30

Ex-fraud boss 'surprised' on BAE (UK)

The Serious Fraud Office's former head has said he was surprised by a ruling that it was wrong to drop a corruption probe into defence company BAE Systems. (Read more...)

Tyco International to pay NJ $73M to settle securities fraud (US)

Tyco International Ltd. has agreed to pay New Jersey $73.3 million to resolve state charges of securities fraud involving former management of the diversified manufacturer. (Read more...)

Former Nortel execs settle fraud charges with SEC (US)

Three former Nortel Networks Corp (NT/TSX) executives have agreed to each pay US$75,000 plus disgorgements to settle financial fraud charges with the U.S. Securities and Exchange Commission, the SEC said on Wednesday. (Read more...)

Scary: Ex-Monster COO charged with fraud (US)

Federal prosecutors in Manhattan have charged the former chief operating officer of Monster Worldwide with backdating stock option grants to employees between 1997 and 2003.

James Treacy is charged with securities fraud and conspiracy. The indictment accuses him of conspiring with others to backdate millions of dollars' worth of employee stock option grants. He is expected to appear in court later Wednesday.

Prosecutors say the backdated option grants caused the understatement of $339 million in expenses between 1997 and 2005. (Read more...)

EC Bars Former HBOC and Ebix Auditor (US)

The Securities and Exchange Commission has agreed to bar a former Arthur Andersen audit partner from appearing or practicing before the commission for at least five years. (Read more...)

29

Microsoft device helps police pluck evidence from cyberscene of crime (US)

Microsoft has developed a small plug-in device that investigators can use to quickly extract forensic data from computers that may have been used in crimes. (Read more...)

Ex-HealthSouth CFO's lawyers told to produce docs (US)

WASHINGTON, April 29 (Reuters) - A U.S. judge on Tuesday ordered lawyers representing a former chief financial officer of HealthSouth Corp to turn over documents to investment bank UBS AG.

Michael D. Martin, a former chief financial officer at HealthSouth, has said he told UBS employees of a massive accounting fraud, which later prompted a federal investigation and a management upheaval at the rehabilitation health chain. (Read more...)

SEC Must Turn Over Documents In Whistle-Blower Case (US)

The Securities and Exchange Commission (SEC) has to cough up thousands of pages of transcripts, trading records, e-mails and other documents it tried to keep confidential in its ongoing battle with its former investigator and would-be whistle-blower Gary Aguirre. (Read more...)

28

SEC charges of stock option abuse loom for former Pixar CFO (US)

The former chief financial officer of hit movie maker Pixar Animation Studios is facing a possible legal battle with securities regulators for alleged mishandling of stock options, according to documents filed Monday. (Read more...)

The Biggest Con of All (US)

As someone who has worked in New York City for more than two decades, I’ve seen more than my share of street-wise con men and their ongoing hustles on tourists.

Unfortunately, a much larger con has been perpetrated on the residents of the Big Apple and neighboring suburbs, courtesy of its utility provider, Con Edison. (Read more...)

Ex-VFL star pleads not guilty to fraud (Australia)

Former Australian football star David Dench has pleaded not guilty to a charge of obtaining property by deception as part of a case in which a university was defrauded of $10 million. (Read more...)

Fraud Squad detectives issue warning about scam targeting the Chinese community (Australia)

The NSW Police Force is today warning members of the Chinese community to be wary of a telephone scam aimed at stealing people’s cash.

Fraud Squad Commander, Detective Superintendent Colin Dyson, said police have received a number of reports from the Chinese community over the past couple of weeks.

“This scam involves calls being made to people, telling them large amounts of money have been won in a lottery in Hong Kong,” Detective Superintendent Dyson said. (Read more...)

27

Israeli lawmaker sentenced to 18 months in jail for bribery, fraud (Isreal)

Jerusalem - The Jerusalem District Court sentenced Sunday an ultra-Orthodox legislator to 18 months in jail, and ordered him to pay a fine of 80,000 shekels (23,000 US dollars), after convicting him last month of bribery, fraud and breach of trust. (Read more...)

26

Wachovia to pay $144 million to settle telemarketing fraud allegations (US)

Wachovia Corp. has agreed to shell out around $144 million to settle allegations that it did  not take adequate measures to stop a telemarketing fraud that scammed thousands of consumers, including those of other banks. (Read more...)

Man jailed over £4m tax fraud (UK)

A west London gang master who cheated the tax man of up to £4m in a lucrative empire trading on the work of airport staff has been jailed for six years.

Multi-millionaire Mazher Raja, 50, of Hanworth, defrauded the Inland Revenue from at least 1993 to 2001, London's Southwark Crown Court heard.

Raja "despicably" targeted his own community, Geoffrey Rivelin, QC, said.

Former LeNature's executive pleads guilty in fraud (US)

LeNature's former director of accounting pleaded guilty Thursday to defrauding company lenders by fabricating hundreds of millions of dollars in sales. (Read more...)

N.Y. Man Sentenced In East Windsor Firm's Fraud Case (US)

A 64-year-old New York state man was sentenced Thursday in U.S. District Court in Hartford to 27 months in federal prison in connection with a scheme involving an East Windsor company to defraud a commercial lender of $11.5 million. (Read more...)

Montrealer indicted in U.S. on fraud charges (Canada)

A Montreal penny-stock promoter has been charged in North Carolina with securities fraud for his alleged role in a $23.4-million U.S. pump-and-dump scheme. (Read more...)

The genesis of an epic fraud (Canada)

Former Ottawa businessman Mariusz Rybak shocked everyone earlier this week when he agreed to pay $60 million -- nearly all of his family assets -- to settle a two-year-old fraud claim by the company he founded. But that wasn't the only surprise to emerge from the five-month-long civil trial in London's High Court. There were also revelations of death threats, fake resumés and colleagues' links to a major banking fraud in Spain. Associate business editor James Bagnall reports on one of the most bizarre stories in many years involving a Canadian entrepreneur. (Read more...)

Turlock man given nine years in investment fraud case (US)

TURLOCK—A Turlock man who called himself a "financial serial killer" got nine years in federal prison for investment fraud. (Read more...)

25

Three get prison time for mortage fraud (US)

The three people who organized a $37 million mortgage fraud scheme surrounding condominiums in South Beach were sentenced to prison time on Thursday, the U.S attorney's office said. (Read more...)

Court approves Citigroup $1.66 billion Enron settlement (US)

bankruptcy court approved Citigroup's $1.66 billion settlement with creditors of bankrupt energy trader Enron, the group representing the creditors said Thursday. (Read more...)

Using Ex-Cons to Scare MBAs Straight (US)

By the time he was 40, Walter A. Pavlo Jr. had graduated with a master's degree in business from Mercer University, worked as a manager at MCI, concocted a $6 million money laundering scheme, served a two-year sentence in federal prison, and was divorced, unemployed, and living with his parents. It's a story that should scare any MBA straight.

At least that's the hope of business school professors who bring in Pavlo (and pay him as much as $2,500 per visit) to speak to their students about corporate crime. (Read more...)

Deloitte Survey: Communication Impacts Employee Ethics, Productivity (US)

Does transparency and openness by leadership lead to a more productive and engaging workplace? According to the findings of the Deloitte 2008 Ethics & Workplace survey, it does. What's more, it also leads to a more ethical workplace culture. (Read more...)

24

Broadcom to Pay $12M Settlement to SEC (US)

Broadcom agreed to pay $12 million to settle charges with the Securities and Exchange Commission over the chip maker's stock-option backdating that led to a restatement of more than $2 billion. (Read more...)

Three NRIs convicted for 300 million pounds global fraud (UK)

Three Indian-origin businessmen who swindled banks in Britain and the United States of more than 300 million pounds by pretending to run a worldwide metal trading empire have been found guilty and face a long term in jail. (Read more...)

Banks, Lenders Must Protect Data From Fraud, U.K.'s FSA Says (UK)

Banks, insurance companies and lenders aren't doing enough to ensure customers' personal data is protected from identity thieves, according to the U.K.'s financial regulator.

