tagged w/ White Collar Crime
When a bank is found to be shockingly noncompliant in preventing money laundering, are monetary fines enough? Or should high-level employees be criminally liable? Jesse Singal reports.
The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks’ profit – but they didn’t extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses.
People may have outrage fatigue about Wall Street, and more stories about billionaire greedheads getting away with more stealing often cease to amaze. But the HSBC case went miles beyond the usual paper-pushing, keypad-punching sort-of crime, committed by geeks in ties, normally associated with Wall Street. In this case, the bank literally got away with murder – well, aiding and abetting it, anyway.
Full Story: http://www.thedailybeast.com/articles/2012/07/18/hsbc-report-should-result-in-prosecutions-not-just-fines-say-critics.htmlWhen a bank is found to be shockingly noncompliant in preventing money laundering, are... more
Since there is so much white collar crime in the US perhaps the America white collar criminals should be tried in Iran?
Four Iranian citizens charged with defrauding Iranian banks of $2.3 billion have been sentenced to death, the Mehr News Agency reported on Monday citing the Prosecutor General Gholamhossein Mohseni E'jei.
“The convicts will be informed in the nearest future about the court’s decision to sentence the four of them to capital punishment,” Mohseni E'jei told the Mehr Agency, adding that two other people had been sentenced to life in prison and the rest of the accused, 33 Iranians, had received 25-year-long jail terms.
According to Iranian media, the Tehran-based Amir Mansour Arya Investment Company began taking out loans from top Iranian banks, Bank Saderat and Bank Melli, in 2007, using fraudulent documents.
Three years later, in 2010, investigators uncovered the scheme, which resulted in $2.3 billion in damages.Since there is so much white collar crime in the US perhaps the America white collar... more
Posted by Charles Hugh Smith @ Of Two Minds
White collar crime is now the "business model" of Corporate/State America. The Status Quo does not just incentivize pathological behavior, it is itself a pathological system. CHS
Let's start by identifying the different types of white collar crime (WCC). One is WCC involving individuals against companies (e.g. theft of property from a company) and the government (e.g. Medicare fraud) and the other is WCC of individuals within companies (e.g. MBS debacle) and the government (e.g. taking bribes to favor contractors) against people in our society.
The latter is typically punished and prosecuted less frequently or not as severely than the former for different reasons, one of which is the bias to protect the institution and sweep things under the rug. For instance, a person is allowed to resign, but they're not prosecuted, so that bad press doesn't come down on the institution or the supervisors of the criminal actor.
The last type of WCC is person against person (e.g. credit card number thefts) outside of any business or government entity. This last type is usually the domain of organized crime in its typical sense (i.e. the Mob, Mafia, etc.), but organized crime can also be part of the other categories, which is why they are pursued relentlessly by law enforcement agencies. However, some people may not include organized crime in the definition of WCC.
The difference between these types of WCC is who the crimes are committed against. If you commit a crime against the government, a business, especially a big business, or the moneyed classes, you're screwed (typically). For example, Madoff was prosecuted quickly and punished severely, because he largely ripped off rich people.
However, many of his victims were not victims in the truest sense, because they knew he was running a scam. They were just hoping that some other sucker was going to take the fall and not them. Many of the investors knew Madoff's returns were impossible in the absence of fraud. Contrast that with the bankers who, via their politically connected banks, ripped off numerous pension funds and homeowners through various scams and none of them have been prosecuted.
White collar crime is prevented first and foremost by adequate controls/procedures/policies within a company that are enforced by management and the board (That's assuming that they are not the origin of the criminal behavior). Companies do not often prioritize risk controls, because their focus is on making money and providing a service/making a good.
When an organization becomes extremely large, it is very difficult to adequately manage it to prevent problems (I find it funny that big CEOs often say they need their huge payouts because of all of their responsibility, but when something goes wrong, the come up with all sorts of excuses that remove the blame from themselves).
The next thing is implementing a well-thought out regulatory scheme that has an adequate number of competent regulators that are free to do their job with a minimal amount of political interference. The last thing needed is a criminal justice system that prosecutes and punishes white collar criminals as harshly as they do blue collar criminals.
