Bankrupt Banker

HSBC Middle East, said his bank did not implement a general blocking of overseas transactions

Jonathan Campbell James, regional head of security and fraud risk, HSBC Middle East, said his bank did not implement a general blocking of overseas transactions as its customers expected to have access to their accounts wherever they travel.“But when we detect a series of fraudulent transactions coming from a particular geography, we may temporarily restrict access,” he said in a statement. Major-General Khamis Matar Al Mazeina, Deputy Commander-in-Chief of Dubai Police, said the hackers are from Russiaand Ukraine. Banking sources, however, said the hackers were part of an international network, with most of the fraudulent transactions originating from more than 20 countries outside the UAE.Al Mazeina said the police were trying to find out the methods used by the gang to steal from bank accounts. “We want to find out whether the breach occurred when customers used their cards to buy on-line or when they used their cards within the UAE and certain other countries.”He said police still did not have any clue about the number of people and banks hit by the fraud or the total amount stolen by the gang. “We are in touch with credit card companies, banks and fraud victims although we have not received any complaint so far.” He said the police would meet concerned authorities to probe into the matter and find measures to protect credit card users.Banks said only ATM debit cards have been counterfeited. “The attack is more sophisticated than that are  routinely experienced, and has come from multiple countries,” Campbell James said. Most banks continued to encourage customers to change their PIN numbers. “Because a large number of customers have already done so, a significant number of attempts by fraudsters to steal from customers’ accounts have been frustrated,” the bank official said. “HSBC and several banks in the UAE have identified fraud that appears to result from the compromise of ATM information from another bank. This information has been used to produce counterfeit cards that have been used internationally.” The bank official said if a customer’s card had been copied and used to steal money, the bank would contact the customer, advise them what had been done, organise a refund and issue a new card free of charge.“Our special accelerated procedure for refunding UAE customers affected by this particular fraudulent attack is working well. A substantial number of customers have already received their refunds and the process of issuing free replacements for cards which have been compromised is on track.”

HSBC Middle East, said his bank did not implement a general blocking of overseas transactions

Jonathan Campbell James, regional head of security and fraud risk, HSBC Middle East, said his bank did not implement a general blocking of o...

Khalifa Bkhit al-Falasi who is free on bail, was dismissed in July from the cabinet without an official explanation.

"There is no case in the first place. It is a contrived and unjustified case," former state minister Khalifa Bkhit al-Falasi told AFP before appearing in a Dubai courtroom along with three alleged associates.Judge Hamad Abdullatif Abdulgawad read out the charges of "breach of trust and fraud" against the ex-official and the three others -- Falasi's son, a US citizen of Arab descent and an Indian national -- in seizing a software company.All denied the charges, which relate to a business association preceding Falasi's appointment as state minister in February. The case was brought by a Lebanese businesswoman who accused Falasi of "breaching the trust of her family's business" following the death of her brother, who was his partner."This is an issue that was settled in 2005 when the partners ended the partnership and signed agreements," defence lawyer Hussein al-Jaziri told reporters. "Even assuming there is a dispute, it is a civil, not criminal, issue," he said.Falasi, who is free on bail, was dismissed in July from the cabinet without an official explanation, shortly after the public prosecution pressed charges against him.His trial, which was adjourned to October 20, comes amid a crackdown on corruption by the government of Dubai, a Gulf business hub aiming to rival global financial centres like London and New York.Several executives are being detained or questioned over alleged fraud in a number of high-profile companies. But Jaziri said Falasi's case was a private matter which had nothing to do with ongoing corruption probes.None of the executives currently being questioned for purported fraud or bribery, including both Emiratis and foreigners, have yet gone on trial.

Khalifa Bkhit al-Falasi who is free on bail, was dismissed in July from the cabinet without an official explanation.

"There is no case in the first place. It is a contrived and unjustified case," former state minister Khalifa Bkhit al-Falasi told ...

British national Ariyakunathasa Pirathesan, who lived at the "veritable fraud factory"

British national Ariyakunathasa Pirathesan, who lived at the "veritable fraud factory" and was described by Judge Martin Beddoe as a "very principal player" in the conspiracy. Further inquiries led to a Leicester warehouse he had rented, which contained more equipment and extensive "footage from covert cameras of pin numbers being inputted into pads". He was jailed for four-and-a-half-years. Also detained were two illegal immigrants.  Sri Lankan Sombalu Jeyaganesh, 34, of Allan Drive, Raynhill, Liverpool, helped emboss the cloned cards. In addition, a "commercial valuation" found for a petrol station in Bootle, Merseyside, was found in a bedroom he was using at the Coventry address. The third man to be arrested was Sivanesan Mayilvaganam, of Garden Avenue, Mitcham, Surrey, 28, who was also recruited to help "process" the fake cards. They each got three years and were recommended for deportation. All three admitted one count of conspiring to defraud clearing banks between January 1, 2007, and March 13 this year. Passing sentence, the judge told them: "This was a massive, very determined, well-organised and sophisticated operation. This particular form of credit card fraud is becoming widespread. "It is a real and significant scourge on the banking industry and the holders of their credit cards. Financial damage caused by this activity is substantial, and it was substantial in this case. "The need for substantial deterrent sentences in cases such as this is obvious," he added. Mr Coltart told the court although the actual amount stolen- mainly as a result of cash machine withdrawals abroad - was £254,000, the "average loss figures for compromised cards" suggested the fraud could eventually have netted up to £3.5 million. "The vast majority of credit cards in this case were being used at petrol stations.  All of the evidence suggests it was petrol stations used to capture electronic data and physically film customers entering their pin numbers. "This can be done by fraudsters acquiring petrol stations and running them as legitimate businesses and alternatively bribing staff working there already." He added: "The international dimension of the fraud is best encapsulated by the passport stamps which indicated between January 2006 and December 2007 Pirathesan made a total of 29 foreign trips to India, Thailand, Sri Lanka, Malaysia and the US."

