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2/27/2008
Heinrich Kieber Shopped Stolen Records to the UK in 2006
Chronology of Germany's Efforts to Stem Tax Evasion
More Streeters Cop to Insider Trading
Barclays Branch Manager Pleads Guilty to Theft
SEC Charges Ponzi Scammers for Ripping off Military Families
Codename: Henry - Heinrich Kieber is the German Tax Informant After All
2/26/2008
Ashcroft to Testify on Monitorship Scandalousnes
Backdating Back in the Spotlight
Philippe Jabre Closes Down Ballena Capital
General RE Execs Convicted on Reinsurance Agreements with AIG
81 Year Old Sentenced to 28 years in $190 Million Ponzi Scheme
Hint of Scandal Leads to Fund Collapse 2/24/2008
Another Enron Loose End Tied Up - The NatWest Three Sentenced
Enzyte Crooks Now Officially Crooks
Hold the Phone! FT Calls Identity of German Tax Tipster into Doubt!
Liechtenstein Informant Named (For Real, This Time)
Live in Charleston? Kroll is Hiring
New Zealand Investigative Firm in Hot Water on Spying
Wharton Biz School Reflects on Corporate Fraud 2/21/2008
Wall Street Squeezed on Sub Prime Mess
Lancer Hedge Fund Crew Charged With Fraud
Intel Subpoenaed By New York AG
SocGen Management Blameless, Says New Report 2/20/2008
Liechtenstein Bank Informer I.D.ed in German Probe
More Evidence Appears of SocGen Foreknowledge of Kerviel Trades
Woes of German Business Elite Continue, Government Comes Calling on Tax Evasion
FSA Prosecutes Phoney Stockbroker
HP Reaches Settlement With Journalists on Corporate Spying
Moussa Bakir Speaks, Further Details On Societe Generale Rogue Trading Emerge
The Economist Writes About Sumo Scandal
Joe Seet on the SocGen Fraud
The Economist Weighs in on Lerach Sentencing
Ideoblog on the Lerach Sentencing
Get Ready to Sign Up For Your FBI Deputy Badge
Chocolate Firms Raided
Freelance Security - Investigative Job Hunting
Lerach Sentencing A Sign of Class Action Clean Up
FCPA Actions v/s European Inaction 2/10/2008
Lerach Writes Own Ticket on Sentencing (UPDATE - He Gets 2 Years)
New Century Chief Seeks New Counsel
Second Suspect Emerges in SocGen Fraud
Carl Icahn Blogs (Part 2)
FCPA Prosecutions Up, The Next Corporate Scandal Brewing?
Carl Icahn Plans to Blog 2/05/2008
SEC Gets in on the SocGen Action
New Kerviel Photos, Interview Hit The Daily Mail
Societe Generale Chairman Called Fraud Loophole (Says D'oh!)
Super Tuesday - I'll Just Go Ahead and Spell it Out for You
2/04/2008
BBC News Spotlights Corporate Espionage
Credit Suisse Banker Convicted on Insider Trading
UBS Issues No Comment on Mortgage Investigation
KLA Backdating Case Reaches $65 Million Conclusion
French Investigators Speculate on Kerviel Accomplices
Remembering Henry
Bill Lerach's Former Firm Diversifies
Heinrich Kieber Shopped Stolen Records to the UK in 2006
The FT is reporting the Heinrich Kieber, the noted informant in Germany's current tax evasion crackdown first shopped is stolen collection of LGT bank records to UK tax authorities - potentially as far back as 2005.
Kieber was apparently turned down back in 2006 by HMRC. It seems they, at the time, were not interested in paying a so-called whisteblower (although German authorities give the impression it simply took the Brits too long to make a deal and Kieber simply began shopping for another buyer).
A lot has changed in a few years, it seems. After Germany lead the way British authorities apparently had no qualms about further lining Kieber's pockets - no matter that his information was illegally obtained.
The British treasure stand to collect as much as 100 million pounds in back taxes due to the information provided by Kieber.
Kieber was apparently turned down back in 2006 by HMRC. It seems they, at the time, were not interested in paying a so-called whisteblower (although German authorities give the impression it simply took the Brits too long to make a deal and Kieber simply began shopping for another buyer).
A lot has changed in a few years, it seems. After Germany lead the way British authorities apparently had no qualms about further lining Kieber's pockets - no matter that his information was illegally obtained.
The British treasure stand to collect as much as 100 million pounds in back taxes due to the information provided by Kieber.
Labels: Germany, Heinrich Kieber, HRMC, Liechtenstein, tax evasion
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Chronology of Germany's Efforts to Stem Tax Evasion
More Streeters Cop to Insider Trading
Former USB institutional client manager, Mitchel Guttenberg, and his literal partner in crime, David Tavdy - formerly of Assent - recently plead guilty in a New York court to conspiracy and securities fraud.
These two Wall-Streeters make 12 of 13 guilty pleas from individuals fingered last March as participants in a massive insider trading ring.
