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1/31/2007
Forbes Calls Attention to Unsavory Pipes Deals (and the unsavory people behind them)
Hedge Funder Sentenced on Charges of Stock Manipulation
Cendant Execs Skirt Jailtime
New Audit Shows Depth of Corruption at Siemens
History of Conspiracy, via The Conglomerate
Commodities Manager Faces Charges on Phoney Reports
HP Not New to Pretexting for Phone Records, So Claims Former VP
Fraudfiles Blog
NBC Stung By Theft, Executive Indicted on Embezzlement Charges
HMC International Fraudsters Agree to Pay Restitution
Kirby Likes Snow
Steve Jobs and Stock Options...a Turning Point?
Federal Stock Options Backdating Investigative Team Loses Two
Recapping Bayou: Analysis of a Hedge Fund Fraud
Apple Stock Option Class Action Has a Lead Plaintiff
Siemens Duo Deny Connection to Bribery Probe
Companies Lack Policy on Pretexting...
Scary "Daily Caveat" Search Term of the Day
Milberg Weiss Loses Anti-Trust Team
More on Bryan Wagner Guilty Plea, HP PI To Flip For Prosecution
Retail Giant TJX Reports Hefty Customer Data Breach
Some 30 Passengers Disappear from Cruise Ships in the Last Five Years
Where Plaintiff Attorneys Go To School
-- MDT
Former Cendant CEO Facing 12 Year Sentence on Fraud
Apple Facing Federal Probe on Stock Option Backdating
Sentencing in June for HP Private Investigator
KPMG and Siemens, A Match Made in Prison?
NY Attorney General's Office Subpoenas Research Firms
HP Private Investigator Pleads Guilty to Identity Theft
Parmalat Makes Nice With Deloitte
Peregrine Executives Sentenced in Fraud Probe
P.I. Faces Criminal Indictment in HP Pretexting Case
Former Siemens CFO a Suspect in Bribery Investigation
Steve Jobs: A Syllogistic Defense
BLX Exec Charged with Defrauding Government of $76 Million
1/10/2007
In Defense of Pretexting
Supreme Court to Tighten Securities Class Action Standards?
Overstock CEO Patrick Byrne Brings the Crazy
Tom Kirkendall Responds to Gladwell Enron Piece
Backdating Schmakdating! Bask in the Glory of the iPhone 1/08/2007
Former Quest Finance Exec Reaches Settlement
Record Number of U.S. CEOs Lot The Jobs in 2006
LeNature Bankruptcy is le'Bad News for Wachovia
Former Qualcomm Employee Sentenced on Trade Secret Theft
Seattle Man Arrested on Fraud and Extortion Charges
Why Steve Jobs Should Resign
SEC Proposes New Hedge Fund Regs
Enron Chief Accounting Officer Reports to the Pen
Siemens (Iraq) Bribery Probe Stirring
Malcolm Gladwell on Enron
Wired 2007 Legal Predictions: Investigate Everyone
The Wall Street Self Defense Manual
Busines Schools Turning to P.I.s to Fact Check Resumes
Securities Lawsuits Drop to Record Lows in 2006
More Details on Lerach Lawfirm Removal from Halliburton Litigation
French Financial Regulators Fine GLG Partners on Alcatel Trades
Hedge Fund Arena Turning Increasingly Litigious
FSA: The Year in Fines
New Jabre Venture Collects More Talent
Happy New Year!
Forbes Calls Attention to Unsavory Pipes Deals (and the unsavory people behind them)
Shady deals and shadier folk....
Check out the article by Nathan Vardi, appearing in the Feb 12, 07 issue of Forbes.
-- MDT
Check out the article by Nathan Vardi, appearing in the Feb 12, 07 issue of Forbes.
-- MDT
Labels: hedge fund, PIPES, shady
0 Comments.
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Hedge Funder Sentenced on Charges of Stock Manipulation
Scott Sacane, formerly of Durus Capital Management LLC, plead guilty in December 2005 to manipulating the stock price of two biotech companies by intentionally concealing purchases of shares through false filings with the SEC. Sentenced this week, Sacane will serve three years in prison and another three under supervised release.
Durus Capital's former chief operating officer, J. Douglas Schmidt was previously convicted on related charges and sentenced to a year's probation and a $10,000 fine.
-- MDT
1/30/2007
Durus Capital's former chief operating officer, J. Douglas Schmidt was previously convicted on related charges and sentenced to a year's probation and a $10,000 fine.
-- MDT
Labels: Durus Capital Management, hedge fund, J Douglas Schmidt, Scott Sacane, stock manipulation
Cendant Execs Skirt Jailtime
Anne Pember and Casper Sabatino, both former Cendant financial execs received sentences this week based on their their prior pleas. Both were spared jailtime and instead received probation, two years apiece. Apparently they were quite contrite (and helpful to the prosecution). Another helpful fellow, former Cendant CFO, Cosmo Corigliano, is expected to be sentenced later this week. Look for another wrist slapping, as Corigliano was a key source for the prosecution.
-- MDT
-- MDT
Labels: Anne Pember, Caspar Sabatino, Cendant, Cosmo Corigliano, Fraud, sentencing
New Audit Shows Depth of Corruption at Siemens
How deep does the scandal go? Like, really deep would be the answer. A sample from the Spiegel article:
-- MDT
....the company had to wire €418 million in fines to the European Commission last week because, according to EU authorities, Siemens was a ring leader in a cartel of companies selling power station equipment -- dividing up the market among themselves. Though Siemens is planning to fight the fine, it took a huge chunk out of the company's first quarter profits.More here.
-- MDT
Labels: audit, bribery, corruption, Siemens
History of Conspiracy, via The Conglomerate
Over at The (most excellent) Conglomerate, check out Christine Hurt's dissection of a paper on The History of Conspiracy by Neal Kumar Katyal which appeared in 2003 in the the Yale Law Journal.
Hurt teases out one interesting detail - the history of conspirators testifying against one another, which was a recognized legal practice as far back as 1130, when it was known as approvement. See....interesting right?
So check it out.
And bookmark The Conglomerate, because you'll want to return there.
