemming from a July 20 raid at the Hayes Road home that resulted in the arrest of both of them. The raid, according to Portage County Sheriff Duane Kaley, was the result of an undercover operation by the drug task force during which an agent successfully purchased the painkiller Oxycontin at the home. Carlos Brown pleaded to one count each of aggravated possession of drugs, a first-degree felony; aggravated trafficking in drugs, a second-degree felony; two counts of aggravated trafficking, both third-degree felonies; and one count of permitting drug abuse, a fifth-degree felony. Brenda Brown pleaded guilty to one count each of aggravated possession of drugs; aggravated trafficking of drugs; complicity to aggravated trafficking; and permitting drug abuse. Portage County Common Pleas Judge Laurie Pittman sentenced Carlos Brown to 10 years in prison while she gave Brenda Brown a five-year sentence. The auction finally came to a conclusion just before 6 p.m., after a line of people waiting to pay for their purchases cleared. Dan Lintz, who participated in the auction, bought a lawnmower for his father-in-law who just moved to the area. "I got a good deal on it," he said, adding that he was fascinated with the number of people who attended. "I couldn't believe it. There were more people here than there was at the circus (Friday night). The circus didn't cost as much as it did here."

Home of Carlos and Brenda Brown finally sold at auction for $108,000 after the house and all of its contents were seized

Former home of Carlos and Brenda Brown finally sold at auction for $108,000 after the house and all of its contents were seized following th...

police majors Dmitry Tselyakov and Alexander Nosenko had attempted to extort 1.5 million euros from Inkredbank vice president Pyots Chuvilin.

Two Moscow police officers have been arrested on suspicion of attempting to extort a 1.5 million euro ($2.3 million) bribe from a bank in th...

senior Mideast executive at U.S. investment bank JP Morgan Chase & Co. , is being detained in Dubai as part of a widening fraud investigation

A senior Mideast executive at U.S. investment bank JP Morgan Chase & Co. , is being detained in Dubai as part of a widening fraud invest...

Dubai Islamic Bank's (DIB)Dubai Islamic Bank's (DIB) financial irregularities case

Dubai Public Prosecution records show that seven suspects including DIBDIB's former deputy director for project finance, 50-year-old Pakistani, R.I.U., his 39-year-old compatriot U.H.M., executive director of JPMorgan Chase & CoJPMorgan Chase & Co in Dubai, 44-year-old Turkish visitor, R.N., 49-year-old British visitor, C.M., and his 54-year-old compatriot visitor, R.L., 41-year-old American manager, Z.U., and 58-year-old British, A.P., are facing charges of swindling.Dubai: Seven suspects are being questioned for their alleged involvement in the Dubai Islamic Bank's (DIB)Dubai Islamic Bank's (DIB) financial irregularities case. Sources said police received a tip-off on the alleged financial irregularities on June 1 and arrested the first suspect on June 3. Gulf News sought to contact Dubai Attorney General Eisam Eisa Al Humaidan but without success. Media reports quoted Simon Goldsmith, the second secretary for political and media affairs in the British Embassy in Dubai, saying they are aware of the case and are offering consular assistance to their citizens. A bank statement issued on June 11 confirmed the reports and said the investigations will have no financial impact on the company.

Dubai Islamic Bank's (DIB)Dubai Islamic Bank's (DIB) financial irregularities case

Dubai Public Prosecution records show that seven suspects including DIBDIB's former deputy director for project finance, 50-year-old Pak...

LTT Bio-Pharma Co., a Tokyo-based biotechnology company arrested two of its former employees as part of a fraud investigation

