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7/31/2008
Evolution of Computer Forensics
U.S. Marshalls and Asset Recovery
New Kroll Global Fraud Report is Out
JP Morgan Exec Faces Arrest in Argentina
Siemens Director Reinhard Siekaczek Avoids Jailtime
FSA Continues Enforcement Binge
Corporate Damage Control and Conventional Wisdom 7/29/2008
SEC Announces Charges Against Chairman of Former Enron Energy Services
Sub-Prime Tales of Woe, New York Magazine Collects The Worst
Gumeshoe Ethics, JMG Style
Maximizing Sharholder Value,
From the Folks Who Brought You Leveraged Sellout 7/25/2008
Former Siemens Top Brass Denies Wrongdoing, Post Schaefer Testimony
-- MDT
State of New York Files Suit Against UBS
FSA Butches Up and Goes After Cazenove Partner for Insider Dealing
How Not to Launder Your Stip Club Money Thorugh A Voting Rights Non-Profit
How The Internet Helped Capture a War Criminal
Class Action - The Week in Review
Eliot Spitzer Targeted in Ethics Investigation
Siemens Plans to Loose the Legal Hounds on Former Managers Implicated in Bribery Scandal
More Charges for Bear Stearns Managers?
Recapping Last Weeks Private Banking Congressional Hearings
Former Anti-Corruption Chief Testifies in Siemens Bribery Trial, Results Ugly For Siemens Management
Hack-Igations
First of Many German Tax Evasion Trials Ends With Suspended Sentence, Major Fine
Hedge Funds Once Again Looking Like Greener Pastures for Investment Bankers
SEC's Subpoenas on Rumor Mongering Investigation Spur Wall Street to (Reluctant) Action
Job Hunting?
Guilty Plea for Head of South Carolina Investment Firm
UBS Stops Offshore Accounts for U.S. Citizens 7/18/2008
What Financial Firms Didn't Learn From Jerome Kerviel
Corporate Monitorship Reform Bill Hits the House
International Man of Mystery Strikes New Zealand
Tax Haven Senate Hearing Exhibits Now Online
Names Emerge in U.S. Tax Evasion Probe, Informants Make Ready to Testify
Pelican Prosecution Changing Attorneys' PI-Hiring Habits?
Samsung Boss Avoids Jail Time, Faces Steep Fine
Tax Informant Heinrich Kieber to Testify From Secret Locale
Michigan Corporate Investigators Doing Well in Down Economy
Your Handy Guide to the Fall of Fannie Mae
SEC Looks to Quash Rumor Mongering
SEC Enforcement Overhall, Points for Discussion
Airbus Probe Continues to Eat Executives
The Last (No Really, The LAST) Shoe Drops
BAWAG Trial Sees Nine Sentenced on Charges Stemming from Billions in REFCO-Related Losses
Stanford Calls on Kroll For I.D. Theft Protection After Data Breach
16 Years for REFCO CEO
DOJ Offers New Guidelines for Corporate Investigations
Apple Off the Hook on Options
Jules Kroll Says Goodbye to the Industry He Helped Found
White Collar Fugitive Watch: Anyone Have a Lead on Thomas Byrne?
Bank of New York Investigation
Names Spill Forth in UBS Probe
Bermuda's Market Cops Expanding Their Reach
Polaris Securities Chief Found Dead
Prosecutors Finger Siemens Board Member in Union Bribes
Vanity Fair Delves Deep into Bear Stearns 7/02/2008
Airbus Chief Nabbed on Insider Trading Charges
Sam Israel's (Kinda Pathetic) Camground Hide-out
Backdating Concerns Rise from the Ashes for Apple
Major Letdown: Sam Israel Surrenders Undead Self to Authorities
So Where is Sam Israel?
Evolution of Computer Forensics
A decent article from TechNewsWorld on how CF has continued to develop as a discipline. A little love for Kroll Ontrack as well.
-- MDT
-- MDT
Labels: computer forensics, Kroll Ontrack
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U.S. Marshalls and Asset Recovery
Cool piece from Bloomberg on this - had no idea.
Look for cameos and colorful anecdotes involving some of your fave white collar crooks.
-- MDT
Look for cameos and colorful anecdotes involving some of your fave white collar crooks.
-- MDT
Labels: asset recovery, Bayou Group, Kroll, Sam Israel, U.S. Marshalls
New Kroll Global Fraud Report is Out
This one focusing on investigations.
Nice.
You can download the PDF and get educated right here.
-- MDT
7/30/2008
Nice.
You can download the PDF and get educated right here.