In the case of crimes within the government, there are also needs to be adequate controls. Indeed, WCC in government is probably the most pernicious, as the actors can use the power of the government to cover up their crimes and prevent prosecution. The old adage, "Who guards the guardians?", comes to mind.
There are a number of cultural and governmental impediments to prosecuting WCCs. One of which is the corrupting influence of money to neuter regulations and to co-opt politically appointed regulators and prosecutors.
Another is perception. Wealth in our country is equated with royalty or a high station in society, so people have a hard time seeing the white collar criminal as the deviant that he is. People have a hard time wanting to punish someone who looks nice, has nice clothes, drives a nice car, lives in a good neighborhood, went to a prestigious school, belongs to exclusive clubs, etc. vs. someone who does not have those things. If you're poor in this country, that's almost a crime in and of itself to some people.
Conversely, rich people have all sorts of credibility, whether its deserved or not. Why should I listen to an actor about a topic that's not related to acting? Sure, he may have some interesting things to say, but he shouldn't be given automatic credibility on the subject and yet many people do just that. Romney became rich bankrupting companies and selling their assets and yet people look to him to "run our economy"? What politician can ever say that they can run an economy? The Soviets tried to do just that and look what happened to them.
Another reason WCCs may not be prosecuted is that individuals, organizations, governments, and even society at large may be vested in the criminal activity either wittingly or unwittingly. Let's take an example of a large company that is disposing of hazardous waste illegally. In this case, a powerful executive wants to make a name for himself as a cost cutter that improves the earnings per share of the company and decides that he will have his subordinates illegally burn the hazardous waste in kilns at the factory, rather than having it disposed of properly.
One day, a kiln blows up, because it's not meant to burn hazardous waste, and the explosion kills a worker. According to the law, there are a number of serious crimes that have been committed, but in this case, nobody, including the company, is prosecuted. Why?
Continues....Posted by Charles Hugh Smith @ Of Two Minds
White collar crime is now the... more
Jim welcomes Professor of Economics and Law, William Black, to Financial Sense Newshour. He explains to Jim why no one has gone to jail four years after the beginning of the historic Credit Crisis. Professor Black believes that the level of corruption and fraud is so pervasive that very few of the guilty will ever be brought to justice.
Bill Black is an Associate Professor of Economics and Law at the University of Missouri – Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics.
Joining me on the program is Professor William Black. He is a Lawyer and an Associate Professor of Economics and Law at the University of Missouri, Kansas City. He was a Director of the Institute for Fraud Prevention from 2005 to 2007. He taught at the LBJ School of Public Affairs at the University of Texas. He was also a Litigation Director for the Federal Home Loan Bank Board. He is also author of the book “The Best Way to Rob a Bank Is to Own One.”
And Professor, you played a critical role during the S&L crisis in exposing congressional corruption. During that period of time, a lot of corruption was exposed; a lot of people in the financial sector went to jail, including Charles Keating. I wonder if you would contrast that to the last credit crisis, let us say from 2007 to 2009 where a lot of money was lost, a lot of things went wrong, but nobody went to jail. Instead of going to jail, they walked out instead with multi-million dollar bonuses. What was the difference, what was behind this in your opinion?
Well, I say the both of them were driven by fraud. The Savings & Loan crisis was a tragedy in two parts. First part was not fraud, it was interest rate risk. But the second phase, which was vastly more expensive, was to defraud and the National Commission that looked into the causes of the crisis said that the typical large failure fraud was invariably present. And there were real regulators then. Our agency filed well over 10,000 criminal referrals that resulted in over 1,000 felony convictions and cases designated as nature. And even that understates the grade in which we went after the elite. Because we worked very closely with the FBI and the Justice Department, to prioritize cases—creating the top 100 list of the 100 worst institutions which translated into about 600 or 700 executives—and so the bulk of those thousand felony convictions were the worst fraud, the most elite frauds.
In the current crisis, of course they appointed anti-regulators. And this crisis goes back well before 2007 and of course it is continuing, it does not end at 2009. So the FBI warned in open testimony in the House of Representatives, in September 2004—we are now talking seven years ago—that there was an epidemic of mortgage fraud, their words, and they predicted that it would cause a financial crisis, crisis being their word, if it were not contained. Well no one thinks that it was contained.
