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Thursday, 30 October 2008

Tuesday, 28 October 2008

Miquel Demucha,and Maure Esparza are charged with fleeing to elude, possession of weapons on school property, possession of alcohol on school property

Miquel Demucha, of 707 Burchfield Ave., and Maure Esparza, of 304 Rowena St., are charged with fleeing to elude, possession of weapons on school property, possession of alcohol on school property, possession of less than an ounce of marijuana and violation of the Street Gangs Act. Both were being held in the Whitfield County Jail without bond Tuesday night.They told deputies they were at the school to meet some students for lunch. They drove away from the school, at 2818 Airport Road, in a black Ford Expedition shortly after noon, according to a report from the Whitfield County Sheriff’s Office. They were stopped at a car wash at the intersection of Airport Road and West Avenue and told deputies “there was more room behind the car wash” when asked why they left the parking lot.Deputies found a handgun, a knife, a can of beer and .22 caliber bullets in the car. Detectives also found “several pieces of paper with gang writing on them,” the report said. A “roach” tested positive for marijuana. Esparza was carrying an unwrapped razor blade, the report said.

Wayne Ordakowski,member of the Mongols Outlaw Motorcycle Gang, was indicted by a federal grand jury

Wayne Ordakowski, also known as “Lumpy,” is charged with assisting fellow gang members and preventing agents from apprehending his alleged co-conspirators. He faces a maximum of 15 years in prison and up to $500,000 in fines. Ordakowski, 48, a member of the Mongols Outlaw Motorcycle Gang, was indicted by a federal grand jury in August and arrested Oct. 21 in a nationwide sweep, which included 10 other arrests in Denver.Investigators with the Bureau of Alcohol, Tobacco, Firearms & Explosives said Mongols gang members Benjamine Maestas and Leonard Martinez executed a scheme in August 2007 to defraud Loud Financial LLC by using false representations to illegally secure a $25,000 loan for a 2006 chopper at Hacienda Harley-Davidson in Scottsdale, Ariz.Shortly after law enforcement officers began their investigation into the wire fraud, Maestas sent several text messages to Ordakowski, who had direct knowledge of the scheme. Maestas allegedly told him to “act stupid” if the “cops call,” and promised Ordakowski a post as vice president of the Okane Park Chapter of the Mongols for withholding vital information from authorities. Maestas also offered three chapter prospects to work free “hard labor” for Ordakowski, the indictment says.Mass arrests of Mongols members were made in Los Angeles, where 79 defendants are being prosecuted, 73 of which face racketeering charges, a press release from the U.S. Attorney’s Office in Denver said. Federal search and arrest warrants were executed in seven states, including Colorado, California, Nevada, Oregon, Washington, Florida and Ohio.In addition to the California arrests, agents served six federal search warrants throughout the Denver area and confiscated a stolen .25 caliber pistol, Colt .38 revolver, shotgun, Taurus .380 pistol, ammunition, Mongols paraphernalia, cell phones and a computer. The Parker Police Department and Douglas County Sheriff’s Office assisted with the investigation.
The Denver area gang members face charges of drug trafficking, federal firearms violations, wire fraud, witness tampering, and trafficking in vehicle parts with serial numbers removed. Some higher-ranking members in Los Angeles face up to 40 years in prison and $2 million in fines.“These types of investigations are part of the ATF’s overall enforcement strategy to target the most violent offenders within our communities,” said ATF special agent in charge Richard Chase. “[Last week’s] success is the result of a combined federal, state, and local law enforcement effort and good police work.”The Mongols Outlaw Motorcycle Gang, formed in Montebello, Calif. in the 1970s, claims 600 members nationwide. Many of the Mongols were allegedly recruited from some of the most violent street gangs.The name “Mongols,” which is emblazoned on a patch that members wear on their motorcycle jackets, was trademarked by the gang. The U.S. Attorney’s Office for the Central District of California obtained a court order last week that immediately prevents gang members from using or displaying the Mongols name or logo.Ordakowski’s next scheduled court date was not immediately available.Parker man withheld information from feds
Ordakowski faces 15 years in prison

Racketeering trial against three alleged members of the Crips -- Tracy Harris, Clinton Knight, and Chester Randall Jr.

The racketeering trial against three alleged members of the Crips -- Tracy Harris, Clinton Knight, and Chester Randall Jr. -- continues in a federal court in Wichita, Kansas, two gang leaders -- Armand Little and Trena Ridge -- testified for the government on its organization and mission:Little, who has the street name "Clown" and was a leader of the 357 Crips, said robberies, murders, drug sales and clashing with rival gangs were routine components of life in a gang. The gang had its own internal security, handing out beatings to members who missed meetings or who were "not doing stuff," including fighting rival gangs such as the Bloods, Little said. In his second day of testimony, Ridge told the jury he joined the Crips as a young teenager and helped form a subset called the Duece-Trey Crips, which drew its name from the fact that its members spent most of their time on 23rd Street. * * * Ridge testified that he walked into a back room of a hair salon at 13th and Hillside and saw Harris and another man with eight or nine bricks of cocaine that had been pulled out of a duffel bag. The cocaine had a street value of between $140,000 and $180,000.

Pavel Kulisek was arrested in Los Barriles on March 11 and remains behind bars in a maximum-security Mexican prison.

Pavel Kulisek was arrested in Los Barriles on March 11 and remains behind bars in a maximum-security Mexican prison, charged with promoting drug trafficking and organized crime.Friends and family are urging the Canadian government to help a B.C. man jailed in Mexico.About 50 people gathered in front of the Mexican consulate in Vancouver Tuesday to demand help for Pavel Kulisek.His family and lawyer say he was swept up in the arrest of Gustavo Rivera Martinez, an accused drug kingpin and an acquaintance Mr. Kulisek knew only through dirt biking.They say Mr. Kulisek, who lived in North Vancouver before temporarily moving to Mexico with his wife and two young daughters a year ago, was merely in the wrong place at the wrong time.
Mr. Kulesik's wife, Jirina Kuliskova, says her husband's health has deteriorated, leaving him suffering from constant stomach pains and unable to sleep."They spent a few casual bike rides in the town where we lived," Kulisek's wife, Jirina Kuliskova, said."And one night when they were having a hot dog in this little hot dog stand, they were arrested."Kulisek, his wife, and their two young daughters temporarily moved from North Vancouver to Mexico a year ago.In December, Kulisek's lawyer said he was introduced to Martinez, who identified himself as Carlos Herrera, at a motocross race." Martinez was well-respected. He had four little kids that everybody adored. Just a normal family," Kuliskova said.Kulisek's lawyer, Guillermo Cruz Rico, said that was far from the case.
" Martinez is one of the most wanted by the FBI and other American agencies. And apparently this guy was involved in a drug cartel," Cruz Rico said at the rally Tuesday, which drew about 50 people urging the federal government to help.Cruz Rico said the only evidence against his client is a statement made by a former police officer who was arrested with Kulisek, Martinez, and two other men.That former officer, Cruz Rico alleges, accused Kulisek of being in charge of buying real estate properties for the cartel."That is not concrete evidence, and that is not good enough to put somebody under a criminal process in Canada and in Mexico as well," Cruz Rico said."I believe that in order to make a deal he produced this kind of information."Foreign Affairs spokesperson Eugenie Cormier-Lassonde said consular officials, including Canada's ambassador to Mexico, have met with Kulisek and are in contact with Mexican authorities to ensure Kulisek's right to due process is protected.Cormier-Lassonde was unable to provide further details due to privacy concerns.A call to the Mexican embassy in Ottawa was not returned.Cruz Rico was also the lawyer for Brenda Martin, who returned to Canada in May after serving more than two years behind bars in Mexico.Martin was arrested in February 2006 in connection with an Internet fraud scheme run by her ex-boss, Alyn Waage.Kulisek has no criminal record in Canada or the Czech Republic, from where he emigrated in 1990.Cruz Rico said the stress of Kulisek's incarceration appears to be weighing on him more and more."He's in pretty bad shape. When I had the opportunity to meet him for the first time, I thought that he was an optimistic guy," Cruz Rico said."After a few months, he was completely different. He was shaking, he was crying. He said that the worst could happen."Kuliskova said her husband's health has deteriorated since he was arrested."We need help. We need government to help us," Kuliskova said.

Saturday, 25 October 2008

car laden with grenades and other ammunition was discovered at the scene

Man has been injured in a shootout at a gas station in the turbulent southern Russian republic of Daghestan, local police said.The incident occurred on the road linking the republic's capital Makhachkala and its second city Derbent late on Wednesday. It is not yet clear what provoked the shooting. A car laden with grenades and other ammunition was discovered at the scene, police said.Daghestan and Russia's other North Caucasus republics have seen a rise in violence recently linked to militants based in neighboring Chechnya and internal fighting between criminal gangs.

Victoria 20 incidents since November last year where victims have been shot while in the street.


20 incidents since November last year where victims have been shot while in the street.A number of these incidents have only come to police attention after the victims have arrived at hospitals for medical assistance.Police said officers had been investigating the shootings on an individual basis and recognised the need for a more thorough approach.About 20 people will staff the taskforce, including trained detectives and intelligence support. They will also be assisted by officers from other existing squads.
Detective Superintendent Paul Hollowood from the Crime Department said the major focus of the taskforce was to look at the patterns of shootings and attempt to deter and prevent further attacks.``We believe these incidents are possibly linked with drug-related crime activity and want to send a message to those people involved that we are aware of the links and will be concentrating heavily on prosecuting those involved,'' Det-Supt Hollowood said.He said the taskforce would work like the Purana gangland taskforce and said one of the reasons it was formed was the level of co-operation from alleged victims was not very good.Det-Supt Hollowood said Victoria did not need a specialist bikie taskforce as there was already a group monitoring motorcycle gangs.