Companies that fail to encrypt data on laptop computers that are taken out of offices may face enforcement action, the Financial Services Authority in London warned in a report. (Read more...)

German investigation into corvette contract near completion (Germany)

DUSSELDORF (Sapa-dpa) - A German inquiry into alleged kickbacks for South African officials who placed an order for four new warships has widened, with 12 suspects identified, two of them serving executives at the ThyssenKrupp company, a prosecutor said Wednesday.

The company, which builds warships and submarines for world navies, has confirmed paying an African intermediary 22 million dollars for "the usual commissions" but says there is no evidence of corruption. (Read more...)

23

Lynn fined €2m over fraud, theft and forgery (Ireland)

FUGITIVE solicitor Michael Lynn faces being struck off and fined €2m after ruthlessly abusing the legal system for his own "fraudulent advantage".

The solicitors' disciplinary tribunal, an independent body which investigates complaints against solicitors, recommended yesterday that Lynn -- who owes more than €80m to several banks -- be struck off without delay. (Read more...)

Boots ID fraud risk for 35,000 customers and staff (UK)

More than 35,000 Boots customers and staff have been exposed to ID fraud after computer tapes were stolen from a car.

They included names, addresses and bank details of the pharmacy's dental plan customers. (Read more...)

200 Spaniards suspected of EUR 23-million tax fraud (Spain)

The Spanish Tax Agency (AEAT) announced Tuesday that it will investigate almost 200 Spaniards with bank accounts in Liechtenstein, who are suspected of not declaring a minimum of EUR 23.7 million to the authorities. (Read more...)

Solicitors and claims management companies investigated for fraud (UK)

More than 10 solicitors firms and a number of claims management companies are under investigation by the Insurance Fraud Bureau for taking on fraudulent claims.

Intelligence and data has led the Insurance Fraud Bureau (IFB) directly to the firms after ongoing investigations. The bureau is speaking to 13 police forces across the country, the Crown Prosecution Service and the Solicitors Regulation Authority about criminal action. (Read more...)

Nine people have been charged in connection with a multimillion-dollar mortgage-flipping and theft-ring scheme that authorities say operated out of Fairfield County but stretched far beyond central Ohio. (Read more...)

Florida man sentenced to 41 months in prison for $30M fraud

A Florida man was sentenced to 41 months in prison for his role in a scheme to defraud the U.S. government of $30 million, the Justice Department said Wednesday. (Read more...)

Bermuda fund founder pays $60m to settle fraud lawsuit (UK)

Langbar International Ltd. founder Mariusz Rybak agreed to pay about £30 million ($60 million) to settle a fraud lawsuit filed by the company's directors.

The lawsuit at the High Court in London was settled on Monday, ending a trial that started in November, Andrew Ford, Mr. Rybak's lawyer, said yesterday. He declined to give other details of the settlement. (Read more...)

Serious Fraud Office to appeal in Saudi arms case (UK)

The Serious Fraud Office is to appeal against the court ruling that it acted unlawfully by abandoning its inquiry into allegations of bribery and corruption over a £43bn arms deal between BAE Systems and Saudi Arabia. (Read more...)

Internet fraud 'up to £500m a year' (UK)

UK credit card and debit card fraud on the internet is much greater than previous estimates, new findings suggest.

Bank industry figures published earlier this year show "card not present" losses for internet, phone and mail order crime were £290.5 million last year.

But a BBC News investigation found that £500 million of fraud took place when failed attempts were taken into account. (Read more...)

Fraud costs military health program $100 million-plus (US)

The U.S. military's health insurance program has been swindled out of more than $100 million over the past decade in the Philippines, where doctors, hospitals and clinics have conspired with American veterans to submit bogus claims, according to prosecutors and court records. (Read more...)

Anti-corruption official faces graft charges (China)

Beijing - A corruption-fighting official in a central Chinese city has gone on trial for allegedly taking millions in bribes, a state news agency said on Wednesday.

Xinhua News Agency said the former head of the Communist Party's discipline inspection commission in Chenzhou in Hunan province is accused of taking 31,52-million yuan ($4,5-million, about R34,3-million) in bribes between 1997 and 2006. (Read more...)

22

PRIDE case ultimatum (Jamaica)

GOVERNMENT prosecutors pursuing a multi-million dollar fraud case against controversial businessman Danhai Williams and six other accused persons who have been fingered in the National Housing Development Corporation (NHDC)/Operation PRIDE scandal, were yesterday given an ultimatum by a judge to be ready for trial next Monday or have the matter thrown out. (Read more...)

Fraud office presses on with Goldshield case (UK)

The Serious Fraud Office (SFO) is pressing ahead with its investigation into price-fixing at Goldshield, the British drug maker, despite a House of Lords ruling against some aspects of its case last month.

The revelation is the latest twist in a long-running saga which has become the SFO's most expensive case to date, costing millions of pounds, using hundreds of staff and requiring its own computerised database. (Read more...)

Samsung chairman to step down after indictment (South Korea)

The head of South Korea's largest group Samsung announced his resignation Tuesday in a shock move, just five days after being charged with tax evasion and breach of trust.

A sombre Lee Kun-Hee made the announcement at a press conference called to announce reforms following the scandal at the group, which last year accounted for more than 20 percent of the nation's exports. (Read more...)

Solicitors face inquiry over insurance fraud kickbacks (UK)

Ten solicitors’ firms are being investigated with dozens of accident claims-handling companies for alleged insurance fraud.

The investigation, reported in the Solicitors’ Journaltoday, is being undertaken by the Insurance Fraud Bureau.

The alleged frauds involve law firms paying kickbacks to claims-handling companies for work. This is legal if it is open and transparent, but some of the claims turn out to be fraudulent. (Read more...)

21

Closing Arguments in Trial Against Former AOL Executives (US)

Closing arguments got underway today in the government’s case against two former executives at America Online Inc. and one former executive of PurchasePro.com, who were accused of cooking the books. The defendants — former AOL executive Kent Wakeford and former PurchasePro officials Christopher Benyo and Michael Kennedy — are accused of taking part in a scheme to deceive investors and accountants by inflating the revenues of Las Vegas software company PurchasePro. (Read more...)

N.Y. loses $28M in Medicare funds as state stalls fraud audits (US)

The state is losing at least $28 million in Medicaid money because it won't approve audits the city conducted to find fraud in the massive system.

The city Human Resources Administration has completed 16 audits in the past year of pharmacies and other health-care providers that receive Medicaid and found they were scamming the government out of a collective $28 million, according to a top-level source in the agency. (Read more...)

£1 million fraud at two petrol stations (UK)

Police in Scotland have cracked a £1 million credit card scam that has been linked to fund-raising for terrorist groups.

An estimated 5000 credit cards were copied at two petrol stations in Edinburgh, while attempts to steal details from customers at a third station in Kilmarnock were foiled. (Read more...)

Former O.C. residents plead guilty to $2.5 million fraud

A former Orange County couple pleaded guilty today to charges of fraudulently billing a defense contractor for $2.5 million in materials that were never delivered. (Read more...)

Massive Fraud Ring Busted (US)

Fairfield County officials announced Monday the bust of a massive fraud ring.

Nine people were indicted in a $2.5 million case involving charges of mortgage fraud, car loan fraud and income tax evasion. (Read more...)

Toronto firm, 2 managers face fraud charges (Canada)

A Canadian manufacturer of night vision goggles and two of its executives are facing criminal charges including wire fraud for allegedly trying to defraud the American military, the U.S. Department of Justice said Monday. (Read more...)

20

Lawyer quizzed in £350k fraud probe (UK)

A LAWYER is at the centre of a £350,000 fraud probe after legal aid bosses called in police.

Ian Robertson, 54, was quizzed by detectives over an alleged three-year swindle centred on visits he made to clients in Peterhead Prison. (Read more...)

Siemens suspect list takes on global dimension (Germany)

German prosecutors are investigating 270 suspects as the Siemens corruption probe takes on a truly international dimension, according to a German press report to appear Monday.

Suddeutsche Zeitung said overseas business figures allegedly colluded with Siemens to deposit large cash floats in Switzerland, Dubai and other financial havens for use as hidden sweetener payments to secure large foreign contracts. (Read more...)