Lucky number 13 (well, we actually counted fourteen), Samuel Childs another former Asset broker has plead not guilty, with a trial set for June.
These two Wall-Streeters make 12 of 13 guilty pleas from individuals fingered last March as participants in a massive insider trading ring.
Lucky number 13 (well, we actually counted fourteen), Samuel Childs another former Asset broker has plead not guilty, with a trial set for June.
Labels: Bear Stearns, David Tavdy, insider trading, Mitchel Guttenberg, USB
Barclays Branch Manager Pleads Guilty to Theft
Mark Gidlow is facing 20 months in jail for stealing hundreds of thousands from Barclays between 2000 and 2005. He also apparently pilfered from his colleagues and family... Nice.
-- MDT
-- MDT
Labels: Barclays, Mark Gidlow, theft
SEC Charges Ponzi Scammers for Ripping off Military Families
James Duncan, Hendrix Montecastro and Maurice E. McLeod - you are scum.
-- MDT
-- MDT
Labels: ponzi scheme, SEC
1 Comments.
THERE IS STILL SOME HOPE
Many of you who were defrauded by Daniel Heath, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
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Many of you who were defrauded by Daniel Heath, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
Codename: Henry - Heinrich Kieber is the German Tax Informant After All
Although the FT seemed to cast some doubt that Henirich Kieber - codenamed Henry - was indeed the informant behind Germany's recent series of tax evasion busts, the consensus seems to be that Heinrich is in fact, the man. Now, how a convicted real estate fraudster (in Spain) ended up working for super-secret Liechtenstein bank, LGT, I'll never understand. Isn't that what Interpol is for?
But I digress...
The German secret service reportedly spent millions of Euros to purchase four DVDs worth of LGT banking records from Kieber. The files revealed all manner of funds scurried away in Liechtenstein's secretive banks not just by 600 German citizens, but also 800 more from Great Britain, Canada, France, Spain, Italy, Denmark, Finland, Sweden, the U.S. and Australia.
Many of these countries have begun their own investigations. Although use of the Kieber list has proved to be highly controversial with some countries (Denmark, for example) eschewing its use in their probes, other nations (US, UK - I am looking at you) have piled on to pay their own fees to access the stolen data.
Meanwhile, Liechtenstein is royally pissed, Germans are overtaxed and wealthy types in virtually every major Western democracy are loosening their sweaty collars. But Heinrich Kieber? Well, we have it on good authority that he's living somewhere comfortably, weathily even, and with a new name. I'm thinking someplace sunny... Australia, perhaps?
And if you're looking for more meat on the story but have so far skipped over all the links above, at least make a point of checking out this Speigel article on Heinrich Kieber. It is without question the best and most exhaustive account you'll find anywhere.
--MDT
But I digress...
The German secret service reportedly spent millions of Euros to purchase four DVDs worth of LGT banking records from Kieber. The files revealed all manner of funds scurried away in Liechtenstein's secretive banks not just by 600 German citizens, but also 800 more from Great Britain, Canada, France, Spain, Italy, Denmark, Finland, Sweden, the U.S. and Australia.
Many of these countries have begun their own investigations. Although use of the Kieber list has proved to be highly controversial with some countries (Denmark, for example) eschewing its use in their probes, other nations (US, UK - I am looking at you) have piled on to pay their own fees to access the stolen data.
Meanwhile, Liechtenstein is royally pissed, Germans are overtaxed and wealthy types in virtually every major Western democracy are loosening their sweaty collars. But Heinrich Kieber? Well, we have it on good authority that he's living somewhere comfortably, weathily even, and with a new name. I'm thinking someplace sunny... Australia, perhaps?
And if you're looking for more meat on the story but have so far skipped over all the links above, at least make a point of checking out this Speigel article on Heinrich Kieber. It is without question the best and most exhaustive account you'll find anywhere.
--MDT
Labels: Germany, Heinrich Kieber, informer, tax evasion, tax havens
3 Comments.
"Real Estate" has been a front in Nova Scotia since-during the Mulroney-Buchanan regime.
Focus the investigation on 'The unelected Associates" and the elected 'associates' out of Lunenburg County.
With Nova Scotia in the International Banking industry, they'll ne no worry about The Law, the Mulroney-Buchanan era saw -Specifically placed persons who know the ONLY reason they are "Sitting On The Bench" and at Crown Prosecuter tables is because 'the Associates' put them there and the only reason they put them there is in case they are ever 'needed' by the elected and unelected, 'Associates.'
Focus the investigation on 'The unelected Associates" and the elected 'associates' out of Lunenburg County.
With Nova Scotia in the International Banking industry, they'll ne no worry about The Law, the Mulroney-Buchanan era saw -Specifically placed persons who know the ONLY reason they are "Sitting On The Bench" and at Crown Prosecuter tables is because 'the Associates' put them there and the only reason they put them there is in case they are ever 'needed' by the elected and unelected, 'Associates.'