-- MDT
Hurt teases out one interesting detail - the history of conspirators testifying against one another, which was a recognized legal practice as far back as 1130, when it was known as approvement. See....interesting right?
So check it out.
And bookmark The Conglomerate, because you'll want to return there.
-- MDT
Labels: conspiracy, Neal Kumar Katyal, The Conglomerate, Yale Law Journal
Commodities Manager Faces Charges on Phoney Reports
The Commodity Futures Trading Commission has filed a case against Anthony Ramunno, Jr., CEO of Roswell, Georgia-based Renaissance Asset Management. Ramunno and Renaissance have been barred from destroying any documents.
Investors had become suspicious that the pool of investment dollars under Ramunno's care wasn't quite the $32 million Renaissance claimed. An audit of the firm only identified about $4million and according to the CFTC complaint, Ramunno subsquently contacted the FBI offices in Atlanta and admitted committing fraud.
Further details here.
You can aslo read the CFTC press release or check out the online complaint (pdf).
-- MDT
1/29/2007
Investors had become suspicious that the pool of investment dollars under Ramunno's care wasn't quite the $32 million Renaissance claimed. An audit of the firm only identified about $4million and according to the CFTC complaint, Ramunno subsquently contacted the FBI offices in Atlanta and admitted committing fraud.
Further details here.
You can aslo read the CFTC press release or check out the online complaint (pdf).
-- MDT
Labels: Anthony Ramunno, CFTC, Fraud, Rennaisance Asset Management
HP Not New to Pretexting for Phone Records, So Claims Former VP
Charges of pretexing used in other instances by HP? Former HP vice president of business development, Karl Lambe's case was dismissed, but his allegations sure are interesting...
Meanwhile, it looks like HP PI, Bryan Wagner, who we las saw pleading guilty and gearing up to testify for the prosecution, won't be facing state charges. Prince among men, Peter Henning at the White Collar Crime Prof blog has the reasons why.
-- MDT
Meanwhile, it looks like HP PI, Bryan Wagner, who we las saw pleading guilty and gearing up to testify for the prosecution, won't be facing state charges. Prince among men, Peter Henning at the White Collar Crime Prof blog has the reasons why.
-- MDT
Labels: Bryan Wagner, HP, Karl Lambe, Peter Henning, pretexting
Fraudfiles Blog
Check it out. A new one on me...written by Tracy Coenen of Sequence, Inc., a forensic accounting firm. I you like the road we hoe here at The Daily Caveat, I'm guessing you'll like Tracy's stuff as well.
-- MDT
-- MDT
Labels: FraudFiles, Inc., Sequence, Tracy Coenen
NBC Stung By Theft, Executive Indicted on Embezzlement Charges
Former NBC Universal Treasurer, Victor Jung has been indicted on two counts of wire fraud relating to allegations that the 12 year veteran of NBC (the guy's only 34...did he start out in the Page program?) nearly $900,000 from NBC's parent company, General Electric.
Jung started out with GE as a financial analyst after graduating from Haverford College in 1994 working, ironically, on GE internal financial investigations. He rose to Vice President of Cash Management and just last year was named to the position of Treasurer.
In November 2005 Jung supposedly created his own company on the sly, NBCU Media Productions. Then he made two wire transfers from GE company account to his own entity, which had been named with the intent to masquerade as a real company subsidiary, NBC Media Production.
Needless to say, someone noticed the funds went missing. Also noticeable: Jung's lifestyle took a lavish upswing, with private flights for he and guests to Miami, Antigua, and the Turks and Caicos Islands as well as lavish food, drink and gifts and - oh the cliche - a house in the Hamptons.
Jung submitted a not guilty plea on two counts of wire faud has been released on bond. He is facing up to 20 years and a $250,000 fine.
-- MDT
1/26/2007
Jung started out with GE as a financial analyst after graduating from Haverford College in 1994 working, ironically, on GE internal financial investigations. He rose to Vice President of Cash Management and just last year was named to the position of Treasurer.
In November 2005 Jung supposedly created his own company on the sly, NBCU Media Productions. Then he made two wire transfers from GE company account to his own entity, which had been named with the intent to masquerade as a real company subsidiary, NBC Media Production.
Needless to say, someone noticed the funds went missing. Also noticeable: Jung's lifestyle took a lavish upswing, with private flights for he and guests to Miami, Antigua, and the Turks and Caicos Islands as well as lavish food, drink and gifts and - oh the cliche - a house in the Hamptons.
Jung submitted a not guilty plea on two counts of wire faud has been released on bond. He is facing up to 20 years and a $250,000 fine.
-- MDT
Labels: embezzlement, Gerson Lehrman Group, NBC, Victor Jung, wire fraud
HMC International Fraudsters Agree to Pay Restitution
The SEC has announced that Bret Grebow and Robert Massimi, the dynamic duo behind the defunct Philadelphia-based HMC International hedge-fund-slash-ponzi-scheme have agreed to pay restitution to their former investors in order to settle pending charges relating to their misuse of investor funds. Details here.
-- MDT
-- MDT
Labels: Bret Grebow, Fraud, hedge fund, HMC Internationa, ponzi scheme, Robert Massimi
Kirby Likes Snow
We had our first real dusting of snow in DC late last week and it was also the first snow ever for Daily Caveat braver hund, Kirby. We adopted Kirby back in July from the amazing folks at Friend of Homeless Animals and he has been an absolute delight when he is not otherwise engaged in systematically shredding household items.
While Kirby's collar is green, not white and he's committed no crime that we're aware of (his past is decidedly shrouded in mystery), I thought you fine folks might enjoy seeing him discover snow. I know I did:
-- MDT
While Kirby's collar is green, not white and he's committed no crime that we're aware of (his past is decidedly shrouded in mystery), I thought you fine folks might enjoy seeing him discover snow. I know I did:
-- MDT
Steve Jobs and Stock Options...a Turning Point?
There are certainly plenty of business medial pundits out there that have weighed in on the stock options backdating with their contention that imbroglio is much ado about nothing. And yet 160 some odd companies are either currently under or facing potential federal investigation and executives have been dropping right and left.
Heck, one guy even fled the country and initiated an international man-hunt.