19

Las Vegas man convicted in Illinois of $43 million fraud (US)

EAST ST. LOUIS, Ill.—A Las Vegas man has been convicted in southern Illinois for masterminding a telemarketing scheme that swindled at least $43 million from more than 300,000 people. (Read more...)

18

Former top Liberal organizer charged with fraud (Canada)

The former executive director of the Liberal party's Quebec wing has been arrested and charged with defrauding his party.

Benoit Corbeil has been charged with influence peddling, fraud and conspiracy against the party and the federal government between 1997 and 2000. (Read more...)

Ex-Refco boss guilty of fraud in losses scam (US)

NEW YORK–The former president of Refco, once one of the biggest clearing houses for derivatives, was found guilty yesterday on five criminal counts related to a scheme to hide more than $1 billion in trading losses from clients. (Read more...)

17

Iraq fraud case focuses on interpreting spreadsheet (US)

An Excel spreadsheet that crunched the numbers for three fuel tanker bids in Kuwait in the days preceding the invasion of Iraq either showed a simple mistake or a purposeful manipulation that led to the project costing eight times more than estimated, testimony Wednesday in U.S. District Court in Rock Island showed. (Read more...)

Ex-mayor convicted in real estate fraud (US)

16

Iraqi Fraud Whistleblowers Say, "It's Just Not Worth It!" (US)

In my last article, I had listed a number of the many abuses and corruptions that are occurring in Iraq by both the local Iraqis and the private US and foreign contractors. One would hope that if these illegal activities had been witnessed by patriotic Americans, they would notify the appropriate authorities and catch them in the act. Unfortunately, that's apparently not how it works.

Based on the latest results of the efforts of the United States for rebuilding Iraq, since Congress approved the last $30 Billion dollars to rebuild the country, at least $8.8 Billion has just disappeared. Of the few times that corruption has been witnessed and the information turned over to the authorities, those that were the "whistleblowers" are many times the ones that have ended up paying a devastating price for being an American patriot. (Read more...)

Guggenheim Bilbao sacks finance chief over fraud (Spain)

Spain's famed Guggenheim Museum Bilbao has fired its chief financial officer over allegations of embezzlement, museum staff announced Wednesday.

Officials said the famed art museum has also launched legal proceedings against Roberto Cearsolo Barrenetxea, who has headed the Guggenheim Bilbao's finances since it opened to the public in 1997. (Read more...)

Bend man gets 20-year prison term in huge fraud scheme (US)

Michael Marks Rich, former President and CEO of Pac Equities Inc. in Bend, was sentenced to a 20-year prison term Tuesday by U.S. District Judge Michael Hogan for a massive investment scheme that bilked more than 300 victims out of $19 million. (Read more...)

Two plead guilty to tax fraud, identity theft (US)

Federal prosecutors said Wednesday that two defendants in a $13.1 million tax fraud and identity theft ring pleaded guilty to their role in the alleged conspiracy. (Read more...)

Judge: 3 fraud defendants must remain jailed; 1 other freed (US)

COLUMBUS, Ohio — A federal judge on Wednesday ordered one defendant convicted in a $1.9 billion corporate fraud case released from jail on bond, but said three others he dubbed a "leadership cabal" must stay behind bars while awaiting sentencing.

The judge's ruling came after an FBI agent testified former National Century Financial Enterprises executives had planned to flee the country on a cruise ship bound for the Caribbean after their fraud convictions. (Read more...)

Access Brokerage boss guilty (New Zealand)

A Wellington District Court jury today found the former boss of a share broking firm guilty on 14 serious fraud charges.

Peter Marshall, 62, a sickness beneficiary from Upper Hutt, was responsible for Access Brokerage when it collapsed owing $3.9 million to clients in 2004. (Read more...)

SEC Disciplines WorldCom Auditors (US)

Two former Arthur Andersen auditors have settled charges with the Securities and Exchange Commission accusing them of failing to exercise due professional care and skepticism in their 2001 audits of bankrupt telecommunications giant WorldCom. (Read more...)

Decision soon on Blue Chip inquiry (New Zealand)

The Serious Fraud Office has not yet decided whether to launch a formal investigation into failed property investment company Blue Chip.

Trading subsidiary Blue Chip New Zealand was placed in voluntary liquidation last week, joining 20 other Blue Chip companies in wind-up.

More than $70 million is owed to about 3000 investors. (Read more...)

Christchurch man charged with $654,000 fraud (New Zealand)

A 66-year-old man charged with dishonestly using documents worth a total of $654,759 was granted interim suppression of name, mainly at the request of his alleged victim. (Read more...)

China Shipping Group probes $40m Korean fraud (Hong Kong)

CHINA Shipping Group has stated that an accountant at its Pusan-based subsidiary in South Korea is believed to have embezzled $40m from the company and subsequently disappeared. (Read more...)

15

Charities lose billions of dollars to theft, fraud (US)

She bought a $600,000 home outside Memphis, along with a Lexus, a Mercedes, and a Cadillac Escalade, $75,000 worth of clothing, and thousands more on jewelry, electronics and fine furnishings.

Prosecutors said Stanfield earned less than $30,000 a year as head cashier at the Regional Medical Center in Memphis but fueled her spending sprees with money intended for the hospital, operated by the Shelby County Healthcare Corp., a not-for-profit charity. (Read more...)

Second former exec pleads guilty to Pa. highway-contract fraud (US)

HARRISBURG, Pa.—A second former executive at a Pennsylvania construction firm has pleaded guilty to participating in a long-running scheme to defraud the government's minority set-aside program.

Prosecutors say that Schuylkill Products and CDS Engineers used a minority-owned firm in Connecticut as a front to get $121 million worth of federally funded highway work in Pennsylvania. The fraud took place between 1992 and 2007. (Read more...)

'Maisie' fraud case hears of missing £500,000 (UK)

State expands payroll fraud probe (US)

Attorney General Andrew Cuomo has expanded his pension fraud probe to include all forms of local government across the state and the way they hire lawyers and consultants.

Cuomo said the probe expands on his civil and criminal investigation into potentially fraudulent employment arrangements between public school systems and lawyers. (Read more...)

Bayou Funds CEO Gets 20 Years For Massive Fraud (US)

NEW YORK—Samuel Israel III, the chief executive officer of the now-collapsed Bayou hedge funds, was sentenced Monday to 20 years in prison for inducing investments of more than $450 million in the Bayou funds. (Read more...)

Parmalat fraud suit against Citigroup can proceed: judge (US)

New Jersey Superior Court judge ruled [PDF text] Tuesday that a $7 billion lawsuit [JURIST report] filed by Italian dairy giant Parmalat SpA [corporate website] against Citigroup [corporate website] could go forward on a claim that Citigroup aided and abetted former Parmalat executives in misappropriating company money. (Read more...)

Former Bend businessman gets 20 years for securities fraud (US)

Michael Rich, the former president and CEO of Pac Equities Inc., was sentenced to 20 years in prison late Tuesday for securities fraud-related offenses.

He was also ordered to pay $10.4 million in restitution to the victims of his fraud.

Prosecutors said Rich essentially ran a classic Ponzi scheme, paying early investors with cash from new investors. (Read more...)

Boca Raton doctor agrees to pay $7 million to settle fraud suit (US)

The owner of a chain of medical imaging centers in Boca Raton has agreed to pay $7 million to settle a federal healthcare fraud lawsuit, federal officials said Monday.

In the suit, government lawyers accused Dr. Fred Steinberg, a board certified radiologist, of overcharging Medicare for CT scans and billing the federal program for some tests that were not medically necessary. (Read more...)

Rs327 million fraud detected (Pakistan)

ISLAMABAD: A couple of exporters and the management of a financial institution have allegedly committed a fraud by drawing a hefty amount of Rs327 million on fake letters of credit in the Faisalabad region, official sources in the finance ministry confirmed to The News.

“Despite knowing this alleged fraud, the financial institution has not yet adopted a legal course by registering an FIR against the culprits,” a source dealing with this issue told The News on Monday. He added that even after the lapse of several months, no action has been taken against the culprits so far. (Read more...)