Does anyone know ho much is currently bounty for head of Henirich Kieber?
Numbers don't jive, 4 DVDs, 600 Germans & 800 other foreigners?
4 DVDs is over 4 gigs of data
banking data is extremely compact, 4dvds should hold data for tens of thousands of people, NOT 1200
Post a Comment
4 DVDs is over 4 gigs of data
banking data is extremely compact, 4dvds should hold data for tens of thousands of people, NOT 1200
Ashcroft to Testify on Monitorship Scandalousnes
This is a turn-about for the former Attorney General, who had previously indicated he would not be deigning to comment on type of the sweetheart deals that stand to make his consultancy a cool $50 million. Details in the WaPost.
-- MDT
2/25/2008
-- MDT
Labels: Ashcroft Group, Corporate Monitorships, monitorships
Backdating Back in the Spotlight
This time the attention is on remarkably well-timed spates of corporate giving. Get the details via Dealbreaker. Also note their new and, if I may say, much less hideously ugly site design. Kudos, guys. For more on the story, try this article at the exceedingly well designed Portfolio.com.
-- MDT
-- MDT
Labels: backdating, corporate giving, Dealbreaker
Philippe Jabre Closes Down Ballena Capital
This particular venture was only designed to manage Mr. Jabre's own personal fortune of $160 million or so. Now that his new firm, Jabre Capital Partners is in full flower the old enterprise apparently had little use. In fact, Ballena had been inactive since since Jabcap came on line.
Jabre was most well known for being one of Europe's most renowned traders, most notably on behalf of GLG Partners. That was before he was brought before the FSA and was hit with the largest fine in their history. Rightly or wrongly that incident has now become his calling card.
Hasn't seemed to hurt business though...
-- MDT
Jabre was most well known for being one of Europe's most renowned traders, most notably on behalf of GLG Partners. That was before he was brought before the FSA and was hit with the largest fine in their history. Rightly or wrongly that incident has now become his calling card.
Hasn't seemed to hurt business though...
-- MDT
Labels: Ballena Capital, Philippe Jabre
General RE Execs Convicted on Reinsurance Agreements with AIG
81 Year Old Sentenced to 28 years in $190 Million Ponzi Scheme
20+ years, 1800 victims, $190 million dollars - father and son John and Daniel Heath had quite a ponzi scheme going, selling phoney investments to the elderly.
The two, along with a third man, Denis O'Brien, have already been convicted, John Heath on dozens of fraud-related counts including selling false securities and grand theft, Daniel Heath on literally hundreds.
Sentencing is in progress. John Heath, already in his 80s is facing 28 years. O'Brien and the younger Heath could each face 30 years themselves and will be sentenced in the next few weels.
-- MDT
The two, along with a third man, Denis O'Brien, have already been convicted, John Heath on dozens of fraud-related counts including selling false securities and grand theft, Daniel Heath on literally hundreds.
Sentencing is in progress. John Heath, already in his 80s is facing 28 years. O'Brien and the younger Heath could each face 30 years themselves and will be sentenced in the next few weels.
-- MDT
Labels: Daniel O'Brien, David Heath, John Heath, ponzi scheme
Hint of Scandal Leads to Fund Collapse 2/24/2008
Another Enron Loose End Tied Up - The NatWest Three Sentenced
You can read about the fates of Giles Darby, David Bermingham and Gary Mulgrew, bit players in the massive Enron fraud, right here.
-- MDT
-- MDT
Labels: Enron, NatWest Three, sentencing
Enzyte Crooks Now Officially Crooks
This goes way beyond the bogus "natural male enhancement" product offered by Steve Warshak, Berkeley Premium Nutraceuticals and his whole huckster family (mom was convicted too).
There's also the small and varying matters of the company's processing of bogus credit card transactions, failing to accept returns as advertised, phony customer satisfaction surveys, creating fictitious doctors to endorse the product, along with the more explicit charges of bank fraud and money laundering.
Get further details on the Enzyte verdict right here.
There's also the small and varying matters of the company's processing of bogus credit card transactions, failing to accept returns as advertised, phony customer satisfaction surveys, creating fictitious doctors to endorse the product, along with the more explicit charges of bank fraud and money laundering.
Get further details on the Enzyte verdict right here.
Labels: convicted, Enzyte, Steve Warshak
Hold the Phone! FT Calls Identity of German Tax Tipster into Doubt!
Liechtenstein Informant Named (For Real, This Time)
Heinrich Kieber - COME ON DOWN!
And it looks like many weathly U.S. citizens may be joining their German counterparts on the hook for hiding funds from the taxman in Liechtenstein's banks.
According to the WSJ, the Internal Revenue Service is in possession of the same banking records obtained by German authorities.
Also investigative their on citizenry are the United Kingdom, Australia, France and Canada.
-- MDT
2/22/2008
And it looks like many weathly U.S. citizens may be joining their German counterparts on the hook for hiding funds from the taxman in Liechtenstein's banks.