All right so you have massive fraud driving this crisis, hyperinflating the bubble, an FBI warning and how many criminal referrals did the same agency do, in this crisis. Remember it did well over 10,000 in the prior crisis. Well the answer is zero. They completely shut down making criminal referrals and whichever administration you hate the most, you can hate because while most of this certainly occurred in the Bush Administration, the Obama Administration has obviously not changed it. Obviously did not see it as a priority to prosecute these elite criminals who caused this devastating injury.
Continue reading transcript at:
An audio stream is also available of the interview.
http://www.netcastdaily.com/broadcast/fsn2011-0914-1.mp3Jim welcomes Professor of Economics and Law, William Black, to Financial Sense... more
"First Native American Television Network to be launched soon... World Indigenous Network gives back native voice.
CORTE MADERA CA / World Indigenous Network ( WIN-Tv ) is an idea that was born into the mind of Gérard Angé two and a half years ago. He has invested over a million dollars of his own money into an innovative concept that is sure to cause much-deserved hype among Native Americans as well as non-natives.
World Indigenous Network, or Win-TV, is the first national 24-hour satellite and cable based American Indian television network. It could be up and running in less than three months after funding. The network will feature all aspects of indigenous life, including but certainly not limited to news, music, dance, sports, politics, religion, food, and tribal issues. Mr. Ange’ believes that the network will “give all indigenous peoples back a voice that was ripped away from them”.
Win-TV will feature several shows that will provide information, entertainment, and education all from a native standpoint. Some shows planned for the network include Good Morning Native America, the Native American’s version of the popular Good Morning America; Native America Talking, a Larry King-ish talk show on Native issues, All Native Sportscene, Kids Korner, the first children’s program targeted at Native American youngsters, and Medicine Wheel, a show that targets the unique health needs of indigenous people. These are only a few of many programs that will benefit viewers in all aspects of living.
Win-Com, the company’s retail division will have five separated parts: shop-at-home, eCommerce, catalog sales, merchandising, and retail outlets. These five divisions will work cumulatively to stimulate business for native people and native businesses, as well as provide marketing platforms to demonstrate native arts, crafts, and talents in a larger, more mainstream market.
Win-Com will also provide a way for non-Native Americans to receive a sincere look into native life and culture without movies, or history books. Finally, Win-Com should positively boost the company’s reputation through sales of apparel and other products that will carry the company logo.
The primary goal of Win-TV is to give Native Americans back a voice that has been long lost, although much deserved. Mr. Ange hopes to provide an “exchange between nations” through the networking of native ideas and platforms among other cultures."
Information about: WIN-Tv: Powerpoint & Videos : http://ow.ly/1pUTw
FOR THE REST OF THE STORY PLEASE FOLLOW THE LINKS BELOW:"First Native American Television Network to be launched soon... World... more
Dear President Obama,
The Facts below clearly show that homicide was committed to cover up criminal acts of an organized well funded covert criminal plot to commit voter fraud.
Joseph Stalin said:
“It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything.”
So then why are the people behind these capital crimes and, criminal acts not been prosecuted? These people today are free to walk the streets continuing their ongoing illegal activities and acts of treason against the citizens of United States.
As voters, the citizens who voted for you voted you into office for a reason... "to correct the wrongdoings and criminal acts of the past administration." Not, to continue with the covert coverups and on going status-quo of the past eight years. We expect and, also demand more.
Today, we find ourselves at a critical turning point... Our Nation is only as great the integrity of it's laws, the fairness of our Judicial System and, as strong as the pillars of our Constitution...
As citizens, we need to realize, that our nation has reached that point where our Judicial System has been twisted, bought and subverted by large corporations to where it no longer protects the rights of "All People" as was intended by our founding fathers. We have reached the point... where our country is no longer... "Our Country" anymore.