One of the most prominent options inquiries has been that of Apple Computer (excuse me...Apple, Inc.) and CEO, Steve Jobs. It looked as if Jobs might skate initially because he essentially grew no benefit from the options that were awarded him. Apple's own internal investigation cried no harm no foul and it seemed that the story might just fade away into the din and roar preceding the much anticipated debut of Apple's iPhone.
But the story didn't quite die there. Just when the Apple options issue seemed to be dying down, it was brought roaring back to life by the admission that the minutes of the meeting where Jobs' stock options were granted had been falsified - that no board approval of the grant had taken place. Apple must have known that there was more to in because the quietly fired the execs involved, including long time general counsel, Nancy Heinen and Apple CFO Fred Anderson.
This prompted some to call for Steve Jobs resignation, although no one within Apple itself, notably. And that kind of standing by your man is what Peter Burrows over at BusinessWeek would like us to think of as The Steve Jobs Effect.
And he thinks its catching....
1/25/2007
Heck, one guy even fled the country and initiated an international man-hunt.
One of the most prominent options inquiries has been that of Apple Computer (excuse me...Apple, Inc.) and CEO, Steve Jobs. It looked as if Jobs might skate initially because he essentially grew no benefit from the options that were awarded him. Apple's own internal investigation cried no harm no foul and it seemed that the story might just fade away into the din and roar preceding the much anticipated debut of Apple's iPhone.
But the story didn't quite die there. Just when the Apple options issue seemed to be dying down, it was brought roaring back to life by the admission that the minutes of the meeting where Jobs' stock options were granted had been falsified - that no board approval of the grant had taken place. Apple must have known that there was more to in because the quietly fired the execs involved, including long time general counsel, Nancy Heinen and Apple CFO Fred Anderson.
This prompted some to call for Steve Jobs resignation, although no one within Apple itself, notably. And that kind of standing by your man is what Peter Burrows over at BusinessWeek would like us to think of as The Steve Jobs Effect.
And he thinks its catching....
Labels: Apple, backdating, Comverse, Fred Anderson, Kobi Alexander, Nancy Heinen, Steve Jobs, stock options
Federal Stock Options Backdating Investigative Team Loses Two
U.S. Attorney Kevin Ryan dropped out of the game last week and Lead Prosecutor Christopher Steskal has also opted to leave for a gig with lawfirm Fenwick and West.
By way of fond adieu to Ryan, check out this interview as well as this Law.com article which may give some insight into why Ryan's departure was " a mutually agreeable decision with Washington." Also, check out Fenwick's welcome aboard note touting their acquisition of Chris Steskal.
Eleven U.S. Attorneys have resigned in the last year...practically dropping like flies. Why you ask?
Well...there are theories.
-- MDT
By way of fond adieu to Ryan, check out this interview as well as this Law.com article which may give some insight into why Ryan's departure was " a mutually agreeable decision with Washington." Also, check out Fenwick's welcome aboard note touting their acquisition of Chris Steskal.
Eleven U.S. Attorneys have resigned in the last year...practically dropping like flies. Why you ask?
Well...there are theories.
-- MDT
Labels: backdating, Christopher Steskal, Fenwick and West, Kevin Ryan, stock options
Recapping Bayou: Analysis of a Hedge Fund Fraud
Lets go back to last fall and recall the implosion of hedge fund, Bayou Group. The failure of this multi-million dollar fund sent shockwaves through the business media and was one of the key factors in raising the profile of hedge fund fraud in the press. Heck, it even prompted Risk Magazine to give a call to The Daily Caveat for a brief interview.
Law.com has a post-game analysis of the Bayou collapse from Jeff Marwill, a partner in the bankruptcy practice of Jenner and Block. Marwill charts the organization of the Bayou entities, what went wrong and how investors were made to eat the losses. Bayou Group subsequently declared bankruptcy and Marwill is uniquely qualified to comment on the aftermath as, in April '06 , he was appointed the federal equity receiver responsible for aiding investors in recouping some of the $450 million lost in the Bayou Fraud.
Interesting reading. And as always, when it comes to investing - do your homework.
-- MDT
1/24/2007
Law.com has a post-game analysis of the Bayou collapse from Jeff Marwill, a partner in the bankruptcy practice of Jenner and Block. Marwill charts the organization of the Bayou entities, what went wrong and how investors were made to eat the losses. Bayou Group subsequently declared bankruptcy and Marwill is uniquely qualified to comment on the aftermath as, in April '06 , he was appointed the federal equity receiver responsible for aiding investors in recouping some of the $450 million lost in the Bayou Fraud.
Interesting reading. And as always, when it comes to investing - do your homework.
-- MDT
Labels: Bayou Group, Fraud, hedge fund, Jeff Marwill, Jenner and Block
Apple Stock Option Class Action Has a Lead Plaintiff
The New York City Employees' Retirement System has the honors. And in related news, has Steve Jobs been meeting with the Feds?
-- MDT
-- MDT
Labels: Apple, backdating, class action, securities, stock options
Siemens Duo Deny Connection to Bribery Probe
Siemens Chief Financial Officer Joe Kaeser as well as executive board member Rudi Lamprecht are denying newspaper reports that they are connected with the ongoing bribery probe at the international conglomerate. Siemens itself has also released a statement indicating that neither Kaseser or Lamprecht have been contacted by prosecutors at this time.
Several other past and present high-ranking Siemen's execs have been implicated in the investigation, including, most notably Thomas Ganswindt and Heinz-Joachim Neubuerger .
Siemens shareholders will be meeting on Thursday in Munich. Look out for the fireworks.
-- MDT
1/22/2007
Several other past and present high-ranking Siemen's execs have been implicated in the investigation, including, most notably Thomas Ganswindt and Heinz-Joachim Neubuerger .
Siemens shareholders will be meeting on Thursday in Munich. Look out for the fireworks.
-- MDT
Labels: bribery, Heinz-Joachim Neubürger, Joe Kaeser, Rudi Lamprecht, Siemens, Thomas Ganswindt
Companies Lack Policy on Pretexting...
...and Delloite & Touche wants you to know about it. Check out the results of their online "prexting" poll of 230 financial executives. Also included is an, I think useful, outline of what one should be mulling over when considering hiring investigators on a company's behalf:
Now print this out and put it in the top drawer of your desk...
