31

Lawsuit accuses 'Boots' Del Biaggio of fraud

A lawsuit filed by an investment firm in Santa Clara County Superior Court accuses William "Boots" Del Biaggio III of "a complete fraud" against it in a bogus loan deal.

The lawsuit filed on Tuesday by DGB Investments names Del Biaggio, San Francisco investment bank Merriman, Curhan, Ford & Co., and Scott Cacchione, a Merriman managing director.

San Jose-based DGB said in the court filing that Del Biaggio participated in a $3 million loan made on Nov. 28 through bogus claims and phony documents. It says he claimed to have had millions of dollars in assets in Merriman accounts, but "the truth was otherwise." (Read more...)

30

Internet scheme used to steal micro-deposits

Michael Largent, 22, was arraigned on an indictment charging him with multiple counts of computer fraud, wire fraud, and mail fraud. This case is the product of an extensive joint investigation by the United States Secret Service and the Federal Bureau of Investigation. (Read more...)

Judge delays ABCP fraud decision

An Ontario Superior Court judge has delayed a hearing until Tuesday on whether claims of fraud could proceed as part of a restructuring of $32 billion in frozen asset-backed commercial paper.

Justice Colin Campbell told the lawyers involved in the matter that he wanted to give them time to understand the proposed conditions of the fraud-shelter proposal. (Read more...)

Oil Exec Accused Of $1Bln Tax Fraud

The Interior Ministry is accusing a top executive of a large oil company of evading nearly $1 billion in taxes, it said in a statement Thursday.

A ministry source said the executive used to work in TNK, or Tyumen Oil Company, before it teamed up with British oil major BP to create TNK-BP in 2003, RBK news agency reported. The tax evasion occurred from 2001 to 2003, the source said. (Read more...)

Ex-IXI president, 4 execs held over accounting fraud (Japan)

The Osaka District Public Prosecutors Office arrested five former executives of Osaka-based information technology firm IXI Co. on Thursday, including a former president, in connection with alleged accounting fraud by the firm. (Read more...)

29

Major Operation Targets Multi-Million Pound Fraud

Detectives investigating a multi-million fraud involving a number of West Yorkshire financial institutions have arrested 17 people in a major operation this week. (Read more...)

Former brokerage boss jailed for fraud

Former Access Brokerage boss Peter Marshall has been jailed for three years for defrauding the on-line sharebroking firm of $4.8 million. (Read more...)

A tearful excuse for $460K fraud

Fifty fake companies and individuals, 501 phony invoices and 403 government cheques added up to a massive $460,520.62 fraud perpetrated by a respected government manager.

Now Brenda Oates must pay her due.

Oates previously pleaded guilty to fraud over $5,000 for a scheme perpetrated over the course of 51/2 years. On Wednesday, Oates told a Court of Queen's Bench justice she was "caught up in gambling fever" and "gambling every cent away and looking for more" at the time of the offence. (Read more...)

Accused 'not expert enough' to understand fraud, Livent trial hears

Defence lawyer Edward Greenspan is suggesting that his client, Garth Drabinsky, and co-accused Myron Gottlieb were not expert enough in accounting to understand the manipulations their leading finance executive was making to Livent's books. (Read more...)

Former Ernst & Young Partner Charged with Insider Trading

NEW YORK -- A former Ernst & Young partner and an investment banker have been charged in Manhattan with insider trading, according to the Associated Press.

Federal authorities announced the unsealing of an indictment Thursday against the former partner, James Gansman, and the investment banker, Donna Murdoch, the AP reported. (Read more...)

28

SEC to Investigate Bear Stearns Trading

NEW YORK -- Bear Stearns plans to turn over documents to securities regulators showing that financial giants like Goldman Sachs Group, Citadel Investment Group and Paulson & Co. cut their exposure to the securities firm before its collapse, the Wall Street Journal reported on Wednesday.

The Securities and Exchange Commission (SEC) has sought and will examine these trading records as a part of its investigation, people familiar with the matter told the newspaper.

The SEC is expected to use the data to determine whether any trading activity was improperly coordinated, constituted manipulation or otherwise contributed to Bear Stearns' collapse, the Journal reported. (Read more...)

New problems assault EADS

PARIS: Noël Forgeard, the former co-chief executive of European Aeronautic Defense and Space, was detained by the French police on Wednesday for questioning about insider trading accusations linked to delays in the A380 program.

"He was called for questioning this morning with regard to his probable placement in detention," a spokeswoman for Xavière Simeoni, the judge overseeing the case, said Wednesday. (Read more...)

Tests hint at blood in agency

Police found what they believe is blood in Michael Howell's insurance agency the day before they charged him with killing a state insurance investigator, according to court documents made public Tuesday.

Police found two areas on the carpet and a computer cord that testing suggested is blood, police said in an affidavit seeking a search warrant. (Read more...)

N.Y. judge rules Dell engaged in fraud, deceptive business practices

A New York court has ruled that Dell Inc. engaged in fraud, false advertising, deceptive business practices and abusive debt collection in the state. (Read more...)