Toronto Police were up at the crack of dawn executing warrants at six homes and six related vehicles.

Toronto Police say officers were up at the crack of dawn executing warrants at six homes and six related vehicles.Series of early morning raids targeting guns and drugs at locations across the city have landed numerous people in custody.
Exact addresses were not immediately available but sources confirm some of the locations include Bathurst St. and Wilson Ave., Eglinton Ave. W. and Marlee Ave., and Port Union and Kingston Rds.A quantity of crack cocaine and marijuana has been seized, but it's unclear how many, if any, firearms were found.Police are being tight-lipped about the raids so far, so it's also not known how many people have been arrested.However, it's believed several people are being held at 32 Division in North York."The investigation is ongoing," Const. Tony Vella said.Exact addresses were not immediately available but sources confirm some of the locations include Bathurst St. and Wilson Ave., Eglinton Ave. W. and Marlee Ave., and Port Union and Kingston Rds.A quantity of crack cocaine and marijuana has been seized, but it's unclear how many, if any, firearms were found.Police are being tight-lipped about the raids so far, so it's also not known how many people have been arrested.
However, it's believed several people are being held at 32 Division in North York."The investigation is ongoing," Const. Tony Vella said.

Mongols had reached out to recruit members of the latino street gangs, and fortified its presence across cities in America,


Mongols formed in the 1970s in Montebello, CA and has since grown to nearly 600 members, with 400 members in Southern California. It has long been a rival to the motorcycle gang Hells Angels and competes with streets gangs like the 18th Street Gang, Maravilla, as well as gangs in Montebello and the San Gabriel Vallley, according to the affidavit.The organization has also started to spread overseas, according to law enforcement officials. “During the course of the investigation, agents learned the Mongols had reached out to recruit members of the latino street gangs, and fortified its presence across cities in America, and even established a foothold in Europe,” O’Brien says.Even though the Mongols described itself as a recreational group on its trademark application, officials say that the firearms and drugs seized in the raid, as well as the allegations listed in the indictment go far in showing that the organization, which has members answering to nicknames like Sick Boy, Suicide, and Sinner and who wear tattoos warning “God Forgives, Mongols Don’t,” was engaged in violent and illegal activities.

Xtreme Amusement park crowd sees four men shot dead

Four men were shot dead in front of a crowd at an amusement park, a toddler died after the car he was traveling in wrecked during a gunbattle, and a businessman was killed after leading a protest against violence, officials said yesterday.In all, 21 people died in 24 hours across Mexico, which is waging a battle against drug traffickers and other criminal gangs.In Ciudad Juarez, the four men were shot inside a go-cart rental at the Xtreme amusement park Wednesday night, said Alejandro Pariente, a spokesman for the local prosecutor.Elsewhere in the city, a used-car salesman was shot to death while driving down a main boulevard hours after leading hundreds of other business owners in a protest against kidnappings and extortion, Pariente said.In Tijuana, a 1-year-old boy was killed when the car he was riding in wrecked as the driver tried to flee a gunfight late Wednesday between police and three armed men, the state prosecutor's office said.

Severed heads of four men have been delivered by a courier service to a police station

Severed heads of four men have been delivered by a courier service to a police station in northern Mexico, according to the local authorities. The heads, all of men believed aged between 25-35, arrived last week in an icebox marked as containing vaccines. Police thought the package was meant for a local hospital - they only opened it on Monday, revealing the four heads. Police are investigating if the heads belong to any of the 10 local people who were kidnapped last week by gunmen.
The gruesome delivery was made in the town of Ascension, not far from Ciudad Juarez, close to the US border. Ciudad Juarez has a reputation as one of Mexico's most violent cities, with more than a quarter of the country's 3,800 drugs-related murders reported to have taken place there since the start of the year. The authorities have discounted reports that one of the heads may have been of a police commander who was kidnapped on 18 May this year.

Alleged senior leaders of the city's faction of the Mara Salvatrucha gang, or MS-13, were among 26 arrested in the city's Mission District

Alleged senior leaders of the city's faction of the Mara Salvatrucha gang, or MS-13, were among 26 arrested in the city's Mission District and across the bay in Richmond, the San Francisco Chronicle reports. Two others were charged separately, and 15 were in custody already in separate cases. Three are being sought. Racketeering charges were filed against 22 suspects accused of murder, attempted murder, assault, robbery, extortion, witness tampering, narcotics trafficking, transporting stolen vehicles. The indictment followed a three-year undercover investigation.“This investigation and the ensuing arrests have dealt a serious blow to what is arguably one of the most ruthless gang cliques currently operating in the Bay Area,” said Marcy Forman, director of investigations for U.S. Immigration and Customs Enforcement.U.S. Attorney Joseph Russoniello called it a "major takedown." He said suspects include U.S. citizens, legal residents and illegal immigrants.
“There can be no doubt that the greatest threat to the peace and well-being of so many of our communities in this district and throughout the country, for that matter, is the lethal cocktail of drugs, gangs and guns. And among the gangs we in law enforcement are determined to bring to heel, none is more vicious, dangerous and indifferent to the rule of law than MS-13. They may see themselves as heroes, may try to recruit members by emphasizing their ‘machismo’ and terrorize the community by engaging in acts of wanton violence, but they are neither invisible nor invincible,” said United States Attorney Russoniello. “This coordinated effort by federal, state and local law enforcement agencies is but one more steady step in the process of taking back our communities and giving young people the chance to make meaningful good long-life choices... alternatives to the often short-term gratification that membership in a gang at best, offers.

Rebels motorcycle gang has denied any involvement in the fatal shooting of a rival Bandidos gang member in Geelong.



Rebels motorcycle gang has denied any involvement in the fatal shooting of a rival Bandidos gang member in Geelong.One Rebels gang member who answered the door at their clubhouse on an industrial site in north Geelong said the club was not involved in the murder of senior Bandido Ross "Rosco" Brand."We had nothing to do with it," he said.The gang member, sporting a tattoo of the American Confederate flag on his neck, also said the club had not yet been visited by detectives working on the case."No mate, we haven't seen them," he said.
Geelong is rife with rumours that a revenge attack is imminent following the death of Brand, who was shot in the head as he left the Bandidos clubhouse in the Geelong suburb of Breakwater on Wednesday night.The rumours also name the alleged murderer and say he won't live past the weekend.But investigating police, under the command of experienced Homicide Squad detective inspector Steve Clark, say they are not aware of any particular suspect.The Geelong chapters of the Bandidos and Rebels have waged a long running bloody feud.In recent years, Geelong police have investIgated a string of attacks on Rebel and Bandido members, while the Bandidos clubhouse has been shot at and the Rebels headquarters was firebombed.
Police suspected five Rebels gang members over a gun attack on Mr Brand's Torquay home last year.Det Insp Clark said police believe Mr Brand was targeted on Wednesday night.Floral tributes continued to be added outside the Bandidos' club at the Breakwater industrial site in south Geelong today with one describing Mr Brand as an "angel" and another saying "lost but not forgotten". A knock on the high security door that was guarded by a CCTV camera went unanswered.
Police are remaining tightlipped about the progress of their investigation saying they have a whole range of inquiries they are yet to make.Det Insp Clark said police are keeping an open mind on the shooting and are not necessarily assuming it was carried out by a rival gang.The 51 year-old bikie had prior convictions for violence, firearms and weapons.A volley of shots was fired from a white twin cab ute parked outside the clubhouse at the men as they left the premises just after 6pm

Friday, 24 October 2008

Members of 20th Street clique, have been tied to at least five slayings in the city


Members of 20th Street clique, have been tied to at least five slayings in the city, including the June 22 killings in the Excelsior district of Tony Bologna, 48, and his sons Michael, 20, and Matthew, 16. Police say the killer was trying to avenge a gang shooting from earlier in the day and mistook the Bolognas for rivals.An alleged MS-13 member, Edwin Ramos, has been charged with three counts of murder and has pleaded not guilty.The indictment ties members of the gang to two other San Francisco slayings: the July 31 stabbing death of 14-year-old Ivan Miranda during a robbery in the Excelsior involving an iPod, and the July 11 shooting of Armando Estrada, 30, of Rodeo, at 20th and Mission streets, officials said. Guillermo Herrera, 20, was identified in the federal indictment as the gunman in that killing, which occurred on turf the gang claims as its own.Walter Chinchilla-Linar, 22, and Cesar Alvarado, 18, reputed members of the gang, face federal charges in Miranda's death. Two juveniles, ages 16 and 17, also were charged Thursday in state court with Miranda's killing, the district attorney said.The latest arrests culminated a three-year investigation dubbed "Operation Devil Horns" - a reference to MS-13's gang sign - in which federal authorities set up an export warehouse in Richmond where undercover agents bought several guns and 16 vehicles allegedly stolen by gang members and their associates, prosecutors said. U.S. Attorney Joseph Russoniello, who alternatively referred to the suspects as hoodlums and thugs, hailed the arrests as a major takedown of gang members during a press conference Thursday at which he was joined by San Francisco District Attorney Kamala Harris and Police Chief Heather Fong. Twenty-two of those indicted face federal racketeering charges, which carry a maximum sentence of life in prison without parole. The other seven are accused of committing 17 separate violent crimes, including one count involving murder, to assist racketeering. Prosecutors will seek "maximum possible penalties so we don't have to play cat and mouse in the future," Russoniello said. All told, 31 people with suspected ties to the gang have been charged in the recent sweep. Two others were charged separately from the 29 suspects who were indicted. Of the total, 15 were already in custody in separate cases, while three remain at large, federal authorities said. One suspect, John Briez, was arrested in Guam after boarding a flight bound for the Philippines Tuesday evening, said Virginia Kice, spokeswoman for U.S. Immigration and Customs Enforcement (ICE). Briez had more than $10,000 cash on him when he was arrested by federal agents, Kice said. Most of the arrests were made in raids Wednesday in San Francisco, Richmond, South San Francisco, Reno and elsewhere. The raids were denounced as heavy-handed by immigrant rights groups. Some San Francisco supervisors and candidates for supervisor seats also were critical of the raids.
Supervisor Tom Ammiano's office issued a statement saying federal agents brutally attacked a woman during one raid, "causing her to lose consciousness and require hospitalization."ICE agent Mark Wollman disputed that account, saying the woman fainted, was treated by medical personnel already on call, and released.