-- MDT
Labels: Global Fraud Report, investigation, Kroll
JP Morgan Exec Faces Arrest in Argentina
JP Morgan private banker, Hernan Arbizu has been indicted on 15 embezzlement-related counts according to recently unsealed court documents. Arbizu has been placed under arrest and is currently in custody in Buenos Aires.
Arbizu was pursued by authorities at the request of JP Morgan Securities, which had sued Arbizu over the disclosure of confidential information to third parties. Arbizu, who was based in Connecticut flew the coop to Argentina just ahead of being fired by JP Morgan.
-- MDT
Arbizu was pursued by authorities at the request of JP Morgan Securities, which had sued Arbizu over the disclosure of confidential information to third parties. Arbizu, who was based in Connecticut flew the coop to Argentina just ahead of being fired by JP Morgan.
-- MDT
Labels: embezzlement, Hernan Arbizu, JP Morgan
Siemens Director Reinhard Siekaczek Avoids Jailtime
Convicted on 49 counts of breach of trust, Siekaczek has been handed a two-year suspended sentence. He'll also pay hefty fine.
-- MDT
-- MDT
Labels: convicted, Reinhard Sieaczek, Siemens
FSA Continues Enforcement Binge
Corporate Damage Control and Conventional Wisdom 7/29/2008
SEC Announces Charges Against Chairman of Former Enron Energy Services
Enron... The name just makes me nostalgic. Probably less so for Lou Pai, formerly Chairman and CEO of Enron Energy Services, who the SEC recently charged with insider trading, circa May to June 2001. Pai immediately settled, accepting a hefty ($30 million plus) financial penalty and a to a five-year bar from serving as officer or director of a public company. Pai's settlement did not require an admission of guilt.
-- MDT
-- MDT
Labels: auction rate securities, Enron, Lou Pai
Sub-Prime Tales of Woe, New York Magazine Collects The Worst
Gumeshoe Ethics, JMG Style
I realize that this is a little early, but if you are planning to be in San Francisco on September 25th be sure to check out the San Fran Bar Association presentation on Gumshoe Ethics: What Your Investigator Should (And Should Not) Do to Help You Win Your Case -- presented by Staci Dresher of the James Mintz Group and investigator, David Fechheimer.
Should be good stuff.
-- MDT
Should be good stuff.
-- MDT
Labels: Mintz Group
Maximizing Sharholder Value,
An interesting take from Crooked Timber on what fiduciary duty really means - and what it doesn't excuse.
-- MDT
7/28/2008
-- MDT
From the Folks Who Brought You Leveraged Sellout 7/25/2008
Former Siemens Top Brass Denies Wrongdoing, Post Schaefer Testimony
I know you're shocked, right?
Meanwhile, legal action against their former managers and executives is expected to be filed by Siemens next Tuesday.
Meanwhile, legal action against their former managers and executives is expected to be filed by Siemens next Tuesday.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinz-Joachim Neubürger, Siemens
State of New York Files Suit Against UBS
With its tax evasion and auction rate securities woes, UBS is sure getting it hard at both ends these days. Details on the NY suit right here.
-- MDT
7/24/2008
-- MDT
Labels: auction rate securities, lawsuit, tax evasion, UBS
FSA Butches Up and Goes After Cazenove Partner for Insider Dealing
This would be the FAS first criminal prosecution for insider trading, even though the regulator was granted prosecutory power back in 2001. Between then and now, I guess the FAS had relied on a right stern letter and disapproving glare to hold companies accountable.
And by that I mean civil litigation.
-- MDT
And by that I mean civil litigation.
-- MDT
How Not to Launder Your Stip Club Money Thorugh A Voting Rights Non-Profit
An object less from Louis Posner - lawyer, humanitarian and owner of New York's esteemed Hot Lap Dance Club.
-- MDT
-- MDT
Labels: Louis Posner, money laundering
How The Internet Helped Capture a War Criminal
An interesting take on the Radovan Karadzic capture capture from Tech Crunch. A little help from Big G?
-- MDT,
-- MDT,
Labels: internet, Radovan Karadzic, war crimes
Class Action - The Week in Review
For your Friday reading pleasure, here's a run down of the week's happenings in the class action world -coming to you via the Class Action Blawg.
-- NDT
-- NDT
Labels: class action
Eliot Spitzer Targeted in Ethics Investigation
But not for the reason you might think - this investigation is hooker free!