British national Ariyakunathasa Pirathesan, who lived at the "veritable fraud factory"

British national Ariyakunathasa Pirathesan, who lived at the "veritable fraud factory" and was described by Judge Martin Beddoe as...

Ruth Akinyemi, 23, passed on the personal details of eight account holders enabling co-conspirators to plunder their funds.

A young Barclays Bank clerk at the centre of an "alarmingly simple" £500,000 identity fraud against customers has been jailed for ...

Kendall Parrott former director of the Harvey Park District admitted in federal court Friday that he used a district credit card for personal expenses

former director of the Harvey Park District admitted in federal court Friday that he used a district credit card for personal expenses as we...

Frank Graham Farrier Jr., one of two Giles County investment advisers charged in a fraud scheme that cost clients millions of dollars

Frank Graham Farrier Jr., one of two Giles County investment advisers charged in a fraud scheme that cost clients millions of dollars, switched his plea to guilty Friday in federal court in Roanoke.Farrier, 64, of Newport was one of two principals in Mountain Investments and Dogwood Farms, two companies that prosecutors say were nothing more than a Ponzi scheme, using investors' money to pay earlier investors as well as the men's personal expenses.Prosecutors have not been able to determine exactly how much money investors lost because the companies' activities extended beyond the period of time that records must be kept.The other defendant named in last year's 42-count indictment is Ted James Johnson Jr., 58, a former Giles County commissioner of the revenue and circuit court clerk who has maintained his innocence. Farrier's plea was a reversal of not guilty pleas that he had entered in August.In court Friday, Farrier pleaded guilty to six charges, apologized to those he had hurt, and pointed to Johnson as the more active partner in the swindle. Taking the witness stand, Farrier testified he was the bookkeeper in the scheme and that Johnson made the commodity trades that lost investors' money. He said that Mountain Investments never turned a profit.Farrier said he and Johnson would woo potential investors by bringing them to a "trading room" in Johnson's house, showing off computer monitors that seemed to show trading activity.The charges to which Farrier pleaded were two counts of mail fraud, securities fraud, conspiracy to launder money, being an unregistered commodity pool operator, and an agreement to forfeit property.The maximum penalties for the charges total decades in prison and more than a million dollars in fines.In exchange for Farrier's plea, prosecutors agreed to drop remaining fraud and other charges when he is sentenced. Prosecutors said they may ask for a lighter sentence than federal guidelines call for if Farrier assists their case. U.S. District Court Judge Samuel Wilson directed the federal probation office to prepare a pre-sentencing report that will lay out a recommended penalty for Farrier.The indictment said that since 1992, more than 80 people invested money with Johnson and Farrier, who promised rates of return of 17 percent to 25 percent or more. Neither of the men nor their company was properly registered to conduct the sorts of transactions they told investors they would carry out, the indictment said.The Virginia State Corporation Commission began investigating Farrier and Johnson in 2001 after receiving a complaint about a newspaper advertisement that promised a 14 percent to 17 percent yield on investments. In 2004, Johnson, Farrier and Dogwood Farms declared bankruptcy, listing debts to investors of more than $8 million. The SCC said its attempts to make them repay investors had failed and a federal investigation began.

Frank Graham Farrier Jr., one of two Giles County investment advisers charged in a fraud scheme that cost clients millions of dollars

Frank Graham Farrier Jr., one of two Giles County investment advisers charged in a fraud scheme that cost clients millions of dollars, switc...

Thousands of bank account holders are believed to have been the victims of a massive ATM fraud that has swept across Abu Dhabi

Banks across the United Arab Emirates are fighting to restore confidence in the banking system after hackers used counterfeit cards to withdraw funds from cash machines." Banks involved include Citibank, HSBC, Lloyds TSB, National Bank of Abu Dhabi and Emirates NBD. At least seven major banks have been affected and tens of thousands of customers were forced to change PIN codes. Some saw their cards swallowed by cash machines or were informed their cards no longer worked. There is still no official word on who the fraudsters are or how they were able to breach security in the first place, though early signs of trouble came on August 26, when the US embassy in Abu Dhabi reported “numerous” cases of US citizens in the UAE who had been victims of credit and debit card fraud.As further cases came to light, UAE banks including HSBC, Citibank, Dubai Bank and National Bank of Abu Dhabi issued statements to announce extra customer protection, such as a block on card usage overseas, with HSBC citing an “attack on our local accounts from counterfeit ATM card usage abroad”. But the new measures are little comfort to those already affected. One expat, an HSBC customer, had the daily maximum amount of dhs8,000 withdrawn from his account in a matter of minutes over the weekend. He received a flurry of text messages, informing him that dhs800 had been withdrawn from his account - ten times.“The maximum amount is crazy,” the customer said. “There were ten cash transactions in the space of a few minutes. How can security not pick up on that? It’s a shambles. Banks are trusted to look after your money, not to lose it.”A source at HSBC told 7DAYS the number of customers affected at its branches is around 1,000.Banks warned customers of potential fraud by sending text messages recommending that they change their PIN codes.Saif Al Shehhi, senior general manager of NBAD’s domestic banking division, said his bank “utilises sophisticated fraud monitoring techniques” and was able to quickly detect the attacks and take urgent action to limit the problem. “This includes the use of SMS alerts where customers are notified of any activities on their accounts, which has also assisted us in containing the problem,” he said.One UK-based financial expert said the criminals appeared to have attacked multiple banks simultaneously, indicating they were targeting the industry as a whole rather than one institution. While the banks, along with card operators MasterCard and Visa, continue to investigate the security breach, a senior official at Dubai Police has asked fraud victims to immediately lodge complaints with them.