As a nation, we can't let these crimes; as mentioned by Clint Curtis and others in the attached documentary continue to go on unpunished. For the sake of justice and our credibility and our Nation. YOU, Mr. Obama were elected by the Citizens of this land to give you the power as Commander and Chief and as President " To mandate change". To act... To provide leadership to save our Democracy and our Nation from the acts of corporate and judicial misconduct and criminal corruption. A mandate given to you... to give the country back to it's people, " all its people". A clear mandate to balance the scales of Justice. A clear mandate to see that laws be enforced and crimes be punished and not overlooked with a wink and a nod to the highest bidder... as it is today.
Before you, is an opportunity to do Great Things... An historic opportunity... that should not be waisted.
G.A.P. International Inc. &
World Indigenous Network Corporation
(Both California Corporations)
Palo Alto, California 94306
About the Author:
Gerard Ange' knows crime first hand, because, he was a victim of corporate crime. Crimes that began with Interstate Wire Fraud § FBI Case: ICC # I05071411389175 § Crimes that continued for six years, yet still these multiple crimes remain" un-punished and un-prosecuted."
For More Information about Mr. Ange's Case FBI Case:
========== HERE ARE THE FACTS: Murder Spies and Voting Lies ==========
Homicide & Murder to cover up the Criminal Acts of Voter Fraud
The Clint Curtis Story is an incredible documentary which tells the story of a computer programmer who was contacted by a private company-Yang Enterprises- who have ties to accused chinese spies, to write a program that could be used to rig elections...what follows is the breaking of a massive conspiracy in which there would be hard evidence of vote manipulation via electronic voting machines-whether using Curtis's program or the twenty year old bootloader hack which, as show by students at Princeton University, could be loaded onto any of these machines in less than a minute; the sketchy firing of two employees-one being Curtis himself- from the Florida Dept of Transportation; corrupt ties to leading members of Diebold-one of two companies responsible for vote counting in the US; and a dead Florida DOT investigator- Raymond Lemme RIP- who was privately investigating the claims made by Curtis...who conveniently commited suicide in Georgia, where autopsies are not done on suicide victims, as opposed to Florida where an autopsy would have been automatic. What really happened in 2000 to Al Gore and Ohio & Florida, and again in 2004.....now you can finally know the truth, and it ain't pretty! 7 partsDear President Obama,
The Facts below clearly show that homicide was committed to... more
On January 21, 2010, the U.S. Supreme Court ruled that corporations are entitled to spend unlimited funds in our elections.
The First Amendment was never intended to protect corporations.
This cannot stand. Sign up to protest this decision and protect our democracy! Free speech is for people — not corporations.On January 21, 2010, the U.S. Supreme Court ruled that corporations are entitled to... more
Forget about the local bank robber, or your local street thug, they need to arrest these guys for taking our money and running off with it.Forget about the local bank robber, or your local street thug, they need to arrest... more
An 18-year Counterintelligence and Counterterrorism Manager for the FBI has called for a Special Counsel to be appointed to investigate the allegations of FBI translator-turned-whistleblower Sibel Edmonds. John M. Cole, who now works as an intelligence contractor for the Air Force, made his comments during an audio interview released late last week with radio journalist Peter B. Collins.
He also offered a detailed insider's look at the concerns among high-level officials inside the Bureau as Edmonds' disturbing allegations began coming to light back in 2002, before they would be quashed for seven long years by the Bush Administration's unprecedented use of the so-called "State Secrets Privilege" to gag her.
Earlier last week, following the publication of a remarkable American Conservative magazine cover story interview with Edmonds --- detailing a broad bribery, blackmail, and espionage conspiracy said to have been carried out between current and former members of the U.S. Congress, high-ranking State and Defense Department officials and covert operatives from Turkey and Israel, resulting in the theft and sale of nuclear weapons technology on the foreign black market --- Cole had been quoted by the magazine confirming one of Edmonds' key allegations.
"I am fully aware of the FBI's decade-long investigation of" Marc Grossman, he said in response to the AmCon article/interview. Grossman had served as the third-highest ranking official in the Bush State Department and was alleged by Edmonds in the interview, and in a sworn, video-taped deposition a month earlier, to have been the U.S. ringleader for a massive Turkish espionage scandal reaching through the halls of power and into top-secret nuclear facilities around the country to the benefit of allies and enemies alike. Cole said that the FBI's counterintelligence probe "ultimately was buried and covered up," and that he believes it is "long past time" for an investigation of the case to "bring about accountability."
