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5/31/2007
Bill Lerach Calls it Quits
Siemens Bribery Investigation Turns To China
Milberg Weiss 1, Martha Stewart 0
Credit Suisse Insider Trading Scandal Has Ties to Texas
James Mintz Group Hired in Nigerian Presidential Campaign
Telecom Antitrust Gets Dumped by Supreme Court in Precedent-Setting Split Decision
NZ Investigators Hired to Infiltrate Envrionmental Groups Outed
UK Split-Cap Scandal Ends With a Whimper, Not a Bang
HP Settles with SEC on Spying Scandal
Russian Money Laundering Scandal Darkens Mellon / BNY Merger Talks
Amgen Gets Love Letter From New York AG
The Lost Season Finale Drama
San Francisco Gate Profiles Patrick McGurn of Institutional Shareholder Services
Where the Badguys Launder Their Cash
German Companies On Notice - Scandal may Not Stop at Siemens
Siemens Pulls Trigger on new CEO
One to check out - the Stockbroker Fraud Blog
Ideoblog Mulls the Anniversary of the Milberg Indictment
Better Day For Milberg, Tyco Settles for $3 Billion
Russia Files $22 Billion Lawsuit Against Bank of New York
First Sentences Come Down in "Bottomless" Siemens Corruption Probe
More on the NZ Private Eye and The Bestiality Video
Free Year of Institutional Investor Magazine 5/16/2007
Speaking of Ethical Corporations...
"Is it Legal" vs "Is it Right?" - The Ehtical Corporation Takes on Hank Paulson
Seymour Lazar, Serial Milberg Weiss Plaintiff, Angles to Avoid Indictment on Grounds of Bad Health
Biovail Faces Expanded SEC Investigation
Casino Payment Processors Facing Indictment
Private Eye Linked to Bestiality Video
Need a Gig? Freelance Security's Got'em
James Mintz Group Hires Former New York Assistant Attorney General
Enron Shareholders Pursue Banks for Restitution
SEC Wrapping Up GM Investigation
Probe of Suspicious Trading Continues at Dow Jones
Warning: The U.S. Government May Access Your Banking Information
Siemens Bribery Pit To Get Deeper According to Debevoise & Plimpton Internal Investigation
Journos Plan to Sue HP on Invasion of Privacy
Peregrine Systems Trial Exposes Depth of Corruption
Apple Backdating Investigation Turns Toward the BOD
German Scandal Run-Down
Vietnamese Businessman Named as recipient of Siemens Bribes
Microsoft challenges plaintiff attorney Fees in Iowa Class Action
Sad Day for DC, Eastern Market Burns
Wired Updates Word on OneDOJ
Lobbyist Influence Scandal Ties to Former Head of Investigative Firm
Kroll Investigator Goes Fishing in Hong Kong, Gets Hooked
Bill Lerach Calls it Quits
William S. Lerach, one of the most famous litigators in America has called it a day. It has been reported by Fortune magazine that Lerach, the plantiff attorney most famous for representing shareholders of Enron and the mind who launched a thousand class action lawsuits is planning to leave the namesake firm he founded only three years ago.
Lerach made is name with Milberg Weiss, another lawfirm famous for its work on behalf of aggrieved investors. What happens next for Lerach is anyone's guess - he has yet to even formerly announce his departure but speculation regarding his fate has already begun. Thusfar Lerach has remained largely untouched by the kickback scandal that has engulfed his former colleagues at Milberg Weiss.
Whether that will remain the case is no certain thing. News that indicted former Milberg partner David Bershad is considering a settlement with federal investigators that would include a guilty plea in exchange for his cooperation does not exactly bode well for Lerach. He is certainly a big fish and federal prosecutors have spent most of the last decade trying to catch him at dirty pool.
Lerach, for his part, has long insisted that prosecutors persistent interest in him is based on politics, not perfidy...
-- MDT
Lerach made is name with Milberg Weiss, another lawfirm famous for its work on behalf of aggrieved investors. What happens next for Lerach is anyone's guess - he has yet to even formerly announce his departure but speculation regarding his fate has already begun. Thusfar Lerach has remained largely untouched by the kickback scandal that has engulfed his former colleagues at Milberg Weiss.
Whether that will remain the case is no certain thing. News that indicted former Milberg partner David Bershad is considering a settlement with federal investigators that would include a guilty plea in exchange for his cooperation does not exactly bode well for Lerach. He is certainly a big fish and federal prosecutors have spent most of the last decade trying to catch him at dirty pool.
Lerach, for his part, has long insisted that prosecutors persistent interest in him is based on politics, not perfidy...
-- MDT
Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg Weiss
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Siemens Bribery Investigation Turns To China
Milberg Weiss 1, Martha Stewart 0
Even the most hardened tort reformers and business advocates can celebrate today! Milberg Weiss has reached a $30 million settlement on behalf of shareholders of Martha Stewart Omnimedia. The queen of mean herself is obligated to personally pay $5 million based on the terms of the settlement.
Halelujah, y'all.
Let the lion lay down with the lamb, if only for this brief, unifying moment in time.
As you may recall, America's favorite domestic despot was convicted in March of '04 and, due mostly to her own stubbornness, ended up serving 5 months in a minimum security prison instead of, you know, admitting she did something wrong in taking advantage of insider information in trades of ImClone stock.
-- MDT
Halelujah, y'all.