Thousands of bank account holders are believed to have been the victims of a massive ATM fraud that has swept across Abu Dhabi

Banks across the United Arab Emirates are fighting to restore confidence in the banking system after hackers used counterfeit cards to withd...

Raffaello Follieri, 30, pleaded guilty to 14 counts of wire fraud, money laundering and conspiracy.

Raffaello Follieri, 30, pleaded guilty to 14 counts of wire fraud, money laundering and conspiracy. He had used his contacts to attract investors to real estate ventures.<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAO_HEf2LoQUEq6y-2C2GPRdZ9MzGb5cea-UptizV1U-xkj2xlu-rgGDFb6Zl9scJj7rOQ8GmMgDNHkMFIbQ-o7NbAkTC7T5nAiDSBoAusiENUtqb7dG6_FAvfAK3aFGz6O6dgd_fjjFfp/s1600-h/folli.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5245287694963172050" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAO_HEf2LoQUEq6y-2C2GPRdZ9MzGb5cea-UptizV1U-xkj2xlu-rgGDFb6Zl9scJj7rOQ8GmMgDNHkMFIbQ-o7NbAkTC7T5nAiDSBoAusiENUtqb7dG6_FAvfAK3aFGz6O6dgd_fjjFfp/s400/folli.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>He is scheduled to be sentenced on Oct. 3. Under the plea bargain, he has agreed not to appeal any sentence that is less than five years and three months. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikeSaGTz5GX3zWaJrgdomwDa4qppX0gImwI5fVqz_QKYrTu9G7z8r3q72mmuFYNVO2ej9_-xsFqWgMCRvGbubFdsnF0cTd1PtHM1I7P4BE82LFUNTeDdhKcj817vjBm5axO9bFeyrsm2Ix/s1600-h/follieri_hathaway240.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5245287699206412418" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikeSaGTz5GX3zWaJrgdomwDa4qppX0gImwI5fVqz_QKYrTu9G7z8r3q72mmuFYNVO2ej9_-xsFqWgMCRvGbubFdsnF0cTd1PtHM1I7P4BE82LFUNTeDdhKcj817vjBm5axO9bFeyrsm2Ix/s400/follieri_hathaway240.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>The plea requires Mr. Follieri to give up $2.4 million, 12 watches and 9 pieces of jewelry. The watches included a Rolex, a Cartier, a Harrods and a Donald Trump. The jewelry included a gold-colored ring with light blue-green stone, a pair of silver earrings with silver clasps and blue and clear stones, a 16-inch five-strand necklace with pearl beads, and a 32-inch gold-colored chain with a red-brown stone and gold-colored tassel. The jewelry is believed to have been Ms. Hathaway’s. Dressed in navy blue corrections department clothing, Mr. Follieri appeared unshaven and in need of a haircut. His sentencing was initially scheduled for Dec. 12, but his lawyer, Flora Edwards, asked the judge for an earlier date, saying that Mr. Follieri was having “a very difficult time” in the Metropolitan Detention Center. In the indictment, prosecutors accused Mr. Follieri, the chairman and chief executive of the Follieri Group, of getting millions of dollars from investors by claiming that his connections with the Vatican allowed him to buy church properties at below-market prices and redevelop them for “socially responsible” purposes. Mr. Follieri had no special rights in terms of buying properties but was simply competing against other bidders, the indictment said.Instead, the government said, he used money he received from investors to finance a lavish lifestyle including a $37,000-a-month apartment, meals and clothing. The charges accused him of misusing more than $2 million.Mr. Follieri’s descent from Manhattan’s highest social perches began this summer when he was arrested at his Trump Tower apartment just days after Ms. Hathaway broke off their relationship. After failing to post a $21 million bond for bail, Mr. Follieri, who was a regular at restaurants like Nobu and Cipriani, found himself in a jail cell.“He’s a con artist,” Paolo Zampolli, who works in real estate development and knew Mr. Follieri socially, told The Times. “He deserves what he gets.”In addition to the claims about his Vatican ties, the key to Mr. Follieri’s scheme was his ability to ingratiate himself in Manhattan social circles, which led to introductions to wealthy and powerful investors.When Mr. Follieri arrived in Manhattan in 2003, he lived like many new transplants to Manhattan. He asked to stay with friends as he started his venture.Early on, the calling card he used to arrange meetings was his claim that Andrea Sodano, the nephew of Cardinal Angelo Sodano, the dean of the College of Cardinals, was working for his company. According to court records and testimony at his plea hearing, Mr. Follieri repeatedly told people that he was appointed as chief financial officer to the Vatican and that he met with the pope when he visited Rome. In a letter from March 8, 2006, which was found in Mr. Follieri’s safe after his arrest, Cardinal Sodano asked Mr. Follieri to stop misrepresenting their relationship.Still, some well-connected New Yorkers warmed to him quickly. “He was absolutely charming,” said Richard Ortoli, Mr. Follieri’s former lawyer who allowed him to stay at his home for a couple of months in 2004. He called Mr. Follieri a “perfectly amicable houseguest,” who was “very focused on this church stuff.”Lizzie Grubman, a publicist in Manhattan who said that she knew Mr. Follieri by seeing him at social gatherings, told The Times that people like Mr. Follieri showed up at New York parties and charity events until they appeared recognizable. Such people, she said, charm others with symbols of wealth: bottle service at clubs, lavish vacations and private jets.“The game he played was not unique. It’s been done before,” Ms. Grubman told The Times. “Planes, trains and automobiles are very sexy to anyone who is young.”As he became a regular at parties, Mr. Follieri met Ms. Hathaway, and the two started dating in 2004.But even then, associates were starting to question Mr. Follieri’s venture. Jeff Suchman, a real estate consultant who worked with Mr. Follieri in 2004, told The Times in an interview that he had tried to advise him on the properties that the Brooklyn archdiocese was selling.“First, I thought he was fooling himself, and I had this discussion with him. I told him that his business plan was flawed,” he told The Times. It became apparent, Mr. Suchman said, that Mr. Follieri could not carry out his development plans.Mr. Suchman later sued Mr. Follieri for not paying consulting fees; the pair eventually settled.In 2005, however, a former assistant introduced Mr. Follieri to Aldo Civico, director of the Center for International Conflict Resolution at Columbia University. Mr. Civico, in turn, put him in touch with an official at the Clinton Foundation. At an April 12, 2005, meeting at the Palace Hotel, Mr. Follieri met Douglas Band, an adviser to Mr. Clinton, and Mr. Burkle. Afterward, Mr. Follieri agreed to fly to Los Angeles for more discussions with Mr. Burkle; through him, he moved into a Park Avenue office affiliated with Mr. Burkle’s Yucaipa Companies. Mr. Burkle gave his company more than $100 million to invest in joint ventures. In 2007, his business relationship with Mr. Burkle had disintegrated into lawsuits, and Mr. Clinton’s staff members distanced themselves from him. In April of that year, Mr. Burkle sued Mr. Follieri for misappropriating at least $1.3 million. Without Mr. Burkle’s financial support, Mr. Follieri’s relationships with other backers quickly unraveled. He was eventually arrested on fraud charges. At his hearing on Wednesday, Mr. Follieri repeated for an hour the phrase “yes, your honor” to charges that he knew what he was doing was wrong. His voice grew softer when he uttered the words “guilty” to the 14 charges.

