Continue reading AIG Settles Fraud Charges for $725 Million

AIG Settles Fraud Charges for $725 Million originally appeared on BloggingStocks on Mon, 19 Jul 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Goldman Sachs Is All the Rage

Serious Money: Goldman Sachs Is All the Rage originally appeared on BloggingStocks on Mon, 19 Apr 2010 14:20:00 EST. Please see our terms for use of feeds.

Normal tech support phone call: "Press 1 for help with e-mail. Press 2 to have your password reset."

Madoff tech support phone call: "Hello, how can I help you dummy up some trading records today?"

The investigation of Bernie Madoff's fraudulent financial empire is leading to more arrests. Jerome O'Hara and George Perez, both computer programmers employed by the Ponzi schemer, were arrested by the FBI on Friday morning. The charges include conspiracy for falsifying books and records. They are accused of doing the deed for the boss and accepting hush money -- in the form of 25% raises and net bonuses of $60,000 -- to keep the scam afloat.

Continue reading Two more arrests in Madoff saga

Two more arrests in Madoff saga originally appeared on BloggingStocks on Fri, 13 Nov 2009 18:20:00 EST. Please see our terms for use of feeds.

You'll never believe who's dropping dimes to the feds!

Sam Antar, formerly the CFO of Crazy Eddie, known in the New York area for over-the-top commercials that scared the hell out of kids (well, me at least), knows his way around a questionable balance sheet. For 15 years, he was the executive chef of book-cooking, ultimately taking a guilty plea to conspiracy and obstruction of justice charges. He stayed out of the clink by taking the stand on the government's side at a 1993 trial, ultimately sending his cousin, Eddie Antar to prison for seven years or so.

Crooks make the best cops, so to speak, and Antar is putting his skills to work. He's out hunting for accounting fraud and sending his analyses off to the SEC. On his blog, the former CFO laid out what he called a "bulletproof case" against Overstock.com (NASDAQ: OSTK) - a company that the SEC had been investigating since 2006. The inquiry has been reopened.

Continue reading Crazy Eddie's crazy ex-CFO investigates Overstock

Crazy Eddie's crazy ex-CFO investigates Overstock originally appeared on BloggingStocks on Wed, 07 Oct 2009 09:30:00 EST. Please see our terms for use of feeds.

Even with the ringleader in jail, the pursuit of Bernie Madoff doesn't seem to be finished. Sunday night, the trustee who's winding down the Madoff company said on 60 Minutes that Madoff's two sons (Mark and Andrew), brother (Peter) and niece (Shana) will be slapped with a $198 million suit. They are alleged to have known about the Ponzi scheme, according to the trustee, Irving Picard and his chief counsel, David Sheehan.

Sheehan and Picard are also working under the assumption that there is still some money hidden, quite a lot of it, in fact. Picard told the show, "We'd assume it's millions and millions of dollars." Yet, this probably wouldn't help with the task in front of them.

Continue reading Madoff family to be sued for $198 million

Madoff family to be sued for $198 million originally appeared on BloggingStocks on Mon, 28 Sep 2009 10:00:00 EST. Please see our terms for use of feeds.

Danny Pang was accused by federal regulators of defrauding investors of several hundred million dollars. The investors, however, will not realize the full extent of justice they would have preferred, as the 42-year-old financier died Saturday morning.

The police were called to Pang's home at 3:30 AM, and the financier was rushed to Hoag Hospital at Newport Beach, where he was later pronounced dead.

So far, the cause of death is unknown. Supervising Deputy Coroner Larry Eslinger has scheduled an autopsy for Sunday, though.

Continue reading Accused financial fraudster dies before trial

Accused financial fraudster dies before trial originally appeared on BloggingStocks on Sun, 13 Sep 2009 14:40:00 EST. Please see our terms for use of feeds.

Albert Gonzalez faced the music in a U.S. District Court in Boston on Friday, pleading guilty to masterminding one of the biggest cases of identity theft in history. The deal he struck with prosecutors could have him turning big rocks into little ones for up to a quarter of a century.