Let the lion lay down with the lamb, if only for this brief, unifying moment in time.
As you may recall, America's favorite domestic despot was convicted in March of '04 and, due mostly to her own stubbornness, ended up serving 5 months in a minimum security prison instead of, you know, admitting she did something wrong in taking advantage of insider information in trades of ImClone stock.
-- MDT
Labels: insider trading, Martha Stewart, Melvyn Weiss, Milberg Weiss
Credit Suisse Insider Trading Scandal Has Ties to Texas
AtLargely has the run down on one Ajaz Rahim, former head of investment banking for Faysal Bank Ltd. in Karachi, Pakistan. Rahim is one of several individuals facing prosecution on insider trading charges coming out of the leveraged buyout of TXU Corp., a Texas-based utility company.
Five cases and counting have been filed due to suspect trades that toop place ahead of the TXU buyout. The profitable, if illegal, tips seem to have come from Credit Suisse Group banker, Hafiz Naseem, who as you can imagine is in his own hot water at this point - he was arrested in New York in early May and charged with 25 counts of securities fraud and one count of conspiracy.
-- MDT
5/30/2007
Five cases and counting have been filed due to suspect trades that toop place ahead of the TXU buyout. The profitable, if illegal, tips seem to have come from Credit Suisse Group banker, Hafiz Naseem, who as you can imagine is in his own hot water at this point - he was arrested in New York in early May and charged with 25 counts of securities fraud and one count of conspiracy.
-- MDT
Labels: Ajaz Rahim, Credit Suisse, Hafiz Naseem, insider trading, TXU Corp
James Mintz Group Hired in Nigerian Presidential Campaign
The Daily Caveat doesn't delve into politics too often (much less Nigerian politics) but there's a story in the May 30th issue of DC political rag, The Hill that's worth reading.
The article details the export of U.S.-style campaign tactics to the democracies in the developing world. Amongst the many prominent players who got a piece of the election action was The James Mintz Group, investigative alma mater for The Daily Caveat.
According to The Hill article, U.S. Justice Department Foreign Agents Registration Office documentation shows that the Mintz Group took in about $16,000 for research and consulting services.
-- MDT
5/29/2007
The article details the export of U.S.-style campaign tactics to the democracies in the developing world. Amongst the many prominent players who got a piece of the election action was The James Mintz Group, investigative alma mater for The Daily Caveat.
According to The Hill article, U.S. Justice Department Foreign Agents Registration Office documentation shows that the Mintz Group took in about $16,000 for research and consulting services.
-- MDT
Labels: election, FARA, Mintz Group, Nigeria
Telecom Antitrust Gets Dumped by Supreme Court in Precedent-Setting Split Decision
A recent class action lawsuit filed against Verizon Communications Inc., AT&T Inc. and Qwest has been thrown out by the Supreme Court in a move that overturned a 50 year old precedent. The court, in a 7-2 decision rejected the class action brought forth on behalf of customers of this trio of telecoms.
The antitrust suit alleged an illegal agreement between the companies that they would not compete against each other in their respective home areas. The court's decision highlighted the lack of enough "factual matter" to validate allegations of conspiracy made by plaintiffs in the case and the court also cited concerns over making the companies pay for a costly defense.
Formerly, dismissal at such an early stage would only have been permitted when "no set of facts" would entitle the plaintiff to win the case. The newly announced decision breaks with decades of precedent. Welcome to the new Supreme Court...it is going to be a bad time for the plaintiff's bar.
Read more about the case, Bell Atlantic v. Twombly, including comments from dissenting Justice John Paul Stevens, via the Asbury Park Press.
-- MDT
The antitrust suit alleged an illegal agreement between the companies that they would not compete against each other in their respective home areas. The court's decision highlighted the lack of enough "factual matter" to validate allegations of conspiracy made by plaintiffs in the case and the court also cited concerns over making the companies pay for a costly defense.
Formerly, dismissal at such an early stage would only have been permitted when "no set of facts" would entitle the plaintiff to win the case. The newly announced decision breaks with decades of precedent. Welcome to the new Supreme Court...it is going to be a bad time for the plaintiff's bar.
Read more about the case, Bell Atlantic v. Twombly, including comments from dissenting Justice John Paul Stevens, via the Asbury Park Press.
-- MDT
Labels: antitrust, Supremet Court
NZ Investigators Hired to Infiltrate Envrionmental Groups Outed
The New Zealand's Solid Energy, the largest coal mining company in the country and a state owned enterprise has been exposed for hiring private investigators to infiltrate local environmental activist groups.
Apparently this kind of story is not new in the Aukland area code, but the activities of Solid Energy and the PI firm hired to do their dirty work, Thompson & Clark, are getting a great deal of no-doubt unwanted attention...
Read all about it in the Sunday Star Times.
-- MDT
5/25/2007
Apparently this kind of story is not new in the Aukland area code, but the activities of Solid Energy and the PI firm hired to do their dirty work, Thompson & Clark, are getting a great deal of no-doubt unwanted attention...
Read all about it in the Sunday Star Times.
-- MDT
Labels: activist groups, infiltration, New Zealand, Solid Energy, Thompson and Clark
UK Split-Cap Scandal Ends With a Whimper, Not a Bang
No charges filed, criminal probe dropped....a little (a lot) of cash makes everything alright.
Details at The Times Online.
-- MDT
5/24/2007
Details at The Times Online.