-- MDT
- Be clear at the outset how investigators will achieve the results desired, and define objectives, scope and how the information is to be reported.
- Be wary of investigators who say they can get bank account information or information only available to law enforcement.
- Understand that liability for an illegal investigation will likely extend to the organization that hired the investigator, not just the investigator himself.
- Establish written guidelines regarding the use of investigators, and establish clear reporting lines.
- Make sure you investigate your investigator, and find out whether they use subcontractors, and what kind of arrangement they have with these subcontractors.
Now print this out and put it in the top drawer of your desk...
-- MDT
Labels: Deloitte, pretexting, prosecution guidelines
Scary "Daily Caveat" Search Term of the Day
"dead bodies impact from height"
I'm sure it was for a pathology class or something...lets hope.
And, in case your curious, here's the story that brought them.
-- MDT
I'm sure it was for a pathology class or something...lets hope.
And, in case your curious, here's the story that brought them.
-- MDT
Labels: Anita Koo, search terms
Milberg Weiss Loses Anti-Trust Team
J. Douglas Richards and Michael M. Buchman (links go to Milberg bios, while they last) are evacuating to Pomerantz Haudek Block Grossman & Gross, the latest attorneys to jump from the Milberg ship since the kickback-related indictments were announced last year. You can read the Pomerantz press release, here.
-- MDT
1/19/2007
-- MDT
Labels: indictment, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, Pomerantz Haudek
More on Bryan Wagner Guilty Plea, HP PI To Flip For Prosecution
From the SacBee, one of those stories I meant to post late on Friday but has gotten held over until today. Last week, when the papers were hinting that HP subcontractor, Bryan Wagner would be testifying for the prosecution, here's why:
-- MDT
More on Wagner's fate via The Sacramento Bee.Bryan Wagner, who faces federal identity theft and conspiracy charges, is accused of posing as a journalist to access the reporter's private phone records as part of the computer and printer maker's ill-fated attempt to ferret out the source of boardroom leaks to the media. The way Wagner was charged Wednesday - he agreed to waive grand jury proceedings - suggests he's likely cooperating with investigators aiming for more high-profile targets, said Matthew Jacobs, a former federal prosecutor in San Francisco who is now in private practice.
"The government likes to start at the lowest point in the chain of responsibility and flip people," Jacobs said. "What it signals is that the government is trying to build the case against those more senior.
-- MDT
Labels: Bryan Wagner, HP, identity theft, indictment, pretexting
Retail Giant TJX Reports Hefty Customer Data Breach
TJX, home to such retail chains as Bob's Stores, HomeGoods, Marshalls, T.J. Maxx and A.J. Wright announced this week that in December 2006 the company discovered a massive data breach. The overall damage is still uncertain but hacker-thieves have almost certainly obtained credit and debit card numbers from TJX transactions from across North America. TJX is already working with law enforcement to resolve the situation. Meanwhile as many as 10 Massacusetts banks have already reported illegal account access. Mor on the aftermath of the TJX breach here. (Via The Consumerist)
-- MDT
-- MDT
Labels: data breach, The Consumerist, TJX
Some 30 Passengers Disappear from Cruise Ships in the Last Five Years
A scary thought....not exactly The Love Boat. But don't worry, the U.S. Congress is on the case!
Further details via The Guardian.
-- MDT
1/18/2007
Further details via The Guardian.
-- MDT
Labels: Congress, cruise industry, missing persons, mystery
Where Plaintiff Attorneys Go To School
I've been meaning to post a link to the Empirical Legal Studies blog for a few weeks. ELS is a project of several Marquette Law School professors and it is a GREAT site for data junkies like myself. Their recent story on Where High-End Plaintiffs’ Lawyers Went to Law School? caught my eye a while back and I suggest you give it (and the rest of their fine site) a look.
-- MDT
Labels: Empirical Legal Studies, Marquette law School, plaintiffs bar
Former Cendant CEO Facing 12 Year Sentence on Fraud
Cendant CEO, Walter Forbes's was convicted in October '06 of conspiracy to commit securities fraud as well as two counts of making false statements in relation to the massive accounting fraud at Cendant. His sentence, handed down yesterday: twelve years, seven months and $3.3 billion dollars in fines. That's gotta hurt.
Cendant is the company behind such prominent brands as: Ramada, Howard Johnson, Avis, Coldwell Banker and Century 21, among others.
-- MDT
1/17/2007
Cendant is the company behind such prominent brands as: Ramada, Howard Johnson, Avis, Coldwell Banker and Century 21, among others.
-- MDT
Labels: Cendant, Conviction, Walter Forbes
Apple Facing Federal Probe on Stock Option Backdating
I guess they're not just going to take Apple's word for it, huh?
-- MDT
-- MDT
Labels: Apple, backdating, investigation, stock options
Sentencing in June for HP Private Investigator
Following Bryan Wagner's guilty plea. a date has been set for his sentencing - June 20th 2007. Wagner's lawyer has also, apparently, confirmed that Wagner will be testifying for the prosecution.
1/16/2007
Labels: Bryan Wagner, HP, identity theft, pretexting
KPMG and Siemens, A Match Made in Prison?
Francine McKenna's RE: THE AUDITORS traces the relationship between KPMG and Siemens in recent news coverage of the Siemens bribery scandal. Interesting reading and a quality blog to add to the Daily Caveat links list. Give it a look...
-- MDT
-- MDT
1 Comments.
Thanks for the link! I appreciate the extra readers.
Sincerely, fm at ReTheAuditors
Post a Comment
Sincerely, fm at ReTheAuditors
NY Attorney General's Office Subpoenas Research Firms
Subpoenas have gone out from the NY Attorney General's Office to two prominent research firms servicing investment managers, Gerson Lehrman Group and Vista Research (a unit of McGraw-Hill). At issue is whether Gerson Lehrman or Vista may have discussed material non-public information with their interviewees in violation of insider trading laws.
Interestingly, the SEC also has a parallel investigation under way regarding whether several hedge funds may have also benefited from the acquisition of similar non-public information. That too will bear close watching.