Raffaello Follieri, 30, pleaded guilty to 14 counts of wire fraud, money laundering and conspiracy.

Raffaello Follieri, 30, pleaded guilty to 14 counts of wire fraud, money laundering and conspiracy. He had used his contacts to attract inve...

Sadie Collis,and husband Derek each jailed for eight months after pleading guilty to charges of benefit fraud.

Sadie Collis, 27 and husband Derek, 31, of Broadwater Road, Worthing, West Sussex, bought cars worth a total of £48,000 while claiming, a co...

Leib Pinter, Olympia Mortgage Corporation admitted in U.S. District Court in Brooklyn to a charge of conspiracy to commit wire fraud

Leib Pinter,Olympia Mortgage Corporation originated and serviced mortgage loans owned by Fannie Mae, admitted in U.S. District Court in Brooklyn to a charge of conspiracy to commit wire fraud.A grand jury indictment in May charged Pinter and another officer of the same Brooklyn-based firm, Barry Goldstein, with conspiracy, wire fraud and bank fraud.The charges stemmed from FBI investigations into mortgage-related fraud in the troubled U.S. housing industry. Pinter and Goldstein had controlled Olympia from 1994 until November 2004, when the firm gave up its mortgage lender license.Last Sunday, the U.S. government announced a takeover of the two mortgage giants Fannie Mae and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) to help support the ailing U.S. housing market and economy.In the Brooklyn case, prosecutors said that, when Olympia refinanced a Fannie Mae mortgage loan, Fannie Mae wired the money to an Olympia account. Olympia was then required to pay off the underlying mortgage loan by sending the outstanding balance to Fannie Mae, but Pinter was accused of misappropriating the proceeds to his firm."When the fraudulent scheme was revealed, Fannie Mae held nearly $44 million in unpaid, but refinanced, underlying mortgage loans from Olympia Mortgage," the U.S. Attorney's office in Brooklyn said at the time of the indictment.Pinter faces a maximum sentence of up to 20 years on the charge, but the sentencing guidelines as part of the plea agreement call for a prison term of 10 years and one month or less. The sentencing was scheduled for December 19.

Leib Pinter, Olympia Mortgage Corporation admitted in U.S. District Court in Brooklyn to a charge of conspiracy to commit wire fraud

Leib Pinter,Olympia Mortgage Corporation originated and serviced mortgage loans owned by Fannie Mae, admitted in U.S. District Court in Broo...

Bank of Bahrain and Kuwait (BBK) customers claiming their account has been temporarily suspended.