-- MDT
7/23/2008
-- MDT
Labels: corporate ethics, Eliot Spitzer, investigation
Siemens Plans to Loose the Legal Hounds on Former Managers Implicated in Bribery Scandal
This had been intimated by the Siemens brass for some time, but now things are starting to get official, as the company has announced its intent to file suit against 10 former board members, as well as the former chairman and chief executive.
- MDT
7/22/2008
- MDT
More Charges for Bear Stearns Managers?
Recapping Last Weeks Private Banking Congressional Hearings
I was going to do it, but how could I do a more entertaining job than, say, The Nation?
-- MDT
-- MDT
Labels: hearing, Heinrich Kieber, LGT, tax evasion, UBS
Former Anti-Corruption Chief Testifies in Siemens Bribery Trial, Results Ugly For Siemens Management
Surprising virtually no one, former Siemens anti-corruption official, Albrecht Schaefer indicated in his recent testimony that the company's top brass ignored the bribery that was happening right under their noses.
Moreover, Schaefer stated flatly that he personally informed several familiar names (Heinz-Joachim Neubuerger, Juergen Radomski, and Thomas Ganswindt) about the dubious practices he had observed.
-- MDT
Moreover, Schaefer stated flatly that he personally informed several familiar names (Heinz-Joachim Neubuerger, Juergen Radomski, and Thomas Ganswindt) about the dubious practices he had observed.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinz-Joachim Neubürger, Juergen Radomski, Siemens, Thomas Ganswindt
Hack-Igations
Hack-igations, written by attorney, Ben Wright is new blog to me and one I discovered in the comments here at The Daily Caveat. Try it - you might find it as interesting as I do.
-- MDT
7/21/2008
-- MDT
Labels: blogs
First of Many German Tax Evasion Trials Ends With Suspended Sentence, Major Fine
A 66 year old retired real estate agent named only as Elmar S. was convicted in a one day trial of hiding millions of euros over five years via two Liechtenstein foundations.
To settle his tax tab Elmar was order by a Bochum court to pay a € 7.5 million fine, with € 1 million of that going to charity.
For the record, this is roughly the same amount that informant Heinrich Kieber was paid by the German government for the stolen customer records he purloined from former employer, LGT Bank.
That's one case down, hundreds more are expected. Germany has announced that 210 citizens are under investigation, conducted at least as many raids, brought cases against 350 and said that it is mulling over 400 more.
Already the announcement of the enforcement action has brought in € 110 million from tax delinquents.
You can argue with the tactics, but you can't argue with success.
-- MDT
To settle his tax tab Elmar was order by a Bochum court to pay a € 7.5 million fine, with € 1 million of that going to charity.
For the record, this is roughly the same amount that informant Heinrich Kieber was paid by the German government for the stolen customer records he purloined from former employer, LGT Bank.
That's one case down, hundreds more are expected. Germany has announced that 210 citizens are under investigation, conducted at least as many raids, brought cases against 350 and said that it is mulling over 400 more.
Already the announcement of the enforcement action has brought in € 110 million from tax delinquents.
You can argue with the tactics, but you can't argue with success.
-- MDT
Labels: Elmar S, Heinrich Kieber, LGT, Liechtenstein, tax evasion
Hedge Funds Once Again Looking Like Greener Pastures for Investment Bankers
Yes, yes... Scandal is just around the corner, returns are down and portfolio allocations are slowing. Hedge funds may even be the root of all evil. But given the dismal state of banking these days, hedge funds are looking like a mighty good place to be for many of Wall Street's finest.
Top talent is making the move to alternative assest, with major jumps like GLG's pick up of former Goldman Sachs' top trader, Driss Ben-Brahim. GLG also snagged Karim Abdel-Motaal and Bart Turtelboom, former co-global emerging market chiefs for Morgan Stanley.
Happy headhunting...
-- MDT
Top talent is making the move to alternative assest, with major jumps like GLG's pick up of former Goldman Sachs' top trader, Driss Ben-Brahim. GLG also snagged Karim Abdel-Motaal and Bart Turtelboom, former co-global emerging market chiefs for Morgan Stanley.
Happy headhunting...
-- MDT
Labels: GLG, hedge fund, hiring
SEC's Subpoenas on Rumor Mongering Investigation Spur Wall Street to (Reluctant) Action
With 50+ requests pending, that's a lot of documentation to scare up and square up. Everyone from Goldman Sachs (which has already been subpoenaed) on down is watching the securities regulator closely while spouting holier than thous about how they would never even dream of making a trade without the iron-clad laws of SCIENCE to validate the move!
--MDT
--MDT
Labels: hedge fund, rumors, SEC, short selling, Wall Street
Job Hunting?