-- MDT
Labels: corporate scandal, split trust
HP Settles with SEC on Spying Scandal
HP violated mandatory disclosure rules when it failed to come clean in company 8Ks about the reason that shareholder Tom Perkins left the board of directors. Perkins, a noted venture capitalist and an old-school Don of Silicon Vally hardly needed the HP board berth to pad his extensive resume.
As you may recall, Perkins left his seat to protest HP's spying on himself, other board members and various journalists.
HP top brass, including former CEO Patricia Dunn believed Perkins to be the source of media leaks that were hampering the company. In response Dunn, HP's general counsel, outside counsel Wilson Sonsini and a cadre of investigators and subcontractors initiated what came to be known as Kona II, an investigation that included surveillance, pulling trash and obtaining phone records under false pretenses.
There are no "teeth" to the SEC's settlement with HP. The company simply double-promises not to violate disclosure rules in the future. No penalty was assessed.
For further background on the HP shenanigans - that is, if you're not totally sick to death of the story - check out the tags below.
-- MDT
As you may recall, Perkins left his seat to protest HP's spying on himself, other board members and various journalists.
HP top brass, including former CEO Patricia Dunn believed Perkins to be the source of media leaks that were hampering the company. In response Dunn, HP's general counsel, outside counsel Wilson Sonsini and a cadre of investigators and subcontractors initiated what came to be known as Kona II, an investigation that included surveillance, pulling trash and obtaining phone records under false pretenses.
There are no "teeth" to the SEC's settlement with HP. The company simply double-promises not to violate disclosure rules in the future. No penalty was assessed.
For further background on the HP shenanigans - that is, if you're not totally sick to death of the story - check out the tags below.
-- MDT
Labels: HP, Kona II, Patricia Dunn, pretexing, Wilson Sonsini
Russian Money Laundering Scandal Darkens Mellon / BNY Merger Talks
As you'll read in this Pittsburgh Tribune-Review article, some are saying that the BNY / Russia money laundering litigation is a serious enough concern that it could disrupt the planned merger of these two financial heavyweights.
We'll know soon enough what the impact will be, as Mellon shareholders are set to meet this very morning in the 'Burgh. The $17 billion merger with BNY was expected to be complete in July.
We'll see if that timeline holds...
-- MDT
We'll know soon enough what the impact will be, as Mellon shareholders are set to meet this very morning in the 'Burgh. The $17 billion merger with BNY was expected to be complete in July.
We'll see if that timeline holds...
-- MDT
Labels: Bank of New York, Mellon, money laundering, Russia
Amgen Gets Love Letter From New York AG
Subpoena is latin for love, right?
In any case, Amgen was on the receiving end of a compelling request from the New York Attorney General's office.
According to a recent SEC filing the May 10th letter sought wide ranging documentation from the pharmaceutical company, including: data on the company's sales and marketing, medical education, clinical studies, pricing, contracting, licensing and distribution agreements as well as corporate communications.
Amgen is already facing class action litigation filed in the U.S. District Court for the Central District of California. , alleging securities fraud.
-- MDT
In any case, Amgen was on the receiving end of a compelling request from the New York Attorney General's office.
According to a recent SEC filing the May 10th letter sought wide ranging documentation from the pharmaceutical company, including: data on the company's sales and marketing, medical education, clinical studies, pricing, contracting, licensing and distribution agreements as well as corporate communications.
Amgen is already facing class action litigation filed in the U.S. District Court for the Central District of California. , alleging securities fraud.
-- MDT
Labels: Amgen, class action, New York AG, securities, subpoena
The Lost Season Finale Drama
Yes, yes...The Daily Caveat, like many of you is hooked on this ridiculous show. And last night about 90 seconds into the two hour season finale our cable went deader than disco. Needless to say, we were not pleased.
Luckily, a second among our group of collected Lost watchers had their Tivo running across town. I quick trip from the out to the inner DC burbs and we were back in action and commercial free.
BTW, the twist...we totally called it - INVESTIGATORS, baby!
-- MDT
5/22/2007
Luckily, a second among our group of collected Lost watchers had their Tivo running across town. I quick trip from the out to the inner DC burbs and we were back in action and commercial free.
BTW, the twist...we totally called it - INVESTIGATORS, baby!
-- MDT
San Francisco Gate Profiles Patrick McGurn of Institutional Shareholder Services
Great article following the ins and outs of corporate watchdoggin.' Take a look. You may already be familiar with the fine corporate governance blog run by ISS, but if not, you should be.
-- MDT
-- MDT
Where the Badguys Launder Their Cash
J. Turquey, whose blog covers "Ethics and governance in the European Financial Centers" runs down the top spots to swap your dirty cash for the clean stuff. This post lays out the top ten based on their potential harm to the world community. Interesting stuff.
-- MDT
-- MDT
Labels: J Turquey, money laundering, tax havens
German Companies On Notice - Scandal may Not Stop at Siemens
Andrew Murray-Watson, Business Editor at The Independent muses about the Siemens bribery scandal. Not only do the escalating issues at Siemens tarnish the country's reputation for transparency, AMW argues, they may also signal a sea change for how business is done in Germany.
-- MDT
5/21/2007
-- MDT
Labels: bribery, corporate scandal, Germany, Siemens
Siemens Pulls Trigger on new CEO
And their pick? Peter Loscher, who comes out of the pharmaceutical industry. Löscher is currently the president of Global Human Health at Merck. His appointment makes him the first Siemens CEO to have not held a prior position with the company.