Bank of Bahrain and Kuwait (BBK) customers claiming their account has been temporarily suspended.The document says due to a multiple login attempt error it has been temporarily suspended, along with access to the Internet banking system.The message, which claims to be from BBK's customer service department, also says customers' access to the online service be will be restricted if they fail to re-confirm their membership details.It then requests the account holder to click on a link to initiate a verification process.However, when the GDN clicked on the link an alert from the web provider appeared on screen warning against visiting the page as it might be a forgery."The page is very likely to have been designed to trick users into sharing personal or financial information," it said."Entering any personal information on this page may result in identity theft or other fraud."A BBK spokesman was unaware of anyone having been tricked by such requests for information. But he said the bank would never ask its customers to disclose their personal details and urged customers to report such suspicious behaviour. "At BBK, we will never ask our customers to disclose any of their account, ATM or card details via e-mail, text message or phone to us or any third party," he said. "It is worth taking note of the fact that these fraudulent e-mails are not just targeted towards BBK customers, but other bank customers are also targets of such attempts."To fight the phenomenon of fraudulent e-mails BBK has ensured that appropriate communication is sent via text message to its entire customer base." The spokesman said a pop-up message appears every time a customer logs on to the bank's website reminding them not to share their banking details with any third parties.He said the bank also has the same message clearly displayed in its branches and on all of its ATMs.The spokesman said if customers wished to update any account details they should only do so by logging on directly to the BBK website at www.bbkonline.com. Account holders who come across suspicious requests for private information are asked to report the matter to the bank on 17506045 and forward such e-mails to fraud@bbkonline.com before deleting them. geoff@gdn.com.bh

Bank of Bahrain and Kuwait (BBK) customers claiming their account has been temporarily suspended.

Bank of Bahrain and Kuwait (BBK) customers claiming their account has been temporarily suspended.The document says due to a multiple login a...

Remi Fakorede, used a string of "phantom" families to "systemically" rake in the fortune.

Remi Fakorede, 46, used a string of "phantom" families to "systemically" rake in the fortune. in evidence she claimed the three digits had fallen off magically and proved she had been forced into the five-year fiddle by a "voodoo" curse on her and her family. She told London's Snaresbrook Crown Court she was warned that unless she co-operated and allowed her bank account to be "hijacked", she would suffer the same fate. The wealthy hairdresser's witness box antics caused uproar in court, left one juror in tears and prompted the "horrified" judge to adjourn the case for the rest of the day. Police were later called to London's Snaresbrook Crown Court and took a statement from the Nigerian-born defendant. Social Services and the Child Protection Agency were also contacted. DNA test results were then ordered to determine who the body parts belonged to, although the court was told the defendant's three-year-old daughter lost part of her hand after suffering renal problems and developing gangrene. Judge Jacqueline Beech branded her witness box antics "utterly disgraceful" and said they were simply "calculated to manipulate this court". Fakorede, from Hackney, east London, was convicted of one count of fraud between August 1, 2002 and June 26 last year after the jury rejected her grisly defence. One of her daughters, 21-year-old Denise Shofolawe-Coker, also from Hackney, was found guilty of laundering £71,000 of the stolen money, and was jailed for a year. Passing sentence the judge, who said the fingers incident was the most "horrific" she had experienced, told Fakorede she had been responsible for a "wholesale assault on the benefit system". Rejecting a defence plea for a suspended sentence, she told the defendant from the moment the tax credit benefit was introduced she was "involved in fraudulent claims". Among other things she hid both her £40,000-a-year salary and her partner's existence to fool the authorities. "If that were not bad enough you also became involved with others in making other false claims." Some had been "false from their inception" while other, genuine claims were "hijacked by you and your gang". The judge said while there was no direct evidence where the money had gone, Fakorede had spoken in evidence both of "property in Nigeria" and her "love of jewellery". "This was a sophisticated fraud...which resulted in the Inland Revenue being defrauded to the tune of nearly £1 million. I am satisfied that you were either the lynchpin in this fraud or, at least, one of the main conspirators." She told Fakorede if, as the defendant believed, her father died from shock after learning about her "massive and sustained" dishonesty, she only had herself to blame. "I wonder what you expected to be the result upon your family of your criminality. "I find you to be a thoroughly dishonest woman on the evidence before the court. Also your life is surrounded by a web of financial deception and dishonesty which not only resulted in this case but the obtaining of two local authority houses in different boroughs." The judge continued: "Your conduct in court was nothing more than a bare-faced attempt to manipulate the jury. "Your evidence...was utterly unbelievable with your heavy reliance on voodoo, the most shocking aspect of your conduct being your assertion that your mother was murdered by having been put under a voodoo-type spell. "And the actual production of you in court of the fingers of a child during your evidence, which you said were your daughter's in order to establish that voodoo had either been perpetrated upon you or was likely to be perpetrated on you in the future. "I found your conduct in that regard to be utterly disgraceful and entirely calculated to manipulate this court," said the judge. She also condemned the ease with which Fakorede had been able to carry out the fraud. "I would like to express concern about a benefits system that allows any bank account irrespective of the identity of the holder to receive payments on other people's claims. It seems to me that such a system is an easy target for organised criminal gangs. It is the opinion of this court that the system should be reviewed." A confiscation hearing will be held later. Outside court a Revenue and Customs spokeswoman welcomed the sentences for "what was a systematic attack on the tax credit system". "They reinforce HMRC's message that those who believe they can cheat the system without a second thought should think again. This was not a victimless crime but a calculated fraud involving a significant amount of money." Jurors heard Fakorede used combinations of her names to create 20 phantom families with children - often disabled twins - to make 39 false tax credit claims. Stolen national insurance numbers were also used. More than half the £925,933 defrauded passed through various accounts under her control, while £71,000 of that was laundered through her daughter's. While pocketing the massive payouts with one hand, she was using the other to bank income from her hairdressing salon and rental from the two council house peroperties. Oscar Del Fabbro, prosecuting, said: "The investigations revealed various characteristics which are often contained in claims of this type - fictitious children who are often twins or disabled, and apparently the claimant is self-employed." Authorities discovered what she had been doing when she tried to claim childcare as well. Not only was her handwriting linked to a large number of claim forms but she was also taped calling a helpline to demand benefits. When all payments were eventually halted, there was not a single complaint from any of the so-called recipients. During the first day of her evidence, Fakorede, who holds joint British and Nigerian nationality, told the court her mother died a few months earlier. The following day she resumed her evidence and explained how her mother had been taken from her home and "murdered". The culprits, or "forces of darkness", had then put a powerful "voodoo" curse on her and her family. The defendant, who also claimed an "Auntie Marian" had hijacked both her and her daughter's identities during the fraud, said the spell forced them into allowing their accounts to be used to receive some of the money. She said the magic employed was so strong it caused her three-year-old daughter to lose three fingers. At that point she opened her handbag, pulled out the tissue-wrapped fingers and said she had been warned if she did not do as she was told the same thing would happen to her . At the time the judge said: "I have never experienced anything as horrific as this." Neither had any of her fellow judges with whom she discussed the incident. Andrea Ferguson, defending Fakorede, told the court that although she could not definitively say the DNA test confirmed the fingers belonged to her client's daughter, Ilford police had decided not to prosecute over the fingers and said she was "welcome" to collect them at any time. That suggested everything "was in order". The barrister added there was no evidence her client, who had been in "considerable debt" when arrested, had enjoyed a "lavish lifestyle". "There was no evidence of fast cars. There was no evidence of personal expenditure over and above what one would expect from a normal family."