In his subsequent interview with Collins last week (audio and text excerpts posted below) Cole elaborated on those comments in much greater detail, noting that Edmonds has been "one hundred percent right on the money, on the mark" and confirming the existence of an "ongoing and detailed effort by Turkey to develop influence in the United States" through various illegal activities.
"Yes, I can confirm that," Cole told Collins, "That's true."
The FBI veteran executive also offered an insider's account of the panic that ensued inside the highest echelons of the bureau following Edmonds' first disclosure of information in 2002, recounting how an executive assistant director admitted to him at the time, just after the story first broke, "Well, all I know is that everything that Sibel is stating is true. I read her file. Everything she stated is, in fact, accurate."
Cole further describes how the concerns about Edmonds ultimately led to the Bush Administration's two-time use of the Draconian "State Secrets Privilege" in hopes of keeping her extraordinary information from becoming public. "Everybody at headquarters level at the bureau knew that what she was saying was extremely accurate."
"I know they didn't want her to go out and speak about it at all," Cole revealed, "and I know they were trying to figure out ways of keeping this whole thing quiet, because they didn't want Sibel to come out."
He also offered information which directly counters one of the criticisms of Edmonds' allegations as frequently offered by skeptics. Namely, that as a short time FBI contract translator --- even though she was tasked to review some seven years of counterintelligence wiretaps made from 1996 to 2002 --- she couldn't have had enough understanding of the full scope of the investigations to understand what was really going on.
More...An 18-year Counterintelligence and Counterterrorism Manager for the FBI has called for... more
We'll share with you the shocking video testimony given by FBI Whistle blower Sibel Edmonds during her (under oath) video deposition in the (4) videos below.
Edmonds explains clearly the details, the times, the dates, the names, that amounts of money paid in the selling of American influence and the selling of nuclear defense secrets to the highest bidder. Her testimony has been confirmed as fact by other government agencies and, high ranking government officials. .
In the videos below you will see the names of the most trusted highest ranking US government officials. Starting with The Ex-Speaker of the House; Republican, Dennis Hastert, then on to Stephen Solarz, Bob Livingston, Tom Lantos, Roy Blunt, Dan Burton and an (Unnamed Congresswoman) ~ All whom were named (Under Oath) By an FBI Employee naming them as directly participating in ESPIONAGE, BLACKMAIL and, BRIBERY...
Please take the time to view all 4 Shocking Videos... "You won't be disappointed."
G.A.P. International Satellite Broadcasting Inc.,
G.A.P. International News Service,
LIVE-WEB Mobile Broadcasting,
------------------------------ Quoted ------------------------------
In this first break-down article, we'll look at the answers given by Edmonds during her deposition in regard to bribery and blackmail of current and former members of the U.S. Congress, including Dennis Hastert (R-IL), Bob Livingston (R-LA), Dan Burton (R-IN), Roy Blunt (R-MO), Stephen Solarz (D-NY), Tom Lantos (D-CA, deceased) and an unnamed, currently-serving, married Democratic Congresswoman said to have been video-taped in a Lesbian affair by Turkish agents for blackmail purposes.
Though Edmonds was careful to not "discuss the intelligence gathering method by the FBI," she notes in her deposition that her claims are "Based on documented and provable, tracked files and based on...100 percent, documented facts."
In further breakdown articles, we'll look at her disclosures concerning top State and Defense Department officials including Douglas Feith, Paul Wolfowitz and, perhaps most notably, the former Deputy Undersecretary of State, Marc Grossman, the third-highest ranking official in the State Department. Also, details on the theft of nuclear weapons technology; disclosures on Valerie Plame Wilson's CIA front company Brewster-Jennings; items related to U.S. knowledge of 9/11 and al-Qaeda prior to September 11, 2001; infiltration of the FBI translation department and more.
Brad Friedman: Investigative journalist
Commonweal Institute Fellow.
LINK TO ARTICAL:
LINK TO DEPOSITION TRANSCRIPTS (PDF):
.We'll share with you the shocking video testimony given by FBI Whistle blower... more
Former FBI Language Specialist Sibel Edmonds finally gets to testify under oath, after being hit with a gag order.