27

Auditor: Supervisors Covered Up Risky Loans

Now that millions of people are facing foreclosure because they got into loans that never should have been approved, everybody's looking for someone to blame. Borrowers, or their brokers, lied on loan applications. Others got high interest rates they couldn't afford.

A big unanswered question is whether the Wall Street investment banks that were packaging these mortgages knew they were selling garbage loans to investors. A wave of litigation is starting against these firms. One former worker whose job was to catch bad loans says her supervisors covered them up. (Read more...)

$44 million bus fraud: Tony King’s appeal is dismissed

A FORMER Kempsey bus tycoon’s appeal against his conviction for defrauding the National Australia Bank of $44 million has been dismissed. (Read more...)

Former Hong Kong university dean accused of fraud and theft

Hong Kong - A former dean of the University of Hong Kong's faculty of medicine appeared in court Tuesday charged with fraud and stealing money from patients. Lam Shiu-kum, 65, faced 30 charges of fraud, one of misconduct in public office and three of theft after allegedly diverting medical fees owed by patients at the university's Queen Mary teaching hospital to himself. (Read more...)

Man admits part in $8.3m cheque scam

As part of a "cheque kiting" scam against a bank, 164 cheques totalling $8.3 million were written out over a seven month period. (Read more...)

e1bn bribery trial starts

Munich - The first criminal trial in a mammoth bribery probe at German engineering giant Siemens began in Munich yesterday, as the prosecutor warned that it should send a signal to corporations that corruption would not be tolerated. (Read more...)

26

Livent Crown witness was 'vile' 'Telfon Man', court hears

Former Livent Inc. executive Gordon Eckstein is a "vile human being," a foul-mouthed "Teflon Man" who blames everyone else for his actions, Garth Drabinsky and Myron Gottlieb's fraud trial heard Monday in a highly charged cross examination. (Read more...)

British Telecom pay £1.75million for call-centre fraud

British Telecom has paid £1.75million in compensation for cheating taxpayers in a call-centre fraud.

Over six years its staff made more than a million "false" calls to ensure performance targets were met under a £1billion-plus contract to handle calls from Ministry of Defence bases. (Read more...)

Banks' new payment system is 'an invitation to fraudsters'

A faster system of making bank payments could put customers at greater risk of fraud, experts warn.

The service, introduced tomorrow, will reduce the clearing period for a one-off transaction made over the internet or by phone from three days to a few hours.

For the first time, customers can also make these payments by phone all day every day. (Read more...)

25

Police question Talansky, pass on evidence to Olmert's attorneys

Police on Sunday questioned American fundraiser Morris Talansky in connection with the ongoing corruption probe against Prime Minister Ehud Olmert.

Talansky, from whom Olmert is suspected of of accepting large amounts of illicit funds, was questioned at the offices of the National Fraud Investigation Unit in Bat Yam. (Read more...)

Interview: Fraud boss has smaller fish to fry

Cynics might suspect that well-publicised courtroom humiliations and a spectacular U-turn over the bribery investigation at BAE Systems are behind the change of heart at the Serious Fraud Office.

Richard Alderman, the new director, has arrived with a radical, shamelessly consumer driven agenda.

Serious and complex fraud may remain the SFO's central remit, but it is determined there will be as much emphasis on fraud against the public as on headline-grabbing allegations of City skulduggery. (Read more...)

ID Theft Security Company CEO Gets ID Stolen

After putting his social security number in ads as part of the marketing strategy of its company, the CEO of LifeLock, Todd Davis, has gotten his identity stolen. His ID information has been used to make a loan of $500 dollars. (Read more...)

Societe Generale cites lax management in $7B fraud

PARIS (AP) — Investigators at Societe Generale said Friday they suspect a former futures trader had helped as he tried to cover up unauthorized positions that led to billions in losses at the French bank.

In two long-awaited reports, the investigators said the French bank's management failures and culture of risk-taking were partly to blame for failing to uncover the alleged fraud, which led to a loss of almost 5 billion euros (over $7 billion). (Read more...)

Marietta man in hedge fund fraud commits suicide

Kirk Wright lived fast but died alone in a Union City jail cell Saturday night.

Wright, the Harvard-educated fund manager convicted last week in a fraud scheme that bilked investors out of tens of millions of dollars, hanged himself, an investigator with the Fulton County medical examiner's office said Sunday. (Read more...)

24

Report Slams French Bank's Management on Biggest-Ever Fraud

An internal report on the biggest fraud in financial history says that a rogue trader at French bank Societe Generale was able to bypass internal security mechanisms because of management negligence.

The report, which was written by internal auditors and released Friday, states that Jerome Kerviel had managed to carry out unauthorized trades leading to a loss to the bank of 4.9 billion euros ($7.7 billion) because of flawed supervision. (Read more...)

Heading Off New Account Fraud

One of the scariest types of identity crimes is something called new account fraud. This happens when a criminal steals your personal information, opens credit or other accounts in your name and goes on a spending spree. Here are a few things you can do on your own to prevent the crime. (Read more...)