According to the WSJ, the Internal Revenue Service is in possession of the same banking records obtained by German authorities.
Also investigative their on citizenry are the United Kingdom, Australia, France and Canada.
-- MDT
Labels: Germany, Heinrich Kieber, Liechtenstein, tax evasion, tax havens
Live in Charleston? Kroll is Hiring
You'll be working for Kroll Government Services on the company's background check contract with the Office of Personnel Management.
Also, the fine print:
Contractors are not employees of Kroll and are paid on a work-completed basis.
Benefits are not included.
-- MDT
Also, the fine print:
Contractors are not employees of Kroll and are paid on a work-completed basis.
Benefits are not included.
-- MDT
New Zealand Investigative Firm in Hot Water on Spying
Quite a bit of trouble here for New Zealand's Thompson & Clark Investigations. We first wrote about these shenanigans back in May of '07. Well worth reading the follow-up - spy cameras, infiltration of student activist groups, defense contractors. Truly, you'll love it.
-- MDT
-- MDT
Labels: New Zealand, Thompson and Clark
Wharton Biz School Reflects on Corporate Fraud 2/21/2008
Wall Street Squeezed on Sub Prime Mess
Trial Lawyers to the left, the FBI to the right.
Time for a little restructuring?
--MDT
Time for a little restructuring?
--MDT
Labels: FBI, sub-prime mortgage, Wall Street
Lancer Hedge Fund Crew Charged With Fraud
Michael Lauer, Martin Garvey, Eric Hauser, Laurence Isaacson and Milton Barbarosh are all facing an assortment of fraud charges in relation to their roles at Lancer Group, a now-bust hedge fund. For more on their, literal, shell-game, check out the South Florida Business Journal.
-- MDT
-- MDT
Labels: Fraud, hedge fund, Lancer, shell companies
Intel Subpoenaed By New York AG
This was forecast back in January by NY AG Andrew Cuomo. A recently filed 1oK reveals the substance of Cuomo's requests - "documents and information to assist with its probe of whether there have been any agreements or arrangements establishing or maintaining a monopoly in the sale of microprocessors in violation of federal or New York antitrust laws." More at Forbes.
Labels: antitrust, Dell, New York AG
SocGen Management Blameless, Says New Report 2/20/2008
Liechtenstein Bank Informer I.D.ed in German Probe
Well, mostly identified:
- 42 year old man.
- worked at LGT between April and November 2001.
- convicted in 2004 for fraud, attempted blackmail and withholding evidence.
All this comes from German state prosecutor Robert Wallner, who has pointedly not released a name. But come on - how long could this list be?
Get to work INTERNET - I want an answer by noon EST.
-- MDT
2/18/2008
- 42 year old man.
- worked at LGT between April and November 2001.
- convicted in 2004 for fraud, attempted blackmail and withholding evidence.
All this comes from German state prosecutor Robert Wallner, who has pointedly not released a name. But come on - how long could this list be?
Get to work INTERNET - I want an answer by noon EST.
-- MDT
Labels: Germany, informer, Liechtenstein, tax evasion
More Evidence Appears of SocGen Foreknowledge of Kerviel Trades
This time from a senior Fimat executive who confirmed for the FT that their firm ( a Soc Gen subsidiary) had been investigating Jerome Kerviel's trades months earlier than Societe Generale's public announcement. In September Fimat began digging on Kerviel friend, Moussa Bakir including commissions paid to Bakir as the result of several of Kerviel's trades. See Reuters for more info.
-- MDT
-- MDT
Labels: Fimat, Jerome Kerveil, Jerome Kerviel, Moussa Bakir, Societe Generale
Woes of German Business Elite Continue, Government Comes Calling on Tax Evasion
Hundreds are under suspicion of tax evasion and German officials have raided corporate offices across the country in recent days. We're seeing what apparently amounts to an ethical shift in a country where tax evasion has been seen as a sort of sport. The biggest target the tax probe to date has been Klaus Zumwinkel, chief executive of Deutsche Post. One thing is virtually certain. As German regulators cast their eyes across the border at the Liechtenstein banks where the wealthy and powerful have parked their illicit funds, more prominent names will soon be added to the list - as many as 900 of them.
-- MDT
-- MDT
Labels: Germany, Klaus Zumwinkel, Liechtenstein, tax evasion
FSA Prosecutes Phoney Stockbroker
William Anthony ‘Robin’ Radclyffe bilked clients of hundreds of thousands of dollars between 1997 and 2004. based on his recent guilty plea he'll serve 15 months and face assorted other penalties. The prosecution represents a rare case of the FSA utilizing its power to bring such cases. More on the Radclyffe prosecution right here.