Thursday, 23 October 2008

'Bring Me My Machine Gun' 500 youngsters are training in several military boot-camps


500 youngsters are training in several military boot-camps. The FF+ warned that this was a 'volatile sign', noting the growing political unrest in South Africa and noting the great many inciting statements made by ANC leaders such as Ancyl secretary-general Isaac Mahlangu's call for members to 'murder the cockroaches that stand in our way". Incendiary speech and personal abuse have become the languages of discourse of the ANC alliance - and not being nipped in the bud by the leaders
The Natal Witness warned this week that 'this reluctance to act upon that first breach of discipline and good sense may yet cost the ANC dearly. Recent attempts by ANC greybeards to put the genie back in the box have had no effect. That is hardly surprising. As any parent knows, children are adept at reading the subtle clues as to how far they can go. The children of the ANC have read the signals and know that they have an unspoken licence to run riot...' The FF+ also warned that these sort of dehumanising descriptions of political opponents were very reminiscent of similar outbursts over the Hutu-radio stations during the horrible Rwanda genocide in 1994 - and warned that this was the result of 'years of muffled conflict and did not just happen on an impulse, it was well-planned...'ANCYL leader Julius Malema also recently said the group 'would kill for (ANC Party leader) Jacob Zuma..." the FF+ warned in its statement, also noting that Zuma himself is infamous for his incitement to violence by singing 'Bring Me My Machine Gun' at rallies. It's very popular in black SA youth culture, seeing Zuma as 'a revolutionary who will bring the LAND resources back to its indigenous owners'....

Security forces in Abudwaq in central Somalia have shot dead two gang men

Security forces in Abudwaq in central Somalia have shot dead two gang men in an operation against robber men pilfer the civilian vehicles use the roads in the town.
Reports from the town further say that the troops have met with the bandits while they were rummaging around the passengers of civilian vehicle in the town on Wednesday.Two other gangs were also injured in the attack while others escaped.
Authorities blame many attacks on armed militiamen, and evidence signalled involvement in recent killings.This comes following unidentified militiamen have killed four people in the central Somali town of Abudwaq on Sunday night in the first fatal attacks since the Islamist fighters left there.The late civilians were killed when six armed men have opened fire on the while they were sleeping in Dhabad village in Abudwaq of Galgadud region.Three other people were also injured in that attack.It's yet unknown groups/motives behind that killing but some reports say that It was clannish linked killing.The residents of the town have expressed additional concerns on the killing of the civilians.Islamic fighters who wrested control of the town from the tribal militiamen said they would track down the assailants although they've abruptly escaped from the scene after the killing.According to Islamists officials they set up in the town a militia force to enforce their interpretation of Islam and formed a court system that helped desperate Somalis settle disputes.

Ross Brand, 51, of Torquay, was a Bandidos enforcer whom the Rebels gang blamed for a firebomb attack on their clubhouse last year

Ross Brand, 51, of Torquay, was a Bandidos enforcer whom the Rebels gang blamed for a firebomb attack on their clubhouse last year.They also believe he was responsible for a series of assaults against Rebels members in a 2007 turf war.Police sources say Rebels bikies raided his house last year in a planned ambush but Mr Brand was not at home.Police say Mr Brand often carried a gun and they received reliable information last year that he had access to hand grenades. "His card has been marked for a couple of years," a local investigator said.Police say they have yet to establish a motive for the killing but are investigating inter-gang rivalry as a possible reason.A group of younger Rebels members known as "DBD" - Death Before Dishonour - are believed responsible for a series of attacks on the Bandidos.
Mr Brand was shot, possibly with a .22 semi-automatic, when he left the clubhouse with three other men about 6.10pm on Wednesday.He was taken to the Geelong Hospital and later flown to The Alfred hospital, where he died from a head wound at 1.50am yesterday.A second man, 34, who was also shot, had surgery yesterday to remove shotgun pellets from his arm, buttocks and leg.The attack was on Geelong Cup race day, a public holiday, which meant the industrial estate around the Bandidos' clubhouse was deserted at the time of the shooting.Police have yet to establish whether the shooting was planned or an opportunistic drive-by attack. A white utility was seen speeding from the scene.It is known that members of the Bandidos and Rebels had been drinking during the day.Homicide detectives yesterday were scanning closed-circuit television tapes from cameras mounted at the clubrooms

Mexican Drug War , Jesus “The King” Zambada was among 16 Sinaloa cartel members arrested

Drug cartel leader who directed cocaine trafficking through Mexico City’s international airport was arrested after a shootout in the capital, prosecutors said Wednesday.Jesus “The King” Zambada was among 16 Sinaloa cartel members arrested Monday after a gunbattle with police in which an apparent grenade explosion destroyed a car, Attorney General Eduardo Medina said. Zambada’s son, his nephew, two federal police officers and one state police officer were also among those arrested.Zambada was identified as the brother of Ismael “El Mayo” Zambada, who allegedly heads the cartel along with one of Mexico’s most wanted men, Joaquin Guzman.Medina described Jesus Zambada as one of the top four leaders of the cartel. He was allegedly in charge of operations in central Mexico, including cocaine and methamphetamine trafficking through the capital city’s international airport. He is suspected in the death of several people found decapitated around the airport in 2007, Medina said.“He is one of most important importers of cocaine and methamphetamine to this country from South America,” said Marisela Morales, head of the organized crime division at the Attorney General’s Office.The Sinaloa cartel has suffered several blows since President Felipe Calderon deployed thousands of federal troops and police across the country two years ago to seize back territory from drug gangs.
In January, police arrested Alfredo Beltran Leyva, one of five brothers believed to have been top lieutenants of the Sinaloa cartel, based in the northwestern Mexican state of the same name. Federal officials say Beltran Leyva brothers have broken away from the Sinaloa cartel.“The arrest of Jesus Reynaldo Zambada Garcia stands out, without a doubt, as one of the most significant of the government of President Calderon,” Medina said.He said authorities have arrested nearly 48,000 drug cartel members since Calderon took office in December 2006, seized nearly 69 tons of cocaine and recovered more than 24,000 illegal weapons.Despite high-profile drug arrests, homicides and shootouts linked to the drug trade has surged across Mexico, particularly along the northern border with the United States. Fighting between drug gangs have become increasingly brutal, with piles of bodies — sometimes decapitated — turning up in public. Cartels have stepped up attacks on police, gunning them down in their homes or headquarters.Prosecutors said Zambada was suspected of having a role in a failed bomb attack against a Mexico city police commander in February and in the May 8 assassination of acting Mexican federal police chief Edgar Millan.
Millan was shot inside his Mexico City home five months after announcing the arrests of 11 alleged hit men linked to the Beltran Leyva brothers.El Universal newspaper reported Wednesday that, by its count, at least 4,000 people have been killed across Mexico this year, a record number. Federal authorities have acknowledged that homicides have surged, though they do not regularly release homicide figures.Zambada gave a false name upon his arrest, and it took several days for investigators to confirm his identity, said Morales. The 16 suspects were lined up in front of reporters Wednesday, standing behind a table cluttered with weapons seized after the shootout.None of the 16 suspects have been charged. Morales said prosecutors would ask a court to order them jailed while investigations continue.

Lee Hannan was killed on Tennyson Avenue in Grangetown on December 29, 2006, by Shaun “Wellard” Martin.


Stuart Hannan appeared in the witness box at Teesside Crown Court to give evidence against the man who allegedly attempted to murder him on August 5 last year - Mark Bennett.But under cross-examination yesterday by Bennett’s defence barrister, Tom Mitchell, the court heard allegations Mr Hannan was trying to make himself the “boss” of Grangetown.Mr Mitchell told the court how Mr Hannan’s cousin Lee Hannan was killed on Tennyson Avenue in Grangetown on December 29, 2006, by Shaun “Wellard” Martin.The barrister explained to the jury how the death had occurred following an arranged street fight between Stuart Hannan and Martin.He asked Mr Hannan if he blamed himself for his cousin’s death and if he was keen on revenge when Martin was found guilty of manslaughter but not murder.“The fact is since that day you have pursued a mission to get back at anyone who had anything to do with the Martin camp, is that right?” said Mr Mitchell, “No,” replied Mr Hannan.
“You have spent the last, nearly two years, trying to destroy everyone for who, in part, is responsible for Lee Hannan’s death, is that right?” “No,” came the response.
Mr Mitchell went on: “Is it true that you yourself had a hit list of people to sort out after the trial ended?” asked Mr Mitchell, to which Mr Hannan replied: “No.”
The barrister said the list included “anyone who had ever said the words Shaun and Martin in the same breath,” which 27-year-old Mr Hannan again denied.“That, of course, put Mark Bennett on your shopping list as well, didn’t it?” said Mr Mitchell, “no” came the response.The barrister went on: “There are any number of people out there you hate, true?”The witness said: “Just associated with the Bennett gang, yes.”“And any number of people out there who you have had a really good go at, true?”“No,” was the reply.Stuart Hannan told the court he had been arrested “about 20 times” in the last two years and had his house searched “about ten times”.
Among the items found in his property on St Patrick’s Road in Grangetown were Samurai swords found under his bed, which he insisted were “ornamental”, and on another occasion an axe and walkie-talkies.Mr Mitchell also accused Mr Hannan of being a “car ringer”, of planning post office robberies, shooting at people with a sniper rifle out of the door of his parents’ pub - The Magnet - stealing, burning out cars, violence and other criminal activities.“Do you consider yourself to be a tough man?” Mr Hannan was asked. “No,” he replied. “Do you in fact consider yourself to be the hardest man in Grangetown?” “Not one bit.”Despite the extensive cross examination of Mr Hannan, the matter the jury have to decide on is whether Mark James Bennett, 31, of Bolckow Road, is guilty of trying to kill Mr Hannan in a drive-by shooting.Bennett is alleged to be the gunman who fired two shots from a car outside Mr Hannan’s home in St Patrick’s Road, Grangetown.Bennett denies charges of attempted murder, possessing a firearm with intent to endanger life and possessing a firearm with intent to cause fear of violence.