Kroll is Hiring in Washington, DC - background investigation work for the Office of Personnel Management. Salaried and work from home... not bad.
-- MDT
7/20/2008
-- MDT
Guilty Plea for Head of South Carolina Investment Firm
UBS Stops Offshore Accounts for U.S. Citizens 7/18/2008
What Financial Firms Didn't Learn From Jerome Kerviel
Even after infamous rogue trader, Jerome Kerviel's multi-billion dollar scandal at Society Generale, a new report from Risk Management vendor Actimize indicates that often as not suspicious activity reports are closed out without any kind of proper review. Half of the firms reviewed also have no form of integrated monitoring. I am sure Actimize would like help all of you fix this. Get the details on their research right here.
Labels: Actimize, anti-money laundering, Jerome Kerviel, risk management, Societe Generale
Corporate Monitorship Reform Bill Hits the House
The measure would look to provide more stringent guidelines in how corporate monitorships (which can be highly lucrative arrangements) are selected in deferred prosecution agreements with companies under investigation. The Legal Times blog has further details. For background on some recent and controversial monitorship dust-ups, see here.
7/17/2008
Labels: attorney client privilege, Corporate Monitorships, prosecution guidelines
International Man of Mystery Strikes New Zealand
22 counts of attempting to defraud creditors later, the no longer mysterious Lynne Pryor has gotten himself into a whole heap of trouble. Check out this tale of Pryor's elaborately construction scheme, meant to help him dodge a $100, 000 debt.
-- MDT
-- MDT
Tax Haven Senate Hearing Exhibits Now Online
I won't be able to look them over until the evening. but you can have at them right now. Looks like witness testimony is also being added as available.
You can also stream the live hearing, assuming you've got RealPlayer installed.
And here's a bit more on what we can expect from Heinrich Kieber's pre-recorded comments.
-- MDT
You can also stream the live hearing, assuming you've got RealPlayer installed.
And here's a bit more on what we can expect from Heinrich Kieber's pre-recorded comments.
-- MDT
Labels: hearing, tax evasion, tax havens
1 Comments.
Michael: Mr. Kieber's actions are a token of the information age. Thanks to technology, no secret is safe. Those people who are rich, powerful or authority figures are most at risk. What do you think? --Ben http://hack-igations.blogspot.com/2007/12/people-in-authority-sometimes-abuse.html
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Names Emerge in U.S. Tax Evasion Probe, Informants Make Ready to Testify
In anticipation of a hearing scheduled for this morning, the Senate Permanent Subcommittee on Investigations has released a lengthy report detailing the results of their six month investigation into the practices of LGT bank of Liechtenstein and Switzerland's UBS.
Much of the impetus for this of course stems from one Mr. Heinrich Keiber and his famously stolen list of clients of Liechtenstein bank, LGT. Kieber is currently in hiding - a sound policy when you've royally pissed off an entire black book's worth of the world's wealthiest people.
Authorities were also aided by former UBS banker Bradley Birkenfeld who recently plead guilty to aiding clients at UBS in evading taxes. Birkenfeld hipped authorities to billions in undeclared accounts of U.S. clients that were being discreetly held by UBS.
Mario Staggl, another UBS banker implicated in the tax evasion scheme, is currently a fugitive - wanted for failing to appear in U.S. federal court to answer charges that he aided clients in hiding some $200 million from the tax man. And yet Staggl, for a fugitive from justice, is living quite the normal life in Liechtenstein.
I haven't yet had a chance to review the Senate sub-committee report, which is not available online as of this writing. According to media reports, here are a few of the faces you can expect to see and names you can expect to see mentioned:
Other notable names on the witness list are Martin Liechti and head of UBS Wealth Management Americas; and Mark Branson, chief financial officer of UBS Global Wealth Management and Business Banking. You may recall that Liechti was previously detained by U.S. authorities.
You can view the full witness list for the hearing online.
-- MDT
Much of the impetus for this of course stems from one Mr. Heinrich Keiber and his famously stolen list of clients of Liechtenstein bank, LGT. Kieber is currently in hiding - a sound policy when you've royally pissed off an entire black book's worth of the world's wealthiest people.
Authorities were also aided by former UBS banker Bradley Birkenfeld who recently plead guilty to aiding clients at UBS in evading taxes. Birkenfeld hipped authorities to billions in undeclared accounts of U.S. clients that were being discreetly held by UBS.
