crime posts
FeedPosted Mar 18th 2010 9:30AM by Mark Fightmaster (RSS feed)
Filed under: Lilly (Eli) (LLY)

Eli Lilly (
LLY) announced Wednesday that burglars broke into a Connecticut-based warehouse over the weekend and
stole roughly $75 million in prescription drugs. According to police, the break-in happened either late Saturday or early Sunday. According to LLY, "dozens of pallets" of antidepressants were stolen, including Prozac, Cymbalta, Zyprexa (an anti-psychotic), and other medicines. The police called the theft a "well-planned event."
The company stated that it is working with the
U.S. FDA Office of Criminal Investigations and other law enforcement officials. LLY's senior vice president of global equity noted that the company has "taken quick and appropriate actions to ensure the safety of our medicines." The company added that the "U.S. pharmaceutical distribution system is tightly controlled and monitored, making it extremely difficult for stolen product to make it to patients through legitimate channels."
Continue reading $75 Million in Drugs Stolen from Eli Lilly Warehouse
Posted Oct 22nd 2009 3:40PM by Tom Johansmeyer (RSS feed)
Filed under: China, Boeing Co (BA)
True entrepreneurs will go to any length to get their companies off the ground. And, they're known for accepting the consequences of the risks they take. Some businesses never make it to launch, never bring in a dime, never lead to that killer IPO. In even rarer cases, these adventures can put two people behind the defendants' table on charges of corporate espionage. Lan Lee, an American, and Yuefei Ge, a Chinese citizen, allegedly swiped computer chip blueprints and tried to gain Chinese government support for a startup using these illicit goods. Now, they could face up to 65 years on charges of corporate espionage.
Continue reading Economic espionage comes to trial, first time with a jury
Posted Jan 6th 2009 7:00PM by Gary Sattler (RSS feed)
Filed under: Scandals, Columns, Mutual Funds
Welcome to Way Off Wall Street, a column dedicated to providing Main Street opinions on topics of interest to investors. Each installment highlights the views of Americans who are far removed from the canyons of Wall Street -- and who often see things more clearly as a result.After reading nearly 400 publicly posted reader comments regarding the Bernard Madoff Ponzi scandal, I believe that I may have a good feel for the grass roots mood on the subject. In a nutshell, the average American internet crawler is thoroughly disgusted with our financial system and its regulatory agencies. They are fed up, strung out and unequivocally irate. As for Bernard Madoff himself, the overwhelming assertion is that he should be strung up immediately. That sentiment is not meant in a figurative sense either. People want Bernard Madoff publicly hanged, and they want it done with much fanfare in a place such as New York City's Central Park. Yes, this sounds rather coarse. Perhaps it's even uncivilized, but as the internet is my witness, this is what people are saying.
Very few of the comments I have read indicate a feeling that Madoff's investors simply got what they deserved. I did, however, read many statements regarding the fact that high level greed obviously forced many large eggs into one very questionable basket. I myself have not much pity for those investors who lost "everything" to Madoff's twisted dealings. It is my opinion that if investors don't have the sense to diversify, and thereby somewhat protect themselves, they are not very deserving of much wealth. Even my own paltry savings reside in no less than five separate accounts, however paltry.
Continue reading Way Off Wall Street: The public responds to the Madoff scandal
Posted Dec 10th 2007 3:20PM by Brian White (RSS feed)
Filed under: Bad News, Management, Microsoft (MSFT)

After
Microsoft (NASDAQ:
MSFT) canned its former chief information officer recently
for inappropriate conduct, it's now turning its attention to a former manager who was in charge of the software behemoth's internet domain names. Carolyn Gudmundson was indicted late last week on 11 counts of wire fraud and seven counts of mail fraud.
The whopper: stealing more than $1 million from Microsoft and Expedia.com (a travel website), along with another California company. With all those charges, Gudmundson faces up to 20 years in prison and fines of up to $250,000.
The defendant apparently
used her Microsoft corporate credit card to pay for internet domain names for the company, for which she paid highly inflated prices using doctored receipts. She didn't provide receipts in many cases as well, but still was provided reimbursement by her former employer. First of all, Microsoft should not have provided expense report reimbursements without a receipt, but that's not the issue here. Criminal fraud is.
In addition, Gudmundson filed fraudulent invoices with travel site Expedia.com for domain names she had never paid for. Somehow, she also convinced a California domain name registrar to pay a "G.M. Lossman" for transferring multiple domain names to Microsoft. That's a lot of fraud just for involving internet domain names, yes? It's quite an intricate swindle based on something very rarely looked at in corporate America -- domain name management. That is, unless large receipts start showing up in those expense reports.
[DISCLOSURE: I own MSFT shares as of 12-10-07]
Posted Nov 15th 2007 8:37PM by Beth Gaston Moon (RSS feed)
Filed under: Bad News, Internet, Scandals, Business of Sports

