Senator released an extensive report on HSBC on investigations of money laundering for Mexican drug cartels and moving cash for international banks with ties to terrorists. The nature of the scandal, HSBC provides money laundering service to Mexican drug cartels in Mexico by allowing them to make illegal transactions, such as deposit large amount of cash without supervise or oversight the transactions; including move money from the Mexican bank units to the U.S. bank units. Also, HSBC cycled money from Iran and Syria through the US branches in violation of the United States sanctions. Per the senate investigative committee, Mexican drug cartels transferred an approximately 7 billion dollar to the U.S. between 2007 and 2008. Since the bank has permitted billions to be laundered, it is now faces penalties of billions of dollars.
The Case of Bernard Madoff Case 5 Problem Statement: Fraud Summary : This case closely encompasses how Bernie Madoff was accused of creating a scheme that destroyed $65 billion in investments. He single handedly deceived thousands of people including auditors, accountants, and regulators. His scheme deceived so many intelligent people and regulators considered him legitimate. His family, auditors and employees have been under investigation to find out who helped and benefited from Madoff's scheme. Madoff claimed he was the only one at fault however his right hand man explained that numerous businesses new about his scheme and still accepted it and openly violated the law.
This was the case in the article “Fashioning a Fraud” by Bethmara Kessler. IN this article, Bobbie Jean Donnelly was a fraudster who used Travel and Expense reimbursements to defraud her company. She was an assistant for a design division in a retail corporation. She quickly figured out how to manipulate her travel and expense reimbursements to eventually defraud her company of more than $200,000. Had her company had proper controls in place for travel and expense reimbursements, this probably would have occurred to this magnitude.
Jeff Skilling served as President of Enron Energy Services for ten years, and then CEO of Enron, was indicted by the United States Securities and Exchange Commission. “In May 2006, Skilling was convicted by a jury of one count of conspiracy, twelve counts of securities fraud, five counts of making false representations to auditors, and one count of insider trading.” Skilling not only lied to auditors; he also lied to the Securities and Exchange Commission during questioning in their investigation of Enron. The Securities and Exchange Commission was calling for Skilling to be required to pay restitution to those defrauded and hurt by his schemes. The Enron fiasco called for changes in not only auditing but also an internal control of financial reporting and accounting disclosures in an effort to improve investors trust. Skilling later appealed to the United States Supreme Court for theft of honest services, change of venue and voir dori.
The Scandal: In 2002, the Securities and Exchange Commission filed charges against Adelphia Communications Corporation; "its founder John J. Rigas; his three sons, Timothy J. Rigas, Michael J. Rigas, and James P. Rigas; and two senior executives at Adelphia, James R. Brown, and Michael C. Mulcahey, in one of the most extensive financial frauds ever to take place at a public company (sec.gov)." The defendants were charged with fraudulently excluding billions of dollars in liabilities from its financial statements by hiding them on the books, falsified operations statistics and inflated earnings to meet Wall St. expectations, and concealing "rampant self-dealing by the Rigas Family, including the undisclosed use of corporate funds for Rigas Family stock purchases and the acquisition of luxury condominiums in New York and
Case Background The Madoff investment scandal broke in December 2008, when former NASDAQ Chairman Bernard Madoff admitted that the wealth management arm of his business was an elaborate Ponzi scheme. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its Chairman until his arrest. At his firm he employed his brother Peter as Senior Managing Director and Chief Compliance Officer (Peter has since been sentenced to 10 years in prison), Peter's daughter Shana Madoff as the firm's rules and compliance officer and attorney, and his sons Andrew and Mark (Mark committed suicide by hanging exactly two years after his father's arrest). Alerted by his sons, federal authorities arrested Madoff on December 11, 2008. On March 12, 2009, Madoff pled guilty to 11 federal crimes and admitted to operating the largest Ponzi scheme in history.On June 29, 2009, he was sentenced to 150 years in prison with restitution of $17 billion.
Black was in charge of signing the 10-K reports and the quarterly and annual reports for Hollinger reports that Radler signed off on also. Radler helped Black to siphon off millions of dollars through newspaper sales. Radler would later a deal in exchange for testifying against Black. There were also several other individuals that were participating to a lesser degree in the illegal acts at Hollinger. The SEC filed a lawsuit against Black and Radler in 2004 saying that they had engaged in fraudulent and deceptive schemes to divert cash and assets from Hollinger and its shareholders.
John Pregent, “aka” Jack Pregent, 61, pleaded guilty before United States District Judge George A. O’Toole to one count of bankruptcy fraud involving a scheme to defraud. Sentencing is scheduled for May 15, 2012 at 2:30 p.m. He faces up to five years in prison to be followed by three years of supervised release and a $250,000 fine. Pregent owned the precision machine part manufacturing business Technical Fabrications, Inc. (“TechFab”) which operated in Newburyport until it filed for bankruptcy in July 2010. Pregent engaged in a scheme to defraud TechFab’s creditors, bankruptcy trustee and the bankruptcy court by transferring certain TechFab assets, including equipment and ongoing business, to a newly formed company.
It was said in on story a potential drug dealer was giving his bank account information on the phone when his call was intercepted. During this call, a crooked cop stole the dealer information and stole all his funds from his bank account in which the family became in debt. Now this has become a new controversy of tapping anyone’s phone
She felt he sabotaged the Wall Street Journal by allowing the New York Times to run the story. P&G’s position on their actions was stated as being due to the “significant and ongoing leaks of our confidential business data, plans and strategies.” They filed a complaint which resulted in a grand jury investigation. It was based on 1967 and 1974 laws which made it a crime for employees to give away articles representing trade secrets and prohibits employees from disclosing confidential information. Reporters are protected by the First Amendment and in Ohio, “shield-laws” protect the reporters’ confidential sources identity. The Ohio laws’ interpretation was ambiguous; therefore, P&G’s claims were unfounded.