Man pleads guilty to tax fraud (Canada)

Three weeks after his $5.2-million tax fraud case started, a Grimsby man’s trial ended abruptly with a plea of guilty Monday.

By entering the plea, Peter Eickmeier agreed he created a scheme for filing millions of dollars in false GST returns on a monthly basis. (Read more...)

Man sentenced in £100 mn scam (UK)

London: An Indian-origin former accountant has been sentenced to seven-and-a-half years imprisonment for duping £100 million from people in an international scam.

Shinder Singh Gangar, 46, from Leicestershire, promised clients a return of up to 160 per cent a year on money invested with him. But there was no investment scheme and the money was not invested as promised, instead being put into off-shore bank accounts. (Read more...)

14

BAE sacks 260 employees for unethical behaviour

More than 250 employees at under-fire defence company BAE were sacked last year for unethical behaviour - a rise of 17% on the previous year. (Read more...)

Prague City Hall clerk arrested over 50-million-crown fraud (Europe)

Prague- The police today detained a Prague City Hall clerk on suspicion of assisting in the embezzlement of 50 million crowns, City Hall spokesman Jiri Wolf has told. (Read more...)

Lawyer played key role in fraud (Canada)

EDMONTON - An Edmonton lawyer played a key role in perpetrating a $30-million mortgage fraud believed to be the largest in Alberta history, a Crown prosecutor said today in her opening statement on the first day of the lawyer's trial. (Read more...)

Ex-Commissioner Convicted of Health Care Fraud (US)

EDINBURG - A former Hidalgo County commissioner was found guilty of fraudulently billing $14 million to Medicare and Medicaid. (Read more...)

Military contract fraud trial begins in Rock Island (US)

ROCK ISLAND, Ill. — A former employee of a Halliburton subsidiary conspired with a Kuwaiti businessman to cheat the U.S. military out of millions of dollars by inflating bids for refueling tankers, prosecutors said. (Read more...)

Collapsed hedge fund co-founder sentenced to 20 years on fraud charges (US)

A federal judge on Monday sentenced Samuel Israel, III, co-founder of collapsed hedge fund Bayou Group, to 20 years in prison. US District Judge Colleen McMahon also ordered Israel to make $300 million in restitution and forfeit interests in a $100 million account. In 2005, both Israel and Chief Financial Officer Daniel Marino pleaded guilty to charges that included mail fraud, wire fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud. (Read more...)

Contract Fraud Loophole Eliminated (US)

WASHINGTON (AP) — A multibillion-dollar loophole that would have helped conceal abuse of overseas contracts has been eliminated from a Bush administration proposal to protect taxpayer dollars, according to documents obtained Monday by The Associated Press.

Reversing itself after months of criticism, the administration closed the loophole that was quietly slipped last year into a proposed Justice Department crackdown on government contract fraud.

The loophole specifically exempted contractors from reporting evidence of fraud or abuse in overseas work that cost taxpayers at least $5 million. An updated version of the proposal, drafted April 4, requires reporting on all contracts — whether at home or abroad. (Read more...)

12

Former Party Boss in China Gets 18 Years (China)

BEIJING — The former Communist Party boss of Shanghai, Chen Liangyu, was sentenced Friday to 18 years in prison for taking bribes and abusing power. (Read more...)

3 face federal fraud charges (US)

Three area people were indicted by a federal grand jury Thursday, April 10, for conspiring to defraud a mortgage broker for $3.5 million to purchase 24 four-unit apartment buildings in Kettering. (Read more...)

Herbalife Shares Drop on Fraud Claims (US)

NEW YORK (Associated Press) - Shares of Herbalife Ltd., which sells nutritional supplements and weight-loss products, dropped Friday after a San Diego-based investigator leveled allegations of fraud against the company.

Shares fell $2.66, or 5.5 percent, to $45.94.

Barry Minkow, who now runs the Fraud Discovery Institute after serving a sentence for fraud at his own former company ZZZZ Best Co., released a list of "top 10 red flags for fraud" at Herbalife. (Read more...)

Tories join Brown in bid to block fraud investigations (UK)

Gordon Brown yesterday won Conservative backing for a move that would allow the government to block future criminal investigations such as the corruption case against the arms company BAE Systems.

Despite scathing criticism in the high court on Thursday, the Tories have chosen to support Downing Street in facing down critics who are keen for the BAE investigation to be reopened. (Read more...)

11

UK accountants jailed for conspiring to corrupt a US official (UK)

Two British accountants were sentenced Friday to more than seven years in prison for running a fraudulent multi-million-dollar investment scheme and conspiring to bribe a U.S. official, Britain's anti-fraud watchdog said.

Britons Alan White and Shinder Gangar ran a pyramid scheme valued at more than US$200 million. (Read more...)

Iraq war corruption cases go beyond simple "fraud" (US)

This week, a suburban Chicago man who once held a management position at a company that sub-contracted war-related services in Iraq through Halliburton, will finally face trial on charges of corruption.

Halliburton and the sub-contractor, Kellogg Brown & Root Inc., (KBR), have seen a string of their managers and employees convicted on corruption charges over the past five years since the war began.

But the judge overseeing the case has ruled the defendants will not be  permitted to debate the Iraq War during the trial, fueling suspicions the Bush administration is manipulating the cases to protect its political and financial interests. (Read more...)

Doctor’s fraud totals $3 million, prosecutors say (US)

PROVIDENCE — Federal prosecutors are seeking $3 million from Dr. Tarek W. Wehbe, an internist with the Renaissance Medical Group in Providence, who the federal government accuses of fraudulently billing Medicare, Medicaid and private insurers for services he did not perform. (Read more...)

Prosecutors will retry Wecht on all 41 counts (US)

PITTSBURGH - Federal prosecutors in Pittsburgh told a judge they intend to retry celebrity pathologist Cyril Wecht on all 41 theft and fraud causes that resulted in a mistrial earlier this week.

The judge declared the mistrial Tuesday after the jury deadlocked. A second trial has been scheduled to begin May 27. (Read more...)

State AG Investigates Pension Fraud (US)

BUFFALO (2008-04-11) State Attorney General Andrew Cuomo says more than 90 lawyers across New York may be involved in fraudulent employment arrangements with local school districts.

Cuomo says the attorneys may have received taxpayer-funded health and pension benefits to which they were not entitled. (Read more...)

Couple made up 16 children in benefit fraud (UK)

A man who claimed more than £75,000 in benefits by inventing 16 children who did not exist to fund his gambling addiction was jailed for 20 months yesterday. (Read more...)

Grand jury indicts ex-preparer for tax fraud (US)

A federal grand jury in Kansas City on Friday indicted a former tax preparer for filing nearly 300 tax returns to the Internal Revenue Service that contained false information.

Federal prosecutors said they think Donald Bushnell, 55, of Kansas City, listed more than $1 million in business losses for his clients between 2001 and 2005. By doing so, Bushnell reduced his customers' taxable income. (Read more...)

Inquiry into alleged fraud within the NDP caucus to move forward (Canada)

REGINA -- The saga surrounding a case of alleged fraud within the NDP caucus in the early 1990s isn't over yet, even after Regina police announced this week the book had been closed on how police files related to the case had been leaked. (Read more...)

Taxpayers Pay $1.8 M In City Official Fraud Case Fees (US)

SAN DIEGO, Calif. -- San Diego taxpayers have shelled out $1.8 million toward the legal bills of five former municipal officials accused of federal fraud, officials said Friday.

Former city manager Michael Uberuaga and four others are accused of concealing billions of dollars in liabilities, including the pension scandal. Officials noted that four current council members have also claimed to the tune of more than $2 million in municipal funds fore their own legal bills. (Read more...)

Fraud crimes are the new drug crimes (Canada)

City gangs once focused on drugs to earn cash are increasingly diversifying into fraud, an Edmonton police officer says.

“It’s becoming more popular as a gang-related crime because our community sees it almost as a victimless crime,” said Staff Sgt. Kevin Galvin of the metro Edmonton gang unit.

As a result, the courts tend to treat fraud more leniently, making it an attractive business option for organized crime. (Read more...)