Joe Krantz, an accused trafficker with the Independent Soldiers' gang, was gunned down in Abbotsford Monday at an extreme fighting club

Joe Krantz was killed just after 9 p.m. at his club, within the Simba Centre mall in the 2100-block of Clearbrook Rd., just off the Trans-Canada Highway. Krantz, an accused trafficker with the Independent Soldiers' gang, was gunned down in Abbotsford Monday at the extreme fighting club he had been running for two years.His friends continue to praise him online as a great dad to the little girl.
But the document prepared after a police raid on their home six months ago tells a different story.The young child said her dad "has a backpack full of money" in the girl's laundry basket."He gives it [the backpack] to his friends and they bring it back in the laundry basket," she said.The girl drew pictures for the social worker of two backpacks in the apartment - one blue and one pink - with coins in the top one and little tied-up bags in the other."The blue one has money in it and the pink one has cut up white rocks," she said.She also drew her own face in a heart shape with a ragged line running down the middle.She described "how dad had a large flat white rock. It is soft, dad cuts it up; makes them into pieces of dust; puts them into cute little bags; puts them into the backpack and sells them or has friends sell them."She said she often went on errands with Krantz."They go to his friend's house with the white rocks," the report said. "One girl that sells for dad lives in their old house."Krantz was arrested April 15 and charged with nine gun and drug trafficking charges after a one-month Abbotsford police investigation into an alleged dial-a-dope ring.In the apartment where his daughter slept, police found 4.5 ounces of powder cocaine packaged in 133 baggies; 8.7 oz. of crack cocaine packaged in 251 baggies; 2 oz. of heroin packaged in 456 flaps, a loaded 9 mm handgun with spare magazine; a loaded .380 calibre handgun; six cellphones and a BlackBerry; two sets of brass knuckles; about $8,000 in cash; body armour; score sheets; day and night shift schedules for drug runners and product inventory sheets with codes for cocaine and heroin.There was gang paraphernalia with both the Independent Soldiers logo and that of the Hells Angels Nomads chapter.Both loaded guns were on the kitchen counter.The girl is quoted in the report as saying she had not seen guns or bullets at her dad's house.But she did say Krantz also had a machine to "grind up the green moss," 1,000 lighters and "flavoured paper that dad puts the green tobacco in.""Dad says it is for his friends, but one day she saw them outside sharing the cigarette. The girl that lives at their old house does it too - her house stinks."
The child said her dad made his girlfriend "take the rocks to his friend's homes."
She said her dad is really rich and bought her a queen-sized bed and a plasma TV."[His dad's girlfriend] and dad always get really mad at her when she talks about money. They yell at her and send her to her room," the report says. "Dad screams at her 'Don't talk about my money to other people.'"She said she "remembers talking about how rich her dad was, he got so mad and grounded her, hit her and took away her Nintendo DS."The girl "never told anyone about dad hitting her because she thought he would get mad at her again."The report says the child only stayed with her dad on the weekends.It quotes the girl saying Krantz spoke a lot about "hockey equipment" though she didn't know why.But the drug inventory sheets seized from the residence list crack cocaine, powdered cocaine and heroin as "small helmets," "large helmets," and "shin pads."Investigators probing Krantz's slaying made a public plea Wednesday for potential witnesses to come forward."Through inquiries, investigators have established that there were a number of potential witnesses to activities that were going on in the area on the night of the murder," said Cpl. Dale Carr, of the Integrated Homicide Investigation Team. "Often times witnesses have seen something that they are not aware is a linking piece of information."

Ross Brand, 51, of Torquay, died after he was shot in the head outside the clubhouse in the Geelong suburb of Breakwater.

Ross Brand, 51, of Torquay, who died after he was shot in the head outside the clubhouse in the Geelong suburb of Breakwater.A 34-year-old Geelong West man, who was walking with Brand at the time of the attack, was wounded. He has spoken to police and was expected to be operated on today.Individual mourners and small groups of grievers have been leaving tributes at the scene of the shooting, almost all refusing to speak to waiting media.A man and a woman in their 20s and a boy who appeared to be about 11 arrived mid-afternoon. The adults sat and drank from pre-mixed alcohol bottles. They left one of the drinks, as well as a teddy bear with a cigarette tucked in its collar and a card addressed simply: "To Dad".
Another card read: "Dad, I really don't know what to write. I wish I didn't have 2 write anything but here we are ... we're all going to miss you so f---king much. You were one of a kind that's 4 sure. You'll always be with us. Love you so much, so very much, xxx, love always ...". It was signed with three names.Another card, carrying one of the same names, read: "Rosco maybe lost but not forgotten ..."Floral tributes for Brand have been also left at the clubhouse.One woman, who said she was the deceased bikie's niece, left a bouquet and a pre-mixed alcoholic drink.
Meanwhile, police said the shooting might have been captured on security cameras at the clubhouse. Homicide detectives said Bandido members were co-operating with police and had provided security video footage from cameras on the roof of the club house.

Wednesday, 22 October 2008

Tran Trong Nghi Nguyen Calgary gangster with a deportation order hanging over his head remains behind bars

The Calgary gangster with a deportation order hanging over his head remains behind bars despite an Immigration decision releasing him on bail, a government spokesman said yesterday. Derrick Pieters, with the federal department of justice, said Tran Trong Nghi Nguyen has not been able to come up with suitable individuals to post two $10,000 bonds. Nguyen was ordered released by an Immigration division member on Oct. 2, a decision initially appealed by the government before it was abandoned last Friday. The reason for the abandonment is not known. But Pieters said a condition of the release order, that Nguyen find someone suitable to post his bail, has not been met. "He has to come up with the $20,000 in bond, providing it is someone who meets the criteria ... of an acceptable bondsperson," Pieters told the Sun. He said the Canada Border Services Agency has guidelines which have to be met for that to happen. "There must be proof that the money was obtained by legitimate means," Pieters said. Nguyen, who is also known as Jackie Tran and Nghia Trong Nguyen-Tran, has been in custody since his arrest Jan. 10 on a CBSA warrant.The warrant was issued after he failed to show up for an appeal earlier that day of his deportation order. Nguyen, 26, was initially ordered returned to Vietnam on April 20, 2004, after he was convicted in March 2003 of assault with a weapon and trafficking a narcotic the previous June. Police and CBSA officials say Nguyen is a known gang member and his presence in the community would put the public at risk. But Immigration official Paul Kyba said the agency knew of Nguyen's criminal organization affiliation before the Jan. 10 hearing, but never tried to have him detained for that until he failed to show up for his appeal. Since then a federal court judge has ordered a new appeal, meaning Nguyen can't be booted from the country until at least that second hearing, currently scheduled for next week.

Tuesday, 23 September 2008

Gary J. Gross took in more than $700,000 in commissions and fees, while causing investors to lose more than $2.7 million between 2004 and 2006

Gary J. Gross, who worked in the Boca Raton office of broker-dealer Axiom Capital Management, recommended unsuitable securities and engaged in unauthorized and often unsuitable trades in his customers' accounts.It is alleged that Gross took in more than $700,000 in commissions and fees, while causing investors to lose more than $2.7 million between 2004 and 2006.To cover up his misconduct, Gross, who now lives in Far Rockaway, N.Y., allegedly provided some customers with documents reflecting false account values, according to the complaint filed in U.S. District Court for the Southern District of Florida.The SEC is seeking a permanent injunction against Gross, as well as attempting to get back the money he allegedly took along with interest and a fine.

Raymond Zwego,led a real estate investment company that purchased more than 50 area homes, obtaining more than $19 million in mortgages

Raymond Zwego, 60, led a real estate investment company that purchased more than 50 area homes, obtaining more than $19 million in mortgages by using straw buyers and falsified documents.Chief U.S. District Judge Fernando Gaitan also ordered Zwego to pay almost $5.6 million in restitution.In passing sentence, Gaitan noted that Zwego’s conduct has had a “long range and devastating impact on our community.”
“It’s clear this society has to be protected from a predator like Mr. Zwego,” Gaitan said.Zwego’s scheme collapsed in 2006 when he attempted to purchase a home from former Jackson County Executive Katheryn Shields and her husband, lawyer Philip Cardarella. While the prosecutors charged the couple in the conspiracy, a federal jury subsequently found them not guilty of all charges.Shields and Cardarella, who are Democrats, contended that the charges against them were politically motivated and brought by a Republican-led Justice Department.

Frank L. Amodeo today pleaded guilty to defrauding the federal government out of at least $172 million in payroll taxes.


