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4/27/2009
Hennessee Group Fined on Bayou Hedge Fund Due Diligence Failures
4/14/2009
Federal Government Background Screeners Admit Fraud
In Case You Were Looking for a Way to Feel Worse About Bernie Madoff
R. Allen Standford Chief Investment Officer Tagged for Obstruction
Financial Crime Suddenly an FBI Priority 1/22/2009
Raul Weil Still a Fugitive
Your Kroll Global Fraud Report For January 2009...
Rash of Disappearing Money Managers Continues with Arthur Nadel
Bernie Madoff and Fraud as Boom-Time Crime
Mark Dreier Does Not Pass Go
Quarterly Kroll Fraud Report Forthcoming
Massachusetts Hits Merrill Lynch With Fraud-Related Charges
BAWAG Trial Sees Nine Sentenced on Charges Stemming from Billions in REFCO-Related Losses
Sam Israel, Undead Fugitive
Michigan-Based Web Fraudster Faces Commuppence
P.O. Box Hedge Fund Crumbles
SEC Puts the Kibosh on San Diego Hedge Fund Manager
5/02/2008
Herbalife CEO Forced to Admit Resume Padding
FBI Directory Says Sub-Prime Investigation Leads to Hedge Fund Doors
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Hennessee Group Fined on Bayou Hedge Fund Due Diligence Failures
Hennessee Group, a New York-based investment adviser is facing a $800,000 fine from the SEC due to the firm's failure to perform promised due diligence of the Bayou Group hedge fund, once run by eventual death-faking, scooter-riding fugitive from justice, Sam Israel.
Bayou, of course, was one of the biggest hedge fund flame-outs of all time, with many of the fund's major players doing jail time. The SEC complaint details about 40 Hennessee clients who altogether has about $56 million invested inthe Bayou fund.
Hennssee head, Charles Gradante has neither confirmed or denied wrongdoing in the matter. While he hasn't commented on the specifics of his own case, Gradante has submitted a letter to the SEC with a variety of recommendations for how other migh avoid Hennessee's fate.
Amongst Gradante's recommendations - increased reguation of hedge fund borrowing and requiring that third parties, such has Kroll, be hired to conductforencic audits of hedge fund financial statements. More here, via Bloomberg.
-- MDT
Bayou, of course, was one of the biggest hedge fund flame-outs of all time, with many of the fund's major players doing jail time. The SEC complaint details about 40 Hennessee clients who altogether has about $56 million invested inthe Bayou fund.
Hennssee head, Charles Gradante has neither confirmed or denied wrongdoing in the matter. While he hasn't commented on the specifics of his own case, Gradante has submitted a letter to the SEC with a variety of recommendations for how other migh avoid Hennessee's fate.
Amongst Gradante's recommendations - increased reguation of hedge fund borrowing and requiring that third parties, such has Kroll, be hired to conductforencic audits of hedge fund financial statements. More here, via Bloomberg.
-- MDT
Labels: Bayou Group, Fraud, hedge fund, Hennessee, Kroll, Sam Israel
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Federal Government Background Screeners Admit Fraud
Government reps are making it sound like no big deal - according to a recent report in the Washington Post, since 2007 six investigators working on behalf of the Office of Personnel Management, the agency that heads up background screening for federal jobs, have been charged with making false statements.
Three of the investigators were OPM employees. The three others were employed by government contractors: USIS and Kroll. One of these folks was convicted as recently as last week in Federal court in the District of Columbia. Dozens, if not hundreds of background checks have been admittedly falsified in these cases alone. Tip of the iceberg?
More at the Washington Post.
-- MDT
3/02/2009
Three of the investigators were OPM employees. The three others were employed by government contractors: USIS and Kroll. One of these folks was convicted as recently as last week in Federal court in the District of Columbia. Dozens, if not hundreds of background checks have been admittedly falsified in these cases alone. Tip of the iceberg?
More at the Washington Post.