Read more about Loscher at the IHT.
-- MDT
Read more about Loscher at the IHT.
-- MDT
Labels: bribery, CEOs, corporate scandal, Siemens
One to check out - the Stockbroker Fraud Blog
This is a new one to me, but perhaps many of you are already reading it. Slick design, good content, all courtesy Shepard Smith and Edwards based in Houston, Texas.
Here's the post that drew me there in the first place - scandal at the SIFMA.
-- MDT
Here's the post that drew me there in the first place - scandal at the SIFMA.
-- MDT
Labels: scandal, SIFMA, Stockbroker Frad Blog
Ideoblog Mulls the Anniversary of the Milberg Indictment
Typically great commentary from Larry Ribstein as he considers the guv'ment's case against Milberg Weiss one year after the indictment. The post is chock-a-block with additional links for further reading - give it a look at Ideoblog.
-- MDY
5/18/2007
-- MDY
Labels: Ideoblog, indictment, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss
Better Day For Milberg, Tyco Settles for $3 Billion
We've covered some of plaintiff firm, Milberg Weiss's travails this week as it continues to struggle through an ongoing investigation into kickbacks the firm offered to repeat lead plaintiffs. But there are brighter spots for the firm, one being the recent $3 billion settlement of a class action lawsuit brought against Tyco International.
Tyco is of course the famous former home of bad-boy CEO, Dennis Kozlowski. The Milberg-led class action (co-led by Schiffrin, Barroway, Topaz & Kessler) was brought in 2002 on behalf of several pension funds who suffered losses as a result of the fraud at Tyco.
-- MDT
Tyco is of course the famous former home of bad-boy CEO, Dennis Kozlowski. The Milberg-led class action (co-led by Schiffrin, Barroway, Topaz & Kessler) was brought in 2002 on behalf of several pension funds who suffered losses as a result of the fraud at Tyco.
-- MDT
Labels: class action, Dennis Kozlowski, Melvyn Weiss, Milberg, Milberg Weiss, Schiffrin Barroway, securities, Tyco
Russia Files $22 Billion Lawsuit Against Bank of New York
In a suit filed on Thursday, Russia alleges that between 1996 and 1999 Bank of New York took part in a money laundering scheme that cost the Russian federation $22.5 billion dollars. This is not exactly a new story for Bank of New York, which has seemingly been involved in one Russian money laundering scandal or another for most of the last decade. Forbes provides a quick list of these past issues and the AFP offers a response to the case from BNY.
For a thorough run down of the intersection of BNY, Russia and scandal, try Russianlaw.org, which seems to relish these things.
-- MDT
5/17/2007
For a thorough run down of the intersection of BNY, Russia and scandal, try Russianlaw.org, which seems to relish these things.
-- MDT
Labels: Bank of New York, lawsuit, money laundering, Russia
First Sentences Come Down in "Bottomless" Siemens Corruption Probe
"I have the impression that we are looking into a bottomless pit."
-- Siemens board member Berthold Huber to Der Spiegel
Siemens insiders not showing a lot of optimism these days. While the company's stock price had remained relatively stable throughout the bribery scandal that has subsumed Siemens over the last few months, the bad news just keeps coming and coming.
In keeping with that theme, two former employees from Siemens power generation division, Andreas Kley and Horst Vigener were recently convicted on bribery-related charges by a German court. These two names popped up back in mid-March, when they copped to bribery allegations. Then and now Kley and Vigener have denied broader company involvement and have received suspended sentences. Siemens plans to appeal the conviction.
-- MDT
-- Siemens board member Berthold Huber to Der Spiegel
Siemens insiders not showing a lot of optimism these days. While the company's stock price had remained relatively stable throughout the bribery scandal that has subsumed Siemens over the last few months, the bad news just keeps coming and coming.
In keeping with that theme, two former employees from Siemens power generation division, Andreas Kley and Horst Vigener were recently convicted on bribery-related charges by a German court. These two names popped up back in mid-March, when they copped to bribery allegations. Then and now Kley and Vigener have denied broader company involvement and have received suspended sentences. Siemens plans to appeal the conviction.
-- MDT
Labels: Andreas Kley, bribery, Horst Vigener, Siemens
More on the NZ Private Eye and The Bestiality Video
You may have seen our first note on this story earlier in the week. Apologies for referring back to it again, but, yes, there actually is more to the tale (tail?). Click here for lots of prominent New Zealanders blaming each other for watching some sheepshagging back in '81.
-- MDT
-- MDT
Labels: New Zealand
Free Year of Institutional Investor Magazine 5/16/2007
Speaking of Ethical Corporations...
Motley Fool provides this guide to social responsible investing...an interesting read.
-- MDT
-- MDT
Labels: social responsible investing, SRI
"Is it Legal" vs "Is it Right?" - The Ehtical Corporation Takes on Hank Paulson
Interesting article regarding some recent comments from US Treasury Secretary Paulson suggesting a sort of corporate puritanism as a path to deregulation. As you might imagine, The Ethical Corporation is neither convinced nor amused by this.
You might be though...
-- MDT
You might be though...
-- MDT
Labels: deregulation, Hank Paulson, SOX
Seymour Lazar, Serial Milberg Weiss Plaintiff, Angles to Avoid Indictment on Grounds of Bad Health
79 year old Seymour Lazar was indicted in June 2005 by federal prosecutors in hot pursuit of class action giant Milberg Weiss. Lazar was accused of receiving kickbacks from Milberg in exchange for serving repeatedly as lead plaintiff in the law firm's class action suits.