Bombshells Under Oath: INCLUDE: CONGRESS MEMBERS NAMED IN ESPIONAGE, BRIBERY, SEXUAL BLACKMAIL SCHEMES; NEW BREWSTER JENNINGS / VALERIE PLAME DISCLOSURE...
Long gagged under the "state secrets" privilege by the Bush Administration, the Obama Administration's DoJ chose not to re-invoke privilege, paving the way for this information to finally make its way on to the unclassified public record.
LINK TO ARTICLE: http://www.bradblog.com/?p=7348.
Former FBI Language Specialist Sibel Edmonds finally gets to testify under oath,... more
Former FBI Language Specialist Sibel Edmonds finally gets to testify under oath, after being hit with a gag order. Bombshells Under Oath: INCLUDE: CONGRESS MEMBERS NAMED IN ESPIONAGE, BRIBERY, SEXUAL BLACKMAIL SCHEMES; NEW BREWSTER JENNINGS / VALERIE PLAME DISCLOSURE...
Long gagged under the "state secrets" privilege by the Bush Administration, the Obama Administration's DoJ chose not to re-invoke privilege, paving the way for this information to finally make its way on to the unclassified public record.
WHEN CORPORATIONS FOREIGN GOVERNMENTS CAN USE OUR COURTS AS A TOOL TO SUBVERT THE FABRIC OF OUR CONSTITUTIONAL RIGHTS THAT PROTECT ALL CITIZENS. THEN... WE ALL LOSE.
IN A SURPRISE TWIST: Our Trial Judge was quickly switched from The Honorable Barbara Miller to: Judge John M. True III.
OUR FIRST HEARING BEFORE JUDGE JOHN M. TRUE III ~ We were Denied our Constitutional Right to equal justice under the law.
" I was ordered by Judge True to represent our corporate case in trial." " I told Judge True NO! That I couldn't do that because I am not an attorney and, I wasn't qualified and, that we already had an Attorney." Judge True III replied: [quote] "That if I SAID THAT YOU would have to represent yourself - Then... that's exactly what you will have to do!... So, Deal With It-!!!!" . [end quote].
By doing that Judge John M. True III first denied us our Constitutional Right to equal justice under the law and then soon after Judge John M. True III... denied our Second Constitutional Right... The Right to a Trial.
On August 04, 2009, Judge John M. True III on behalf of Gap International, a TurkishAmerican company based in Pennsylvania, with self-claimed
[ Deep Government Connections] dismissed our case against the Defendants,
After six years, a series of quick odd rulings a surprise hearing without our attorney present. Fabricated Phony charges of missing "Assignment of Claims" documents that were in fact... never missing at all.http://www.youtube.com/watch?v=iSvlwg3F6q0
Former FBI Language Specialist Sibel... more
Apparently, wealthy white collar criminals are suffering from prisoner abuse. Why? Because they were unable to receive their first choice of prison. Some of the former bigs even had to settle for...OMIGOD!...third choice. And we used to call this America!Apparently, wealthy white collar criminals are suffering from prisoner abuse. Why?... more
Marc S. Dreier, once a high-flying New York lawyer who orchestrated an elaborate fraud scheme that bilked hedge funds and other investors of $700 million, was sentenced on Monday to 20 years in prison by a judge who rejected the government’s request for a much longer sentence.
Prosecutors had recommended a sentence of 145 years, just five years less than was successfully sought last month in the case of Bernard L. Madoff for his multibillion-dollar Ponzi scheme.
But the judge, Jed S. Rakoff of Federal District Court in Manhattan, distinguished Mr. Dreier’s case from Mr. Madoff’s, in which prosecutors have said there were thousands of victims and billions of dollars in losses.
By contrast, the judge referred to Mr. Dreier’s victims, including a small group of hedge funds and other investors — who lost about $400 million — as well as hundreds of employees who lost their jobs when his law firm collapsed.
“Mr. Dreier is not going to get much sympathy from this court,” Judge Rakoff said, “but he is not Mr. Madoff from any analysis, and that’s why I can’t understand why the government is asking for 145 years.”