British BAE corruption inquiry shutdown unlawful (UK)

The dropping of a £43 billion corruption inquiry that involved the Saudi government and British defence firm BAE systems has been found to be unlawful. Britain's High Court has ruled it was wrong for the investigation to be dropped despite claims it could threaten the United Kingdom's national security. (Read more...)

10

$2.5m post-office fraud case goes to trial in Dong Nai (Vietnam)

DONG NAI — Dong Nai People’s Court began trying a fraud case of more than VND40 billion (US$2.5 million) in the southern province yesterday.

Under police investigation, Nguyen Lam Thai, 46, in Hoan Kiem District in Ha Noi and his accomplices is alleged to have sold low-quality postal equipment at inflated prices to 38 post offices, causing the Treasury a loss of around $2.5 million. (Read more...)

Going Soft on Corporate Crime (US)

The Bush administration has a well-known aversion to regulating big business. As it turns out, it is also reluctant to prosecute corporations that break the law. Federal prosecutors have been regularly offering settlements to companies for wrongdoing that, in previous administrations, would likely have led to criminal charges. It is another disturbing example of how this administration has taken the justice out of the Justice Department. (Read more...)

Fraudster given 200 years to pay back money (New Zealand)

A Taranaki woman jailed for benefit fraud has been allowed nearly 200 years to pay back the $153,637.64 she took.

Barbara Ann Signal, 44, was yesterday sentenced at New Plymouth District Court to 18 months' imprisonment on four fraud charges. (Read more...)

Detailed Fraud Evidence Revealed In Fumo Case (US)

Philadelphia - Federal prosecutors unleashed 93 pages of itemized pieces of evidence Monday alluding state Sen. Vince Fumo (D-Philadelphia) used Senate money to pay his aides to conduct home improvements on his properties, do political favors and write it all off as tasks in the line of duty.

The document cites more than 2,000 potential exhibits alleging Mr. Fumo utilized his powerful post to gain personal gain - the primary allegation of his 139-page indictment filed in February 2007. (Read more...)

Investors hit by new wave of boiler-room share frauds (UK)

Scots investors have been swindled out of hundreds of thousands of pounds in a new "boiler-room" scam. (Read more...)

Chiefs In Football Fraud Quiz (UK)

FOOTBALL bosses Karren Brady and David Sullivan were yesterday arrested as part of a probe into corruption in English clubs.

Detectives said last night they questioned a 59-year-old man and a 39-year-old woman on suspicion of conspiracy to defraud and false accounting.

The arrests follow last month's raids on Barclays Premier League club Birmingham City, where Brady is managing director. Sullivan is co-owner of the club. (Read more...)

Hospital FD brands sentence 'excessive' (UK)

The NHS trust finance director sentenced to 12-months imprisonment for filing fraudulent accounts has appealed against his sentence, saying it is 'manifestly excessive'.

Philip Neal, former FD of Mid Essex Hospital Services NHS Trust was convicted of fraud last month. He submitted inflated valuations on land the trust was to sell, to report a £1m surplus in accounts for the financial year 2005/06, when in fact the trust was £10m in deficit. (Read more...)

High Court Rules On BAE Fraud Inquiry (UK)

The High Court will today rule whether the Government was right to halt a corruption investigation into an arms deal between BAE and Saudi Arabia.

The Serious Fraud Office has said the probe was dropped because of security concerns, but campaigners have suggested that commercial interests were behind the Government's decision.

The investigation, which began in 2004, centred on BAE's Al-Yamamah contract, a £43bn deal in 1995 to supply jets and other military equipment to Saudi Arabia. (Read more...)

SocGen tightens controls after rogue trader case (France)

PARIS (Reuters) - French bank Societe Generale (SOGN.PA: Quote, Profile, Research) is tightening its controls after a rogue-trading scandal that cost it 4.9 billion euros ($7.73 billion), but its chairman said on Wednesday banks remained vulnerable to fraud.

"Fraud has existed in the banking industry since its birth. There have been several fraud cases, and there will be others," Daniel Bouton told a parliamentary committee investigating the financial crisis that has engulfed the global banking sector. (Read more...)

09

'Honest services' key to Black, Skilling appeals (US)

The criminal trials of Conrad Black and former Enron Corp. chief executive officer Jeffrey Skilling didn't have much in common. But their appeals are targeting a similar legal issue that has bedevilled courts across the United States for years and led to several acquittals.

Lawyers for Lord Black and Mr. Skilling have zeroed in on how prosecutors used a federal fraud statute that punishes an employee for depriving his or her employer of "honest services." Both men were convicted of fraud based largely on that statute and now both are arguing that prosecutors misapplied the law. (Read more...)

Jurors sent home for day in trial of Newark ex-Mayor Sharpe James (US)

Jurors in the federal corruption case of former Newark Mayor Sharpe James went home for the day without reaching a verdict.

After the group of six men and six women deliberated for just over three hours, U.S. District Judge William Martini allowed them to retire for the evening. (Read more...)

Tampa Man Gets 9 Years For Credit Card Fraud (US)

A Tampa man who pleaded guilty to buying $88,000 worth of merchandise over four months using credit cards in the names of other people was sentenced to nine years in prison on Tuesday, the Florida attorney general's office announced today. (Read more...)

Two Nigerians among three held for Rs.3 mn net fraud (India)

Two Nigerians were among three people arrested for allegedly hacking into bank accounts of people and illegally withdrawing money to the tune of Rs.3.35 million, the police said Wednesday. Ibimina Joshua, 38, Fellx Awatefe, 33, both Nigerians, and Nurul Huda Khan, 26, from Manipur, were held here Tuesday for allegedly swindling people via the Internet. (Read more...)

Operator of English Language Schools Charged IN Massive Student Visa Fraud Scheme (US)

A Beverly Hills man who operates two schools that teach English to foreign students was arrested this morning on federal charges for allegedly running a visa fraud scheme that allowed foreign nationals from around the world to obtain student visas to enter the United States, even though they had no intention of attending the schools or were fraudulently trying to remain in the United States. (Read more...)

Former federal agent sentenced for fraud, forgery conviction (US)

UK catching the US in the cyber-crime tables

The UK is catching up the US as an internet crime hotspot, according to IT security consultancy Global Secure Systems (GSS). (Read more...)

Earnings restatements way up since 1997

The number of companies restating their earnings increased dramatically in recent years, according to a study ordered by the Bush administration.

The study released Wednesday also showed that the proportion of earnings restatements due to fraud at companies fell sharply after 2001. Fraud-related restatements deliver the most severe blow to a company's stock prices. (Read more...)

Malaysian regulator sues 10 in Iris share fraud (Malaysia)

KUALA LUMPUR, April 9 (Reuters) - Malaysia's market regulator has filed a landmark civil lawsuit against eight foreign parties and two Malaysians over alleged manipulation, rigging and fraud of Iris Corp (IRIB.KL: Quote, Profile, Research) shares, the regulator said on Wednesday. (Read more...)

Six men charged in mortgage fraud schemes (US)

Fertility 'crusader' unmasked as a fraud who stole £200,000 (UK)

The founder of an online company which delivers sperm to women desperate to become mothers has been exposed as a fraudster.

Despite his claims to be a "crusader for women's rights", John Gonzalez stole nearly £200,000 from the financial backers of his Man Not Included website. (Read more...)

Capello Fraud Investigation To Include Family

England coach Fabio Capello's family have become part of the ongoing investigation into alleged tax fraud committed by the world renowned Italian manager. (Read more...)

Leading Mumbai builder raided for massive provident fund fraud (India)

Mumbai, April 8 (IANS) The Central Bureau of Investigation (CBI) Tuesday swooped down on the homes and offices of leading Mumbai realty developers Niranjan Hiranandani and his brother Surendra, and three senior government officials for committing a Rs.1.68-billion fraud on the Employees Provident Fund (EPF). (Read more...)

Former Chemapol owner gets nine years for fraud (Europe)

Ostrava, North Moravia, April 8 (CTK) - The Ostrava Regional Court sentenced Roman Zubik, former head of the Vsetin ice hockey team and former co-owner of the trading company Chemapol Group, to nine years in prison for fraud Tuesday. (Read more...)