23

Solicitor Lynn to be struck off and fined €2m

The High Court has ordered that missing solicitor Michael Lynn be struck off and fined €2m. (Read more...)

Ex-cop, 2nd man charged in $1M insurance fraud

The alleged mastermind of an insurance scam that involved a Philadelphia police officer was charged yesterday with defrauding 10 insurance companies of more than $1 million through an elaborate scheme of fake car accidents and fraudulent police reports. (Read more...)

DOD audit finds Iraq reconstruction contracts fail to meet anti-fraud guidelines

The US military has failed to ensure that over $8 billion dollars in Iraq reconstruction contracts awarded between 2001 and 2006 complied with federal anti-fraud laws, according to a report [PDF text] released Thursday by the Department of Defense Inspector General's Office [official website]. The same day, Deputy Inspector General for Auditing Mary Ugone testified [statement, PDF] before the House of Representatives Committee on Oversight and Government Reform [official website] that inadequate record-keeping and poor oversight in dealing with military contractors made the possibility of fraud more likely. (Read more...)

Police Bust Check Fraud Ring

LOUISVILLE, Ky. -- Metro police said they busted an ID theft and check fraud ring that included more than 100 suspects. (Read more...)

FBI Releases Mortgage Fraud Report

The Federal Bureau of Investigations (FBI) had 1,204 mortgage fraud cases under investigation in 2007, 321 mortgage fraud-related indictments, 206 convictions, $595.9 million in restitution orders and $21.8 million in recoveries, the bureau concluded in its Financial Crimes Report to the Public, Fiscal Year 2007. (Read more...)

5 indicted in fraud scheme costing $26 million

They told investors that their production company could stage blockbuster concerts that would bring high interest returns.

But according to the Arizona Attorney General's Office, they were really running a Ponzi scheme that bilked well-heeled Arizonans out of more than $26 million. (Read more...)

Pressure on Olmert after more fraud questioning

Israeli Prime Minister Ehud Olmert has been questioned for a second time by police over corruption allegations that threaten to end his political career. The Israeli leader Olmert, who was first questioned three weeks ago, has denied any wrongdoing but says he will resign if indicted. (Read more...)

Ravelle directors sentenced for fraud

Three directors of Manchester-based IT company Ravelle Group could face a total of 78 months in prison for defrauding their creditors of £3.25m. (Read more...)

22

SEC to let US companies switch to IFRS

The world’s largest capital market is just weeks away from an announcement that US companies will be given an option to use international accounting standards. (Read more...)

Citigroup's `Last Roman' CDO Shows Enron Accounting

Citigroup Inc. created a $2.5 billion mortgage-backed security called Bonifacius Ltd. in August as capital markets seized up and panic swept Wall Street.

The issue took the name of a general, called by historian Edward Gibbon the ``last of the Romans,'' who fought and died for a fading empire. The bonds were created from subprime home loans as demand evaporated. Within six months, Bonifacius collapsed as homeowners fell behind on their payments in record numbers. (Read more...)

Medtronic Unit to Pay $75 Million to Settle Whistleblower Medicare Fraud Case

WASHINGTON, May 22, 2008 /PRNewswire via COMTEX/ -- Medtronic Spine LLC, formerly known as Kyphon Inc., has agreed to pay $75,000,000 to the federal government to settle a whistleblower lawsuit that exposed the spinal medical device company's sales and pricing strategy to increase its profits by defrauding Medicare. (Read more...)

Protective custody for man on $4.1m fraud charges

THE former friend and business partner of Alex Vella, who is the president of the Rebels bikies, has been placed in protective custody following his arrest over a $4.1 million remortgaging scam that stung the bikie boss.

Tony Caradonna, 46, was arrested by Fraud Squad detectives on Tuesday and charged with 26offences involving the defrauding of at least three people, including Mr Vella, of $4.1 million. (Read more...)

Bail denied for securities lawyer in investment fraud case

Jeanne Rowzee, who is accused of a scam that bilked investors out of $20 million, is deemed a flight risk. (Read more...)

Boy band mogul Lou Pearlman jailed for fraud

Boy band mogul Lou Pearlman was sentenced to 25 years in prison for a two-decade scam that swindled American banks and investors out of more than $300 million (£150 million).

21

Bond grader Moody's stock dives on fear of ratings fraud

People have become very suspicious of the major bond rating companies in the wake of the sub-prime mortgage crash and the number of AAA-rated securities that really weren’t.

They’ll have more reason to be suspicious now: Moody’s Investors Service stock is down more than 14% today after London’s Financial Times reported that a bug in the firm’s computer models caused Moody’s to award "incorrect triple-A ratings to billions of dollars worth of a type of complex debt product." (Read more...)

Five indicted in $20 million Idaho mortgage scam

SALMON, Idaho (Reuters) - An Idaho bank officer and four others accused of masterminding a mortgage scam were indicted in Boise on Wednesday on charges of defrauding an Idaho bank of $20 million, according to federal prosecutors. (Read more...)

Most RailCorp fraud under my watch: ex-CEO

Former RailCorp chief executive Vince Graham has admitted the majority of fraudulent practices involving employees occurred during his five-year tenure.