-- MDT
2/14/2008
-- MDT
Labels: FSA, prosecution, William Radclyffe
HP Reaches Settlement With Journalists on Corporate Spying
The New York Times is reporting on a private settlement reached between HP and several journalists over HP's acquisition of the journalists private phone records. HP, aided an abetted by law firm Wilson Sonsini famously went on the war path against C-suite leaks under the direction of then CEO Patricia Dunn. Enlisting a small army of investigators from all across the country HP was determined to identify and eradicate the source of the troublesome leaks - by any means necessary.
The means ended up being a smorgasborg of high level and low level investigative tasks - from surveillance to pulling trash to the acquisition of phone records belonging to company board members as well as reporters. In the course of what became known as the Kona II investigation HP board member and Silicon Valley royalty, Tom Perkins - a suspected leaker - got wind of the activities. Perkins subsequently resigned from the board, which in a bit of executive gamesmanship, forced HP to file an 8K with the SEC reporting the departure - and the reason behind it.
About that time the proverbial shit hit the fan and the story was splashed across business pages from here to Taipei.
HP has already skated on any meaningful civil or criminal charges (the firm paid a $14.5 million settlement to head off charges in California), but the attention brought by the pretexting fracas led to new Federal legislation closing the legal loophole that had allowed private investigators to use pre-textual techniques to obtain private phone records. While this latest news of a private settlement brings to a close one more aspect of the story five additional lawsuits brought by journalists and their families remain pending. You an be sure we'll bring further happenings on those cases to your attention.
-- MDT
The means ended up being a smorgasborg of high level and low level investigative tasks - from surveillance to pulling trash to the acquisition of phone records belonging to company board members as well as reporters. In the course of what became known as the Kona II investigation HP board member and Silicon Valley royalty, Tom Perkins - a suspected leaker - got wind of the activities. Perkins subsequently resigned from the board, which in a bit of executive gamesmanship, forced HP to file an 8K with the SEC reporting the departure - and the reason behind it.
About that time the proverbial shit hit the fan and the story was splashed across business pages from here to Taipei.
HP has already skated on any meaningful civil or criminal charges (the firm paid a $14.5 million settlement to head off charges in California), but the attention brought by the pretexting fracas led to new Federal legislation closing the legal loophole that had allowed private investigators to use pre-textual techniques to obtain private phone records. While this latest news of a private settlement brings to a close one more aspect of the story five additional lawsuits brought by journalists and their families remain pending. You an be sure we'll bring further happenings on those cases to your attention.
-- MDT
Labels: HP, Patricia Dunn, pretexting, Tom Perkins, Wilson Sonsini
Moussa Bakir Speaks, Further Details On Societe Generale Rogue Trading Emerge
Despite instant message exchanges that might suggest otherwise, broker Moussa Bakir, professional colleague (and Facebook buddy) of Jerome Kerviel told French authorities that he had no knowledge of the unapproved trades perpetrated by Kerviel.
Bakir
's comments were released by police and published in French newspapers this week. He has spend two days under interrogation in connection with the Kerviel case but little insight, it seems, has come from those conversations.
On thing that does seem clear though is that internally at Societe Generale claims that Kerviel's activities were unknown until only weeks ago are starting to disintegrate.
For more on that subject check out this piece from the IHT.
--MDT
Bakir
's comments were released by police and published in French newspapers this week. He has spend two days under interrogation in connection with the Kerviel case but little insight, it seems, has come from those conversations.On thing that does seem clear though is that internally at Societe Generale claims that Kerviel's activities were unknown until only weeks ago are starting to disintegrate.
For more on that subject check out this piece from the IHT.
--MDT
Labels: Jerome Kerviel, Moussa Bakir, Societe Generale
The Economist Writes About Sumo Scandal
Joe Seet on the SocGen Fraud
You may remember Mr. Seet, a senior partner at hedge fund compliance advisory firm Sigma Partnership, from this thoughtful article on the state of hedge fund fraud in Europe. If you've been following the Jerome Kerviel story and the floundering fortunes of Societe Generale, you'll want to read his recent blog post on the subject. Let's hope it is one of many to come.
-- MDT
2/12/2008
-- MDT
Labels: Jerome Kerviel, Joe Seet, Sigma Partnership, Societe Generale
The Economist Weighs in on Lerach Sentencing
By way of recounting a spirited exchange between Bill Lerach and the recently deceased Alistair Ross Goobey, a sort of a shareholder activist in his own right. The two men were co-founders of the Hermes-Lens Focus investment fund.
Whereas Lerach championed litigation as the most expedient tool for shareholder redress, Ross Goobey spent a career attempting to refine corporate governance in the service of shareholders. Call him the "scalpel" to Lerach's big swinging axe.
A great, interesting piece offering a perspective that you're not going to see in any of other coverage of Lerach this week. Also worth a mention is reference to the book Corpocracy by Robert Monks. Could be interesting...
-- MDT
Whereas Lerach championed litigation as the most expedient tool for shareholder redress, Ross Goobey spent a career attempting to refine corporate governance in the service of shareholders. Call him the "scalpel" to Lerach's big swinging axe.