Remi Fakorede, used a string of "phantom" families to "systemically" rake in the fortune.

Remi Fakorede, 46, used a string of "phantom" families to "systemically" rake in the fortune. in evidence she claimed t...

William Stewart and Sandra Hollis Officers wanted to speak to them about more than a dozen fraud-related crimes

William Stewart, 48, and Sandra Hollis, 45, both from Dundee, were picked up in Burnley, Lancashire. Officers wanted to speak to them about ...

Lawrence Eric Leins received a nearly five-year prison sentence for bilking $1.9 million from investors in a fraudulent scheme to sell apartments

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwZWXUya4zl-K1soCGnSHJp2mTvaaaRc9OEon6cRbnsPSqCdtvmQpr7e3Liu_8_A2MEmAfFg_LmiT0lvlGGD2MWyyzqsZk86uwPtrH6EgIak_rip-6hU9uNPSutmINdDim9mSIyT_7YgAa/s1600-h/fraud.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5245280488957520146" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwZWXUya4zl-K1soCGnSHJp2mTvaaaRc9OEon6cRbnsPSqCdtvmQpr7e3Liu_8_A2MEmAfFg_LmiT0lvlGGD2MWyyzqsZk86uwPtrH6EgIak_rip-6hU9uNPSutmINdDim9mSIyT_7YgAa/s400/fraud.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a> On Thursday, Leins stood before a federal judge in Jacksonville and received a nearly five-year prison sentence for bilking $1.9 million from investors in a fraudulent scheme to sell apartments in the Czech Republic, many of which were historic buildings owned by the city of Prague.Lawrence Eric Leins was a high-flying executive with the Orlando Predators, a recipient of one of the Arena Football League's top honors in 1992.Among those who lost money: Orlando Circuit Judge Robert LeBlanc and Leins' own mother. Prosecutors said Leins used their money to finance a lavish lifestyle, including a $1.2 million home in The Plantation at Ponte Vedra, a 32-foot powerboat and two luxury vehicles.All were purchased after Leins filed for bankruptcy in 2006."This is someone who, whatever way you cut it, stole other people's money to buy stuff," Assistant U.S. Attorney Tysen Duva said. Still unresolved is a legal dispute between one of Leins' victims and the U.S. Attorney's Office over the Ponte Vedra Beach home. The victim, New York investor Chaim Gross, says the house should be his because paperwork shows Leins used his investment directly to purchase the property. Federal prosecutors contend the government should sell the house and split the proceeds proportionately among investors, Duva said.Leins, 52, was indicted in March on 10 counts related to his Czech Republic Property Fund. He represented in glitzy company literature that the fund owned residential apartments in Prague, where investors could purchase units of ownership in the fund for $50,000. He told them they could expect an 11 percent return on their investments.Court documents indicate Leins didn't own the properties. A Czech lawyer told the FBI that Leins wasn't even licensed to do business there.Leins pleaded guilty to one count of wire fraud and was sentenced to 57 months in prison. U.S. District Judge Henry Adams ordered him to pay $1.9 million in restitution, much of which will likely come from property he ordered seized from Leins.Leins apologized to the investors, especially his mother - who prosecutors said invested $25,000 along with several of her friends. She told Adams she supported her son despite the fraud."I believed sincerely that this was a solid business plan," Phyllis Wirtz said. "My life has certainly been affected, but ... I need his love and I know he needs mine."She has filed a claim with the government for $15,000 she lent her son to buy his Mercedes.Leins was director of operations for the Predators when the Arena Football League started in 1991 and was awarded the league's executive of the year in 1992.