The company issued a statement after local media reported the arrests of four people suspected of using documents purported to be from Marubeni Corp. to defraud Lehman Brothers Holdings Inc. Marubeni said in a separate statement it would continue to cooperate fully with the investigation. Lehman, the fourth- largest U.S. securities firm, declined to comment on the arrests. LTT Bio-Pharma Co., a Tokyo-based biotechnology company, said police in Japan arrested two of its former employees as part of a fraud investigation. The four people who were arrested raised about 108 billion yen ($996 million) from companies and individuals as part of the fraud, Kyodo News and the Asahi Shimbun said. Some of the money has been recovered and 50 billion yen has not yet been retrieved, Kyodo said, citing police. Lehman Brothers submitted a complaint against Marubeni Corp. in a Tokyo court on May 28, kicking off a trial in which the New York-based firm is seeking to recover 35 billion yen for alleged fraud involving two of the Japanese trading company's former employees. Marubeni has said it was also a victim of fraud that involved forged documents, and that the two employees were fired. The two LTT employees were Yuzuru Yamanaka, a former president, and Shigenori Saito, former president of medical consultancy firm Asclepius Ltd. Yamanaka was also a Marubeni employee, Kyodo and the Yomiuri newspaper said. Police also arrested Shingo Yamaura, a contract worker at Marubeni when the alleged fraud occurred, and Fumihiro Takahashi, president of a Tokyo-based building planning company, the Asahi and Kyodo said. Saito has denied the allegations, Kyodo said, citing the police. The Asahi said all but Takahashi have denied the allegations.

LTT Bio-Pharma Co., a Tokyo-based biotechnology company arrested two of its former employees as part of a fraud investigation

The company issued a statement after local media reported the arrests of four people suspected of using documents purported to be from Marub...

Probe into a former UBS banker's role into suspected tax fraud. Bradley Birkenfeld, a Geneva-based US expat, is currently detained in Florida

The United States formally requests Swiss assistance in its probe into a former UBS banker's role into suspected tax fraud. Bradley Birkenfeld, a Geneva-based US expat, is currently detained in Florida awaiting a court appearance on charges of helping US citizens defraud tax authorities. Swiss officials indicate that they are likely to cooperate.US authorities made their formal request last Wednesday, Swiss Federal Justice Office spokesman Folco Galli confirmed. He declined to give details on the request, including how many people were involved or the exact charges. However, Bradley Birkenfeld, a former private banker for UBS, who was most recently working for a Geneva financial services firm, is currently awaiting a court appearance in Florida on charges of tax fraud. US justice authorities arrested him during a trip to the country earlier this year, accusing Birkenfeld of helping a local property developer to secretly transfer 200 million dollars through accounts in Switzerland and Liechtenstein when he worked for UBS in 2001 to 2005. Mario Staggl, a Liechtenstein financial lawyer, is also wanted by US authorities. A network also encompassing offshore trusts or holding companies in Denmark, Gibraltar, the British Virgin Islands and Bahamas is mentioned in the US indictment. The New York Times has reported that Birkenfeld was cooperating with federal investigators and would implicate Switzerland's largest bank and other financial institutions in the scheme. His hearing at a US district court in southern Florida was originally scheduled early last week, but was postponed. The case has raised fears in Switzerland that several thousand names of US account holders could be revealed during the court case, thereby delivering a blow to Swiss banking secrecy and UBS's reputation in the private banking sector. That part of the bank's business has so far emerged largely unscathed from the recent financial turmoil involving its investment banking units. UBS and its customers are meant to declare their American-sourced income to US tax authorities under an agreement they reached in 2001, in line with other international banks. While Swiss secrecy law effectively rules out probes into tax evasion - which is not a criminal offence in Switzerland but a misdemeanour - secrecy is lifted in criminal cases. The indictment lodged at a US district court in southern Florida against Birkenfeld and Staggl clearly accuses them of "tax fraud", which is a criminal offence in Switzerland. Equally, the indictment says the evasion scheme involved falsifying Swiss bank documents and internal revenue service forms. Falsification of documents has often been central to determining fraudulent behaviour in previous legal cases in Switzerland.Other Swiss officials, who declined to be identified, have told Swisster that they were likely to cooperate with US investigators, depending on the exact form of the official request. However, the scope of cooperation would also depend on the ability of US justice authorities to name those it suspects of involvement in fraud.At the Federal Justice Office, Galli said that he could not give further details while the procedure was underway. "Swiss authorities are examining the [US] request with a view to administrative assistance or judicial assistance," he told Swisster. Administrative assistance would limit the scope of a probe in Switzerland to Swiss tax authorities, rather than the magistrates who would have wider powers to unlock bank account details.