A great, interesting piece offering a perspective that you're not going to see in any of other coverage of Lerach this week. Also worth a mention is reference to the book Corpocracy by Robert Monks. Could be interesting...
-- MDT
Ideoblog on the Lerach Sentencing
Mr. Ribstein is the thinking person's blogger on the subject of law and society. I encourage you to check out his comments on the Lerach sentencing.
--MDT
--MDT
Labels: Bill Lerach, Ideoblog, Lerach, sentencing
Get Ready to Sign Up For Your FBI Deputy Badge
Chocolate Firms Raided
Busted up on price fixing charges!
Nestle, Mars and Kraft are all facing the scrutiny of German regulators.
-- MDT
2/11/2008
Nestle, Mars and Kraft are all facing the scrutiny of German regulators.
-- MDT
Labels: chocolate, Germany, price fixing
Freelance Security - Investigative Job Hunting
Always something interesting here...
- A businessman in Manila needs muscle.
- A cheating boyfriend in Kuwait.
- A background check in Russia.
The list goes on.
-- MDT
- A businessman in Manila needs muscle.
- A cheating boyfriend in Kuwait.
- A background check in Russia.
The list goes on.
-- MDT
Labels: Freelance Security
Lerach Sentencing A Sign of Class Action Clean Up
Interesting comment from Stephen Bundy, professor of law art UC Berkeley: "What you're watching is a bit of a transition from a world in which class-action practice did have some disreputable aspects to a different model that's much more responsible, publicly oriented and closely regulated..."
More on the changing face of class action litigation, via the LA Times.
-- MDT
More on the changing face of class action litigation, via the LA Times.
-- MDT
Labels: Bill Lerach, class action, securities, sentencing
FCPA Actions v/s European Inaction 2/10/2008
Lerach Writes Own Ticket on Sentencing (UPDATE - He Gets 2 Years)
Bill Lerach has requested a one year prison term, half of that to be spent at home. Prosecutors have been aiming for something more like two years. Specifically, "The federal probation office recommended a sentence of 15 to 21 months, two to three years of supervised release and a fine of $4,000 to $40,000."
The penalty would stem from Lerach's guilty plea on one count of conspriacy in relation to the governments investigation into plaintiff kickbacks paid by Lerach's former law firm, Milberg Weiss. Milberg co-founder Melvyn Weiss along with attorney Paul Selzer have both maintained their innocence and face trial later in the year.
SENTENCED: The final numbers are 2 years in prison, 250,000 fine, 1,000 hours of community service. Lerach is expected to surrender himself for incarceration in April.
-- MDT
The penalty would stem from Lerach's guilty plea on one count of conspriacy in relation to the governments investigation into plaintiff kickbacks paid by Lerach's former law firm, Milberg Weiss. Milberg co-founder Melvyn Weiss along with attorney Paul Selzer have both maintained their innocence and face trial later in the year.
SENTENCED: The final numbers are 2 years in prison, 250,000 fine, 1,000 hours of community service. Lerach is expected to surrender himself for incarceration in April.
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Melvyn Weiss, Milberg, Milberg Weiss, Paul Selzer
New Century Chief Seeks New Counsel
Second Suspect Emerges in SocGen Fraud
Moussa Bakir a broker at Fimat (now NewEdge), a subsidiary of Societe Generale, appeared before French Judges on Saturday based on the suspicion that he may have had advance knowledge of Jerome Kerviel's illicit trades.
Bakir had been held - and one imagines, sweated - for the preceding 48 hours. While Bakir doesn't appear to have revealed anything of substance during his conversation with authorities, he has been named an assisted witness, basically somewhere between assisting authorities and being prosecuted by them.
Bakir's name came to the attention of investigators based on instance message files recovered from Kerviel's computer (he was also one of Kerviel's Facebook friends). Some 2000 Kerviel IMs were leaked to leaked to Nouvel Observateur magazine.
Kerviel's legal team have dismissed the Bakir instant messages as "irrelevant." Here's an example of one the irrelevant exchanges (one of many appearing in the FT):
October 11 - Kerviel writes: “You haven’t said anything about our trades? If so, I’ll smash your face in.” Bakir replies: “Woa. You’re mad. It’s between you and me.”
Yep...completely unrelated to the charges at hand.
Kerviel, for his part, had also been released days ago but was picked up again by authorities and is currently in custody. The emergence of other potential players in the fraud and potential contact between them found authorities revising their determination that Kerviel could be trusted on his own recognizance.
-- MDT
2/08/2008
Bakir had been held - and one imagines, sweated - for the preceding 48 hours. While Bakir doesn't appear to have revealed anything of substance during his conversation with authorities, he has been named an assisted witness, basically somewhere between assisting authorities and being prosecuted by them.
Bakir's name came to the attention of investigators based on instance message files recovered from Kerviel's computer (he was also one of Kerviel's Facebook friends). Some 2000 Kerviel IMs were leaked to leaked to Nouvel Observateur magazine.
