BLX baddie and Daily Caveat fave, Patrick Harrington has been sentenced to 10 years in prison for his role in perpetrating the largest loan fraud in the history of the Small Business Administration - more than $30 million.

Thanks to the tipster who pointed me to the Chicago Tribune article.

-- MDT

Labels: BLX, Patrick Harrington, sentencing

Ciena Capital, the successor entity to the infamous Business Loans Express (BLX), has filed for bankruptcy.

-- MDT

Labels: Allied Capital, BLX, Ciena Capital, Patrick Harrington

Of all the scammers, skeezers, cons and cads we've covered over the last few years at Daily Caveat, arguable no one has generated the continued commentary than Patrick Harrington of BLX.

For all those who swing through looking for an update one when and where Harrington will end up behind bars, say thanks to Joseph Coleman who passed along word that Pat will be sentenced on Monday September 22 at 2PM at the United States Court Eastern District of Michigan -- Courtoom 225.

Get there early to grab a good seat. If you'd like to check out the indictment against Harrington, Mr. Coleman has made it available right here.

-- MDT

Labels: BLX, Patrick Vaughn

Ok, this is The Daily Caveat picking your brain. We get requests all the time to follow-up on past posts or get tips that generate new ones. Patrick Harrington of BLX is one of the sorid characters we get the most questions about.

Last we heard around these parts, Harrington was supposed to be sentenced in early January but news coverage has been scarce. If you've got an update, please post it in the comments or send me a note.

Thanks!

--MDT

Labels: Allied Capital, BLX, Patrick Harrington

In response to a subpoena from the U.S. attorney's office for the District of Columbia, Allied Capital has owned up to hiring private investigators to obtain the phone records of David Einhorn, hedge-fund manager and proprietor Greenlight Capital.

Heretofore Allied had denied doing any such thing, over Einhorn's protestations and those of several others who also suspected that they were the victims of similar misconduct. Among that number would be Herb Greenberg, noted business journalist of TheStreet.com.

As in the HP embroglio, the suspicion here is that the investigators hired by Allied used pretextual tactics to obtain the private phone records - essentially, that they pretended to be Einhorn, Greenberg, etc. to get access to the victim's private documents.

While the name of the particular P.I. firm hired to do this bit of dirty work hasn't come out yet, as with the individuals involved in the HP Kona 2 investigation, it is just a matter of time. We'll see if prosecutors choose to go as hard after Allied as the feds and California AG have with HP.

And to you loyal, if sporadic, Daily Caveat commenters who just knew that Mr. Einhorn, poker playin', short sellin' goat that he is, was making it all of this up, let me officially, maturely say un to you...neener neener.

More on the Einhorn/Allied blood feud, from Forbes.

-- MDT

Labels: Allied Capital, BLX, David Einhorn, Herb Greenberg, Patrick Harrington, pretexting, Small Business Administration

Patrick J. Harrington, former executive vice president of the now defunct Business Loan Express is facing charges that he, along with 18 others, defrauded the Federal government of $76.8 million in small business loans. Taxpayers (that's you and me) are likely to end up paying the tab. Harrington's indictment, issued last month was unsealed earlier this week.

The Detroit Free Press has more on the scheme, and their article alludes to six earlier indictments involving Harrington that lead into the current investigation and pending prosecution. While Harrington's attorney is claiming that his client is taking more than his share of the blame, the U.S. Secret Service and the Inspector General's Office of the Small Business Administration have i.d.ed Harrington as the common denominator is all six indictments.

-- MDT

Labels: BLX, Fraud, Patrick Harrington, Small Business Administration