Mario Staggl, another UBS banker implicated in the tax evasion scheme, is currently a fugitive - wanted for failing to appear in U.S. federal court to answer charges that he aided clients in hiding some $200 million from the tax man. And yet Staggl, for a fugitive from justice, is living quite the normal life in Liechtenstein.
I haven't yet had a chance to review the Senate sub-committee report, which is not available online as of this writing. According to media reports, here are a few of the faces you can expect to see and names you can expect to see mentioned:
Frank Lowy - The Westfield Group's billionaire shopping mall magnate. Make it a family affair - Frank Lowy and sons Peter, David and Stephen are all under investigation. Peter Lowy is expected to appear at the hearing.In the most rousing bit of theater, Heinrich Kieber - the elusive informant that sold off LGT's private banking client list - is expected to appear via video to testify (scratch that - it has been reported as a pre-taped statement). That should still be worth tuning in for - no doubt.
Harvey Greenfield - Toy industry executive of Commonwealth Toy and Novelty. Both Greenfield and son Steven are under investigation. Greenfield is expected to appear at the hearing.
James Albright Marsh - A Florida contractor, now deceased. One of Marsh's two sons, Shannon Marsh is on the witness list for the subcommittee hearing but is not expected to appear.
Richard M. Chong, a venture capitalist and (I believe) a Partner a Sycamore Ventures.
William Wu - a "wealthy Chinese businessman based in Queens, New York." Wu is also scheduled to testify at the hearing.
Igor Olenicoff, the California real estate tycoon. Olenicoff has already plead guilty to tax evasion charges and agreed to pay $52 million to the IRS.
Other notable names on the witness list are Martin Liechti and head of UBS Wealth Management Americas; and Mark Branson, chief financial officer of UBS Global Wealth Management and Business Banking. You may recall that Liechti was previously detained by U.S. authorities.
You can view the full witness list for the hearing online.
-- MDT
Labels: Bradley Birkenfeld, Heinrich Kieber, LGT, Mario Staggl, tax evasion, UBS
Pelican Prosecution Changing Attorneys' PI-Hiring Habits?
We've more or less ignored the Anthony Pellicano case here at The Daily Caveat. Frankly, I can't much relate to the kind of "investigative" work he practiced. As salacious and juicy as the case proved to be, it never felt right to cover Pellicano's prosecution in this space.
However, an interesting offshoot of the case (in which attorneys who employed Pellicanos found themselves under indictment) is a "wake up call" for attorneys on how they use the services of private investigators. Law.com has thoughts from several notable attorneys on the ripple effects from the case.
Here's a hint - you want the one who is willing to tell you "NO" and makes it their business to keep you away from garbage tactics that can embarrass your client or sink your firm. Anything that sounds too good to be true probably is.
7/16/2008
However, an interesting offshoot of the case (in which attorneys who employed Pellicanos found themselves under indictment) is a "wake up call" for attorneys on how they use the services of private investigators. Law.com has thoughts from several notable attorneys on the ripple effects from the case.
Here's a hint - you want the one who is willing to tell you "NO" and makes it their business to keep you away from garbage tactics that can embarrass your client or sink your firm. Anything that sounds too good to be true probably is.
It may also be the kind of thing that lands you on the wrong side of an indictment.
Hat tip to Bill Lowrance and the fine folks at the Private Investigators Association of Virginia for the link.
-- MDT
Hat tip to Bill Lowrance and the fine folks at the Private Investigators Association of Virginia for the link.
-- MDT
Labels: Anthony Pellicano, HP, private investigator
Samsung Boss Avoids Jail Time, Faces Steep Fine
Lee Kun-Hee has avoided prison with a three year suspended sentence on tax evasion charges. He will, however, be forced to pay a more than $100 million fine. That hurts, no doubt, but he'll hardly miss it out of his $4.9 billion dollar net work.
The final numbers are quite a step down from the seven years behind bars and $400 million fine prosecutors had been aiming for. While it was suspected that Lee's had been using the extra cash for political bribes, prosecutors were never quite able to make the case.
On the other hand... Lee's sentence sure makes it look like this guy got the shaft. Nine years in prison? It just goes to show - if you're going to steal money, its always better to steal a whole hell of a lot of it. And be, like, really important.
That helps too.
-- MDT
7/15/2008
The final numbers are quite a step down from the seven years behind bars and $400 million fine prosecutors had been aiming for. While it was suspected that Lee's had been using the extra cash for political bribes, prosecutors were never quite able to make the case.
On the other hand... Lee's sentence sure makes it look like this guy got the shaft. Nine years in prison? It just goes to show - if you're going to steal money, its always better to steal a whole hell of a lot of it. And be, like, really important.