The Miami resident compromised the computer systems of large, high-profile retailers, including TJX (NYSE: TJX), BJ's Wholesale Club (NYSE: BJ), OfficeMax (NYSE: OMX), Barnes & Noble (NYSE: BKS) and Sports Authority. Tens of millions of credit card numbers were swiped in this scheme, leading to 19 counts of conspiracy, computer fraud, wire fraud, access device fraud and aggravated identity theft -- if there are other charges ... well, you get the point.

Continue reading Remorseful hacker faces 25 years

Remorseful hacker faces 25 years originally appeared on BloggingStocks on Sun, 13 Sep 2009 10:10:00 EST. Please see our terms for use of feeds.

It's been a while since I posted something in the "Funnies" category but today I just had to share something with our readers. I just got off the phone with an elderly friend that had received an e-mail from a notorious scam artist that promised daily income with little or no risk.

Her family had told her that it was a scam, and my wife had told her the same, but she still wanted to know what I thought. She had forwarded the e-mail to me. It took me about 5 seconds to see the offer as a scam.

Continue reading Sunday Funnies: Huge profits with no risk!

Sunday Funnies: Huge profits with no risk! originally appeared on BloggingStocks on Sun, 23 Aug 2009 17:10:00 EST. Please see our terms for use of feeds.

Frank DiPascali, CFO to convicted fraudster Bernard Madoff, turned in a guilty plea yesterday, as expected. He fessed up to ten charges, including securities fraud, conspiracy, falsifying records and international money laundering. "It was all fictitious," he said, admitting that he "knew it was wrong at the time." Yet, he didn't say a word about anyone other than Madoff.

Each of the charges carries a term of five to 20 years in prison, not to mention fines of up to $5 million. But his cooperation is expected to lessen the blow a bit, though we'll have to wait until at least May 2010 to find out what the outcome will be. We don't even know if DiPascali will be able to wait for sentencing from his own home -- nothing on bail has been determined. The prosecution has asked for a $2.5 million bond, secured by equity in DiPascali's sister's home and co-signed by "three financially responsible individuals," according to a Reuters report.

The May sentencing date suggests that prosecutors will be willing to deal, based on the information DiPascali provides in the interim. District Judge Richard Sullivan, as well, hopes that information will be forthcoming, which he expressed to one of the victims who spoke at the hearing.

Continue reading Madoff CFO pleads guilty, sentencing in May

Madoff CFO pleads guilty, sentencing in May originally appeared on BloggingStocks on Wed, 12 Aug 2009 08:00:00 EST. Please see our terms for use of feeds.

David Friehling is only the second person to face criminal charges in the Bernard Madoff debacle. He served as Madoff's auditor from 1991 to 2008, though it's hard to say if they'll resume their relationship as cellies. For now, Friehling has only been charged (innocent until proven guilty, and such) with securities fraud, abetting investment adviser fraud and filing false reports with the SEC. On five of the six charges filed, he faces a 20-year maximum.

It's alleged that Friehling didn't conduct "meaningful" audits while in Madoff's employ, despite issuing reports saying that he'd done his job -- which paid close to $15,000 a month (no work for big pay . . . where do I sign up?). In particular, he's said to have not bothered to verify Madoff's business assets, revenue sources or bank accounts. This is no-brainer stuff for an auditor.

Continue reading Madoff bean-counter pleads not guilty

Madoff bean-counter pleads not guilty originally appeared on BloggingStocks on Sun, 19 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Madoff arrives in North Carolina to begin life in prison

Madoff arrives in North Carolina to begin life in prison originally appeared on BloggingStocks on Tue, 14 Jul 2009 18:30:00 EST. Please see our terms for use of feeds.

Continue reading Delay in UBS trial sparks settlement talks

Delay in UBS trial sparks settlement talks originally appeared on BloggingStocks on Mon, 13 Jul 2009 09:30:00 EST. Please see our terms for use of feeds.