Probe into a former UBS banker's role into suspected tax fraud. Bradley Birkenfeld, a Geneva-based US expat, is currently detained in Florida

The United States formally requests Swiss assistance in its probe into a former UBS banker's role into suspected tax fraud. Bradley Birk...

Billionaire Henry Nicholas, 48, former chief-executive of the California-based firm, denied all 21 charges revealed in two indictments

Billionaire Henry Nicholas, 48, former chief-executive of the California-based firm, denied all 21 charges revealed in two indictments earlier this month relating to the stock fraud and drugs cases.Justice officials say Nicholas and a co-defendant, former Broadcom chief financial officer William Ruehle, 66, engaged in a stocks back-dating scheme that led to a 2.2 billion dollar write-down in profits.Ruehle also pleaded not guilty to the charges.Prosecutors have described the 1995-2005 stock fraud as one of the largest of its kind in US history."Nicholas and Ruehle were involved in a wide-ranging fraud that resulted in the largest financial restatement related to options backdating in the United States," US Attorney Thomas O'Brien said earlier this month.A separate indictment alleges that Nicholas alone maintained a supply of drugs -- including ecstasy and cocaine -- for use and distribution. The indictment alleges Nicholas used ecstasy to spike the drinks of industry executives and employees of Broadcom customers. The charges say that in one incident, Nicholas and others smoked so much marijuana during a flight on a private jet travelling from California to Las Vegas that the pilot was required to put on an oxygen mask.Nicholas was included in Forbes magazine's list of the 400 richest Americans last year, with his worth estimated at 2.3 billion dollars.

Billionaire Henry Nicholas, 48, former chief-executive of the California-based firm, denied all 21 charges revealed in two indictments

Billionaire Henry Nicholas, 48, former chief-executive of the California-based firm, denied all 21 charges revealed in two indictments earli...

Christopher P. White faces criminal charges that appear related to his efforts to keep his company afloat.

Christopher P. White, whose sprawling Indianapolis real estate development company collapsed in bankruptcy, now faces criminal charges that appear related to his efforts to keep his company afloat.The founder and head of Indianapolis real estate developer Premier Properties USA was charged Monday with theft, check fraud and fraud on a financial institution.Marion County Prosecutor Carl Brizzi alleges White committed the crimes earlier this year, a time when he was struggling to fend off creditors and keep his development company solvent.The theft charge involves at least $100,000 from National Bank of Indianapolis, according to documents filed in Marion Superior Court. The check fraud charge involves at least $25,000, also from the National Bank.White, Indianapolis, is the sole owner of Premier Properties, whose best-recognized local holding was the Metropolis open-air mall in Plainfield. He founded the company 15 years ago and built it into a prominent regional retail developer with holdings in several states.Its collapse came suddenly this year, after commercial credit began drying up in a national recession in the commercial real estate industry.Premier filed a Chapter 11 reorganization bankruptcy in April. It was converted into a Chapter 7 liquidation last month after Premier lost control of its properties. The company cited debts of $32.5 million and assets of $2.3 million, most of which is furniture or accounts receivable.White, 50, also has been named in numerous civil lawsuits by creditors and suppliers to Premier who seek payment on millions of dollars in overdue loans or unpaid work. Police say White wrote a $500,000 check payable to Premier Properties on Jan. 30 for deposit into a National Bank of Indianapolis account used by Premier, according to a probable cause affidavit.The check was drawn on a JP Morgan Chase account White controlled that contained no more than $1,000, the affidavit says.The check was returned for insufficient funds. National Bank of Indianapolis handled White's and Premier's banking needs, the affidavit says.The three charges against White are all Class C felonies, with each count carrying a penalty of two to eight years in prison and a $10,000 fine.No initial hearing has been set, the prosecutor's office said. As of Monday evening, a warrant had yet to be issued for White's arrest. "We're continuing to investigate to determine if this was a one-time occurrence or if there was a pattern," Brizzi said. He declined to comment further.