Mr Graham has begun giving evidence at the Independent Commission Against Corruption (ICAC) in Sydney.

He has been asked to explain how it was possible that eight employees improperly received more than $19 million from contractors under his watch. (Read more...)

Auditors suspected Livent books were 'arbitrarily manipulated'

Garth Drabinsky told the executive in charge of Livent's accounting to hide the sorry state of the theatre company's finances from auditors, just as former Disney Co. president Michael Ovitz was about to invest $20-million in the company, court heard today. (Read more...)

Chesterton man and five others convicted of $60 million tax fraud

A Chesterton man was one of six convicted on Monday by a federal jury in connection with a $60 million tax fraud conspiracy, the U.S. Attorney’s Office for the Northern District of Illinois said. (Read more...)

Eleven Defendants Indicted In $14 Million Mortgage Fraud Scheme

NEW YORK, May 21 /PRNewswire-USNewswire/ -- An indictment was unsealed this morning in federal court in Brooklyn, N.Y., charging 11 defendants for their participation in a scheme to defraud mortgage companies and banks of more than $14 million. (Read more...)

US SEC freezes UK assets in hedge fund fraud probe

The Securities and Exchange Commission (SEC), America’s chief financial regulator, has obtained a court order freezing the assets of a British citizen linked to an alleged US hedge fund fraud.

The High Court has frozen around £500,000 of assets held in the UK belonging to Glenn Manterfield of Sheffield, who the SEC has accused of conspiring with a US citizen to defraud investors in Lydia Capital, a US hedge fund. (Read more...)

2-Ex Mass. money manager charged with fraud

BOSTON, May 21 (Reuters) - A former Massachusetts money manager, whose clients said he stole $1.6 million from them, was charged with fraud on Wednesday and could spend 20 years in prison if convicted, state and federal officials said. (Read more...)

Woman Pleads Guilty to Fraud for Collecting Welfare as Adopted Children Starved

NEW YORK —  A New York woman has pleaded guilty to federal fraud charges in an adoption scam involving 11 disabled children she kept like prisoners in her Port St. Lucie, Fla., home. (Read more...)

20

Benefit fraud at 'record levels'

Local authorities are failing to tackle the problem of benefit fraud, which has hit record levels, according to a Government watchdog.

During 2006/07, £140 million alone of dodgy claims were made, the Audit Commission found during its biennial National Fraud Initiative (NFI) - which collects data from local authorities to highlight discrepancies in claims and employee records. (Read more...)

The boss of one of Lancashire's biggest employers has been held by fraud investigators after flying into an airport in the United States. (Read more...)

19

Wheatley out early after cooperation

THE early release of jailed music entrepreneur Glenn Wheatley sends the message that coming clean with authorities is the best path, Tax Commissioner Michael D'Ascenzo says. (Read more...)

Eight Former AOL Execs Hit With SEC Fraud Charges, Including Overstating Online Ad Revs By $1b

Eight former executives at AOL (NYSE: TWX) have been accused of overstating online ad revenue by $1 billion and have been hit with fraud charges by the Securities and Exchange Commission, WSJ reports. The alleged scheme lasted from around mid-2000 to mid-2002. A suit has been filed in a Manhattan civil court against AOL Time Warner Chief Financial Officer John Michael Kelly; Joseph Ripp, former CFO of the company’s AOL division; Steven Rindner, a former senior executive in the company’s business affairs unit; and Mark Wovsaniker, former head of accounting policy. Four other former AOL execs have reached a settlement agreement with the SEC: former controller James MacGuidwin will return $2.1 million and pay a $300,000 penalty; David Colburn, the former head of the business affairs unit, has agreed to pay $3.2 million back and has accepted $750,000 penalty. The two others were not identified by name, but were part of AOL’s business affairs unit.

New CFF forensic accounting credential to be launched by AICPA in Fall

The governing Council of the American Institute of Certified Public Accountants has authorized the creation of a new CPA specialty credential in forensic accounting.

The credential, Certified in Financial Forensics (CFF), will combine specialized forensic accounting expertise with the core knowledge and skills that make CPAs among the most trusted business advisors, according to Robert Harris, chair of the National Accreditation Commission. (Read more...)

18

Where is showy fugitive? Her past yields few clues

CAREFREE, Ariz. -- The day after being convicted in Columbus of the nation's largest fraud of a privately held company, Rebecca S. Parrett boarded a plane headed for this Phoenix suburb. (Read more...)

17

Accountant charged with embezzling $1.4M from Forest Service

LOS ANGELES—A former accountant for the U.S. Forest Service was arrested and charged with embezzling more than $1.4 million from the agency, prosecutors said Friday. (Read more...)

Bankrupt Alta Gas boss jailed for massive fraud

A BANKRUPT businessman has been jailed for four years for a scam which led to his gas company collapsing.

Peter Bradley’s firm Alta Gas went into receivership in 2001 after a £45.5m black hole was found in its accounts. (Read more...)

Fraud earns 10 years in prison

TRENTON — The company's mailing address might have been in Red Bank, but the fraud committed in a financial firm's name stretched across the country, according to the state Attorney General's Office.