Kerviel's legal team have dismissed the Bakir instant messages as "irrelevant." Here's an example of one the irrelevant exchanges (one of many appearing in the FT):
October 11 - Kerviel writes: “You haven’t said anything about our trades? If so, I’ll smash your face in.” Bakir replies: “Woa. You’re mad. It’s between you and me.”
Yep...completely unrelated to the charges at hand.
Kerviel, for his part, had also been released days ago but was picked up again by authorities and is currently in custody. The emergence of other potential players in the fraud and potential contact between them found authorities revising their determination that Kerviel could be trusted on his own recognizance.
-- MDT
Labels: Jerome Kerviel, Jerome Khttp://www.blogger.com/img/gl.link.giferveil, Moussa Bakir, Societe Generale
Carl Icahn Blogs (Part 2)
Somehow, the other day, I posted the wrong link to Mr. Icahn's forthcoming blog. For those disappointed, here is the actual link to The Icahn Report. No posts yet so you haven't missed anything. And for a running tally on all things Icahn, you might also want to check out The Livermore Report from Marc Strausberg, the founder of EDGAROnline.
-- MDT
2/06/2008
-- MDT
Labels: Carl Icahn, EDGAROnline, Marc Strausberg
FCPA Prosecutions Up, The Next Corporate Scandal Brewing?
See Kevin Lacroix's post from the D&O Diary for details. The Fenwick & West article he cites is available via Mondaq.
I highly, highly recommend signing up to access Mondaq content. Great, granular data delivered via email and tailored to your interests.
-- MDT
I highly, highly recommend signing up to access Mondaq content. Great, granular data delivered via email and tailored to your interests.
-- MDT
Labels: FCPA, Fenwick and West, Mondaq
Carl Icahn Plans to Blog 2/05/2008
SEC Gets in on the SocGen Action
The U.S. regulator is planning a look at the suspicious stock dumping by key Societe General shareholder, Robert A. Day.
Day has stated that he has not yet received a formal notice of inquiry from the SEC, but he is already the subject of a lawsuit in France, brought on behalf of minority shareholders of Societe Generale.
Day has previously suggested that his parting with the stock was due to the recent sub prime mortgage market woes the timing, fortuitous given SocGens's subsequent revelations, has certain raised eyebrows about who knew what when.
-- MDT
Day has stated that he has not yet received a formal notice of inquiry from the SEC, but he is already the subject of a lawsuit in France, brought on behalf of minority shareholders of Societe Generale.
Day has previously suggested that his parting with the stock was due to the recent sub prime mortgage market woes the timing, fortuitous given SocGens's subsequent revelations, has certain raised eyebrows about who knew what when.
-- MDT
Labels: e, Jerome Kerveil, Jerome Kerviel, Robert Day, Societe Generale
New Kerviel Photos, Interview Hit The Daily Mail
Best line: "I got a bit carried away."
-- MDT
-- MDT
Labels: Jerome Kerveil, Jerome Kerviel, Societe Generale
Societe Generale Chairman Called Fraud Loophole (Says D'oh!)
Embattled Societe Generale Chairman, Daniel Bouton (here's an excellent profile from the FT) literally wrote the book on French corporate standards and in said book criticized "purely market-driven risk controls." This becomes somewhat embarrassing when your own firm gets caught in an audacious scandal based on a reliance on those same inadequate controls.
Via The Guardian (great piece if you are interested in the regulatory angle).
-- MDT
Via The Guardian (great piece if you are interested in the regulatory angle).
-- MDT
Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale
Super Tuesday - I'll Just Go Ahead and Spell it Out for You
Labels: you don't care about politics
BBC News Spotlights Corporate Espionage
Not the most flattering article for the investigative industry, but not all bad either...
-- MDT
-- MDT
Labels: corporate investigators
Credit Suisse Banker Convicted on Insider Trading
Hafiz Naseem, a former Credit Suisse investment banker, has been found guilty 28 counts of insider trading in relation to the TXU takeover. Naseem was taken into immediate custody as a potential flight risk. And while his lawyer is talking appeal, Naseem's conviction is worth a few decades in prison, pending sentencing.
The whole TXU debacle is quite the interesting case. I encourage you to check out the tags below for the background.
-- MDT
The whole TXU debacle is quite the interesting case. I encourage you to check out the tags below for the background.
-- MDT
Labels: Ajaz Rahim, Conviction, Credit Suisse, Hafiz Naseem, insider trading, TXU Corp
UBS Issues No Comment on Mortgage Investigation
Reportedly, the US Attorney in New York's Eastern District is investigating UBS to determine whether the bank misled investors by inflating the prices of its mortgage bonds. Just the latest firm to be targeted coming out of the sub-prime mess.
-- MDT
-- MDT
Labels: Fraud, sub-prime mortgage, UBS
KLA Backdating Case Reaches $65 Million Conclusion
The final figures aren't out but KLA has reportedly signed a letter of agreement to settle class action litigation brought against the firm in relation to a $935 million loss of market cap resulting from reports of stock option backdating.