Christopher P. White faces criminal charges that appear related to his efforts to keep his company afloat.

Christopher P. White, whose sprawling Indianapolis real estate development company collapsed in bankruptcy, now faces criminal charges that ...

Mickey Friedmann,of Bank Leumi was arrested along with 13 other businessmen on allegations of a massive fraud

Miki Friedman, who is currently Bank Leumi's manager of its operations in Britain, is alleged to have approved loans worth NIS 25 million ($7.5 million) to various businessmen on the basis of fictitious bank statements and without requiring collateral or a guarantor, as is mandated by bank regulations. arrested a Bank Leumi executive and 13 senior businessmen who are suspected of colluding in a fraud and embezzlement scheme worth millions of shekels. The alleged offenses occurred during Friedman's tenure as the chief of Bank Leumi's central branch from 2005 to 2007. Police also suspect that the chief executive officer of a furniture company acted as a middleman in deals with other businessmen, and that he received commission on those deals. Investigators are attempting to ascertain whether Friedman received bribes in exchange for authorizing the loans. Police are expected to request the courts extend the remand of the suspects.The CEO of Bank Leumi in Britain, Mickey Friedmann, was arrested along with 13 other businessmen on allegations of a massive fraud, Israel Radio reported Tuesday. Friedmann, who served previously as the CEO of Bank Leumi's central branch in Tel Aviv, allegedly gave loans based on false statements, without guarantees and against the bank's regulations. The fraud is estimated at NIS 25 million. An investigation is taking place in the Tel Aviv District Fraud Unit.

Mickey Friedmann,of Bank Leumi was arrested along with 13 other businessmen on allegations of a massive fraud

Miki Friedman, who is currently Bank Leumi's manager of its operations in Britain, is alleged to have approved loans worth NIS 25 millio...

Dossey Richard, Lovie Hobbs,Montra McKenzie,Cyrus Davis charged one count of conspiracy to commit wire fraud based on a mortgage scheme

charged Dossey Richard, 36, of Atlanta, Lovie Hobbs, 47, of Lithonia, Montra McKenzie, 29, of Atlanta, Cyrus Davis, 42, of Atlanta, Marcus Vickers, 35, of Ellenwood, Rayshaun Harmon, 27, of East Point and Michelle Davila, 35, of Atlanta, of one count of conspiracy to commit wire fraud based on a mortgage scheme. The complaint, filed June 18, alleges the group fraudulently sold condos in the Blue Sky condo project at 3106 Memorial Drive, in East Lake. The sales, between March and May 2008, artificially inflated the value of the condos to between $135,000 and $155,000, and received mortgages on the properties through a straw buyer, even though units at the complex are now selling between $2,000 and $28,750. The group includes: A closing attorney, Vickers; two mortgage brokers, McKenzie and Davis; Wachovia Corp. (NYSE: WB) employee Davila; and appraiser Harmon. Hobbs served as the straw buyer in the transactions. Other inflated loans in the complex have already entered foreclosure, federal prosecutors said. The group attempted to defraud certain lenders, but did not name specific banks, federal prosecutors allege. Only Wachovia, as employer for Davila, was explicitly mentioned. "This is unfortunately another in a long series of major mortgage fraud cases in metro Atlanta," said U.S. Attorney David Nahmias in a release. "In this case, an entire condominium complex was gutted by fraud and greed. And as we have seen too many times before, one of the defendants charged is a closing attorney, someone the victim lenders retained and trusted to protect them against such fraud, but who instead became a participant in it. Mortgage fraud will remain a high priority for federal law enforcement in North Georgia."

Dossey Richard, Lovie Hobbs,Montra McKenzie,Cyrus Davis charged one count of conspiracy to commit wire fraud based on a mortgage scheme

charged Dossey Richard, 36, of Atlanta, Lovie Hobbs, 47, of Lithonia, Montra McKenzie, 29, of Atlanta, Cyrus Davis, 42, of Atlanta, Marcus V...