On Friday, a Pennsylvania man who authorities said helped steal more than $790,000 from investors was sentenced to 10 years in state prison by Superior Court Judge Harry G. Carroll, sitting in Hackensack. He also must pay fines of $150,000 and restitution of $790,813, Carroll ruled. (Read more...)

Olympian Montgomery gets 46 months for check fraud

WHITE PLAINS, N.Y. (AP) — Olympian Tim Montgomery had everything he ever wanted. Once known as the "world's fastest man," Montgomery won a silver medal in the 400 relay at the 1996 Olympics and gold in the same event in 2000. In 2002, he set a record of 9.78 seconds in the 100-meter dash.

"I've stood on top of the mountain," he said.

But Montgomery's once-celebrated life has been on a downward spiral for years after a spate of legal problems. Now, he said, he's rooming with murderers and pedophiles in a Virginia jail. (Read more...)

11 are charged in $10.6 million loan-fraud scam

The Justice Department yesterday charged two Boston lawyers, seven mortgage brokers, and two others with fraudulently obtaining more than $10.6 million in loans using straw buyers or stolen identities to purchase 21 properties in the Boston area. (Read more...)

Maryland businessman pleads guilty in ‘massive’ fraud

Maryland businessman Alan Fabian, a major Republican party player, pleaded guilty Friday in what prosecutors call a $40 million fraud scheme -- one of the largest in state history. (Read more...)

A newspaper reports that Ohio spent about $2 million in legal fees in a lawsuit against an investment adviser convicted in one of Ohio's biggest fraud cases. (Read more...)

16

Private eye to the stars is guilty

Private investigator Anthony Pellicano, who wiretapped, followed and intimidated people all in the name of serving his moneyed clients, was found guilty Thursday of 76 federal criminal charges. Just reading the jury's verdicts on the dozens of counts of racketeering, wire fraud, computer fraud and wiretapping took 20 minutes. (Read more...)

Ex-PurchasePro Chief Found Guilty of Fraud, Obstruction

Dot-com highflier Charles E. Johnson Jr. was convicted yesterday of stock fraud and obstruction of justice after a federal court found that he misled investors by inflating revenue at his Las Vegas software firm. (Read more...)

Serious Fraud Office investigates Bridgecorp

The Serious Fraud Office is investigating property financier Bridgecorp and the Blue Chip property investment companies, but warned that a prosecution would not necessarily follow. (Read more...)

Fraud detection scheme nets £4.5m

Investigators have uncovered bogus claims and payments totalling £4.5m across the public sector in Wales. (Read more...)

15

Ex-CEO of Gemstar-TV Guide charged with obstruction

A former Gemstar-TV Guide International Inc. chairman has been charged with obstructing a federal investigation into accounting irregularities at the company. (Read more...)

ID Fraud Comes To VoIP

Passwords and usernames from Voice over Internet Protocol accounts are now selling for more than stolen credit cards numbers, a VoIP equipment maker says. (Read more...)

MONTREAL - The judge didn't buy Josie Cioffi's story that she was under the spell of her co-accused when she defrauded her employer of $4.3 million.

Quite the contrary, Cioffi knew full well what she was doing, Quebec Court Judge Jean-Pierre Boyer said Thursday in finding the former Royal Bank of Canada employee guilty on 46 counts of fraud. (Read more...)

Counter-fraud exercise reaps rewards

Almost £10m worth of fraud and errors have been identified following a Scottish detection exercise.

The 2006/07 National Fraud Initiative (NFI) formed part of the audits of 74 participating bodies, including councils, police forces, fire and rescue services, health boards, the Scottish Public Pension Agency and the Student Award Agency for Scotland by Audit Scotland working together with other public bodies. (Read more...)

Openings Begin In Citigroup-Parmalat Dispute

HACKENSACK, N.J. -(Dow Jones)- Citigroup Inc. (C) bankers facilitated looting by corrupt insiders at Parmalat Finanziaria SpA by ignoring red flags and helping conceal the dairy company's off-balance-sheet debt, a lawyer for Parmalat SpA (PLT.MI) said Thursday. (Read more...)

Bribery, fraud rock Immigration

The troubled Immigration Service is again under fire with news staff at its Pacific division have been involved in a raft of offences including bribery and fraud. (Read more...)

NY AG to investigate new forms of pension fraud in schools

ALBANY, N.Y. - New York Attorney General Andrew Cuomo says he's expanding his statewide investigation into pension fraud to include school superintendents he suspects are inappropriately getting pension benefits while collecting paychecks. (Read more...)

Auditors wrestle with making ethics add up

Lord Woolf’s announcement that BAE Systems should ensure its ethical business conduct should be included in audit reports poses something of a problem.

Ethical assurance is a great buzzword, and something everyone wants to talk about. But what exactly is an ethical audit, and what would it look like? (Read more...)

14

Fraud unit digs into Olmert's past

JERUSALEM, May 14 (UPI) -- Israeli investigators removed documents Tuesday from Prime Minister Ehud Olmert's former office at the Ministry of Industry, Trade and Labor, police said.