Unlike others in similarly uncomfortable positions, Lazar steadfastly refused to deal or talk. Now, as Lazar's trial is gearing up a series of hearings have been scheduled, and the first already concluded, to determine whether the ailing almost-octogenarian can reasonably withstand the rigors of the courtoom.
For further details on the Lazar trial, check out the New York Sun.
In related news, former Milberg partner and one of the individuals named in the firm's "kickback" indictment, Steven Schulman, has asked that the charges against him be dismissed. Schulman, along with former Milberg partner David Bershad faces charges including conspiracy, mail fraud, money laundering, obstruction of justice and tax violation . Schulman requested the dismissal of charges based on the claim that shareholders in lawsuits where lead plaintiffs received kickbacks suffered no actual harm.
For background on all of the above shenanigans, check out the tags below, which will take you to The Daily Caveat's past coverage of the long in coming Milberg indictment and all the colorful players it involves...
-- MDT
5/15/2007
Unlike others in similarly uncomfortable positions, Lazar steadfastly refused to deal or talk. Now, as Lazar's trial is gearing up a series of hearings have been scheduled, and the first already concluded, to determine whether the ailing almost-octogenarian can reasonably withstand the rigors of the courtoom.
For further details on the Lazar trial, check out the New York Sun.
In related news, former Milberg partner and one of the individuals named in the firm's "kickback" indictment, Steven Schulman, has asked that the charges against him be dismissed. Schulman, along with former Milberg partner David Bershad faces charges including conspiracy, mail fraud, money laundering, obstruction of justice and tax violation . Schulman requested the dismissal of charges based on the claim that shareholders in lawsuits where lead plaintiffs received kickbacks suffered no actual harm.
For background on all of the above shenanigans, check out the tags below, which will take you to The Daily Caveat's past coverage of the long in coming Milberg indictment and all the colorful players it involves...
-- MDT
Labels: David Bershad, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, money laundering, Seymour Lazar, Steven Cooperman, Steven Schulman
Biovail Faces Expanded SEC Investigation
The SEC is coming for Canada's largest drug maker. At issue, according to the U.S. securities regulator, are Biovails string of accounting irregularities and misleading financial disclosures. Biovail acknowledged previously receiving a Wells Notice from the SEC regarding their 2003 finances. The SEC's probe now apparently extends from 2001 to 2004. Biovail founder, Eugene Melnyk, is also facing investigations into his personal conduct relating to Biovail. Additional details on the Biovail investigation can be found right here.
-- MDT
-- MDT
Labels: accounting fraud, Biovail, Eugene Melnyk, SEC
Casino Payment Processors Facing Indictment
In a 34 count indictment brought by Utah District Attorney, Brett Tollman, online payment processors Hill Financial Services, Gateway Technologies and CurrenC / CurrenC Worldwide along with gambling portal Betus.com have been charged with attempting to disguise the fact that some $150 million in transactions were tied to gambling.
As of October of last year, the Unlawful Internet Gambling Enforcement Act made it illegal for U.S. financial institutions to process online gaming transactions. You can find further details on the payment processor indictment right here. Seven individuals were also charged, including:
Baron Lombardo, 46, of Las Vegas
Richard Carson-Selman, 51, of Las Vegas
Henry G. Bankey, 49, of Las Vegas
Francisco Lombardo a.k.a. Frank Lombardo, 52, of Las Vegas
Count C. Lombardo, 43, of Las Vegas
Tina I. Hill, 32, of Sandy, Utah and Las Vegas
Kimberlie Lombardo a.k.a. Kittie Lombardo, 43, of Las Vegas
...details via Yahoo.
-- MDT
As of October of last year, the Unlawful Internet Gambling Enforcement Act made it illegal for U.S. financial institutions to process online gaming transactions. You can find further details on the payment processor indictment right here. Seven individuals were also charged, including:
Baron Lombardo, 46, of Las Vegas
Richard Carson-Selman, 51, of Las Vegas
Henry G. Bankey, 49, of Las Vegas
Francisco Lombardo a.k.a. Frank Lombardo, 52, of Las Vegas
Count C. Lombardo, 43, of Las Vegas
Tina I. Hill, 32, of Sandy, Utah and Las Vegas
Kimberlie Lombardo a.k.a. Kittie Lombardo, 43, of Las Vegas
...details via Yahoo.
-- MDT
Labels: gambling, online gaming, payment processing
Private Eye Linked to Bestiality Video
Not even sure what to do with this... Certainly it's not news but I do find it amusing that the originating point for this story is New Zealand.
-- MDT
5/14/2007
-- MDT
Labels: New Zealand, private investigator
Need a Gig? Freelance Security's Got'em
I find this site bizarre and fascinating....
Here's the opportunity that caught my eye - Project: Competitor Survelliance.
-- MDT
Here's the opportunity that caught my eye - Project: Competitor Survelliance.
-- MDT
Labels: bizarre, Freelance Security, Request for Investigator
James Mintz Group Hires Former New York Assistant Attorney General
Assistant New York Attorney General, Whitman G.S. Knapp, has joined the James Mintz Group as a senior investigator. Here's a collection of docs from the NY AG's website that give a sense of how Mr. Knapp was spending his days prior to the move to private practice. Looks like a great, high profile hire for Daily Caveat investigative alma mater, JMG...