Shortly after the market closed today, I got one of my familiar
MarketWatch.com bulletins in my in-box. But it wasn't concerning after-hours earnings or the Dow's (latest) triple-digit drop. Rather, it simply stated: "Home-run king Barry Bonds indicted on perjury, obstruction of justice charges."
Yowsa. While everyone always just
assumed Bonds used the juice at some point in his career, I think this comes as a surprise to many sports fans. A federal grand jury has accused Bonds of lying under oath when he said he was unaware that substances handed out by personal trainer Greg Anderson were steroids. Bonds has also maintained that he did not use steroids in 2001, as he chased the single-season home-run record, then held by Mark McGwire.
According to
MarketWatch, John Burris, "one of" Bonds' lawyers, told San Francisco radio station KCBS the Bonds would plead "not guilty." Burris also asserted that Bonds "will be found not guilty." Burris says the indictment was a shock, as the government doesn't have proper evidence to bring such a claim.
Continue reading Barry Bonds facing 30 years in jail and a rough financial future
Posted Aug 2nd 2007 2:45PM by Peter Cohan (RSS feed)
Filed under: Other Issues, Products and Services, Apple Inc (AAPL), General Electric (GE), Marketing and Advertising
MSNBC reports that General Electric Co.'s (NYSE: GE) NBC Dateline was able to track 12 of 20 Apple Inc. (NASDAQ: AAPL) iPods it left as bait for thieves.
About 110 million iPods have been sold since they were introduced. And people have been murdered for them. And many iPod owners have had them stolen. Moreover, as Dateline discovered, Apple could easily track the thieves and help reunite the owners with their stolen iPods. However, despite an average of five or six calls per customer service rep per day asking for help with stolen iPods, Apple has stayed out of this problem.
Dateline's Chris Hansen created a ruse to find out whether he could track stolen iPods. He left 20 lying around for thieves to steal in cities around the U.S. And when the thieves registered their stolen iPods so they could buy songs from iTunes, Hansen had them send their name, address and other contact information to Apple and Dateline. Hansen then drove to the thieves' houses in an RV to give them a fake prize. At that point he listened to their explanations of how they got their iPods, then showed them the incriminating video of them stealing the iPods.
Continue reading Can Apple help stop iPod theft?
Posted May 7th 2007 12:33PM by Sarah Gilbert (RSS feed)
Filed under: Law, Rants and Raves, Wal-Mart (WMT), Scandals
Nathaniel Hawthorne may be dead, but his spirit still lives on at
Wal-Mart Stores, Inc. (NYSE:
WMT), specifically in this store in Attalla, Alabama. You can recognize the store because it's the one with the two
petty thieves out front, wearing signs around their necks: "I am a thief, I stole from Wal-Mart." The signs, ordered by a local judge (they were worn for eight hours on a couple of Saturdays) have received positive comments from shoppers, according to the store manager; signs that the 1800s are alive and well.
As
William Faulkner wrote, in the south, "The past is never dead. It's not even past."
Surely the mainstream retail climate has moved past expending precious management time and justice department resources on the humiliation of those desperate individuals (or, as one of the punishees claims, victims of misunderstanding) who steal items of miniscule value. Most companies who own stores build losses into their forecasted income statement. But at Wal-Mart, the scarlet letter lives on.
Posted Dec 11th 2006 11:21AM by Gary Sattler (RSS feed)
Filed under: Good news, Products and Services, Consumer Experience, Internet, Competitive Strategy
It seems that no matter where I travel on the Internet these days, I run into another new warning about some evil Internet-borne threat that wants to invade my computer, rifle my bank records or expose my personal life in order to wreak havoc and inject trouble while accomplishing a complete withdrawal of my life savings. Thanks to a worthwhile investment in McAfee (NYSE:MFE) products, I have been safe, at least until now. But it seems that the times are changing in the arena of Internet crime. Actually, it's probably safer for me and other PC users now. We're not the desired targets any more. Now it seems that the criminals are more interested in going after the big guys. It's that old rule about deep pockets -- the more you have, the more someone else wants to get it.
Luckily enough, I came across a systems security suite that appear to have it all covered. Kaseya, McAfee and Singlefin, a St. Bernard Company (OTCBB:SBSW), have come together under the umbrella of Secure My Company, a monthly subscription service providing systems protection from the inside out. Given the fact that an emerging tactical attack on business is being mounted from the user side of business equipment, it is very important that companies monitor the dissemination of internal data to exterior destinations. Secure My Company has chosen their three focus providers to create a synergistic defense against data intrusions and theft from outside a company and from within.
Internet security is one game where you must be at least one step ahead of the competition, especially when you consider that the competition wants to bleed your funds or to just plain ruin you. We're not talking about business competition. We're talking about those individuals and organizations that operate strictly in defiance of the rules. They are criminals who will stop at nothing to gain access into what you have worked so hard to build. If you are personally in charge of your system or network security then you'd better be up to date. If someone else handles those details for you, then make sure that they're on the ball. Today's computer criminals aren't the hackers and virus writers that we've all become used to. We're dealing against a smooth, savvy and intelligent bunch. They only way they will respect you is if you demand that they will and that means keeping them locked out, for good.