-- MDT
Interestingly, the SEC also has a parallel investigation under way regarding whether several hedge funds may have also benefited from the acquisition of similar non-public information. That too will bear close watching.
-- MDT
Labels: Gerson Lehrman Group, insider trading, Vista Research
HP Private Investigator Pleads Guilty to Identity Theft
Bryan Wagner takes a fall.
This guy is not even 30...a cautionary tale for P.I.s who put saying "yes" to a client above the client's best interest - and their own...
Wagner's actions were undoubtably pursuant to the request and at the direction of someone. And we'll find out the who, because Wagner seems to be cooperating. Federal prosecutors are not going to settle for busting the chops of some subcontractor when he can give them HP top brass and, perhaps, a few names from Wilson Sonsini too.
Check out the typical great collection of links on the story from The Jurist.
-- MDT
This guy is not even 30...a cautionary tale for P.I.s who put saying "yes" to a client above the client's best interest - and their own...
Wagner's actions were undoubtably pursuant to the request and at the direction of someone. And we'll find out the who, because Wagner seems to be cooperating. Federal prosecutors are not going to settle for busting the chops of some subcontractor when he can give them HP top brass and, perhaps, a few names from Wilson Sonsini too.
Check out the typical great collection of links on the story from The Jurist.
-- MDT
Labels: Bryan Wagner, HP, identity theft, pretexting, Wilson Sonsini
Parmalat Makes Nice With Deloitte
Deloitte & Touche SpA and Dianthus Spa, representing an Italian branch of the international accounting firm, Deloitte & Touche have agreed to pay Parmalat $149 million as compensation for D&T's role in the dairy giant's $8 billion accounting fraud. The firms served as auditors for Parmalat prior to the company's collapse.
This is only one of many such settlements with financial institutions that Parmalat has pursued as the company has attempted to crawl out from under scandal and $18 billion in debt on which it had defaulted. Parmalat has a similar suits still pending against several financial institutions including, notably, Grant Thornton and Bankf of America.
-- MDT
1/15/2007
This is only one of many such settlements with financial institutions that Parmalat has pursued as the company has attempted to crawl out from under scandal and $18 billion in debt on which it had defaulted. Parmalat has a similar suits still pending against several financial institutions including, notably, Grant Thornton and Bankf of America.
-- MDT
Labels: Deloitte, Dianthus, Grant Thornton, Parmalat
Peregrine Executives Sentenced in Fraud Probe
Michael Danny Whitt makes eight Peregrine Systems execs who've plead guilty in relation to the accounting fraud that afflicted the one-time jewel fo the San Diego-area software industry. Peregrine first acknowledged its problems back in 2002 and before the year was out the troubled firm was on the road to bankruptcy. Its remnants were purchased by Hewlett Packard. In case you are keeping score the other seven guilty pleas in the Peregrine case belong to:
-- MDT
1/12/2007
Douglas Stephen PowandaSeveral other Peregrine execs (some big fish among them) have plead NOT guilty, but you can look those up y'selves!
Ilse Cappel
Jeremy Crook
Steve Spitzer
John Burnham Benjamin
Richard T. Nelson
Matthew Gless
-- MDT
Labels: Fraud, Jeremy Crook, Peregrine Systems, SEC
P.I. Faces Criminal Indictment in HP Pretexting Case
This would not be the folks from the Boston-area firm, Security Outsourcing Solutions, that you've read about previously, but rather P.I. Bryan Wagner our of San Francisco.
Wagner has been indicted in California on charges of utilizing the social security number of a journalist to obtain that individual's telephone records. He apparently did so at the direction of HP execs, their legal team or other investigators working on HP's behalf as a part of their internal "Kona 2" investigation to identify the source of HP's persistent high-level media leaks.
Wagner is facing charges of conspiracy and identity theft, which could carry penalties of up to seven years in jail. That California AG's office had previously announced that they were going to go hard on this matter and it looks like they are following through on the threat. It is expected, though, that the Wagner indictment is just bait to catch bigger fix. He is expected to cooperate with authorities.
Read more on the Wagner indictment via the IHT.
-- MDT
Wagner has been indicted in California on charges of utilizing the social security number of a journalist to obtain that individual's telephone records. He apparently did so at the direction of HP execs, their legal team or other investigators working on HP's behalf as a part of their internal "Kona 2" investigation to identify the source of HP's persistent high-level media leaks.
Wagner is facing charges of conspiracy and identity theft, which could carry penalties of up to seven years in jail. That California AG's office had previously announced that they were going to go hard on this matter and it looks like they are following through on the threat. It is expected, though, that the Wagner indictment is just bait to catch bigger fix. He is expected to cooperate with authorities.
Read more on the Wagner indictment via the IHT.
-- MDT
Labels: Bryan Wagner, HP, identity theft, Joseph DePante, Patricia Dunn, pretexting, Ronald DeLia, Wilson Sonsini
Former Siemens CFO a Suspect in Bribery Investigation
Heinz-Joachim Neubürger left Siemens in April of '06 when it became clear he was being passed over for the chief executive spot that went to Klaus Kleinfeld. Neubürger went in voluntarialy for questioning by Munich authorities this Tuesday, at which time he was informed that he was a suspect.
The former CFO was apparently fingered by Michael Kutschenreuter, the former Siemens finance director of Siemen's telecom division. Kutschenreuter reportedly told Munich prosecutors that Neubürger was aware of some of the bribery shenenigans but did nothing to stop the illegal activities.
For more on Neubürger's fate, check out the FT at MSNBC.
-- MDT
1/11/2007
The former CFO was apparently fingered by Michael Kutschenreuter, the former Siemens finance director of Siemen's telecom division. Kutschenreuter reportedly told Munich prosecutors that Neubürger was aware of some of the bribery shenenigans but did nothing to stop the illegal activities.
For more on Neubürger's fate, check out the FT at MSNBC.
-- MDT
Labels: bribery, Heinz-Joachim Neubürger, Michael Kutschenreuter, Siemens
Steve Jobs: A Syllogistic Defense
Backdating: Is almost entirely a non-issue.
Steve Jobs: Is only guilty if backdating is an actual issue.