-- MDT
5/11/2007
-- MDT
Labels: Mintz Group, New York AG, Whitman Knapp
Enron Shareholders Pursue Banks for Restitution
But will they get it? This Lerach-led lawsuit was stalled back in March, but the group is currently seeking the support of the SEC to get the case back on course after being rejected by an appeals court. Several banks made no-fault settlements back in 2003. This current suit concerns several additional banks - Merrill Lynch & Co., Credit Suisse First Boston and Barclays.
See The Houston Chronicle for further details.
-- MDT
See The Houston Chronicle for further details.
-- MDT
Labels: accounting fraud, Bill Lerach, Enron, securities
SEC Wrapping Up GM Investigation
After more than 2 years the SEC has called an end to their investigation of accounting issues at General Motors/Delphi. Whether or not the regulatory agency will file civil charges remains to be seen, but we should know something by the end of the summer. The New York Attorney General's Office also has a dog in this fight, having been looking into GM's supplier relationships since 2006.
For further details on where things stand on GM check out the full article from the Detroit News. Also note the quote-love for friend of The Daily Caveat, Peter Henning.
-- MDT
5/10/2007
For further details on where things stand on GM check out the full article from the Detroit News. Also note the quote-love for friend of The Daily Caveat, Peter Henning.
-- MDT
Labels: accounting fraud, Delphi, GM, New York AG, SEC
Probe of Suspicious Trading Continues at Dow Jones
In a story that broke over the weekend, the SEC and New York Attorney General are both taking a close look at some suspicious activity on the big board.
In particular Dow Jones director, David K. P. Li, is being scrutinized in connection with a Hong Kong couple, Kan King Wong and Charlotte Ka On Wong Leung, who made millions of dollars on some well-timed trading just before the announcement of Rupert Murdoch's take-over bid of Down Jones.
Is all this just part of a general rise in questionable trades? Some think so...
-- MDT
In particular Dow Jones director, David K. P. Li, is being scrutinized in connection with a Hong Kong couple, Kan King Wong and Charlotte Ka On Wong Leung, who made millions of dollars on some well-timed trading just before the announcement of Rupert Murdoch's take-over bid of Down Jones.
Is all this just part of a general rise in questionable trades? Some think so...
-- MDT
Labels: David K. P. Li, Dow Jones, New York AG
Warning: The U.S. Government May Access Your Banking Information
That's the type of warning the Maltese Data Protection Commission is considering giving to customers of local banks whose funds will be processed through the SWIFT system. This is just one aspect of the larger issue of how U.S. surveillance of SWIFT transaction conflicts with European privacy regulations. Details from the Malta Independent Online.
-- MDT
5/09/2007
-- MDT
Labels: Banking, intelligence, Malta, surveillance, SWIFT
Siemens Bribery Pit To Get Deeper According to Debevoise & Plimpton Internal Investigation
Details at The Ethical Corporation... For further details on Siemans bribery as business strategy, check out the FT.
Meanwhile, a Frankfurt prosecutor has called for a 97 million euro fine for just one aspect of Siemen's bribery travails, that of the company's power generation unit. Frankfurt authorities are also angling for jail time for some of the smaller fish involved in the matter.
-- MDT
Meanwhile, a Frankfurt prosecutor has called for a 97 million euro fine for just one aspect of Siemen's bribery travails, that of the company's power generation unit. Frankfurt authorities are also angling for jail time for some of the smaller fish involved in the matter.
-- MDT
Journos Plan to Sue HP on Invasion of Privacy
Three journalists targeted in Patricia Dunn's Kona II leak investigation have retained the services of Panish Shea & Boyle and plan to sue HP for invasion of privacy.
Dawn Kawamoto, Stephen Shankland and Tom Krazit, who all work for CNet's online news service, are not seeking monetary compensation. Rather, they are seeking punative measures against HP for the company's conduct, which included obtaining the journalists phone records under false pretenses - pretexting.
For another account of how HP treated journalists throughout their Kona II investigation, recall the account of the Wall Street Journal's Pu Wing Tam "HP Had me Surveilled for a Year."
-- MDT
5/07/2007
Dawn Kawamoto, Stephen Shankland and Tom Krazit, who all work for CNet's online news service, are not seeking monetary compensation. Rather, they are seeking punative measures against HP for the company's conduct, which included obtaining the journalists phone records under false pretenses - pretexting.
For another account of how HP treated journalists throughout their Kona II investigation, recall the account of the Wall Street Journal's Pu Wing Tam "HP Had me Surveilled for a Year."
-- MDT
Labels: Brian Panish, CNet, HP, Panish Shea and Boyle, pretexting
Peregrine Systems Trial Exposes Depth of Corruption
We're four weeks into the trial of several Peregrine Systems executives in a case that has been called San Diego's Enron. Another separate trial is still to come, arising from the rampant internal fraud that first came to light at Peregrine in 2002.
Back in March Peregrine CEO, Stephen Parker Gardner plead guilty to charges of conspiracy, securities fraud and obstruction of justice. Eight other company execs preceded him in January '07. There was also the Peregrine related extradition of the unfortunately named Jeremy Crook back in September '06.
In more recent news Peregrine's former General Counsel was just indicted last month and will face charges similar to his former bed-fellows: securities and wire fraud, bank fraud and conspiracy to commit fraud.