Lawrence Eric Leins received a nearly five-year prison sentence for bilking $1.9 million from investors in a fraudulent scheme to sell apartments

On Thursday, Leins stood before a federal judge in Jacksonville and received a nearly five-year prison sentence for bilking $1.9 milli...

Suren Agadzhanov, 42, of Atlanta, was sentenced late Thursday to three years and 10 months in federal prison

Suren Agadzhanov, 42, of Atlanta, was sentenced late Thursday to three years and 10 months in federal prison followed by five years of supervised release.In 2002, Agadzhanov began fraudulently obtaining work visas for people from eastern Europe -- primarily the Baltic republics of Latvia and Lithuania -- who had legally entered the United States and wanted to extend their stay beyond the terms of their legitimate visas. Agadzhanov charged his “clients” thousands of dollars to complete and submit false paperwork claiming the individuals would be working for one of a stable of fictitious companies Agadzhanov had established out of his home.Agadzhanov fabricated information about the job responsibilities, salary and location, as well as the companies. He would, at times, even include fake tax forms as evidence of the size and existence of the sham businesses. Agadzhanov also submitted bogus educational credentials for many of the visa-seekers. Since neither the companies nor the jobs existed, his clients, if granted work visas, would be illegally in the United States.As the federal agencies began to uncover Agadzhanov’s visa fraud scheme, his sham applications were rejected. Eventually, Agadzhanov got out of the visa fraud business and started investing the proceeds from that fraud in Atlanta residential real estate. Typically, Agadzhanov would find a property in foreclosure, buy it, and then flip the house to one of his visa clients at an inflated price. That buyer would never move in and the house would quickly fall back into foreclosure. The loan applications for both Agadzhanov’s purchases and the purchases by Agadzhanov’s phony buyers all had false information concerning the borrowers’ employment and income -- often with the same fake companies that Agadzhanov created for his visa fraud scheme.

Suren Agadzhanov, 42, of Atlanta, was sentenced late Thursday to three years and 10 months in federal prison

Suren Agadzhanov, 42, of Atlanta, was sentenced late Thursday to three years and 10 months in federal prison followed by five years of super...

Brittany Savings defended their institutions' operations Thursday over allegations of fraud made by Brittany investors.

Representatives of Security Savings Bank and the corporation that owns the bank, Brittany Savings, defended their institutions' operations Thursday over allegations of fraud made by Brittany investors. "The allegations from the Mabe family are false, and we intend to vigorously defend them. And that's the position of Brittany Savings Corporation," said Frank Bell, Brittany's president. Bell is the son of Donald H. Bell Sr., who is on the board of Brittany and is board chairman of Security Savings Bank. Donald Bell is at the center of allegations by the Mabe family of Olathe. The Mabes allege in a federal lawsuit filed Tuesday that they were misled into investing more than $933,000 in stock in Brittany Savings when Donald Bell knew Brittany could not continue to maintain the high investment returns he promised, because of the financial condition of Security Savings Bank. Brittany is a holding company for Security Savings Bank. Security Savings Bank is not a defendant in the lawsuit. The bank has three branches in Salina. On Thursday, Security Savings Bank's president and chief executive officer, Mike Copeland, said that the bank has a level of working financial capital greater than that called for by regulatory guidelines. As to one of the lawsuit's allegations that the bank made loans outside its territory, so do other lenders, Copeland said. "That's not out of the ordinary in the course of banking," said Copeland, who is also Olathe's mayor. "Typically our main focus is investing in the three communities where we have a market presence. That's where our deposits come from and that's where the bulk of our loans go to." The bank reported a $2.4 million loss in the second quarter of this year. The loss followed a $3.4 million first-quarter profit that came about through the sale of three branches in western Kansas. Frank Bell said Thursday that information he's received is that the bank broke even in August and has since been making a profit. He said the bank was able to resolve "some of the troubled loans we had to reserve money for." The suit alleges that Donald Bell sought to raise money for Security Savings Bank by selling stock in Brittany because Bell knew problematic loans posed trouble for the bank. The Mabes are seeking to recover the amount they paid for Brittany stock, minus dividends or profits, plus losses from the loans assumed by the Mabes to buy the stock. Their suit also asks for damages to be determined through the court, attorneys fees and costs of the suit, plus interest.

Brittany Savings defended their institutions' operations Thursday over allegations of fraud made by Brittany investors.

Representatives of Security Savings Bank and the corporation that owns the bank, Brittany Savings, defended their institutions' operatio...

Former president Manuel Pellerano and vice president Juan Mendoza of Banco Nacional de Cred sued by the nation's Central Bank

Former president Manuel Pellerano and vice president Juan Mendoza of Banco Nacional de Credito also were ordered to pay US$72,000 each. Both...

SPAR Imperial Vodka. raided four premises in the London Borough of Haringey and seized hundreds of bottles of potentially dangerous counterfeit vodka.