Frank L. Amodeo today pleaded guilty to defrauding the federal government out of at least $172 million in payroll taxes.He remains free on $500,000 bond, awaiting sentencing.It's not clear when Amodeo will be sentenced, but he faces a maximum of 25 years in prison and fines that could top $360 million.Amodeo is the formerly high-flying entrepreneur who created Mirabilis Ventures Inc., a conglomerate that bought up distressed companies, including those that provided payroll services.According to his plea deal, those subsidiaries collected payroll taxes but never passed them on to the Internal Revenue Service.The federal government sets the amount of fraud at $182 million. Amodeo says he only kept $172 million. The rest, he contends, was legitimately earned fees.Amodeo signed the plea deal yesterday, but U.S. Magistrate Gregory J. Kelly postponed until today a plea hearing.That took place this morning in Orlando federal court.Amodeo appeared, in a blue suit and his electronic monitor. He said he was clear-headed and understood everything that was going on.That's important because he suffers from bipolar disorder, a mental illness. Yesterday one of his psychiatrists testified that although Amodeo is mentally competent to enter the plea, he's still seriously mentally ill and believes that he will, at some point, come to dominate the world economy.Defense attorney Harrison "Butch" Slaughter Jr. said that at times, during his 2 ½ years of working with Amodeo, the defendant has believed he could forecast the future and could telepathically communicate to people.

Oman Ghana Trust Fund now has money nearing THREE TRILLION DOLLARS! That would be enough to rescue AIG and Lehman Brothers

Americans have a saying that there is a sucker born everyday. The statement speaks to the gullibility of some people to fall for schemes that are patently fraudulent, and should be avoided the same way one would avoid the plague. There is an ongoing attempt to scam the government and people of Ghana unless sensible people rise up to say no to con-men peddling falsehoods and lies. The damage will be done not only in terms of huge monetary loss, but our national prestige and international credibility will forever be tarnished, if Ghana were to fall for a scam currently being sold by remnants of John Ackah Blay Miezah’s hustlers.Of late, a group calling itself Friends of Oman Ghana Trust Fund (FOGTF) has embarked on a media blitz aimed at gaining the support of the government and people of Ghana to what is essentially a scam akin to what the villain in our folkore, Kwaku Ananse would endeavour to visit on his family.One cannot begin to understand this fraudulent scheme without reference to the name and fraudulent practices of the ‘master con-man’ Blay-Miezah. Indeed, FOGTF claims to be continuing the efforts ‘made’ by Blay-Miezah to gain access to some so-called money. The mere mention of Blay-Miezah should have rang bells, and alerted officials and the public to the scam, but so far, like Blay-Miezah, the perpetrators are doing their job in a fashion that sounds credible to the gullible. According to Blay-Miezah, Ghana’s first president Dr. Kwame Nkrumah named him the sole beneficiary of millions of dollars that Nkrumah had stashed in banks in Switzerland under a scheme described by Blay-Miezah as the Oman Ghana Trust Fund (OGTF). After Nkrumah’s death in 1972, Blay-Miezah managed to sell his OGTF story to investors in the city of Philadelphia, Pennsylvania, USA. Blay-Miezah had lived in the city, and had spent time in a state prison for writing bad cheques, and failing to settle a huge bill at the Bellevue Stratford Hotel in Philadelphia.After the con game was brought to the attention of authorities, Time magazine (April 21, 1986 edition), did a story on investors who had contributed at least $18 million (and possibly $100 million) to the scheme, and quotes Robert Ellis extensively on the modalities of the criminal enterprise. Robert Ellis had posted bond for Blay-Miezah in a previous criminal case in Philadelphia, and in return Blay-Miezah appointed Ellis, his American ‘agent’. The main role for Ellis was to solicit American investors whose money would then be used to facilitate retrieval of alleged millions of dollars bequeathed to Blay-Miezah under the OGTF by the late president Nkrumah of Ghana. Blay-Miezah insisted that he needed cash in hand (which he personally didn’t have!), in order to cut deals with some local Chiefs and government officials, all of whom had some stake in OGTF, and whose palms must be greased in order to enable him to secure the funds. The story being peddled in Ghana today by FOGTF, is rather similar to the tale woven by Blay-Miezah to successfully ensnare gullible investors in the 1970’s.As Time magazine pointed out, those who fell prey to Blay-Miezah were not some wacky illiterate individuals, but highly intelligent and educated professionals. There is a general belief among westerners that Africa’s leaders especially in the immediate post-independence era were corrupt. Therefore no matter how zany Blay-Miezah’s story sounded, people found it hard to discount. A corrupt African ruler had stolen millions from his country’s treasury and stashed the money in Swiss banks. The story had/has a familiar ring to it. And con-men adopted the story to rake in millions from the gullible and the greedy.By the mid-1980’s when the gullible investors had not received a penny on their contributions, and local law enforcement authorities in Philadelphia had been alerted to Blay-Miezah’s con-game, Blay-Miezah was happily ensconced in a posh mansion in London where he was safely protected under diplomatic immunity.
When Blay Miezah arrived in Ghana during General Acheampong’s military regime (about 1975), he conned the government into believing his story. Mr. Ebenezer M. Debrah who had served as Ghana’s ambassador to the United States, and was quite aware of Blay-Miezah’s machinations, was the secretary to the military government of the National Redemption Council. Reports at the time indicated that Mr. Debrah provided a dossier on the criminal activities of Blay-Miezah and strongly warned the government to stay clear of the man. However, Blay-Miezah’s story had made such an imprint on the Ghanaian psyche, and the man laundered money so much so that, Debrah was seen as an impediment to Ghana receiving a windfall. Mr. Debrah was sacked as Secretary to the government. Blay Miezah’s public relations machine was quite effective, and it included stalwarts in the Nkrumah regime such as the impressive Krobo Edusei and Kwasi Amoako-Attah a former Minister of Finance.With his main antagonist out of the way, Blay-Miezah successfully sold his story to the government and then claimed that he could only retrieve the money if a diplomatic passport was issued to him. In reality, his acquisition of the diplomatic passport provided immunity and cover from outside prosecution. Consequently, when a criminal case pertaining to the fraud was brought against him in the United States of America in the 1980’s, Blay-Miezah could not be extradited to Philadelphia to face charges relating to financial extortion and other crimes. Blay-Miezah’s diplomatic passport would be renewed by the PNDC military government which ruled Ghana from 1981-1992.
Thus, the late Ed Bradley had to go to London to interview Blay-Miezah for the American CBS TV station’s 60 Minutes investigative report. I will never forget Ed Bradley’s interview of Blay-Miezah. The day after the interview, our American classmates who had seen the program looked at me and the other African students in awe. The Americans wondered how the African could come up with such a well-crafted story to outwit these highly educated, professional white Americans?
The master stroke however, was Blay-Miezah’s insistence that the interview with 60 Minutes could not commence unless Bradley provided the best gin for Blay-Miezah to invoke the spirit of his ancestors, by purifying his Stool, the symbol of his traditional authority, and the embodiment of the souls of his ancestors! Bradley looked on rather bemused as Blay-Miezah gargled a mouthful of the liqour and then released powerful sprays 3-times onto the ancestral Stool!
As one elderly Jewish woman who had invested his lifetime savings in the OGTF, and who appeared on the program wondered: How could Blay-Miezah not be rich, and be the beneficiary of such huge largesse when he accommodated the investors in posh most exclusive hotels in London, Geneva, and Paris. Of course, Blay-Miezah could afford exquisite entertainment for his investors because he was using their money!! Blay-Miezah himself did not have a dime to his name by himself. No wonder, Ed Bradley said that of all the con men he had been involved with, Blay-Miezah was "clearly head and shoulders above the rest . . . the best con man I’ve ever seen in my life."
The preceding provides more than a cautionary tale to the government and people of Ghana as a latter-day Blay-Miezah seeks to resurrect a discredited scam that has spawned copy-cat scams all over the world.
When Blay-Miezah concocted his scheme and defrauded the gullible and greedy investors of their hard-earned money, the scheme was largely anonymous. Today, thanks to the Internet and massive participation by Nigerian fraudsters, the scheme is called 419, so-called after the section of Nigeria’s legal code dealing with financial scam. What the FOGTF is claiming is quite similar to a 419. It is a sad commentary on the state of affairs of the body politic when government officials and the media cannot see through the ruse being currently peddled by the so-called FOGTF.
Like Blay-Miezah before him, Gregg Frazier who is currently presented as the ‘sole trustee’ of the Oman Ghana Trust Fund, is reportedly demanding a Ghana diplomatic passport to facilitate retrieval of the money. Like Blay-Miezah before him, Frazier passes himself off as having been anointed sole trustee of OGTF after the death of Blay-Miezah; and Frazier similarly claims to be the only living soul with knowledge of a ‘special security code and password’ needed to redeem the money. Just as Blay Miezah had his American ‘agent’ to do his bidding in the U.S.A.; Frazier has his Ghanaian local front man in the person of one Kobla Asamani who is sometimes addressed as “His Awardship Kobla Asamani” to smoothen his way among the Ghana labyrinth! And like Blay-Miezah, Frazier seeks government assistance in the scheme.
Kobla Asamani who signs press releases of the Friends of Oman Ghana Trust Fund, warns that Frazier is advancing in age, and the government of Ghana should therefore act with alacrity to help Frazier secure the funds else Frazier takes knowledge of the security code and password to the grave! Blay-Miezah’s minions used to give similar ominous warnings!
These two men and their so-called Friends of Oman Ghana Trust Fund have embarked on a media show to press their fraudulent case. They have managed to get Ghana’s Finance Minister Baah Wiredu to signal interest and support for the scheme, according to reports in the Ghana news media currently saturated with news about FOGTF and OGTF. Frazier and his group have managed to meet with the Finance Minister in the latter’s office. We must stop this nonsense before it is too late!!
Blay-Miezah similarly used the media to get his way. He was feted by some of Ghana’s most accomplished businessmen and industrialists, some of whom were too eager to carry his luggage publicly; and offered him sumptuous accommodations. The FOGTF is adopting similar tactics to wine and dine some journalists to do FOGTF’s bidding. I am sure there may be some gullible people in positions of power and influence who may fall prey to the machinations of FOGTF. After all, Gregg Frazier who is an American, understands that there is a sucker born everyday.According to Gregg Frazier and FOGTF, Oman Ghana Trust Fund now has money nearing THREE TRILLION DOLLARS! That would be enough to rescue AIG and Lehman Brothers in the ongoing banking crisis in the U.S.A.!! There is no Oman Ghana Trust Fund. And there is no money anywhere in spite of promises being made by Frazier. Blay Miezah made similar promises, including one that if he did not bring the money he could be shot. This promise came after he was arrested and jailed by the PNDC government of ex-president Rawlings. Blay-Miezah conned people including Gregg Frazier (who claims to have given millions to Blay-Miezah). Sadly, FOGTF is now too late to a game where the most gullible continue to be conned. If Frazier believes otherwise, I am sure he would wish to buy my parcel of virgin forest in the Louisiana swamps in the USA! As an American he would understand the nature of my offer!!! Rather than holding meetings to aid and abet this forgery, I urge the government of Ghana to treat the claims being made by the so-called FOGTF with utmost contempt. The group must be warned in no uncertain terms that continuing this calumny, and using Ghana’s name in such fraudulent and despicable manner could invite serious legal problems for the group and its members.