And the beat goes on...
For up-to-date details on the Peregrine trial, click here.
-- MDT
5/04/2007
Back in March Peregrine CEO, Stephen Parker Gardner plead guilty to charges of conspiracy, securities fraud and obstruction of justice. Eight other company execs preceded him in January '07. There was also the Peregrine related extradition of the unfortunately named Jeremy Crook back in September '06.
In more recent news Peregrine's former General Counsel was just indicted last month and will face charges similar to his former bed-fellows: securities and wire fraud, bank fraud and conspiracy to commit fraud.
And the beat goes on...
For up-to-date details on the Peregrine trial, click here.
-- MDT
Labels: accounting fraud, corporate scandal, Peregrine Systems
Apple Backdating Investigation Turns Toward the BOD
With Steve Jobs, at this point, apparently not facing legal action for his role in Apple's stock option backdating kerfluffle, attention has turned to the Apple board and how it conducts itself. The board features a few folks you may have heard of including former Vice President, Al Gore and Google boss, Eric Shmidt.
The San Francisco Gate has the details.
-- MDT
The San Francisco Gate has the details.
-- MDT
Labels: Apple, backdating, Fred Anderson, Steve Jobs, stock options
German Scandal Run-Down
Siemens and beyond... The Times Online covers all the sorid details.
-- MDT
-- MDT
Labels: corporate scandal, Germany
Vietnamese Businessman Named as recipient of Siemens Bribes
According to a KPMG report, the details of which were obtained by Der Spiegel, a Mr. Le Tan Cuong received an unusual payment from Siemens in the amount of 241,515 euros in March of 2006. it is unclear as yet whether this is the same Le Tan Cuong who serves in Vietnam's Department for Managing Industrial and Exporting Processing Zones under the Ministry of Planning and Investment. So far Vietnamese officials have indicated that the existence of the two Cuongs is merely coincidental.
-- MDT
-- MDT
Labels: bribery, Le Tan Cuong, Siemens, Vietnam
Microsoft challenges plaintiff attorney Fees in Iowa Class Action
But really, what's an extra $500,000 amongst friends?
Wait...so you're not friends?
-- MDT
5/03/2007
Wait...so you're not friends?
-- MDT
Labels: attorney fees, class action, Microsoft, plaintiffs bar
Sad Day for DC, Eastern Market Burns
If you live in the DC area you've no doubt heard about this tragedy. If you're from out of town, please indulge a little local flavor. A DC institution, Eastern Market at 8th Street South East burned down early this week.
When I first started in the investigative business I lived only a few blocks from Eastern Market, a DC-local fixture and the spiritual center for the people who live and work in the Capital Hill area.
On the weekends the market is surrounded by a bustling mix of junk dealers, food vendors, busking musicians and a sea of locals, jostling for good deals or queuing up for a spot at the wonderful Market Lunch for a crab cake sandwich or blueberry pancakes.
For more than 100 years Eastern Market has offered a vibrant selection of fresh fruit and vegetables, meat and seafood, pastries, flowers, etc. It was, and hopefully will be again, one of the real treasures of the local community, having been in continuous operation dating back to 1873.
Y'see, 8th Street South East doesn't appear on any tourist maps. Most all of those stop at the Capital steps or, if they are really inclusive the Library of Congress. Eastern Market was a DC place - for us, by us - and it housed some kind, hardworking folks, many of whom built their family businesses within those walls.
This makes it all the sadder that due to a senseless, preventable fire the market that was is no more. Plans are in the works to repair the damage and to help the vendors there make due until they can reclaim their spots in a refurbished market. I look forward to that day and to continuing to patronize the Canales family's butcher counter for our summer barbecues (best andouille in DC).
If you're from out of town, make a point to visit Eastern Market on a future trip to DC. They'll need a little time to get back on their feet but the wait will be worth it.
For photos of the market in better times...try this gallery from Keith Stanley or these images from About.com. And for some really old-school images, check out this collection of images from the Library of Congress collection documenting historic American buildings.
-- MDT
5/02/2007
When I first started in the investigative business I lived only a few blocks from Eastern Market, a DC-local fixture and the spiritual center for the people who live and work in the Capital Hill area.
On the weekends the market is surrounded by a bustling mix of junk dealers, food vendors, busking musicians and a sea of locals, jostling for good deals or queuing up for a spot at the wonderful Market Lunch for a crab cake sandwich or blueberry pancakes.
For more than 100 years Eastern Market has offered a vibrant selection of fresh fruit and vegetables, meat and seafood, pastries, flowers, etc. It was, and hopefully will be again, one of the real treasures of the local community, having been in continuous operation dating back to 1873.
Y'see, 8th Street South East doesn't appear on any tourist maps. Most all of those stop at the Capital steps or, if they are really inclusive the Library of Congress. Eastern Market was a DC place - for us, by us - and it housed some kind, hardworking folks, many of whom built their family businesses within those walls.
This makes it all the sadder that due to a senseless, preventable fire the market that was is no more. Plans are in the works to repair the damage and to help the vendors there make due until they can reclaim their spots in a refurbished market. I look forward to that day and to continuing to patronize the Canales family's butcher counter for our summer barbecues (best andouille in DC).
If you're from out of town, make a point to visit Eastern Market on a future trip to DC. They'll need a little time to get back on their feet but the wait will be worth it.