Bank employee accused of $1.4m fraud (Australia)

A Sydney employee of St George Bank has been charged with defrauding the bank of $1.4 million over eight years. (Read more...)

08

TowerGroup: Financial Institutions Still Lack Effective Fraud Management

As financial service institutions become more globalized and sophisticated, so do fraudsters. New research from TowerGroup finds that in order to combat the growing levels of existing fraud in the financial services sector, it is essential to treat fraud management as an offensive strategy – as opposed to the reactive process that still leaves many institutions “running hard” to keep up with fraud within their organizations. (Read more...)

Pity The Poor Rogue Trader (France)

The world of French employment law is notoriously topsy-turvy, but could it really be so bizarre that infamous rogue trader Jerome Kerviel may end up suing for unfair dismissal?

According to British daily The Times, yes. The newspaper reported that Kerviel, who was apparently responsible for $50 billion worth of unauthorized trades at French bank Societe Generale , now plans to sue his former employers for unfair dismissal. (Read more...)

Police lay new charges in reno scam (Canada)

OTTAWA-Ottawa police have charged a 30-year-old man and laid additional charges against three others after more than 50 area  seniors were defrauded over the past five years for home renovations that were never completed. (Read more...)

Nasty fraud case was a loser for all involved (Canada)

One of B.C.'s nastiest fraud cases -- and one of the few to end with a significant jail term -- wrapped up Monday when the three perpetrators agreed to lengthy stock market bans. (Read more...)

Executive missing after fraud conviction (US)

Authorities are searching for a Carefree woman convicted on fraud charges in connection to a healthcare investment scheme likened to the Enron and WorldCom scandals.

Rebecca Parrett, 58, who has residences in Carefree and the Columbus, Ohio area, was convicted last month of nine fraud-related counts that bilked investors out of nearly $2 billion. (Read more...)

Fraud Warning: Brits Still Blaming Banks (UK)

Brits are blaming the banking sector for the rise in card fraud and identity theft, according to research released today.

More than a third said the greatest blame for financial fraud lies with banks and nearly three quarters say it is the sole responsibility of banks or credit card issuers to resolve any problems that arise with their accounts. (Read more...)

IdentityTruth Predicts and Prevents Fraud

For $100 a year, IdentityTruth will track every aspect of your identity and warn you ahead of time if fraud seems likely, says CEO Steven D. Domenikos. Where many competitors strictly track credit card information, IdentityTruth looks at addresses, phone numbers, duplicate SSNs, and many, many more aspects of your identity. You can create a trial account for free and quickly get an "identity health" rating—like a credit score but indicating the overall likelihood you'll suffer some kind of fraud. (Read more...)

Ex-NYMEX director pleads guilty to fraud

NEW YORK (Reuters) - A former New York Mercantile Exchange board member pleaded guilty to defrauding customers and tampering with evidence on Tuesday in exchange for serving 5 months in prison and paying $850,000 in fines and penalties. (Read more...)

ICC quizzes Akhtar

An International Cricket Council investigator has questioned banned fast bowler Shoaib Akthar about his claims that he was offered money to throw matches, Pakistani sources said on Tuesday.

Akthar, 32, was banned for five years a week ago for criticising the Pakistan Cricket Board (PCB). He later alleged that that he had refused offers of bribes to underperform in international games. (Read more...)

Fraud case against supervisor detailed (US)

A DCF supervisor seen as 'a mother figure' allegedly drained $1.5 million from state coffers while her underlings suspected nothing, a state report says. (Read more...)

Iron City savior charged with fraud (US)

The white knight who rode in from Connecticut to rescue bankrupt Pittsburgh Brewing Co. last year has been indicted by a federal grand jury for allegedly using insider information to reap a $22.3 million windfall on a stock deal. (Read more...)

Internet fraud suspect waives hearing rights (US)

A suspect in an Internet fraud scheme that bilked customers of $13 million waived his right yesterday to a preliminary hearing, clearing the way for the case to be presented to a federal grand jury. (Read more...)

Fraud hotline is ready for whistleblowers (US)

A new dedicated phone line allows whistleblowers to report wrongdoing in government.

The new fraud, waste and mismanagement hotline is now up and running. The toll-free hotline enables citizens to report alleged fraudulent or wasteful acts involving state resources, including theft, embezzlement, or inappropriate use of state resources. (Read more...)

Director admits stealing $2m (New Zealand)

Nelson finance company director Warren Russell Green today admitted stealing over $2 million from investors, and will remain behind bars until he is sentenced next month. (Read more...)

Tycoon jailed in China scandal (China)

SHANGHAI - A court in northeast China sentenced financier Zhang Rongkun to 19 years jail today for his role in one of the country’s biggest corruption scandals in recent years, state media reported. (Read more...)

07

Solicitor guilty of fraud jailed (UK)

A solicitor who stole more than £1m from a disabled client has been jailed for 10 years at Machester Crown Court. (Read more...)

Fraud linked to $17M in possible bad loans (US)

Old National Bancorp of Evansville said today that the FBI was asked to investigate a loan officer who apparently forged a signature on a loan document.

The bank, the largest based in Indiana, said the loan was made in Indianapolis.

The bank declined to disclose the loan amount.

The FBI is reviewing the forged loan and others handled by the loan officer totaling $17.1 million. (Read more...)

Five former San Diego officials charged with fraud (US)

SAN FRANCISCO, April 7 (Reuters) - U.S. regulators filed fraud charges on Monday against five former San Diego city officials who played key roles in the pension fund scandal that triggered the city's recent financial meltdown. (Read more...)

Chanhassen broker pleads guilty to racketeering in $2.5 million mortgage fraud case (US)

The owner of a Chanhassen mortgage brokerage has pleaded guilty to a Hennepin County charge of racketeering in a $2.5 million mortgage fraud case. (Read more...)

Man Accused Of $100 Million Fraud Is Allowed To Post Bond (US)

TAMPA - A U.S. magistrate today allowed the conditional release of a man accused of bilking British citizens out of $100 million through a stock market scheme. (Read more...)

Former Suprema CFO sentenced to 8 years for fraud, conspiracy (US)

NEWARK, N.J. - The former chief financial officer of a defunct cheese manufacturer will go to prison for eight years for fraud and conspiracy.

A federal judge Monday also ordered Steven Venechanos to pay about $115 million in restitution. (Read more...)

Wright Gets More Than 5 Years in Prison for Fraud (US)

Former state Rep. Thomas Wright was sentenced Monday to 70 to 95 months in prison after a jury convicted him of three counts of fraud. (Read more...)

Making Millions From Fraud (US)

The S.E.C. today filed a civil fraud complaint against the promoters of CMKM Diamonds, a tiny stock that never sold for as much as three cents a share, and was often under a penny. But it turns out you can get rich even at those prices, at least if you issue billions of shares illegally.

The commission claims that Mr. Casavant and others made $64 million by fraudulently selling hundreds of billions of shares of illegally issued stock. (Read more...)

Haggling-style plea bargaining is not for us (UK)

In the United States, plea bargaining is an essential element of the criminal justice system. Big sentencing discounts are negotiated for defendants who offer to save the state the high costs of an often lengthy jury trial - and, as a side-effect, spare witnesses the ordeal of giving evidence - by admitting the crime with which they've been charged, or a less serious one.

There are two intrinsic flaws. An innocent accused might be pressured into pleading guilty, and accepting a relatively light sentence, because of his fear that he would be convicted by a jury and face severe punishment, or just to get rid of the cloud of a forthcoming trial hanging over him for months. (Read more...)

Losses from loan fraud surging, say industry, FBI (US)

NEW YORK - Lenders are experiencing a surge in losses from mortgage fraud, according to recent reports from law enforcement agencies and industry research groups. The ripples are reaching borrowers in new ways, as mortgage banks seek to stanch the flow of dollars to con artists.

"It's looking like a record-breaking year already," said Stephen Kodak, a spokesman for the FBI. Kodak said that in first half of the 2008 fiscal year, which ended last month, the FBI received nearly 30,000 "suspicious activity reports." The 2007 fiscal year ended with 46,000 reports and 260 convictions. (Read more...)