Dennis Raymond Sheffield, who pleaded guilty in June to 6 counts of bank fraud

Dennis Raymond Sheffield, who pleaded guilty in June to 6 counts of bank fraud, also will have to pay back $953,557 he obtained from Robertson Banking Co. in 2001 and 2002. "That's going to be difficult in light of his financial situation currently and other obligations," said defense lawyer Tommy Spina, who unsuccessfully argued for leniency. For the last three years, Sheffield has worked as a salesman for Knight Sign Industries in Tuscaloosa, earning $45,000 a year. Prior to that, Sheffield owned Tall Timber Inc. and had a longstanding relationship with Robertson Banking Co. That is how he was able to get loans in 2001 and 2002 for what turned out to be bogus deals. Sheffield, 47, falsely told the bank that he had a valuable timber sale contract and timber deeds signed by officials of the U.S. Department of Agriculture's Forest Service allowing him to cut and remove trees in the Talladega National Forest in Bibb County. The next year, he falsely told the bank that he had a timber contract with United Land Corp. of Birmingham to remove trees in various parts of Tuscaloosa County. In both cases, according to his written plea document, he went to great lengths to fool the bank, submitting phony maps, contracts, deeds and other documents. He also toured forest land with bank officials. When Robertson Banking officials began asking why the timber was not being cut, Sheffield blamed bad weather conditions and labor shortages.

credit default swaps market as “ripe for fraud and manipulation”, saying that it was a forum for the shorting of corporate debt without the oversight

$58,000bn credit default swaps market as “ripe for fraud and manipulation”, saying that it was a forum for the shorting of corporate debt without the oversight imposed on cash markets.It was, of course, Congress that chose in 2000 not to extend regulation to OTC derivatives markets, as I noted in my column on Saturday. One of the most influential proponents of not regulating OTC derivatives was Alan Greenspan, then chairman of the Federal Reserve.Mr Greenspan told Congress in 2000 that regulation of the OTC derivatives market was not needed because:“OTC transactions in financial derivatives are not susceptible to - that is, easily influenced by - manipulation.”So then, the OTC derivatives market. Not susceptible to manipulation, or ripe for it? What a difference eight years, and a global financial crisis, make!At the time, Mr Greenspan’s reputation and influence was at its height, and Congress went along with his assessment. I presume that it will now change its mind.

Tuesday, 16 September 2008

Banks may accelerate efforts to move trading in the $62 trillion credit-default swaps market through a central clearinghouse

Banks may accelerate efforts to move trading in the $62 trillion credit-default swaps market through a central clearinghouse or to an exchange after the bankruptcy of Lehman Brothers Holdings Inc. and the credit downgrade of American International Group Inc. Lehman, the first major market-maker to go bankrupt in the decade-long history of the privately negotiated, unregulated business, may leave behind billions of dollars in potential losses for trading partners, according to Barclays Plc of London. No one knows exactly how much because there's no central exchange or system for recording trades. ``The fact that I can't tell you the notional value of derivatives contracts Lehman has written the day after a bankruptcy is a scary thing,'' Brian Yelvington, a strategist at New York-based bond research firm CreditSights Inc., said yesterday. A clearinghouse capitalized by owners could have reduced the risks because it becomes the so-called counterparty, for a fee, to each side of the trade. Now, banks are sifting through trading positions to ``net'' trades that offset each other and reduce potential losses. Untangling that web may last into 2009, said John Jay, a senior analyst at Boston-based Aite Group, a financial services consulting firm. ``Just figuring out what they have could take a week, but the thornier issue is to figure out valuations,'' said Jay. ``It's a Gordian knot because you have different ratings, different counterparties, different end-dates and you have to somehow attach a value to these contracts. It's an operational nightmare and a legal nightmare of interpreting what each contract says.'' The Markit CDX North America Investment Grade Index, which rises as confidence in companies deteriorates, climbed as high as 195 basis points yesterday, from 152 basis points at the close of trading on Sept. 12, according to broker Phoenix Partners Group. The index reached a record 200 during an emergency trading session on Sunday, Sept. 14 as investors tried to prepare for the collapse of New York-based Lehman. A basis point is 0.01 percentage point.
Prices continued to rise in Europe and Asia today after credit ratings on AIG, the biggest U.S. insurer by assets, were cut by Standard & Poor's and Moody's Investors Service. Contracts on the Markit iTraxx Crossover Index of 50 companies in Europe with mostly high-risk, high-yield credit ratings climbed 33.5 basis points to 627.5, according to JPMorgan Chase & Co. prices at 7:19 a.m. in London. The Markit iTraxx Australia Series 9 Index increased 35 basis points to 220 basis points, matching the all-time high of March 17 when Bear Stearns Cos. was bailed out by the Federal Reserve, according to ABN Amro Holding NV. Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. Each contract is a separate agreement between two so-called counterparties and trades in over-the-counter transactions, leaving parties exposed to the risk that their partner will default.
Barclays analysts estimated in February that if a financial institution that had $2 trillion in credit-default swap trades outstanding were to fail, it might trigger between $36 billion and $47 billion in losses for those that traded with the firm. That doesn't include the market-value losses investors face as the cost to protect companies against a default widens. ``There should be some central agency which prevents risk in the future of a large counterparty failing and causing losses,'' said Puneet Sharma, the head of investment-grade credit strategy at Barclays Capital, the U.K.'s third-biggest bank. ``This was not necessary.'' Wall Street created credit-default swaps more than a decade ago to help banks hedge against loan losses. Dealers later came up with contracts and indexes that allowed investors to speculate on a borrower's creditworthiness without owning any bonds.
The market grew 100-fold in the past seven years leaving dealers, who until a few years ago recorded trades on scraps of paper, struggling to keep up. New York Fed President Timothy Geithner assembled dealers in September 2005 to develop a plan to reduce the backlog of paperwork and unconfirmed trades. In July the 17 dealers agreed to form a clearinghouse, create a system to better manage the collateral that protects trading partners from losses and tear up offsetting contracts to reduce the number of positions that banks have to oversee.
The clearinghouse may fall behind schedule, delaying completion until next year, said a person familiar with the process who asked not to be identified last week because the discussions weren't made public. The development was postponed after the Fed pushed Chicago-based Clearing Corp. to obtain a banking license, which would place it under the central bank's watch, the person said. A spokesman for the Federal Reserve Bank of New York, Andrew Williams, declined to comment. Clearing Corp. spokesman Andy Merrill declined to comment, pointing to a statement last week that the company ``and its clearing participants have been moving aggressively to prepare the CDS platform for launch as soon as the appropriate regulatory approvals are achieved.''
``The industry's progress in building a strong foundation for our business will enable it to successfully address current issues,'' said Eraj Shirvani, chairman of the International Swaps and Derivatives Association and head of European credit at Credit Suisse Group in London, said yesterday in a statement.
Clearing Corp. said it will guarantee trades between dealers, at least at first, and only contracts on benchmark indexes rather than on individual companies.

Counterfeit bank and credit cards used to steal funds from customer accounts.


banks in the UAE have slashed the daily cash withdrawal limit of ATM users by almost half after hackers, who police said were from Russia and Ukraine, used counterfeit bank and credit cards to steal funds from customer accounts.
Some banks even blocked international use of ATM cards as a preventive measure while HSBC Bank temporarily reduced the daily withdrawal limit to Dh6,000 for premier card members and Dh4,000 for others as part of measures to contain the damage.
As thousands of customers thronged ATM machines to change their card PINs (personal identification number) over the past three days, most banks in the UAE said they would continue the state of alert against the fraud, but refused to disclose the size of the money stolen or how many accounts were skimmed.An initial investigation by banks indicated that cash machines were rigged with devices that stole customers’ PINs as they made withdrawals. Jonathan Campbell James, regional head of security and fraud risk, HSBC Middle East, said his bank did not implement a general blocking of overseas transactions as its customers expected to have access to their accounts wherever they travel.“But when we detect a series of fraudulent transactions coming from a particular geography, we may temporarily restrict access,” he said Major-General Khamis Matar Al Mazeina, Deputy Commander-in-Chief of Dubai Police, said the hackers are from Russiaand Ukraine. Banking sources, however, said the hackers were part of an international network, with most of the fraudulent transactions originating from more than 20 countries outside the UAE.Al Mazeina said the police were trying to find out the methods used by the gang to steal from bank accounts. “We want to find out whether the breach occurred when customers used their cards to buy on-line or when they used their cards within the UAE and certain other countries.”He said police still did not have any clue about the number of people and banks hit by the fraud or the total amount stolen by the gang.“We are in touch with credit card companies, banks and fraud victims although we have not received any complaint so far.” He said the police would meet concerned authorities to probe into the matter and find measures to protect credit card users.Banks said only ATM debit cards have been counterfeited. “The attack is more sophisticated than that are routinely experienced, and has come from multiple countries,” Campbell James said.
Most banks continued to encourage customers to change their PIN numbers. “Because a large number of customers have already done so, a significant number of attempts by fraudsters to steal from customers’ accounts have been frustrated,” the bank official said. “HSBC and several banks in the UAE have identified fraud that appears to result from the compromise of ATM information from another bank.
This information has been used to produce counterfeit cards that have been used internationally.”The bank official said if a customer’s card had been copied and used to steal money, the bank would contact the customer, advise them what had been done, organise a refund and issue a new card free of charge.
“Our special accelerated procedure for refunding UAE customers affected by this particular fraudulent attack is working well. A substantial number of customers have already received their refunds and the process of issuing free replacements for cards which have been compromised is on track.”