According to a report released yesterday, U.S. mortgage fraud reports increased 36% last year. According to the FBI, suspicious activity reports increased to 63,713 during fiscal 2008 from 46,717 a year ago.

California and Florida had the highest number of suspicious reports, which some attribute to the fact that the housing market has dropped and credit has dried up in those regions.

According to the agency, reports filed through March put fraud reports on track to top 70,000 during the current fiscal year ... not a good sign.

Continue reading Mortgage fraud rampant -- who will clean up this mess?

Mortgage fraud rampant -- who will clean up this mess? originally appeared on BloggingStocks on Wed, 08 Jul 2009 13:50:00 EST. Please see our terms for use of feeds.

On Wednesday, federal investigators filed mortgage and accounting fraud charges against Beazer Homes USA (NYSE: BZH). The homebuilder will be able to escape prosecution because it agreed to pay $50 million to victims and to accept responsibility for its improper actions.

Beazer found itself charged thanks to its participation in a scheme designed to fraudulently increase its profits and sell homes. Reportedly, the company also participated in an accounting scheme that was designed to "smooth earnings." Thanks to these schemes, homebuyers defaulted on their loans and some neighborhoods saw home values plummet thanks to loan defaults. State and federal investigators have scrutinized Beazer since March 2007, finding that the company's "aggressive sales tactics" contributed to an "unusually high foreclosure rate in many of its local starter-home communities."

Continue reading Beazer Homes USA will pay victims $50 million

Beazer Homes USA will pay victims $50 million originally appeared on BloggingStocks on Thu, 02 Jul 2009 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Madoff receives a sentence of 150 years

Madoff receives a sentence of 150 years originally appeared on BloggingStocks on Mon, 29 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Bernie Madoff, at 71 years old, may be staring down what would be effectively a life sentence. The prosecution and defense have vastly different views heading into court today, but the answer will come at 10 AM (EDT), when the hearing is scheduled to begin. Approximately 100 letters have been sent to the judge, and 10 people will relate their opinions directly.

Madoff's family members are not expected to be in the courtroom for the sentencing, as they haven't been to any of his appearances following his arrest last September.

Continue reading Madoff sentence to come today

Madoff sentence to come today originally appeared on BloggingStocks on Mon, 29 Jun 2009 08:30:00 EST. Please see our terms for use of feeds.

Hedge fund manager Michael Regan has pleaded guilty to running a Ponzi scheme. Manager of the Massachusetts-based River Stream Fund, he admitted to defrauding around 70 investors. The fund held just shy of $20 million in assets ... despite the relatively meager $101,600 sitting in its accounts. The fund purported to return 20 percent a year since 2001, paying out $9 million in "profits" and returned capital.

Continue reading Ponzi manager pleads guilty and settles civil charges

Ponzi manager pleads guilty and settles civil charges originally appeared on BloggingStocks on Fri, 26 Jun 2009 15:00:00 EST. Please see our terms for use of feeds.

Texas billionaire R. Allen Stanford pleaded 'not guilty' today in a federal court arraignment to charges that he ran a $7 billion Ponzi scheme. Not only is Stanford being charged with running the Ponzi scheme, there are also allegations that he paid $100,000 to Leroy King, the former chief executive officer of Antigua's Financial Services Regulatory Commission.

This day has been coming for a while. It seems as though the government has been looking into Stanford's investment company since 2005, but it was only this past February that they shut down the Houston office of his investment company, Stanford Financial Group.

Continue reading Stanford pleads not guilty to fraud charges

Stanford pleads not guilty to fraud charges originally appeared on BloggingStocks on Thu, 25 Jun 2009 17:10:00 EST. Please see our terms for use of feeds.

Continue reading Bernard Madoff is a horse thief: Sentencing set for June 29

Bernard Madoff is a horse thief: Sentencing set for June 29 originally appeared on BloggingStocks on Wed, 24 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

Regulators missed several opportunities to nab Madoff originally appeared on BloggingStocks on Mon, 05 Jan 2009 10:45:00 EST. Please see our terms for use of feeds.