06

Npower suspends staff over claims (UK)

Utility firm Npower has suspended 17 staff following allegations in a newspaper over sales tactics.

An undercover reporter for The Sunday Times claimed some sales staff misled potential customers. (Read more...)

'Champion' of disabled a fraud who cashed in, say watchdogs (US)

Seibert Phillips, once a rising star among those who care for the city's 119,000 developmentally disabled, is a man of many faces, secrets and lies.

He is also a fraud, according to state watchdogs.

After a 12-year unchecked climb, the former $300,000-a-year executive director of the Evelyn Douglin Center for Serving People in Need (SPIN) is under a growing cloud of alleged corruption and financial wrongdoing. (Read more...)

Gang of four on £750k mortgage fraud rap (UK)

THREE men and a woman have been charged with a £750,000 mortgage fraud and money-laundering scam.

John McDaid, Deborah McIlvanney, John Schaffer and Kevin Kirkwood are accused of scamming street lenders such as HBOS and Bradford & Bingley out of £450,000. (Read more...)

05

Ex-lawyer gets 63 months in prison for fraud (US)

A former La Jolla-based lawyer was sentenced in federal court yesterday to 63 months in prison for taking part in a scheme that defrauded more than 90 investors out of a total of $4.5 million. (Read more...)

Henry Kaye $18m fraud charges dropped (Australia)

DISGRACED property spruiker Henry Kaye will not face criminal prosecution after charges against him concerning an alleged $18 million fraud were dropped yesterday. (Read more...)

04

Three Charged in $11M Fraud (US)

The SEC filed a complaint against Gary L. McDuff, Gary L. Lancaster, and Robert T. Reese, for their roles in an $11 million fraudulent scheme. The SEC accused the men of selling interests in Lancorp Financial Fund Business Trust and buying into Megafund, a Texas ponzi scheme. (Read more...)

Former Columbus property owner indicted in $15 million fraud case (US)

COLUMBUS, Ohio (AP) - Franklin County authorities have charged a Phoenix man with forging documents to get more than $15 million in fraudulent loans. (Read more...)

D.C. suing two companies for fraud that have been given $100M contracts (US)

WASHINGTON - The D.C. government recently awarded a pair of $100 million contracts to two managed-care providers that are being sued by the city for allegedly defrauding it of millions. (Read more...)

Kerviel to claim bank negligence (France)

Jérôme Kerviel will claim corporate negligence in his defence against Société Générale, the bank that has blamed him for €4.9bn ($7.7bn) of losses in the biggest rogue trading scandal to have hit the financial services industry. (Read more...)

Foreign student admits $700,000 tax fraud (New Zealand)

A man who arrived in Te Puke on a student visa to study horticulture used his industry knowledge to swindle the taxman out of nearly $700,000. (Read more...)

Jury will resume deliberations Monday in Wright's fraud trial (US)

Jurors in the criminal trial of Thomas Wright went home Friday without reaching a verdict on whether the former state representative committed fraud when his foundation received a bank loan and he put charitable contributions in his personal bank account. (Read more...)

03

San Jose cell phone dealers arrested in $2M fraud probe

A dozen people have been arrested in connection to about $2 million in fraud and identity thefts involving San Jose wireless phone dealers, employees and customers, state insurance officials said Thursday. (Read more...)

Ex-Defence Employee Gets 7 Years In Prison For $100M Fraud (Canada)

Ottawa, Ontario (AHN) - A former federal employee was sentenced to seven years in prison Thursday after admitting his role in a billing scheme that cost the government over $100 million. (Read more...)

'Arabian prince' on trial for $8m fraud (Australia)

Omar Yusuf, 39, allegedly told employees and investors he had been given the title of prince by the Saudi Arabian royal family. (Read more...)

Thirteen held in VAT fraud raids (UK)

Thirteen people were arrested in raids by officers investigating allegations of a multi-million pound VAT fraud.

About 280 police and customs officials swooped on 20 premises in Lancashire, Greater Manchester and the Midlands. (Read more...)

Goodbye GAAP

One of the densest thickets of generally accepted accounting principles is revenue recognition. By one tally, more than 160 pieces of authoritative literature relate to how and when companies record revenue. Now, however, U.S. and international accounting authorities are taking a scythe to the rules. They will mow down "broad swaths" of GAAP, says Robert Herz, chairman of the Financial Accounting Standards Board, en route to producing a single set of global accounting guidelines for revenue recognition. (Read more...)

CFO Calls It Quits after Accounting Probe (US)

The CFO of VeriFone Holdings has resigned after an audit committee investigation into inventory accounting errors that forced the company to announce it would restate results for prior periods. (Read more...)

Charges Dismissed Against Andersen Auditor (US)

Charges were dismissed against former Arthur Andersen partner Daniel F. Stulac in a legal battle lasting three-and-a-half years over the defunct Big Five firm's audits of Peregrine Systems. (Read more...)

Ex-accountant pleads guilty in Ore. Department of Education case (US)

PORTLAND, Ore. (AP) — A former accountant at the Oregon Department of Education who embezzled nearly $1 million in federal grant money pleaded guilty Thursday to a fraud charge. (Read more...)

Internet fraudsters steal 239.09 million dollars (US)

Fewer Americans fell for Internet fraudsters last year but those who did parted with a record 239.09 million dollars (152.5 million euros), an annual report by the FBI said Thursday.

Just under 207,000 complaints of online fraud were reported to the FBI's Internet Crime Complaint Center (IC3) in 2007, down from 207,492 complaints the previous year and more than 231,000 in 2005, the report said. (Read more...)

Unusual bond payment in Costa Rican property fraud case (Costa Rica)

In a new quirk in the $12.5 million real estate fraud case of Italian Matteo Quintavalle, the accused is attempting to pay a $300,000 bond with “industrial machinery.”

A criminal judge ordered the former aspiring soccer mogul to pay the bond by yesterday and he dropped the machinery off at the court ahead of the deadline. (Read more...)

Woman charged over alleged mortgage fraud totalling almost $1 million — Fraud Squad (Australia)

A woman is due to face court later this month after being charged by Fraud Squad detectives investigating a mortgage fraud totalling almost $1 million. (Read more...)

Axing SFO a serious mistake (New Zealand)

The Serious Fraud Office was given special coercive powers for a good reason. White-collar fraud is often a complex and sophisticated matter that is difficult to investigate and even harder to prove. The office's chequered career confirms as much. But its success rate would undoubtedly have been much lower if it had not been able to compel suspects to answer questions and also demand to see documents, regardless of client confidentiality. Those powers were deemed necessary two decades ago and are no less important now. Oddly, however, they will be denied to the police-organised crime unit that is to take the SFO's place. (Read more...)

02

Seven Charged In $11 Million Medicare Fraud Linked To Fake HIV Clinic (US)

Miami, FL (AHN) - Seven people, including a physician, have been indicted on federal charges alleging they set up a fake south Florida health clinic to bill Medicare for $11 million in HIV treatments that never actually administered, the Federal Bureau of Investigation (FBI) announced Wednesday. (Read more...)

Bookkeeper pleads guilty to fraud (US)

A Carroll County bookkeeper accused of embezzling more than $185,000 - including a total of $50,000 from a Cub Scout troop and an elementary school PTA - pleaded guilty yesterday to bank fraud, federal officials said. (Read more...)

Pegasystems' New Solution for Managing Fraud Reduces Costs, Increases Transparency and Decreases Risk across the Enterprise (US)

Pegasystems extended its leadership position in the financial services market by introducing a new Solution Framework for fraud and anti-money laundering (AML) investigations management. This unique offering is designed to help the world's leading financial institutions combat money laundering, manage sanctions reviews, support fraud investigations, and manage Bank Secrecy Act and USA Patriot Act compliance - all with an unprecedented combination of efficiency and power. (Read more...)

FBI says 5 convicted of corporate fraud planned overseas escape

COLUMBUS, Ohio (AP) - Attorneys for four men arrested today on charges they were planning to flee the country before being sentenced on fraud charges are disputing the arrests.