The Lehman collapse has changed the game of how regulators now deal with financial institutions, and potential bailouts are no longer an option.

Bankruptcy of Lehman Brothers has far more serious implications for the world’s financial system, with possible consequences to the Gulf, than did the demise of Bear Stearns. The Lehman collapse has changed the game of how regulators now deal with financial institutions, and potential bailouts are no longer an option.
The accelerated momentum of securitisation of mortgage loans in 2005 caused the subprime crisis, not the low interest rates when the Fed reduced Fed funds to 1 per cent. The sale of securities from credit pools had never reached such a level before. When US investment banks discovered the appetite of foreign institutions, commercial banks sped up their loans to uninformed borrowers to meet the soaring investor demand.
Banks transferred to their trading books what cost too much on their credit books (8 per cent of their assets in equity) even though the so-called “securities” were for the most part illiquid private placements. This trend to structure credit in the cheapest way possible by avoiding capital requirements was blatant regulatory arbitrage on a massive scale. But this was caused by the central banks themselves who insisted on a higher and costly capitalisation on banks, who in turn tried to minimise such costs by moving assets off-balance sheet.
Second, the investor demand for this structured paper was not triggered by the “excess liquidity” created in the low interest rates since 2001, but it instead represented the most massive transfer of wealth ever recorded in history. Two billion individuals moved in a matter of only a few years from a state-controlled economy to semi-capitalist private systems, and the productivity gains across both western economies and emerging market economies unleashed a virtual flood of financial wealth and savings, with the world capital stock nearly trebling from US$60 trillion (Dh220.4trn) to $160trn. One only has to observe these phenomena in the Gulf over the past few years to see the effect on new wealth creation for many classes of citizens.
These same citizens must now be wondering what happens next and the news is not looking good, given the inter-linkages of counter obligations among financial institutions. It will take months to unwind Lehman’s complex deals and obligations with other banks, and given the company’s high-profile presence in the Gulf, it would be a brave soul to state that Gulf institutions will not be affected this time around. Tighter credit and higher margins will be the order of the day as banks seek quality clients, and investors, in turn, seek quality financial institutions whose numbers seem to diminish by the day.
Until the collapse of Lehman, the assumption had been that any financial institution operating at the centre of the international financial system, be it a commercial or investment bank, is simply too big and too interconnected to be allowed to fail or to be wound down quickly for fear of a systemic breakdown. This assumption has now been shaken.This raises the issue of fiduciary risk. Two thirds of the capital flows today go through fiduciaries, those who act as managers, custodians, broker-dealers, administrators or trustees, while credit banks, the dominating power of finance until the 1980s, have become marginalised. The whole texture of finance shifted from a classic loan industry to one of securities trading, warehousing, arbitrage and valuation. Institutions don’t lend cash anymore: they lend securities and exchange credit swaps and interest rates.The shift was so sudden and reached so deeply in a structural sense that it heightened the fragility of the whole system. No wonder regulatory tools based on a credit model have proven to be so ineffective. As long as the industry was dominated by credit and an obligation to generate and protect the “results”, one could reinforce the walls and limits of a regulated system. But when the industry is overtaken by institutions acting as fiduciaries rather than creditors, the obligation is only of the “means” (ie “best practice”) not of the ends, or the result of their imprudence, so how do you effectively regulate that? What is worrying is that more and more Gulf institutions have been following the fiduciary route with traditional credit-related commercial banking taking a secondary role.A move to enlarge the supervisory role of a central bank is likely to create an unprecedented concentration of powers with no corresponding real and effective means to intervene and contain market excesses save for “bailing out” creditors who make the asset bubbles possible. What’s more, by guaranteeing impaired assets, central banks are exposed to capital losses, however over-collateralised the central bank is in its term lending through its new liquidity facilities. As the current crisis itself has shown, when all the financial institutions – rather than just one or two in trouble – face funding risks at the same time, there is not much value in the collateral you are holding unless you can hold it for a long, long time. This is what made Barclays decide to pull out of the Lehman rescue effort.
The Lehman collapse raises the question whether central banks could go under in the wake of their market intervention during a financial crisis. The Fed’s total equity stands at $40 billion versus the $29bn needed to guarantee Bear Stearns alone, and this is without Freddie Mac and Fannie Mae support. A central bank can never go “broke” per se, of course, since a government will always replenish its capital base if the losses due occur. But that would also entail, in effect, printing money at a time when inflation is an issue. Concerning Lehman, the Fed has declined to pump in money to bail it out and some, including Alan Greenspan, are now calling for a new model of financial supervision that does not automatically bail out failed banks. Some have put forward drastic solutions given the potential capital adequacy problems of central banks to support a total collapse in the financial system.
One suggestion is that we need to limit the size of financial institutions. We should limit their size instead of facing the unavoidable option of having to save them. In short, once an institution grows too big, it should be split as AT&T once was in the late 1970s, and IT companies in this century. The argument was one of the social and economic needs to break a cartel, whereas today it is the size itself that becomes so unmanageable relative to the means of containing a systemic risk.
In both cases, the goal is to improve market efficiency. Should we move back to restore the strict division between commercial and investment banking and put an end to such a massive regulatory leakage? The answer may lie in the transition of the industry itself. The “old” Fed had regulatory responsibilities over a traditional commercial banking industry that is mostly a relic from textbooks, while the “new” Fed must consider the financial industry in whole. It is possible that the new regulatory fabric that arises will produce clear lines of responsibilities, dividing the new credit and fiduciary roles within the finance industry, as both sides are not subjected to the same performance obligations.
Given the explosion of commercial and investment banking in the Gulf, this issue will also be an important one for GCC regulators. The trend in the region was for larger banks and mergers to face the big boys from outside. This will cause the same dilemma for Gulf regulators in case one major financial institution faces trouble, but given the state of fragility of banking confidence due to recent fraud and scandals the likely option in the Gulf is to discreetly bail out. In the final analysis, let us hope that in trying to fix this current mess, the regulators do not lay the seeds of a future financial meltdown.

Saturday, 30 August 2008

HBOS has frozen the accounts of Andy Hornby

HBOS has frozen the accounts of Andy Hornby, its chief executive, after a thief stole his identification details and withdrew thousands of pounds in cash.
Mr Hornby, who earned £1.7m last year, is said to have been told the news while on holiday.Fraud investigators are now poring over Mr Hornby's accounts to work out how much money has been stolen.The thief is believed to have obtained one of Mr Hornby's bank statements and used it to pose as the 41-year-old chief, stealing up to £7,000 in one day.The fraudster is said to have been filmed on CCTV withdrawing cash from bank branches and from an ATM machine.The embarrassing episode adds to a gruelling year for Mr Hornby, who has had to face shareholder unrest since HBOS launched a £4bn rights issue in April. It is not known for how long the fraudster had access to the accounts before staff became aware of the theft.The good news for Mr Hornby is that he will probably be eligible for a refund from HBOS. The bank said that, like all lenders, it will generally reimburse customers who are victims of fraud if they have taken sufficient care to safeguard their details. Banks advise their customers to shred financial documents and to keep those that are not shredded in a safe place.HBOS declined to discuss Mr Hornby's case, saying that the bank never commented on an individual customer's affairs.

London Police’s the Dedicated Cheque and Plastic Crime Unit when they raided a factory that made counterfeit credit cards

Two people had been apprehended by London Police’s the Dedicated Cheque and Plastic Crime Unit when they raided a factory that made counterfeit credit cards. The people that were caught are involved in credit card fraud, were charged with conspiracy and defraud cases.The machines and gadgets that the criminals used were also taken into custody. Among those that were discovered included robbed chips, fake credit cards and account numbers, PIN terminals, fake magnetic strip cards, card reader and computer softwares.John Folan, Detective Chief Inspector of the DCPU, said that the positive turn out of the raid is one of the largest busts made and that it proved to be a welcome outcome for the Police’s efforts to quell crime, especially credit card and check fraud. He said that the bugged chips and PIN terminals have been spread in retailer’s outlets all over UK, which was believed to be more than twenty.
For people who are just thinking of applying for a credit card, go ahead and compare different credit card offers because the Association for Payment Clearing Services noted that card holders are protected by a banking code against such crimes.

Mortgage Asset Research Institute just released a report on mortgage fraud for the first three months of the year, and California ranked No. 2,

Mortgage Asset Research Institute just released a report on mortgage fraud for the first three months of the year, and California ranked No. 2, behind the No. 1 state of…..Florida!Coming in No. 3 was a three-way tie: Illinois, Maryland and Michigan.The MARI maintains a database of reported incidents of fraud and misrepresentations, and the ranking is based on total number of properties involved in fraud (the totals were not given). Nationwide such reports were up 42 percent in the first quarter vs. a year ago. And here I thought fraud would decrease after the credit crunch began last summer.
Although the report didn’t break out Orange County, it said in California 52 percent of properties with “misrepresentations” are in the Los Angeles.
“Income and employment misrepresentation on the mortgage application rank high in Florida, California, Illinois and Maryland. Florida and Maryland report higher income than employment misrepresentation, and California and Illinois report slightly higher employment than income misrepresentation.”“The first quarter data reveals that loan application misrepresentation continues to plague the industry. According to the FBI’s 2007 Mortgage Fraud Report, ‘the downward trend in the housing market provides an ideal climate for mortgage fraud perpetrators to employ a myriad of schemes suitable to a down market. Simply stated, mortgage fraud will not disappear

Increasing rates of global cyber fraud, it has been discovered that Nigerian banks have lost over N7.3 billion to cybercrime related activities.