Ego: Leave Steve alone you business media ninnies!
Larry Ribstein of Ideobog lays it out it a little bit more eloquently here and here.
-- MDT
Steve Jobs: Is only guilty if backdating is an actual issue.
Ego: Leave Steve alone you business media ninnies!
Larry Ribstein of Ideobog lays it out it a little bit more eloquently here and here.
-- MDT
Labels: Apple, Ideoblog, Larry Ribstein
BLX Exec Charged with Defrauding Government of $76 Million
Patrick J. Harrington, former executive vice president of the now defunct Business Loan Express is facing charges that he, along with 18 others, defrauded the Federal government of $76.8 million in small business loans. Taxpayers (that's you and me) are likely to end up paying the tab. Harrington's indictment, issued last month was unsealed earlier this week.
The Detroit Free Press has more on the scheme, and their article alludes to six earlier indictments involving Harrington that lead into the current investigation and pending prosecution. While Harrington's attorney is claiming that his client is taking more than his share of the blame, the U.S. Secret Service and the Inspector General's Office of the Small Business Administration have i.d.ed Harrington as the common denominator is all six indictments.
-- MDT
The Detroit Free Press has more on the scheme, and their article alludes to six earlier indictments involving Harrington that lead into the current investigation and pending prosecution. While Harrington's attorney is claiming that his client is taking more than his share of the blame, the U.S. Secret Service and the Inspector General's Office of the Small Business Administration have i.d.ed Harrington as the common denominator is all six indictments.
-- MDT
Labels: BLX, Fraud, Patrick Harrington, Small Business Administration
1 Comments.
Pat Harrington is a really great guy who made a mistake. We ALL make mistakes. He has 6 children and is paying for his wrong choices, as he should. How about everyone pray for him and his family as they go through this tough time.
Post a Comment
In Defense of Pretexting
Kevin Bousquet is the patriarch of The Corpa Group, a private investigative group based in Ontario, Canada. He's got a slick blog set up over here and the latest entry is a critique of proposed anti-pretexting legislation that is currently pending in our neighbor to the north. Bousquet gives pretexting-as-investigative tactic the strongest advocacy it is likely to get and its worth reading his review of the issue even if you think you already know how you feel about it.
-- MDT
-- MDT
Labels: Kevin Bousquet, pretexting, The Copa Group
Supreme Court to Tighten Securities Class Action Standards?
They'll apparently get the chance when they hear the appeal of Tellabs, Inc., a telecom manufacturer facing allegations that it fraudulently inflated revenues at the expense of shareholders. Further info on the case and the potential impact of the Supremes can be found here, care of the Chicago Tribune. You can also view the Tellabs case docket here.
-- MDT
-- MDT
Labels: class action, Milberg, securities, Tellabs
Overstock CEO Patrick Byrne Brings the Crazy
And muckraker extraordinaire, Garry Weiss, keeps you on top of ever bit of it.
Read the latest here.
-- MDT
Read the latest here.
-- MDT
Labels: Gary Weiss, Overstock, Patrick Byrne
Tom Kirkendall Responds to Gladwell Enron Piece
The Kirk has always had slightly different views on the Enron debacle that yours truly, but they are opinions I respect. I was waiting to see when he might address the Malcolm Gladwell essay on Enron that appeared recently in the New Yorker. Check out his response yourself at Houston's Clear Thinkers.
-- MDT
1/09/2007
-- MDT
Labels: Enron, Houston's Clear Thinkers, Malcolm Gladwell
Backdating Schmakdating! Bask in the Glory of the iPhone 1/08/2007
Former Quest Finance Exec Reaches Settlement
Robin Szeliga has reached a settlement with the SEC regarding her role in the multi-billion dollar Quest Communications financial fraud. Szeliga is expected to accept a $250,00 fine ans two years probation based on a guilty plea on one count of insider trading. She is also expected to be a key witness against her former boss and fellow defendant, former Quest CEO, Joe Nacchio.
Now won't that trial be interesting.
-- MDT
Now won't that trial be interesting.
-- MDT
Labels: insider trading, Joe Nacchio, Quest, Robin Szeliga
Record Number of U.S. CEOs Lot The Jobs in 2006
Challenger Gray & Christmas has been getting some media traction based on their splashy report indicating that 2006, on the whole, was a very bad year for CEO job security - the worst in fact since CG&C began tracking such things in 1999. According to their report 1,347 chief executives got the boot through November of 2006. Check out this lengthy article from MSNBC, which offers more details on the Challenger CEO report's findings. The full document is expected to be released next week.
-- MDT
-- MDT
Labels: CEOs, Challenger Gray and Christmas, fired
LeNature Bankruptcy is le'Bad News for Wachovia
When $120 million goes missing - probably converted to gems, gold watches and other black market goods - folks tend to pay attention. Accordingly, Pennsylvania's bankrupt LeNature is drawing a great deal of scrutiny regarding exactly what happened to the firm's assets.
One individual who's got a pair of eyes focused on LeNature is James McLean, of law firm of Manion McDonough & Lucas. McLean, who is representing group of creditors and investors, is intent on getting to the bottom of Wachovia's relationship to the bankrupt firm. He claims that banking giant, Wachovia, was complicit in the financial misdealings that undid LeNature.
More here and for more details check out those additional stories listed on the right of the linked page.
-- MDT
One individual who's got a pair of eyes focused on LeNature is James McLean, of law firm of Manion McDonough & Lucas. McLean, who is representing group of creditors and investors, is intent on getting to the bottom of Wachovia's relationship to the bankrupt firm. He claims that banking giant, Wachovia, was complicit in the financial misdealings that undid LeNature.
More here and for more details check out those additional stories listed on the right of the linked page.
-- MDT
Labels: bankruptcy, Lenature, Manion McDonough and Lucas, Wachovia
Former Qualcomm Employee Sentenced on Trade Secret Theft
Before Michael Laude left his job at teletech company, Qualcomm he took with home some 450,000 company files chock full of sensitive product data, computer code and trade secrets. After leaving Qualcomm (on a day's notice), Laude left to work from rival Nokia, (where he started the next day). But Laude was apparently more pack-rat than industrial saboteur.