U.S. marshals took the men into custody in Florida, Georgia and Columbus. (Read more...)

Three on trial for £150m investment fraud (UK)

Three men have gone on trial in London today charged with a £150m investment fraud. The Imperial Consolidated group collapsed in 2002 leaving a massive financial hole. (Read more...)

Five arrests in EUR 18mn fraud scandal (Europe)

BELGRADE -- Two directors of the Agroživ company and three directors of public companies in Žitište have been arrested.

They were arrested on suspicion of abuse of powers, money laundering and fraud in the region of EUR 18mn, according to the Interior Ministry. (Read more...)

Irish PM announces resignation, denies corruption charges (Ireland)

Irish Prime Minister Bertie Ahern, one of Europe's longest serving leaders, announced Wednesday that he will resign next month amid growing pressure over alleged financial irregularities. (Read more...)

Ex-mogul faces tax fraud charge (US)

DETROIT -- La-Van Hawkins, the Detroit Burger King and Pizza Hut mogul who was sent to federal prison in connection with a city corruption case in Philadelphia, was indicted Tuesday by a federal grand jury in Detroit, accused of keeping $5.3 million in employee payroll taxes he was supposed to turn over to the government. (Read more...)

Fraud trial finally starts for Access boss (New Zealand)

The trial of the former boss of collapsed company Access Brokerage on multi-million dollar fraud charges began in Wellington District Court this morning. (Read more...)

8-year jail to ex-UN official from India in bribery case (US)

NEW YORK: A former United Nations procurement official from India, who was convicted of accepting bribes, including two steeply discounted luxury apartments, has been sentenced to eight years and a month in prison.

US District Court Judge Thomas P Griesa sentenced Sanjaya Bahel, 57, after a jury found he had helped a friend win $100 million in UN contracts. (Read more...)

Fraud detectives' powers slashed (New Zealand)

The Serious Fraud Office's power to compel suspects to answer questions will be removed when it is merged with the police organised crime unit.

The Government will today unveil details of its new-look Organised and Financial Crime Agency, designed to get tough on gangs and white collar criminals. (Read more...)

Superhacker convicted of international cyber crime (New Zealand)

Self-taught Whitianga computer whiz Owen Walker has admitted being involved in international botnet conspiracies.

Eighteen-year-old Walker, known in cyberspace as Akill, cut a slight, pale figure as he stood in the Thames District Court yesterday and listened to his lawyer enter guilty pleas to six charges including dishonest use of a computer, damaging a computer system and possessing software for committing crime. (Read more...)

Cyber-crime experts meet to hatch defence strategy

BRUSSELS: Cyber-crime experts from around the world will meet in Europe this week to discuss how governments should counter attacks aimed at crippling the internet and hitting users with data loss, identity theft and fraud. (Read more...)

01

Regulator probes fraud allegations against Opes Prime boss (Australia)

The corporate watchdog is investigating allegations of fraud and manipulation against the head of Opes Prime, which was put into receivership last week owing $1 billion to lenders.

The Australian Securities and Investments Commission (ASIC) is looking into allegations that Opes Prime Chief Executive Laurie Emini instructed staff to falsify the accounts of six wealthy clients to help prevent them from personal losses of up to $200 million, according to a transcript of court documents from a Federal Court hearing last Friday. (Read more...)

Businessman pleads guilty in what is believed largest-ever fraud in state (US)

Ogden businessman Val E. Southwick pleaded guilty this morning to nine criminal charges in connection with the collapse of a web of companies that state and federal agencies say bilked at least 800 people out of $180 million.

The case, likely the biggest financial fraud ever committed in Utah, is described by prosecutors as a massive Ponzi scheme in which monies from the newest investors were used to pay more mature ones. (Read more...)

ESL officials accuse Vegas man of $40 million telemarketing fraud

EAST ST. LOUIS, Ill. (AP) - A federal trial is under way in East St. Louis for a Las Vegas man who prosecutors say masterminded a telemarketing scheme that took about $40 million from more than 325,000 people. (Read more...)

Prosecutors Sharpen FIFA Fraud Case

Swiss prosecutors have honed their case against FIFA’s former marketing partner, ISL/ISMM, dropping lesser accusations to focus on charges of fraud, embezzlement and fraudulent bankruptcy. (Read more...)

FBI says targets major insiders in mortgage probe (US)

WASHINGTON (Reuters) - The FBI is targeting major corporate insiders and criminal groups in its investigation of fraud in the mortgage lending industry, agency chief Robert Mueller said on Tuesday.

"We continue to work to identify large-scale industry insiders and criminal enterprises engaged in systemic economic fraud. (Read more...)

Bank employee charged over $2m fraud (Australia)

A long-standing bank employee will appear in a Sydney court later this month charged over a $2 million fraud.

The 36-year-old South Hurstville man allegedly opened a false account 11 years ago and transferred funds into it. (Read more...)

Attorney says Wright to testify in fraud trial (US)

RALEIGH, N.C. (AP) -- The defense lawyer for former legislator Thomas Wright says his client will testify at his fraud trial in Wake County Superior Court.

Wright is accused of fraudulently obtaining a $150,000 loan and pocketing another $8,900 in corporate contributions meant for a health foundation he led in Wilmington. (Read more...)

Six charged in Medicare fraud (US)

Six Miami-Dade County residents have been charged with fraud related to an alleged scheme to steal patient information from a hospital and submit fraudulent Medicare claims.

The U.S. Attorney's Office for the Southern District of Florida said the information of about 1,500 people -- including names, addresses, Medicare numbers, social security numbers and birthdays -- was taken from the computer system of Cleveland Clinic Florida in Weston in 2005 and 2006 by a former employee, Isis Machado. (Read more...)

Nursing care firm latest victim of fraud in Japan

TOKYO, April 1 (Reuters) - A scam that prompted investment bank Lehman Brothers to sue trading house Marubeni Corp in hopes of recovering $352 million claimed another victim in nursing care firm Medca Japan.

Medca, which runs nursing homes and is listed on the Jasdaq market for start-up companies, said in a statement late on Monday it may not be able to recover 3.5 billion yen ($35 million) invested in bonds from a fund linked to the alleged fraud. (Read more...)

Capello faces charges (Italy)

England coach Fabio Capello is being probed by an Italian state prosecutor for allegedly withholding information to a court.

The prosecutor intends to bring a case against Capello and former Juventus director Antonio Giraudo after they gave evidence in a trial of six men accused of fostering unfair competition through the use of threats or violence as part of Italy's Gea World sports agency. (Read more...)

'Financial Serial Killer' (US)

Another in a long line of 'fraudsters,' Modesto man admits mistakes as prison time nears

The money must have been great while it lasted, but Joel Nathan Ward is facing a decade or more in a federal prison for stealing $10 million from investors in his Turlock-based foreign currency fund.

He is not the only white-collar criminal to crop up in a region known for its fertile farmlands, just the most prolific. (Read more...)

Brokerage boss's trial on hold (New Zealand)

The fraud trial of former Access Brokerage boss Peter Marshall is on hold again because of his ill-health.

Marshall was supposed to go on trial today at the Wellington District Court on charges brought by the Serious Fraud Office totalling $3.9 million. (Read more...)

Accountant jailed for $4.6 million GST fraud (Australia)

An Adelaide accountant has been sentenced to more than three years jail after an attempted $4.6 million GST fraud and forgery, the Australian Tax Office says. (Read more...)

Chancellor plans whistleblower law for the City (UK)

BRITAIN'S finance minister, Alistair Darling, is to give the UK's financial watchdog new powers to clean up the City - London's financial district - by adopting a whistleblower system that will grant immunity from prosecution in return for evidence about market manipulation. (Read more...)

Enron's Skilling Attempts to Reverse His Guilty Verdict (US)

More than a year after U.S. prosecutors put former Enron Corp. president Jeffrey Skilling behind bars for his part in the iconic corporate scandal of the last decade, a court this week will weigh the possibility of overturning the government's only unalloyed courtroom victory in its nearly five-year Enron probe. (Read more...)