Olmert, who headed the ministry from 2003 to 2006, is under investigation for his dealings with New York financier Morris Talansky, The Jerusalem Post reported. Investigators are trying to determine whether he got payoffs from Talansky from the 1990s through 2005 in return for helping him with business deals. (Read more...)

$700,000 fraud admitted

A man who admitted defrauding a company of $684,278 has been granted bail while he tries to raise funds to pay reparations. (Read more...)

How Ahold Unit Fooled the Auditors

The Securities and Exchange Commission settled a civil fraud action against a former executive of Royal Ahold’s then-U.S. unit stemming from the company’s massive accounting fraud earlier this decade.

Brian Spears, a former vice president of purchasing at U.S. Foodservice, then a subsidiary of Dutch food conglomerate Royal Ahold, agreed to settle without admitting to or denying the allegations in the complaint. Spears was fired in 2003. (Read more...)

SEC charges Broadcom founder, gen counsel, ex-execs

The U.S. Securities and Exchange Commission said on Wednesday it charged two current and two former top officers of chip maker Broadcom Corp with backdating stock options. (Read more...)

Quarter of Companies Asked to Pay Bribes, Ernst & Young Reports

Almost a quarter of businesses have been asked to pay bribes over the last two years in spite of increased efforts to combat the problem by law-enforcement agencies, an Ernst & Young LLP survey published today said.

A total of 23 percent of respondents said they had been approached for bribes to gain or keep customers and 18 percent said they had lost business to a competitor that paid a kick- back. The New York-based accounting firm interviewed 1,186 senior executives in 33 countries to calculate the statistics. (Read more...)

13

Japanese Investor Lost £16.7M in County Fraud

A Japanese businessman who says he lost £16.7m in an investment fraud run from Lincolnshire believed that the money was entirely safe, a court heard.

Yuichi Yoshida of the company Ueda Fanshi is said to have lost his investment "in its entirety" when the Imperial Consolidated empire collapsed. (Read more...)

ID fraud claims bring state's largest raid

Postville, Ia. - The largest workplace raid in Iowa history Monday resulted in the arrest of more than 300 people and reignited the debate over immigration.

As two law enforcement helicopters hovered overhead, dozens of federal agents descended on Agriprocessors Inc., the nation's largest kosher slaughterhouse.

The 300 people arrested represent almost one-third of the plant's 968 workers, and federal officials said the number of arrests could increase. The number is three times as many as were arrested in a raid 18 months ago at the Swift plant in Marshalltown. (Read more...)

Mortgage scams on rise, net millions for fraudsters in US: FBI

WASHINGTON (AFP) — Fraudsters netted hundreds of millions of dollars through mortgage scams last year, and the trend was likely to continue as the US housing market slumps even further, the FBI said Tuesday.

"We received 46,717 suspicious activity reports related to mortgage fraud last year, compared to 35,617 in 2006 and just 6,936 in 2003," the Federal Bureau of Investigation report said. (Read more...)

700 Potential Victims Named In Coupon Fraud Case In Wis.

MILWAUKEE -- Federal prosecutors said there are an additional 700 potential victims ranging from food manufacturers to newspapers in a fraud scheme involving the nation's largest coupon company.

Eleven men -- mostly from International Outsourcing Services based in Bloomington, Ind. -- were charged in March 2007 with 25 counts of wire fraud. (Read more...)

Man jailed for $11m mortgage fraud

The District Court has sentenced a 40-year-old man to 65 months in jail for an $11 million mortgage fraud. (Read more...)

12

Gambling fraud costs Victoria $100m

VICTORIA has topped the nation for gambling related frauds research released today shows.

The research, by forensic accountancy firm Warfield and Associates, found $102m was stolen by 152 gambling addicted fraudsters in the state in the past 10 years. (Read more...)

Dobbers save Tassie $7.5m

VIGILANT Tasmanians who dobbed in welfare cheats last year saved taxpayers nearly $7.5 million.

More than 3300 investigations were done as a result of Tasmanian tip-offs to the Centrelink fraud hotline last financial year.

Of those, 784 payments were cut, resulting in the multi-million dollar saving. (Read more...)

11

Fraud trial opens for former Oregon GOP chief

PORTLAND  (AP) — The fraud trial against the former head of the Oregon Republican Party opened with an admission that he used $3.8 million from investors to pay off personal debts and finance his lifestyle. (Read more...)

Fraud trial raises issues over purse strings at Kodak

Concerned about his staff's complaints of headaches caused by computer monitors, Kodak executive Mark S. Camarata brought the issue to the company's information technology department in 2005.

His request for replacement monitors was rejected, according to testimony in a federal criminal case.

At the same time, Camarata was authorizing checks for millions of dollars of Kodak money that he and federal authorities allege were illegal kickbacks to an appraiser and others in a scheme involving manipulated appraisals and skewed assessments of Eastman Kodak Co. manufacturing property. (Read more...)