That helps too.
-- MDT
Labels: bribery, Lee Kun Hee, Samsung, tax evasion
Tax Informant Heinrich Kieber to Testify From Secret Locale
Apparently Kieber will comment via video feed from his secret lair in order to appear before the Senate's Permanent Subcommittee on Investigations this Thursday. Meanwhile many weathly tax evaders are suddenly feeling that confession may be good for the soul.
--MDT
--MDT
Labels: Heinrich Kieber, tax evasion
Michigan Corporate Investigators Doing Well in Down Economy
Apparently, despite some tough economic times, nationwide, life is good for EMB Investigations, of Dearborn Heights, Michigan.
-- MDY
-- MDY
Labels: private investigator
Your Handy Guide to the Fall of Fannie Mae
SEC Looks to Quash Rumor Mongering
When it doubt, blame the shorts, right?
Or mouthy brokers...
-- MDT
Or mouthy brokers...
-- MDT
Labels: Bear Stearns, Christopher Cox, SEC, short selling
SEC Enforcement Overhall, Points for Discussion
A popular topic these days... Learned opinion, here - extracted from a paper by Paul S. Atkins, a commissioner at the SEC and Bradley Bondi, legal counsel and policy adviser at the SEC.
--MDT
7/14/2008
--MDT
Labels: enforcement, SEC
Airbus Probe Continues to Eat Executives
Andreas Sperl is the latest to get wrapped up in the insider trading probe of aerospace giant, EADS. 17 current and former executives have been targeted for investigation, so expect more names and more arrests.
-- MDT
-- MDT
Labels: Airbus, Andreas Sperl, insider trading
The Last (No Really, The LAST) Shoe Drops
Paul T. Selzer -- the final defendant in the government's bribery case against law firm, Milberg Weiss -- plans to plead guilty in relation to the Milberg Weiss kickback investigation. Selzer was originally indicted in the probe back in June of 2005.
Details of Selzer's plea agreement are expected this morning. Selzer, a California attorney, had been one of the key figures at the heart of the government's investigation into Milberg Weiss. securities class action lawsuits against a variety of companies.
It was alleged that Selzer helped Milberg funnel payments to his client, Seymour Lazar, another attorney and reoccurring lead plaintiff for Milberg. It is expected that Selzer get probation and avoid jail time but be required to pay a $250,000 fine.
If you've hit the snooze button a few too many times in the course of the Milberg case and want a refresher, you might want to check out our recap of the Milberg investigation, penned on the eve of the firms indictment back in May of 2006.
--MDT
7/13/2008
Details of Selzer's plea agreement are expected this morning. Selzer, a California attorney, had been one of the key figures at the heart of the government's investigation into Milberg Weiss. securities class action lawsuits against a variety of companies.
It was alleged that Selzer helped Milberg funnel payments to his client, Seymour Lazar, another attorney and reoccurring lead plaintiff for Milberg. It is expected that Selzer get probation and avoid jail time but be required to pay a $250,000 fine.
If you've hit the snooze button a few too many times in the course of the Milberg case and want a refresher, you might want to check out our recap of the Milberg investigation, penned on the eve of the firms indictment back in May of 2006.
--MDT
Labels: Bill Lerach, Melvyn Weiss, Milberg Weiss, Paul Selzer, Seymour Lazar, Steven Cooperman
BAWAG Trial Sees Nine Sentenced on Charges Stemming from Billions in REFCO-Related Losses
Those sentenced notably include former BAWAG CEO, the former hedge fund manager who made the epically ill-advised trades (those Yen derivatives can be a bitch), a former finance chief for an Austrian union and a KPMG auditor.
--MDT
--MDT
Labels: BAWAG, Fraud, hedge fund, Refco
Stanford Calls on Kroll For I.D. Theft Protection After Data Breach
A little make-it-right goes a long way when it comes to exposing your students and faculty's personal data.
-- MDT
-- MDT
Labels: data breach, Kroll, Stanford University
16 Years for REFCO CEO
That is some pretty hard time for the once high-flying Phillip Bennett, but then few falls have been as staggering as that of former futures trading behemoth, REFCO.
Bennett's conviction follows that of his former Partner, Tone Grant. Grant was indicted on REFCO-related charges back on July 3rd '07. He was convicted in April of 2008.
And just so you can fill out your scorecard former REFCO finance chief, Robert Trosten and former executive Santo Maggio each plead guilty on fraud related charges - Trosten in early '08 and Maggio in late '07.