While Nokia was apparently aware of their new hire's stockpile of competitor's documents, there is no evidence based on a lengthy investigation that Nokia ever benefited from Laude's data. Thus, even thought Laude was convicted in October '06 of stealing trade secrets, his sentence for said crime was a relatively mild 3 years probation.
For more on the story check out the Womble Carlyle Trade Secrets Blog. This is a new blog on my list and one I'll be checking out regularly, although this particular post seems to be a direct paste from an AP story...
-- MDT
While Nokia was apparently aware of their new hire's stockpile of competitor's documents, there is no evidence based on a lengthy investigation that Nokia ever benefited from Laude's data. Thus, even thought Laude was convicted in October '06 of stealing trade secrets, his sentence for said crime was a relatively mild 3 years probation.
For more on the story check out the Womble Carlyle Trade Secrets Blog. This is a new blog on my list and one I'll be checking out regularly, although this particular post seems to be a direct paste from an AP story...
-- MDT
Labels: Nokia, Qualcomm, trade secrets, Womble Caryle
Seattle Man Arrested on Fraud and Extortion Charges
You've simply got to read this one to believe it. Con man (man-child?) Sung "Lawrence" Hung convinced his Seattle-area neighbor to lend him funds for a mutually beneficial investment, but when the deal went south, Hung threatened that mafia types were coming to do them both in. The most amazing thing is that Hung and his mom have been running scams like this since at least 1997.
Read about his arrest and the schemes that preceded it, here.
These people are out there (well, not Hung, he's currently in the hoosegow) and background checking is your friend. Keep in mind though, that all background checks aren't created equal. When you hire an investigator or investigative service to aid you in vetting potential business associates, know that protecting your interests takes time and attention to detail. Human attention, that is. A $15 internet chop-shop job isn't going to cut it with a guy like Hung. Databases don't do well with non--standard names - especially when they include westernized nicknames.
As a friend in the industry reminded me just days ago, only an investigator, with the benefit of his or her on-the-job experience can anticipate and circumvent issues that would thwart an automated search. It takes a human hand in order to ensure that your ass is well and truly covered. Not conducting a background check and ending up like Hung's victims is bad enough. But even worse is actually paying for a background check that doesn't give you the early warning that you are paying for. So choose wisely...
-- MDT
Read about his arrest and the schemes that preceded it, here.
These people are out there (well, not Hung, he's currently in the hoosegow) and background checking is your friend. Keep in mind though, that all background checks aren't created equal. When you hire an investigator or investigative service to aid you in vetting potential business associates, know that protecting your interests takes time and attention to detail. Human attention, that is. A $15 internet chop-shop job isn't going to cut it with a guy like Hung. Databases don't do well with non--standard names - especially when they include westernized nicknames.
As a friend in the industry reminded me just days ago, only an investigator, with the benefit of his or her on-the-job experience can anticipate and circumvent issues that would thwart an automated search. It takes a human hand in order to ensure that your ass is well and truly covered. Not conducting a background check and ending up like Hung's victims is bad enough. But even worse is actually paying for a background check that doesn't give you the early warning that you are paying for. So choose wisely...
-- MDT
Labels: background checks, Con artist, due diligence, Sung "Lawrence" Hung
Why Steve Jobs Should Resign
Well, lets be clear, I don't think he should. But over at Institutional Risk Analytics they're makin' a case. Personally I can't see any way that Job's resigning from Apple hurts the company less than simply weathering the options scandal. To read the case against Steve Jobs, just click here.
-- MDT
1/04/2007
-- MDT
Labels: Apple, backdating, stock options
SEC Proposes New Hedge Fund Regs
Institutional Investor Daily has the coverage on new proposals from the SEC for how the agency will handle hedge fund regulation. The securities regulator faced a setback in this arena several months back when it came out on the losing side of a court battle over its existing hedge fund regs.
Check out the dailyii post for more details on what hedge funds and their burgeoning numbers of investors can expect from the SEC in the new year. You can also check out the SEC proposed rules here.
-- MDT
Check out the dailyii post for more details on what hedge funds and their burgeoning numbers of investors can expect from the SEC in the new year. You can also check out the SEC proposed rules here.
-- MDT
Labels: hedge fund, homeland security, Phillip Goldstein, regulations
Enron Chief Accounting Officer Reports to the Pen
Richard Causey begins serving his five and a half year prison term today at the Federal Correctional Institution (low to minimum security, folks) in Bastrop, Texas. Further details here.
-- MDT
1/03/2007
-- MDT
Labels: Enron, Prison, Richard Causey
Siemens (Iraq) Bribery Probe Stirring
As if the firm needed more bad news, Siemens is apparently cooperating with the UN regarding bribes that may have been paid for contracts in Saddam Hussein's Iraq. The Daily Caveat had previously called attention (back in August '05) to the SEC's look at similar activities involving DaimerChrysler. Siemens and DaimlerChrysler are in good company, however. A 2005 UN report that identified some 63 German companies which paid bribes to Iraq under Hussein.
And no, smartypants, Halliburton is not a German company. Besides, that was Iran they were dealing with.
-- MDT
And no, smartypants, Halliburton is not a German company. Besides, that was Iran they were dealing with.
-- MDT
Labels: bribery, DaimlerChrysler, Siemens, UN
Malcolm Gladwell on Enron
Via The New Yorker. Read it. Yes, the whole thing.
-- MDT
-- MDT
Labels: Enron, Malcolm Gladwell, The New Yorker
Wired 2007 Legal Predictions: Investigate Everyone
I'm not sure Jennifer Granick had in mind corporate or private investigations, but check out her '07 Legal Tech Predictions nonetheless. And keep in mind, mass surveillance is your friend (he said, in case anyone at the NSA is reading this blog, my email, etc.).
-- MDT
-- MDT
Labels: Jennifer Granick, Wired
The Wall Street Self Defense Manual
Hedge fund humor (sort-of) from the notably notorious Henry Blodget over at Slate. Click through and you'll find an excerpt from Blodget's book The Wall Street Self Defense Manual.
On sale here.
-- MDT
On sale here.