For photos of the market in better times...try this gallery from Keith Stanley or these images from About.com. And for some really old-school images, check out this collection of images from the Library of Congress collection documenting historic American buildings.
-- MDT
Labels: DC, Eastern Market, fire, mourning
Wired Updates Word on OneDOJ
OneDOJ, the proposed master database consolidating a wide range of public (and non-public) records for law enforcement is well underway. Crucial anti-terrorism tool or ID thief buffet? Time will tell. Wired offers a brief update on the progress.
-- MDT
-- MDT
Labels: database, OneDOJ, privacy, public records
Lobbyist Influence Scandal Ties to Former Head of Investigative Firm
You may have seen the recent page one Wall Street Journal article describing how DC powerbrokers are now using their contacts and influence to flog the interests of some decidedly dodgy characters from the former Soviet Union.
Buried in this can of worms is an interesting connection to a former executive of a DC-area investigative firm. One of the DC power brokers listed as a door-opener for the dubious is Neil C. Livingstone, security expert, founder and former chief executive of investigative firm, GlobalOptions (Livingstone departed GlobalOptions in January '07).
Livingstone is mentioned in the article as being a key individual who helped arrange high-powered counsel (former FBI Directory William Sessions) and broker a potential deal for Semyon Mogilevich, whereby the notorious Ukrainian organized crime figure might be able to avoid prosecution in exchange for offering helpful information to the U.S. government.
Such a deal has, so far, been rejected, given the pending 45 counts of racketeering and money laundering Mogilevich is facing in Philadelphia - not to mention the Justice Department's ongoing probe of billions of dollars worth of questionable oil and gas deals...
The ties between Livingstone and Mogilevich apparently go back several years. Records would seem to indicate that GlobalOptions, under Livingstone did some work for a Cyprus-based firm called Highrock Holdings, of which Mogilevich was a major shareholder. Exactly what kind of work is disputed, but it is known that GlobalOptions later filed suit in DC District Court over unpaid bills (the suit was abandoned, but not withdrawn when the bill was paid).
An intriguing thread to tease out of a very interesting story.
If you want to know what you government officials are up to you can check out the WSJ article here (with subscription) or via Eurasia.org.
5/01/2007
Buried in this can of worms is an interesting connection to a former executive of a DC-area investigative firm. One of the DC power brokers listed as a door-opener for the dubious is Neil C. Livingstone, security expert, founder and former chief executive of investigative firm, GlobalOptions (Livingstone departed GlobalOptions in January '07).
Livingstone is mentioned in the article as being a key individual who helped arrange high-powered counsel (former FBI Directory William Sessions) and broker a potential deal for Semyon Mogilevich, whereby the notorious Ukrainian organized crime figure might be able to avoid prosecution in exchange for offering helpful information to the U.S. government.
Such a deal has, so far, been rejected, given the pending 45 counts of racketeering and money laundering Mogilevich is facing in Philadelphia - not to mention the Justice Department's ongoing probe of billions of dollars worth of questionable oil and gas deals...
The ties between Livingstone and Mogilevich apparently go back several years. Records would seem to indicate that GlobalOptions, under Livingstone did some work for a Cyprus-based firm called Highrock Holdings, of which Mogilevich was a major shareholder. Exactly what kind of work is disputed, but it is known that GlobalOptions later filed suit in DC District Court over unpaid bills (the suit was abandoned, but not withdrawn when the bill was paid).
An intriguing thread to tease out of a very interesting story.
If you want to know what you government officials are up to you can check out the WSJ article here (with subscription) or via Eurasia.org.
Labels: Former Soviet Union, GlobalOptions, influence, lobbying, money laundering, Neil C. Livingstone, organized crime
Kroll Investigator Goes Fishing in Hong Kong, Gets Hooked
Here's one from the vaults...
An interesting post that I only just ran across from former investment banker David Webb who now runs Webb-site.com, which comments on "corporate and economic governance, business, finance, investment and regulatory affairs in Hong Kong."
On his site, Webb describes at length how, back in 1999, he was able to out a Kroll investigator who, using the pretext of a Seattle-based journalist, was attempting to gather information on a Hong Kong development project.
While I am not sure that Kroll's interest in Mr. Webb's commentary ultimately reflected the "startling implications for press freedom in Hong Kong" that Webb implies, it is interesting to review how things went down. (NOTE: Email headers are not private...).
The silly thing is that Kroll used a pretext at all. You'd think that simply asking the guy might have worked better...
Anyway...not exactly a hot off the presses story, but a cautionary tale for your friendly neighborhood investigator.
-- MDT
An interesting post that I only just ran across from former investment banker David Webb who now runs Webb-site.com, which comments on "corporate and economic governance, business, finance, investment and regulatory affairs in Hong Kong."
On his site, Webb describes at length how, back in 1999, he was able to out a Kroll investigator who, using the pretext of a Seattle-based journalist, was attempting to gather information on a Hong Kong development project.
While I am not sure that Kroll's interest in Mr. Webb's commentary ultimately reflected the "startling implications for press freedom in Hong Kong" that Webb implies, it is interesting to review how things went down. (NOTE: Email headers are not private...).
The silly thing is that Kroll used a pretext at all. You'd think that simply asking the guy might have worked better...
Anyway...not exactly a hot off the presses story, but a cautionary tale for your friendly neighborhood investigator.
-- MDT
Labels: blowback, Hong Kong, Kroll, pretexting