09

More than 80 arrested in Florida following marriage fraud roundup

ORLANDO, Fla. - More than eighty individuals involved in various marriage fraud conspiracies throughout Florida were arrested this week following a joint investigation by the U.S. Attorney's Office for the Middle District of Florida, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS). (Read more...)

Marvell to Pay $10M for Options Backdating

The Securities and Exchange Commission has charged semiconductor maker Marvell Technology Group and its co-founder with backdating employee stock option grants.

Without admitting or denying the allegations, Marvell agreed to settle the charges by paying a $10 million civil penalty, while former chief operating officer Weili Dai will pay an additional $500,000. Dai also consented to an order barring her from serving as an officer or director of a public company for five years. (Read more...)

Denver Man Sentenced To 330 Years In Prison For Investment Fraud

US District Court Judge Robert Blackburn on April 29 sentenced 72-year-old Norman Schmidt of Denver to a mind-boggling 330 years in prison and ordered him to forfeit more than $38 million for his central role in a $56 million high-yield investment scam that allegedly defrauded about 1,000 investors. A jury convicted Schmidt in May 2007 on 37 counts including conspiracy, mail fraud, wire fraud, securities fraud and money laundering. Schmidt and his co-defendants — his wife Jannice and 5 others — allegedly used most of the investor funds for their own personal gain. In written response to an earlier government recommendation for such a sentence, Schmidt’s attorney Thomas Hammond called it outrageous and unreasonable and said it “threatens to make a mockery of the federal sentencing process”

08

2 indicted in NYC mortgage fraud (US)

NEW YORK - Two former owners of a defunct mortgage firm were charged on Thursday with stealing $44 million from Fannie Mae and forging paperwork in loan sales to Credit Suisse. (Read more...)

Fed task force eyes lenders and Wall Street in subprime mess (US)

NEW YORK (AP) — Federal authorities, responding to the subprime-mortgage crisis, have formed a task force to determine if lenders or Wall Street firms participated in fraud.

The task force will be headed by prosecutors in the Eastern District of New York, where one of the nation's top mortgage lenders went bankrupt last year. (Read more...)

New BAE investigation doomed to failure, claims chairman (UK)

The chairman of BAE Systems, Dick Olver, started a war of words yesterday in his attempts to move on from corruption allegations, when he suggested the Serious Fraud Office should abandon its criminal investigation into the company. (Read more...)

More lie detectors to curb fraud (UK)

The government is to provide funding for 15 more councils to get lie detectors to catch out benefit cheats, who cost taxpayers up to £400m a year. (Read more...)

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Five sentenced in $70M mail fraud scheme (US)

A federal judge Tuesday sentenced five business associates who had been convicted of conspiracy and mail fraud in a scheme that bilked hundreds of elderly investors of $70 million. (Read more...)

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Workers used RailCorp 'like an ATM' (Australia)

CORRUPT workers treated New South Wales' RailCorp like "a personal ATM", an ICAC inquiry into alleged fraud by railway staff has been told.

 A senior RailCorp supervisor defrauded the railway corporation of hundreds of thousands of dollars and attempted to launder some of the money overseas, the Sydney inquiry heard today. (Read more...)

FBI Arrests Alleged Fraud Mastermind (US)

NEW YORK -- The FBI search for the ringleader of a multimillion-dollar New Jersey-based fraud scheme ended with his arrest Monday at a Queens golf driving range, prosecutors said.

Jacob Kim, 52, of Palisades Park, N.J., was charged last June in a federal indictment accusing Kim of using his company, American Macro Growth (AMG), to help clients obtain more than $20 million in home equity and business lines of credit from 16 different lenders in northern New Jersey, U.S. Attorney Christopher J. Christie said. (Read more...)

Curtain rises on impresario's fraud trial (Canada)

Garth Drabinsky and Myron Gottlieb participated in a "large-scale accounting fraud" at Livent Inc. that included manipulating the company's financial statements in every quarter for five years after the theatre company went public in 1993, a Toronto court heard yesterday. (Read more...)

Ex-footy champ Dench faces trial over uni $1m fraud (Australia)

Former Australian Rules football star David Dench became entangled in a "climate of corruption" at a Victorian university and defrauded the institution of more than $1 million, a Victorian court has been told. (Read more...)

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Dairymen win $22.2M in fraud case (US)

A Merced County jury awarded $22.2 million to 11 dairymen who were defrauded out of profits by the cooperative that sold their milk. (Read more...)

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CoxHealth anticipates Medicare fraud settlement of about $60 million (US)

CoxHealth Systems says it is closer to ending a Medicare fraud investigation that the FBI and the U.S. attorney’s office have been conducting for more than three years. CoxHealth may be close to reaching a settlement that could cost it $60 million. (Read more...)

Interpublic to Pay $12M for Accounting Fraud (US)

The Securities and Exchange Commission has filed enforcement actions against global advertising network McCann-Erickson Worldwide, its parent company Interpublic Group of Companies, and two of its former executives, charging them with accounting fraud. (Read more...)

$100m tax fraud case deferred again (Australia)

An accountant accused of running a $100 million tax fraud scheme has been remanded in custody at a Sydney court for the second time this week. (Read more...)