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOq-W7ZynJU-yh_DHl1UF_UAxfmSD_vNdnGorYQCMsHLufyEitBmZ6UwfaCpTkfRR0BAwOqxItMm9GI7BbWqlx_sWLOLUmHdiP9v-v3wmrKWxuhcyR1s6doJJS0lY8hbRH5ryC88RYM9sB/s1600-h/imperialvodka.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5245275884417387570" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOq-W7ZynJU-yh_DHl1UF_UAxfmSD_vNdnGorYQCMsHLufyEitBmZ6UwfaCpTkfRR0BAwOqxItMm9GI7BbWqlx_sWLOLUmHdiP9v-v3wmrKWxuhcyR1s6doJJS0lY8hbRH5ryC88RYM9sB/s400/imperialvodka.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a>Intelligence gathered through the Food Standards Agency's national food fraud database has led police, customs and trading standards and environmental health officers to raid four premises in the London Borough of Haringey and seize hundreds of bottles of potentially dangerous counterfeit vodka.The intelligence was received by the Agency after it published an alert to local authorities across the UK about counterfeit SPAR Imperial Vodka which contains potentially harmful levels of methanol. The levels recorded could have serious health effects, including blindness, if consumed in large quantities.The Agency’s national food fraud database was set up to help local authorities investigate and prevent food fraud. Intelligence received by the Agency identified a warehouse in Haringey as a possible source of supply of the counterfeit 'Imperial Vodka'. Documents seized at the premises led officers to three further locations where more counterfeit vodka was seized.Sarah Appleby, Head of Enforcement at the Food Standards Agency, said: 'The Agency plays an important role in gathering intelligence on food fraud from across the country and sharing it with local authorities to allow them to carry out their vital enforcement role effectively. Haringey Council's investigation is still on-going and we are continuing to warn the public and other local authorities to be on the look out for this potentially dangerous counterfeit vodka.'

SPAR Imperial Vodka. raided four premises in the London Borough of Haringey and seized hundreds of bottles of potentially dangerous counterfeit vodka.

Intelligence gathered through the Food Standards Agency's national food fraud database has led police, customs and trading standards and...

Francisco Santillan Arellano, 36, pleaded guilty on Friday to charges of conspiracy to make and sell fraudulent Social Security cards

Arellano, also known as “El Padrino” (The Godfather), was the head of a fraudulent document manufacturing and sales ring that distributed its products to illegal aliens. He admitted to law enforcement authorities he employed at least 17 people in metro Atlanta to run the fraudulent document business for at least two or three years prior to his arrest on March 25. The ring operated at least two document labs at apartments in the Forest Park and Lindbergh-Buford Highway areas. Arellano admitted the ring sold about 90 sets of fraudulent documents every week.Francisco Santillan Arellano, 36, pleaded guilty on Friday to charges of conspiracy to make and sell fraudulent Social Security cards, permanent resident cards (green cards) and driver’s licenses, and to identification document fraud and aggravated identity theft.Arellano was indicted in April 2008. He pleaded guilty to one count of conspiracy, one count of identification document fraud, and one count of aggravated identity theft. He could receive a maximum sentence of 12 years in prison and a fine of up to $750,000. He is subject to a mandatory minimum sentence of at least two years in federal prison.“In many cases, the fraudulent documents contained the Social Security numbers and Alien Registration numbers of real U.S. citizens and legal immigrants to whom they had been lawfully issued,” U.S. Attorney David E. Nahmias said. “In using these numbers, these defendants acted with callous disregard for the rights of law abiding citizens and residents of this country.”

Francisco Santillan Arellano, 36, pleaded guilty on Friday to charges of conspiracy to make and sell fraudulent Social Security cards

Arellano, also known as “El Padrino” (The Godfather), was the head of a fraudulent document manufacturing and sales ring that distributed it...

Citibank, HSBC, Lloyds TSB, National Bank of Abu Dhabi and Emirates NBD hackers used counterfeit cards to withdraw funds from cash machines.

Banks across the United Arab Emirates are fighting to restore confidence in its banking system after hackers used counterfeit cards to withdraw funds from cash machines.It's unclear how many customer accounts have hit by the attack much less how much money has been lost over the last three days, when the issue came to the fore. Local banks including Citibank, HSBC, Lloyds TSB, National Bank of Abu Dhabi and Emirates NBD have all issue statements, The Times reports.The fact so many local bank are involved show that the problem is widespread. Fraudulent withdrawals both inside and outside the UAE have been recorded, Reuters adds.A large number of banks have taken the highly unusual step of advising customers to change their PINs as a precaution. They are issuing text message alerts to customers on the issue while emphasizing that anti-fraud systems have the problem under control. Customers have been assured that they will be reimbursed for any losses.Some banks have frozen the accounts of customers who have failed to change their PINs, causing chaos, UAE paper The National reports. Dubai Bank temporarily suspended international use of its ATM machines. It says only 42 of customers were affected, all of whom have already been re-imbursed.A statement from the National Bank of Abu Dhabi, which seems typical of those issued by the banks, can be found here.Preliminary investigation suggest that hackers may have got their hands on card details and PINs after rigging cash machines with card skimmers. Other reports raise the dark spectre that bank's internal systems have been compromised.

Citibank, HSBC, Lloyds TSB, National Bank of Abu Dhabi and Emirates NBD hackers used counterfeit cards to withdraw funds from cash machines.

Banks across the United Arab Emirates are fighting to restore confidence in its banking system after hackers used counterfeit cards to withd...

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