The last man standing appears to be Joseph P. Collins, of the law firm Mayer Brown Rowe & Maw -- indicted and awaiting trial.
- MDT
7/10/2008
Bennett's conviction follows that of his former Partner, Tone Grant. Grant was indicted on REFCO-related charges back on July 3rd '07. He was convicted in April of 2008.
And just so you can fill out your scorecard former REFCO finance chief, Robert Trosten and former executive Santo Maggio each plead guilty on fraud related charges - Trosten in early '08 and Maggio in late '07.
The last man standing appears to be Joseph P. Collins, of the law firm Mayer Brown Rowe & Maw -- indicted and awaiting trial.
- MDT
Labels: Joseph Collins, Phillip Bennett, Refco, Robert Trosten, Santo Maggio, Tone Grant
DOJ Offers New Guidelines for Corporate Investigations
Sounds like knuckling under to me...
Meanwhile Messers Bernanke and Paulson both call for more expansive regulation.
-- MDT
Meanwhile Messers Bernanke and Paulson both call for more expansive regulation.
-- MDT
Labels: Hank Paulson, regulation
Apple Off the Hook on Options
At least when it comes to the Justice Department. Allegedly aggrieved investors may have other ideas. Me personally, I'm just excited for the iPhone 2.0 upgrade available on Friday.
-- MDT
7/08/2008
-- MDT
Labels: Apple, backdating, stock options
Jules Kroll Says Goodbye to the Industry He Helped Found
As we mentioned back in mid-June, Jules Kroll - patriarch of the worldwide corporate investigative firm bearing his name, has announced his plans to retire from the industry he helped to found.
Julius B. Kroll, a graduate of Cornell and Georgetown Law, is a former Manhattan assistant district attorney. He founded the entity that would become Kroll in 1972 after an unsuccessful bid to become an at-large city councilman for Queens.
Originally aimed at corporate purchasing departments, Kroll Associate's focus continued to expand with time and need. A three-year detour into his father's publishing business exposed him to the corruption that infused that industry and led to his first white collar investigations.
Kroll began to offer his consulting services to clients in the publishing industry and beyond. Broader investigations and new markets followed, with Kroll tracing the ebbs and flows of big business - growing his firm by mitigating risk and uncertainty wherever it festered.
A tempestuous late-1990s merger with Ohio armored car manufacturer, O'Gara, failed to gel, but the brief union expanded Kroll's reach greatly through a dramatic series of acquisitions. By 2000, the firms had split off into two publicly traded companies, a lengthy legal battle leaving them both bloodied.
After September 11th, security was the thing and Kroll thrived in the new environment. Reflecting that success, Kroll was purchased by the insurance giant, Marsh & McLennan, in 2004 for nearly $2 billion. Kroll employees close to 4,000 people across 65 offices in 33 countries worldwide.
Quite the empire to walk away from...
Ben Allen, Kroll's president and chief executive has served as the interim head Kroll's consulting practice since mid-June, when Jules Kroll made the initial announcement that he was planning for a July retirement.
Jules Kroll's son Jeremy spent the last decade working for his father's firm. Since 2007 he has been acted as independent consultant to the firm. What role he will play subsequent to his father's retirement will be interesting to see.
There had been talk over the last few years that Kroll might be spun off again into its own entity but that has yet to come to pass even as some units of the now-leviathan firm were sold off, for example Kroll's security business to Garda in 2006.
Kroll continues as a wholly owned subsidiary of MMC.
-- MDT
Julius B. Kroll, a graduate of Cornell and Georgetown Law, is a former Manhattan assistant district attorney. He founded the entity that would become Kroll in 1972 after an unsuccessful bid to become an at-large city councilman for Queens.
Originally aimed at corporate purchasing departments, Kroll Associate's focus continued to expand with time and need. A three-year detour into his father's publishing business exposed him to the corruption that infused that industry and led to his first white collar investigations.
Kroll began to offer his consulting services to clients in the publishing industry and beyond. Broader investigations and new markets followed, with Kroll tracing the ebbs and flows of big business - growing his firm by mitigating risk and uncertainty wherever it festered.
A tempestuous late-1990s merger with Ohio armored car manufacturer, O'Gara, failed to gel, but the brief union expanded Kroll's reach greatly through a dramatic series of acquisitions. By 2000, the firms had split off into two publicly traded companies, a lengthy legal battle leaving them both bloodied.
After September 11th, security was the thing and Kroll thrived in the new environment. Reflecting that success, Kroll was purchased by the insurance giant, Marsh & McLennan, in 2004 for nearly $2 billion. Kroll employees close to 4,000 people across 65 offices in 33 countries worldwide.