In carrying out his scheme, Mr. Dreier sold fake promissory notes to the hedge funds and other investors. He created phony financial statements and accounting documents, and paid people to impersonate others to trick prospective investors into believing the notes were genuine.
Mr. Dreier’s case exploded into public view in December, when he was arrested in Toronto after trying to impersonate an employee of the Ontario Teachers’ Pension Plan in an attempt to sell a fake note for millions of dollars.
Prosecutors have also said that Mr. Dreier, 59, a graduate of Yale University and Harvard Law School, stole more than $46 million from his clients.
Mr. Dreier pleaded guilty in May to all eight charges in the indictment against him, which included conspiracy, securities and wire fraud and money laundering. When Judge Rakoff asked on Monday whether the government’s request for 145 years was serious, a federal prosecutor, Jonathan R. Streeter, replied, “We’re serious about asking for a sentence of life imprisonment.”
When the judge pressed him, Mr. Streeter said that any term of more than 30 years would accomplish that goal.
Mr. Streeter cited what he called “the unbelievable abuse of trust that occurred in this case.”
He also cited the judge’s own comments when Mr. Dreier pleaded guilty, that Mr. Dreier had “shown that he is to be ranked with those who have committed some of the most egregious frauds in history,” and that he had “disgraced the honorable profession of law.”
Mr. Streeter also reiterated the government’s position that Mr. Dreier had used the proceeds of his scheme to finance a lavish lifestyle. He owned a luxury apartment on the Upper East Side, properties in the Hamptons, a valuable art collection, expensive cars and an $18 million yacht, documents show.Marc S. Dreier, once a high-flying New York lawyer who orchestrated an elaborate fraud... more
Some excerpts of the default data: on initially-current loans, Countrywide modified $87M of loans but 59% had re-defaulted within 10 months (this is the worst performance of initially-current loans). Wells Fargo came in second, with 49% re-defaults on $334M of modifications.
On initially-delinquent loans, Wells Fargo came in 11th (tied with Ameriquest), with 70% re-default on $605M of loans. Countrywide came in first again, with 80% re-defaults, which ties it with WaMu (the two thrifts modified $388M and $566M of loans respectively).
The best record on initially-current loans was a "mere" 34% re-default rate after 10 months. By contrast, the best record for initially-delinquent loans was 62% -- held by (the non-WaMu part of) JP Morgan Chase.
REPUDIATE BAD DEBT!!!
DO NOT MODIFY OR REFINANCE LOANS YOU CANNOT AFFORD TO BEGIN WITH THAT OR
PERMIT THE ECONOMY TO SUFFER.Some excerpts of the default data: on initially-current loans, Countrywide modified... more
3 years ago
The Federal Bureau of Investigation has six people in custody in connection with a multimillion securities fraud case, a FBI spokesman confirmed Wednesday.
The spokesman, James M. Margolin, said the individuals, who worked at a New York brokerage firm, surrendered Wednesday morning. He declined to discuss details of the case because the paperwork hasn't been unsealed.
A spokeswoman for the U.S. Attorney's office in Manhattan declined comment.The Federal Bureau of Investigation has six people in custody in connection with a... more
BIRMINGHAM, Ala. – A state judge on Thursday ordered former HealthSouth CEO Richard Scrushy to pay about $2.8 billion to shareholders who sued over accounting fraud at the rehabilitation chain.
Circuit Judge Allwin E. Horn, who heard the case without a jury, ruled in favor of HealthSouth shareholders who filed a civil suit claiming Scrushy was involved in a massive fraud that nearly sent the company into bankruptcy.
Scrushy was acquitted in a federal criminal case over related charges and testified in the state civil suit that he knew nothing about any fraud. He is serving a nearly seven-year sentence for a 2006 conviction in a separate state government bribery case.
The Alabama suit accused Scrushy of unethical dealings with the company while it was going broke and complicity in $2.6 billion in fraudulent earnings and asset reports it filed with regulators from 1996 to 2002. The amount shareholders sought included money they claimed he pocketed through sweetheart deals.BIRMINGHAM, Ala. – A state judge on Thursday ordered former HealthSouth CEO... more
3 years ago
Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.
The study by the Government Accountability Office, expected to be released Tuesday, said about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.
Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005,... more