Howe Electric pleaded guilty Wednesday in U.S. District Court for the Northern District of California, San Francisco Division,

Howe Electric pleaded guilty Wednesday in U.S. District Court for the Northern District of California, San Francisco Division, to charges that the company engaged in two conspiracies to rig bids to two Fresno-area schools, the DOJ said. The bids were part of the E-Rate program, operated by the U.S. Federal Communications Commission, which allows schools and libraries to receive money for cabling, Internet backbone equipment and monthly Internet and telephone service fees.electrical contractor based in Fresno, California, has pleaded guilty and agree to pay US$3.3 million in fines and restitution for rigging bids on a U.S. government program designed to help schools and libraries in poor areas connect to the Internet, the U.S. Department of Justice said.Howe Electric obtained agreements from potential competitors not to compete on the bids in return for Howe's agreement to use those competitors as subcontractors on the school projects, the DOJ said. The conspiracies began in 1998 and 1999 and continued into 2001, the DOJ said. Howe Electric entered into agreements with former education consultant Judy N. Green in which Howe was awarded contracts for the E-Rate projects at the West Fresno Elementary School District and the W.E.B. DuBois Charter School in exchange for awarding subcontracts to other vendors, the DOJ said. The other vendors had the capability to bid against Howe Electric on the projects but had agreed with Green not to compete in exchange for the award of the subcontracts, the DOJ said. After completion of the projects, Howe Electric requested and received reimbursement from the E-Rate program for the work that it and the subcontractor vendors performed at the schools. Green was convicted and sentenced in March to serve seven and a half years in prison for her role in the E-Rate conspiracies.Howe Electric will pay $300,000 in criminal fines and $3 million in restitution and civil settlements. It's plea agreement is subject to court approval.Howe Electric was charged with violating the Sherman Act, covering antitrust violations, which can carry a fine of $10 million for companies with violations occurring before June 22, 2004. The DOJ's Antitrust Division is conducting a continuing investigation into fraud and anticompetitive conduct in the E-Rate program. Seven companies and 16 individuals have pleaded guilty, have been convicted and found guilty, or entered civil settlements, resulting in more than $40 million in criminal fines and restitution and jail sentences of nearly 29 years. Trials are currently pending in three additional E-Rate cases, and one defendant remains an international fugitive.

Howe Electric pleaded guilty Wednesday in U.S. District Court for the Northern District of California, San Francisco Division,

Howe Electric pleaded guilty Wednesday in U.S. District Court for the Northern District of California, San Francisco Division, to charges th...

Dennis Raymond Sheffield pleaded guilty in federal court to six counts of bank fraud as part of a deal with prosecutors

Dennis Raymond Sheffield pleaded guilty in federal court to six counts of bank fraud as part of a deal with prosecutors. That agreement also...

Roland Harper pleaded guilty to mail fraud Tuesday in connection with a scheme involving a $1.5 million minority landscaping contract

Roland Harper pleaded guilty to mail fraud Tuesday in connection with a scheme involving a $1.5 million minority landscaping contract with the Chicago Public Schools. Harper, 55, admitted in a plea agreement he allowed Aidan Monahan to use his trucking company, Rohar, as a front, after CPS began requiring that a minority company get a portion of the work. Previously, the Arlington Heights-based Monahan Landscape mowed the lawns for all the system's schools. The minority set-aside rule meant Monahan would lose work for half the schools, according to court testimony. But Monahan was able to keep some of his former assignments by roping in Harper. So Harper signed on to act as the minority contractor, but Monahan Landscape did the work for a three-year period between 2003 and 2006. Monahan, a Democratic Party fund-raiser, also pleaded guilty last week to one count of mail fraud as part of the scheme. Harper, of Algonquin, will be sentenced Oct. 14. He faces up to 20 years in prison, but Harper's lawyer, Patrick Cotter, said prosecutors will be seeking a less severe punishment of roughly 16 months based on sentencing guidelines. Harper played eight seasons with the Bears.

Roland Harper pleaded guilty to mail fraud Tuesday in connection with a scheme involving a $1.5 million minority landscaping contract

Roland Harper pleaded guilty to mail fraud Tuesday in connection with a scheme involving a $1.5 million minority landscaping contract with t...

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