Quite the empire to walk away from...
Ben Allen, Kroll's president and chief executive has served as the interim head Kroll's consulting practice since mid-June, when Jules Kroll made the initial announcement that he was planning for a July retirement.
Jules Kroll's son Jeremy spent the last decade working for his father's firm. Since 2007 he has been acted as independent consultant to the firm. What role he will play subsequent to his father's retirement will be interesting to see.
There had been talk over the last few years that Kroll might be spun off again into its own entity but that has yet to come to pass even as some units of the now-leviathan firm were sold off, for example Kroll's security business to Garda in 2006.
Kroll continues as a wholly owned subsidiary of MMC.
-- MDT
Labels: Jules Kroll
White Collar Fugitive Watch: Anyone Have a Lead on Thomas Byrne?
There are some authorities in Ireland who would like to speak with him about a few things. A locally drafted P.I. has yet to track him down.
-- MDT
7/07/2008
-- MDT
Labels: fugitive, IIB Bank, Thomas Byrne
Bank of New York Investigation
Names Spill Forth in UBS Probe
This would be a particularly poor time to be a wealthy bon vivant with creative accountant.
-- MDT
-- MDT
Labels: tax havens, UBS
Bermuda's Market Cops Expanding Their Reach
Polaris Securities Chief Found Dead
In an apparent suicide (although murder or accidental death haven't been ruled out), chairman Wayne Pai, of brokerage house, Polaris Securities - Taiwan's third-largest securities firm - was found floating in the waters west of Taiwan late last week.
Pai had been facing a number of inquiries regarding recent stock trades as well as an honorary doctorate that may have received in return for financial patronage. There is no notion as to whether any of this might have played a role in his death.
-- MDT
Pai had been facing a number of inquiries regarding recent stock trades as well as an honorary doctorate that may have received in return for financial patronage. There is no notion as to whether any of this might have played a role in his death.
-- MDT
Labels: Polaris Securities, suicide, Wayne Pai
Prosecutors Finger Siemens Board Member in Union Bribes
Former Siemens executive board member, Johannes Feldmayer allegedly authorized more than $48 million in the service of bettering union relations.
That would do it, I imagine.
The German government, however, has taken a dim view of this action.
Both Feldmayer and AUB union boss, Wilhelm Schelsky have been charged in the Siemens bribery probe on fraud, tax evasion and beach of trust grounds.
Schelsky, for his part, has a back-log of other legal problems to boot.
More on Feldmayer and Schelsky via Blooomberg.
-- MDT
That would do it, I imagine.
The German government, however, has taken a dim view of this action.
Both Feldmayer and AUB union boss, Wilhelm Schelsky have been charged in the Siemens bribery probe on fraud, tax evasion and beach of trust grounds.
Schelsky, for his part, has a back-log of other legal problems to boot.
More on Feldmayer and Schelsky via Blooomberg.
-- MDT
Labels: bribery, Johannes Feldmayer, Siemens, Wilhelm Schelsky
Vanity Fair Delves Deep into Bear Stearns 7/02/2008
Airbus Chief Nabbed on Insider Trading Charges
Sam Israel's (Kinda Pathetic) Camground Hide-out
As white collar fugitive bolt-holes go, this is so, soooo weak. Rolling into the police station on a Yamaha scooter because his mama told him to? Seriously? This is our $2 trillion arch criminal mastermind?
I am so deflated.
-- MDT
I am so deflated.
-- MDT
Labels: Bayou Group, fugitive, hedge fund, Sam Israel
Backdating Concerns Rise from the Ashes for Apple
We'll see if they gain any more traction via this new civil suit. The last run through saw Apple jettison its general counsel, among others.
-- MDT
-- MDT
Labels: Apple, backdating, Steve Jobs, stock options
Major Letdown: Sam Israel Surrenders Undead Self to Authorities
And here I hoped that the fugitive hedge fiend show would run all summer long...
I guess I'm back to Matlock reruns. That and Season Three of The Wire!
-- MDT
I guess I'm back to Matlock reruns. That and Season Three of The Wire!
-- MDT
Labels: Bayou Group, fugitive, Sam Israel
So Where is Sam Israel?
Here's a few thoughts on the Israel disappearance from former FBI Agent, Paul Hayes, now managing director of Corporate Resolutions, a NY-based corporate investigative firm.
-- MDT
-- MDT
Labels: Bayou Group, Corporate Resolutions, Paul Hayes, Sam Israel