-- MDT
Labels: background checks, Fraud, Kroll, USIS
In Case You Were Looking for a Way to Feel Worse About Bernie Madoff
Elie Weisel unloads on him in the New York Times.
-- MDT
2/27/2009
“ ‘Psychopath’ — it’s too nice a word for him... Sociopath,’ ‘psychopath,’ it means there is a sickness, a pathology. This man knew what he was doing. I would simply call him thief, scoundrel, criminal."Weisel, who probably needs no introduction, lost his life savings to the Madoff fraud. His charity lost millions as well.
-- MDT
Labels: Bernie Madoff, Fraud
R. Allen Standford Chief Investment Officer Tagged for Obstruction
Laura Pendergest-Holt catches the first criminal charge in the Standford fraud probe. Her arrest comes based on charges of fibbing to the SEC in a February 10th interview. She was also named in the SEC civil suit against various Stanford holdings that was filed earlier this month.
Details at The Chron - where else.
-- MDT
2/11/2009
Details at The Chron - where else.
-- MDT
Labels: Fraud, Laura Pendergest Holt, R. Allen Stanford
Financial Crime Suddenly an FBI Priority 1/22/2009
Raul Weil Still a Fugitive
In case you were wondering...
Meanwhile, legal woes for UBS keep getting deeper.
-- MDT
Meanwhile, legal woes for UBS keep getting deeper.
-- MDT
Labels: Fraud, Igor Olenicoff, Raoul Weil, tax evasion, UBS
Your Kroll Global Fraud Report For January 2009...
Rash of Disappearing Money Managers Continues with Arthur Nadel
Recently charged with fraud, Florida hedge fund manager Arthur Nadel has conveniently gone missing. Nadel, late of Scoop Capital, was facing down a $50 million payout due to investors when he opted to bail. Last week he left his wife and the world a note referencing his guilty conscience and a potential suicide. Of course, the suicidal don't often transfer $1.25 million to a secret swiss bank account. Here's the latest on Nadel via the Associated Press.
-- MDT
1/09/2009
-- MDT
Labels: Arthur Nadel, Fraud, Swoop Capital
Bernie Madoff and Fraud as Boom-Time Crime
Here's a great piece from James Surowiecki in the New Yorker (sent in by a regular reader /tipster), which gives a bit of perspective on Bernie Madoff's bad acts and how they fit into the history of those who have taken advantage of investor exuberance.
12/09/2008
And when I say history, I mean like the year 1700. Good stuff.
Labels: Bernie Madoff, Fraud
Mark Dreier Does Not Pass Go
Perpetrating a $100 million dollar fraud, means directly to jail.
--MDT
9/15/2008
--MDT
Labels: Fraud, hedge fund, Mark Dreier, no one loves a lawyer
Quarterly Kroll Fraud Report Forthcoming
Showing that the average company's losses to fraud are up 22% compared to the previous year. Watch this space for the download.
-- MDT
8/07/2008
-- MDT
Labels: Fraud, Global Fraud Report, Kroll
Massachusetts Hits Merrill Lynch With Fraud-Related Charges
Auction rate securities fraud charges, to be exact. According to the Massachusetts AG, Merrill continued talking up ARS to analysts and - worse - advising its customers to buy into ARS, even as Merrill itself was ditching.
Real classy.
-- MDT
7/13/2008
Real classy.
-- MDT
Labels: auction rate securities, Fraud, Merrill Lynch
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
6/17/2008
--MDT
Labels: BAWAG, Fraud, hedge fund, Refco
Sam Israel, Undead Fugitive
The Feds seem all but certain that the Bayou hedge fund founder's suicide was mere window dressing to a disappearing act.
I must confess... I love it when they run. As to why he'd run? If you need a reminder, try Bloomberg. Something to do with starting a 20 year prison sentence, I'd think.
-- MDT
5/13/2008
I must confess... I love it when they run. As to why he'd run? If you need a reminder, try Bloomberg. Something to do with starting a 20 year prison sentence, I'd think.