-- MDT
Labels: hedge fund, Henry Blodget, Slate, Wall Street
Busines Schools Turning to P.I.s to Fact Check Resumes
It seems the dishonest habits we often seen displayed in business don't originate there. BusinessWeek does a follow-up on how an intern helped investigative giant, Kroll, break into a new market - college admissions. That Kroll intern, by the way, was Brian Lapidius, who is now Kroll's vice-president for strategic development at the background screening division.
-- MDT
-- MDT
Labels: background checks, Brian Lapidius, college admissions, Kroll
Securities Lawsuits Drop to Record Lows in 2006
The Stanford Securities Class Action Clearinghouse and Cornerstone Research have released their 2006 year in review. Most anyone reading here is probably already familiar with the group's work, but if not, here's the nugget: they track the prosecution, defense, and settlement of federal class action securities fraud litigation.
So, how did the industry fair in 2006? According to the SSCAC, securities suits have fallen to an all time low (well, ok, they are one suit off of the 1996 pace) since the adoption of the Public Securities Litigation Reform Act was adopted in 1995. The SSCAC attributes this drop to a combination of strong Federal enforcement and a relatively stable stock market. You can read the full report here (PDF).
Check the tagged posts below to track back on the SSCAC's recent reports (as well as rebuttals), or just check out their website, where you'll find all manner of helpful tools for the data junkie.
On a potentially better note for plaintiff firms and their clients, a recent report from NERA Economic Consulting found that that class action settlements paid by corporations to shareholder plaintiffs rose by 37% in 2006. NERA also tracked the decline in securities class actions and it may be interesting to compare their numbers.
-- MDT
1/02/2007
So, how did the industry fair in 2006? According to the SSCAC, securities suits have fallen to an all time low (well, ok, they are one suit off of the 1996 pace) since the adoption of the Public Securities Litigation Reform Act was adopted in 1995. The SSCAC attributes this drop to a combination of strong Federal enforcement and a relatively stable stock market. You can read the full report here (PDF).
Check the tagged posts below to track back on the SSCAC's recent reports (as well as rebuttals), or just check out their website, where you'll find all manner of helpful tools for the data junkie.
On a potentially better note for plaintiff firms and their clients, a recent report from NERA Economic Consulting found that that class action settlements paid by corporations to shareholder plaintiffs rose by 37% in 2006. NERA also tracked the decline in securities class actions and it may be interesting to compare their numbers.
-- MDT
Labels: class action, securites, Stanford Securities Class Action Clearing House
More Details on Lerach Lawfirm Removal from Halliburton Litigation
The Daily Caveat mentioned in passing several days ago that Lerach Coughlin, home of the Wall Street Journal's favorite litigator, Bill Lerach, had been removed from upcoming securities fraud litigation against Halliburton. The client in that case, the Archdiocese of Milwaukee Supporting Fund Inc., has since given more details on the removal of Lerach's firm as well as co-lead counsel, David Scott of Scott + Scott, linking the switch directly to the continuing indictment against Lerach's former firm, Milberg Weiss. As was previously mentioned, DC uber-attorny David Boies has picked up the reins of the case.
Meanwhile Milberg and the plaintiff's bar in general are bracing for what some are calling the trial of the century.
-- MDT
Meanwhile Milberg and the plaintiff's bar in general are bracing for what some are calling the trial of the century.
-- MDT
Labels: Bill Lerach, class action, David Boies, Halliburton, indictment, Melvyn Weiss, Milberg, Milberg Weiss, securites
French Financial Regulators Fine GLG Partners on Alcatel Trades
As Philippe Jabre celebrates the launch of his new venture, GLG Partners is still paying for the once and future star trader's purported misdealings. France's Autorité des Marchés Financier has fined GLG Partners $1.6 million in relation to a 2002 bond issue involving French telecom firm, Alcatel. This is the same issue that saw Philippe Jabre face a lifetime ban from Britain's Financial Services Authority for alleged indisder dealing. Deutsche Bank was also facing fines in relation to their role in the scandal, but was hit with a smaller than expected fine.
-- MDT
-- MDT
Labels: Acatel, Autorité des Marchés Financier, Deutsche Bank, GLG, Philippe Jabre
Hedge Fund Arena Turning Increasingly Litigious
Check out Karen Brymer's article reviewing recent cases involving hedge funds over at Mondaq. You'll have to create a login to access the full article, but it will be well worth it for the Mondaq content. Especially interesting if you want to review the background on that FSA / GLG / Jabre spat that seems to be a running theme on the blog at the moment.
-- MDT
-- MDT
Labels: background checks, Financial Services Authority, GLG, Mondaq, Philippe Jabre
FSA: The Year in Fines
25 in total, adding up to more than $27 million. And of course, the Jabre fine was the largest - and the largest ever for the five year old financial regulator.
-- MDT
-- MDT
Labels: Financial Services Authority, Philippe Jabre, Year in Review
New Jabre Venture Collects More Talent
Ziad Tabet of Citibank has resigned to join Philippe Jabre's new venture, Jabre Capital Partners. Details here.
Jabre has already wooed James Saltissi and Daniel Horsely from GLG as well as former Morgan Stanley head of risk management (and Jabre brother in law), Philippe Riachi.
-- MDT
Jabre has already wooed James Saltissi and Daniel Horsely from GLG as well as former Morgan Stanley head of risk management (and Jabre brother in law), Philippe Riachi.
-- MDT
Labels: Citibank, hedge fund, Jabre Capital Partners, Philippe Jabre, Tribeca, Ziate Tabet
Happy New Year!
The Daily Caveat is back from the wilds of north Louisiana and I'll resume posting in earnest this evening. Hope everyone had safe travels and happy holidays.
In the interim and for your amusement, I'd like to offer The Bravest Bear. This blog belongs to a younger Thomas currently law-schooling it up at Baylor University. If you like cats, karaoke and youthful hijinks, do pay him a visit.
-- MDT
In the interim and for your amusement, I'd like to offer The Bravest Bear. This blog belongs to a younger Thomas currently law-schooling it up at Baylor University. If you like cats, karaoke and youthful hijinks, do pay him a visit.
-- MDT
Labels: hijinks, Louisiana, The Bravest Bear