Wheatley adviser on tax fraud charges (Australia)

A PROMINENT Sydney entertainment lawyer appeared in Melbourne Magistrates Court yesterday over alleged tax fraud uncovered by Australia's largest tax-evasion and money laundering inquiry.

Paul Gregory, 59, of Wahroonga on Sydney's north shore, has been charged with three counts of being knowingly concerned in or party to defrauding the Commonwealth and one count of aiding and abetting Commonwealth fraud. (Read more...)

HSBC calls in police over alleged £70m fraud attempt (UK)

Police are investigating an alleged €90m (£70m) attempted fraud by a London-based member of staff at HSBC, Britain's biggest bank.

A man has been charged over the alleged scam, which was discovered last week at HSBC's securities services division, which settles trades for clients. A payment to a bank raised suspicions at the division in HSBC's head office building at Canary Wharf and the police were called. (Read more...)

Tax-saving author jailed on fraud, money-laundering charges (New Zealand)

A Christchurch accountant and author who wrote a best-selling book on tax saving has been jailed on fraud and money-laundering charges.

Christchurch District Court Judge Michael Crosbie yesterday jailed Peter Fergus Sibbald, 47, for three years after he pleaded guilty to five charges of dishonestly using documents and one count of money-laundering. (Read more...)

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How Fraud Fueled Mortgage Crisis

The debate over what caused the mortgage mess and how best to fix it is now taking a sharp turn, as new problems surrounding liar's loans and payment-option mortgages reveal the pervasive fraud, lying and deceit that permeated the market at its height.

As loans made to borrowers with decent credit begin to fail at a surprisingly rapid rate, it's becoming clear that widespread fraud helped support the entire mortgage system -- from borrowers who lied on their loans, to brokers who encouraged it, to lenders who misled some low income borrowers, to the many lenders, investors and ratings agencies that conveniently and deliberately looked the other way as profits rolled in. (Read more...)

Man Arrested For $360 Billion Cheque Fraud (US)

CHARLES Ray Fuller, 21, of Crowley, Texas, walks into the Chase bank in the 8600 block of South Hulen Street, Fort Worth. It is about 4pm. He has in his possession a personal check. The check is not made out to Mr. Fuller. The bank clerk is unsure. She contacts the check owner, the mother of Fuller’s girlfriend mother. She says she did not write a check for… $360 billion. Police are called. Mr. Fuller is accused of unlawful carrying of a weapon and possession of marijuana. Mr Fuller tells the police his girlfriend’s mother gave him the money to start a record label.

'Mr Generosity' jailed for £½m MoD fraud (UK)

A company manager nicknamed Mr Generosity because he gave people free cars, accommodation and weekend breaks and held lavish parties was jailed for 3½ years yesterday for defrauding the Ministry of Defence of almost half a million pounds. (Read more...)

Calls for sacking after EU anti-fraud office 'misled' courts (UK)

The European Union’s anti-fraud office is under pressure to sack its most senior official amid allegations that the body misled the European Courts.

After four years of denials, the EU’s anti-fraud office, known as Olaf, has finally admitted that evidence given to the European Courts concerning the controversial arrest of an investigative journalist “was not factually correct”. (Read more...)

Justice Official Who Oversees Cases On Corruption, Fraud Is Quitting (US)

Alice S. Fisher, chief of the Justice Department's criminal division, said yesterday that she will leave government service at the end of the month after nearly three years overseeing major public corruption and corporate fraud cases. (Read more...)

Deutsche Bank Forces Staff Vacations to Avoid Fraud (Global)

Deutsche Bank AG, seeking to avoid fraud, is introducing a global policy to force traders and some bankers to take 10 consecutive working days of vacation every year, according to an internal memorandum to employees. (Read more...)

N.Y. Appeals Court Revives Hearst Heir’s $20 Million Fraud Suit Against Spouse, Attorney (US)

A $20 million fraud and legal malpractice action initiated by John Randolph Hearst Jr. against his wife and their attorney has been reinstated by a New York state appellate court. Mr. Hearst has accused his wife of taking advantage of his ill health by transferring more than $20 million of his property into her name, leaving him access to only a relatively small sum and effectively disinheriting his daughter and grandchildren. Mr. Hearst also claims the couple's attorney aided and abetted the fraud.

SEC Interprets Securities Fraud Broadly, Sues Birmingham Mayor (US)

Will April be remembered as the month the SEC took its vitamins?

First a rebuff of Congress, then a big stock fraud bust. Now, the WSJ and the NYT are reporting that the SEC has employed a broad interpretation of securities fraud to sue Birmingham, Alabama’s mayor, Larry Langford. (Read more...)

Man to face court over off-shore tax scheme (Australia)

A Sydney man will face the Melbourne Magistrates Court this morning accused of setting up off-shore trusts and companies to defraud the Commonwealth. (Read more...)

Average SOX Compliance Costs $1.7 Million (US)

The total average cost of Sarbanes-Oxley Section 404 compliance reached $1.7 million last year, according to a newly released survey. (Read more...)