-- MDT
Labels: Bayou Group, Fraud, fugitive, hedge fund, Sam Israel, suicide
Michigan-Based Web Fraudster Faces Commuppence
No really, I am begging you - stop giving these people your money...
Gregory McNight is not really going to produce those 10-15% monthly returns - and yes, his company Legisi Holdings is really just a scam.
Don't believe me? Ask the SEC. They'll tell ya the same.
I just wish we'd been here sooner so we could have helped these poor chumps. I'd really like to hear from SCAM.com forum Junior Member 5Blade to see how he's doing.
If you're out there 5Blade, give us a holler...
--MDT
5/07/2008
Gregory McNight is not really going to produce those 10-15% monthly returns - and yes, his company Legisi Holdings is really just a scam.
Don't believe me? Ask the SEC. They'll tell ya the same.
I just wish we'd been here sooner so we could have helped these poor chumps. I'd really like to hear from SCAM.com forum Junior Member 5Blade to see how he's doing.
If you're out there 5Blade, give us a holler...
--MDT
Labels: Fraud, Gregory McKnight, Legisi Holdings
P.O. Box Hedge Fund Crumbles
Please stop giving these people your money.
Seriously...
-- MDT
5/06/2008
Seriously...
-- MDT
Labels: CTFC, Fraud, hedge fund, Robert Sucarato
SEC Puts the Kibosh on San Diego Hedge Fund Manager
Plus Money is not exactly a name that would inspire me to invest millions. Sounds like a shady payday loan company and shady it definitely is. The SEC has jumped on Plus Money proprietor, Matthew La Madrid freezing his assets while they sort through his $30 million dollar hedge fund investment fraud.
Labels: Fraud, hedge fund, Matthew La Madrid, Plus Money
2 Comments.
Maybe you should try and get all your facts straight,,,before you start accusing people, you PITOHEAD..
Is that you Matthew? And how did you know my wife's pet name for me?
I always assumed it meant something nice, although my Spanish isn't quite as good as hers (or yours, it seems).
Frankly, if you have "facts" you are welcome to post them here. Or better yet, send them along to the SEC. They're the folks investigating.
And Plus Money is still a bad name for a hedge fund.
-- MDT
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I always assumed it meant something nice, although my Spanish isn't quite as good as hers (or yours, it seems).
Frankly, if you have "facts" you are welcome to post them here. Or better yet, send them along to the SEC. They're the folks investigating.
And Plus Money is still a bad name for a hedge fund.
-- MDT
Herbalife CEO Forced to Admit Resume Padding
And the ever colorful fraud investigator, Barry Minkow is there to take credit.
Minkow is a bit of a controversial fellow in his own right, with his own crooked past. He's now the grand poobah behind the Fraud Discovery Institute.
You might remember Minkow from his dust-up with USANA a while back.
-- MDT
4/20/2008
Minkow is a bit of a controversial fellow in his own right, with his own crooked past. He's now the grand poobah behind the Fraud Discovery Institute.
You might remember Minkow from his dust-up with USANA a while back.
-- MDT
Labels: accounting fraud, Barry Minkow, Fraud, Herbalife
FBI Directory Says Sub-Prime Investigation Leads to Hedge Fund Doors
FBI director Muller's comments, made the annual American Bar Association Litigation Section conference in Washington, D.C. are sure to ruffle features in some quarters. Like say, BloggingStocks, for one.
-- MDT
4/15/2008
-- MDT
Labels: FBI, Fraud, hedge fund, sub-prime mortgage
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Sam Israel presided over the spectacular $40 million flame-out of the now defunct hedge fund, Bayou Group. Bayou was the hedge fund fraud and failure that really put the subject on the front page - not just the business pages. This week Israel got his comeuppance - a sentence of 20 years and an order to forfeit $300 million to compensate his former investors for their losses.
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
Labels: Bayou Group, Fraud, hedge fund, James Marquez, Sam Israel