Word of the looming settlement comes from a 10-Q statement KLA recently filed with the SEC. Lawyers in the case are calling this one of the biggest awards yet in backdating-related litigation.
This won't end the problems for KLA, which is still facing several shareholder derivative suit and multiple state and Federal investigations.
-- MDT
Word of the looming settlement comes from a 10-Q statement KLA recently filed with the SEC. Lawyers in the case are calling this one of the biggest awards yet in backdating-related litigation.
This won't end the problems for KLA, which is still facing several shareholder derivative suit and multiple state and Federal investigations.
-- MDT
Labels: backdating, KLA-Tencor, settlement, stock options
French Investigators Speculate on Kerviel Accomplices
That is, if there are any... No one seems certain, just yet.
-- MDT
2/01/2008
-- MDT
Labels: Jerome Kerveil, Jerome Kerviel, Societe Generale
Remembering Henry
Horrible. Just horrible... I received word over the weekend that Henry Hsu has passed away.
Henry's is a name that may not be well known in the investigative world at large, but he was most definitely an instrumental figure in the success of Virginia-based Corefacts, LLC., a firm that was recently bought by First Advantage Corporation. Later he came on to advise and assist at Caveat Research, which is how I got to know him.
Henry tragically lost his life on January 31st from injuries he sustained in a car accident. It is an utterly devastating loss to anyone who knew him.
Henry was one of the truest people I have ever met - a wonderful guy who played at being a misanthrope. I was privileged to spend most of a year sitting across a desk from him, working together every day to make Caveat go. He was just such a pleasure - honest and forthright with a wicked, playful sense of humor.
Henry's is a name that may not be well known in the investigative world at large, but he was most definitely an instrumental figure in the success of Virginia-based Corefacts, LLC., a firm that was recently bought by First Advantage Corporation. Later he came on to advise and assist at Caveat Research, which is how I got to know him.
Henry tragically lost his life on January 31st from injuries he sustained in a car accident. It is an utterly devastating loss to anyone who knew him.
Henry was one of the truest people I have ever met - a wonderful guy who played at being a misanthrope. I was privileged to spend most of a year sitting across a desk from him, working together every day to make Caveat go. He was just such a pleasure - honest and forthright with a wicked, playful sense of humor.
And he would do anything for a friend.
Henry would never phrase his kindness as an offer. He'd simply decide what needed to be done and tell you - "Well, I figure I'll just do this," whatever the thing might be. Like the time he drove my wife and I to and from work for a few weeks, while our (then) only car was out of commission. We'd all pile into his two door Tercel (he almost always left his fancy BMW at home) and he'd ferry us back and forth every day.
Maybe he'd also call us luzers en route or ask us to duck-down so he wouldn't be seen with white people. He was that kind of guy and it makes me smile now to think of those times. If you knew Henry, it probably makes you smile too.
Henry was also a beloved father, a son, a brother, a husband, a decorated solider, a friend and so many other things. I can only imagine the pain of his passing for those who were closer to him than I. For someone of his character and talents to be taken so young is beyond tragic. There are no words. It simply belies any greater purpose in this universe.
Henry would never phrase his kindness as an offer. He'd simply decide what needed to be done and tell you - "Well, I figure I'll just do this," whatever the thing might be. Like the time he drove my wife and I to and from work for a few weeks, while our (then) only car was out of commission. We'd all pile into his two door Tercel (he almost always left his fancy BMW at home) and he'd ferry us back and forth every day.
Maybe he'd also call us luzers en route or ask us to duck-down so he wouldn't be seen with white people. He was that kind of guy and it makes me smile now to think of those times. If you knew Henry, it probably makes you smile too.
Henry was also a beloved father, a son, a brother, a husband, a decorated solider, a friend and so many other things. I can only imagine the pain of his passing for those who were closer to him than I. For someone of his character and talents to be taken so young is beyond tragic. There are no words. It simply belies any greater purpose in this universe.
A world without Henry Hsu is inarguably a poorer place. He was exceptional.
I don't plan on writing anything else today. I'm just going to spend some time thinking about my friend. He is someone I am extremely grateful to have known and I will never, ever forget him.
I don't plan on writing anything else today. I'm just going to spend some time thinking about my friend. He is someone I am extremely grateful to have known and I will never, ever forget him.
I appreciate you taking the time to read a little bit about him as well.
-- MDT
-- MDT
Bill Lerach's Former Firm Diversifies
Coughlin Stoia Geller Rudman & Robbins, the firm formerly headed by the now awaiting sentencing, Bill Lerach, is broadening its base. Well known for their shareholder class action cases, Coughlin Stoia has announced the creation of a new litigation group focusing on patents.
Details via The San Siego Tribune.
-- MDT
Details via The San Siego Tribune.
-- MDT
Labels: Bill Lerach, class action, Coughlin Stoia, Lerach, patents, securities