Increasing rates of global cyber fraud, it has been discovered that Nigerian banks have lost over N7.3 billion to cybercrime related activities.
The Chief Executive Officer of the Global Network for Cyber Solution, Mr. Segun Olugbile, disclosed at a Press Conference in Abuja, yesterday.He said that banking industry, as one of the most strategic sectors of the economy needed protection from cyber-criminality considering the huge amount of funds lost in that sector annually.
He pointed out that some of the rampant cyber corrupt practices in the banking sector include online financial fraud inside-out, identity theft, system penetration by outsiders, data and network sabotage and denial of service attacks.Mr. Olugbile whose organisation recently convened a national stakeholders’ conference on Cybercrime and Cyber security to address the challenging issues and their impact on Nigeria, said global loses $200 billion dollars annually in direct and related damages to Cybercrime which also said was a threat to world peace and security.“The quantum effect of the emerging monstrous challenge of Cybercrime to developing economies translates into a colossal digital nightmare to the African Continent and indeed, particularly to Nigeria”, he said.The CEO added that there were reliable case studies to prove that an attack on a national infrastructure could, by virtue of its catastrophic consequences, completely paralyze the machinery of Government.
He therefore urged the federal government to declare Cybercrime and Cybersecurity as a National emergency, which deserved conscious political will and special budgetary resources to effectively engage the challenges presented by its impact.
Mr. Olugbile also called on Nigerian legislators to enact into law National Information Infrastructure (NIIA) Act, provide legislative framework for cyber crime and security and establish Cyber Crime Reporting and Response Centre, as well as, a Cybercrime and Cybersecurity Training Centre.

Donald H. Allen and his companies H&M Petroleum Corp. and American Energy Resources Corp. raised about $9.9 million from more than 350 investors

Colorado Springs man and his two oil and gas companies have agreed to pay $510,000 to settle civil fraud allegations, the Securities and Exchange Commission said Thursday.The SEC alleged that between March 2002 and December 2006, Donald H. Allen and his companies H&M Petroleum Corp. and American Energy Resources Corp. raised about $9.9 million from more than 350 investors nationwide without disclosing that they had never generated profits for investors.Allen did not immediately respond to a telephone message.Allen was accused of spending $2.3 million of investor funds to pay for items including a custom speedboat, ski vacations, fitness equipment and jewelry.The SEC alleged Allen and his companies touted annual returns of up to 354 percent without disclosing the speculative nature of the projections; incorrectly told investors that AER and H&M invested in their own projects; that securities were improperly sold in unregistered transactions; and that Allen acted as an unregistered broker.Allen and his companies settled the case without admitting or denying the allegations

Charged with scheming and conspiring to defraud a bank are 31-year-old Michael Vorce of Grand Rapids and 29-year-old James Jett of Byron Center.

Two Michigan men face federal charges in an alleged fraud scheme using stolen personal information to obtain bank loans for purported purchases of yachts. Court documents filed Thursday say the two tried to steal financial information of a Milwaukee lawyer in the attempt to buy a yacht worth about $550,000. Charged with scheming and conspiring to defraud a bank are 31-year-old Michael Vorce of Grand Rapids and 29-year-old James Jett of Byron Center. Authorities say the alleged scheme involved use of the personal information to get expensive loans for the purchases, even though in some cases the yachts were fictitious. The FBI issued a news release saying the investigation is continuing into the multistate scheme said to involve at least $2.6 million and at least four financial institutions.

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years,

Avusa Media Ltd payroll administrator Laurence van Tonder, who allegedly defrauded the company out of more than R5-million in three years, has appeared in the Port Elizabeth commercial crimes court.Van Tonder, 38, of Hampshire Road, Sherwood, Port Elizabeth, reportedly pocketed R1653254 of the money himself, but the state has charged him with taking the entire amount of R5075552.He is accused of 94 counts of fraud, committed between November 2005 and December last year.He was not asked to plead and no evidence was led. The case was postponed to September 15, possibly to plead to the charges. Van Tonder is out on warning.His duties at Newspaper House included capturing the monthly payroll on the electronic payroll package system and reconciling monthly payments to Discovery Health.Van Tonder allegedly opened four FNB accounts in his name. A fifth one was opened at Nedbank for his life partner.
He then allegedly entered inflated payments on the transfer request forms for payment to Discovery Health, and altered the banking details to reflect these amounts, misrepresenting to Avusa Media Ltd that the bank accounts belonged to Discovery Health.

Bradford & Bingley, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing

Bradford & Bingley, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing by criminal gangs and other fraudsters. The sum represents an increase on a £15 million charge taken in June. B&B’s losses may be only the tip of the iceberg. The Association of Chief Police Officers has estimated the scale of mortgage fraud in the UK at £700 million a year, but many believe this to be conservative. Navigant, a consultancy that conducts forensic investigations, has estimated that British mortgage lenders could be sitting on at least £7 billion of fraudulent loans. B&B, which has 3 per cent of the mortgage market, is the first high street bank to disclose the size of its losses due to fraud. Rod Kent, its chairman, said that the bank had not been singled out and was no more vulnerable than other lenders. “We don’t think we are being selected, we are just being more transparent,” he said.

Thursday, 28 August 2008

damage from the global mortgage meltdown has more than matched that of the savings-and-loan bailouts of the 1980s and early 1990s.

Long before the mortgage crisis began rocking Main Street and Wall Street, a top FBI official made a chilling, if little-noticed, prediction: The booming mortgage business, fueled by low interest rates and soaring home values, was starting to attract shady operators and billions in losses were possible. "It has the potential to be an epidemic," Chris Swecker, the FBI official in charge of criminal investigations, told reporters in September 2004. But, he added reassuringly, the FBI was on the case. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said.Today, the damage from the global mortgage meltdown has more than matched that of the savings-and-loan bailouts of the 1980s and early 1990s. By some estimates, it has made that costly debacle look like chump change. But it's also clear that the FBI failed to avert a problem it had accurately forecast.Banks and brokerages have written down more than $300 billion of mortgage-backed securities and other risky investments in the last year or so as homeowner defaults leaped and weakness in the real estate market spread. . .Most observers have declared the mess a gross failure of regulation. To be sure, in the run-up to the crisis, market-oriented federal regulators bragged about their hands-off treatment of banks and other savings institutions and their executives. But it wasn't just regulators who were looking the other way. The FBI and its parent agency, the Justice Department, are supposed to act as the cops on the beat for potentially illegal activities by bankers and others. But they were focused on national security and other priorities, and paid scant attention to white-collar crimes that may have contributed to the lending and securities debacle. . .
Sources familiar with the FBI budget process, who were not authorized to speak publicly about the growing fraud problem, say that he and other FBI criminal investigators sought additional assistance to take on the mortgage scoundrels. They ended up with fewer resources, rather than more.In 2007, the number of agents pursuing mortgage fraud shrank to around 100. By comparison, the FBI had about 1,000 agents deployed on banking fraud during the S&L bust of the 1980s and '90s, said Anthony Adamski, who oversaw financial crime investigations for the FBI at the time.
The FBI says it now has about 200 agents working on mortgage fraud, but critics say the agency might have averted much of the problem had it heeded its own warning.

Widespread fraud. Hundreds of billions of dollars in losses. Thousands of displaced homeowners.

Widespread fraud. Hundreds of billions of dollars in losses. Thousands of displaced homeowners. You'd think somebody would have seen it coming… The Los Angeles Times reports that as early as 2004, the FBI accurately forecast the consequences of unscrupulous lending practices left unchecked. Unfortunately, despite the agency's assurances that it was combating the problem, its focus on "national security and other priorities" left white collar crimes a secondary priority. How secondary? During the S&L bust of the '80s and '90s, the agency had 1,000 agents devoted to banking fraud. In 2007, the number of agents pursuing mortgage fraud totaled 100. To critics, that's a sign that the FBI dropped the ball. The agency, meanwhile, says it did the best it could—mortgage companies simply didn't want to hear its warnings about the growing fraud problem. And your home—oh yeah, that's the bank's now.
Let's hope the next time around, somebody is paying a little more attention.

Dubai property crash


Soaring housing prices in Dubai are likely to peak in 2009 before falling at least 15 percent as the Gulf emirate takes measures to weed out short-term speculators, a Reuters poll showed on Tuesday.Residential property prices in the desert city, home to palm tree-shaped islands and an indoor ski slope, are likely to jump 35 percent this year, according to the median of forecasts from 10 analysts at banks, investment firms and research institutions.Price growth will probably slow to 8.5 percent next year, when five of nine analysts expect prices to hit a peak after double-digit increases in each year since Dubai opened its property market to foreign investment in 2002.

Emirati businessman Abid Al-Boom has heard evidence that he owes depositors 847 million dirhams ($231 million)


trial of Emirati businessman Abid Al-Boom has heard evidence that he owes depositors 847 million dirhams ($231 million) while assets seized covered only 15 percent of the amount, the UAE daily The National reported on Wednesday.Thousands of investors, including many on fixed low incomes, say they have lost their life savings in a bogus multi-million dirham investment portfolio run by the Al-Boom, prosecutors said.After receiving numerous complaints from depositors, Dubai Attorney General, Essam Eisa Humaidan, in July ordered al Boom’s arrest along with eight others, including an African business partner, an Emirati business partner and Al-Boom’s brother Khalid, the paper added. “We have registered to date complaints from 3,458 depositors and counting. My office has been busy answering calls from depositors and we have referred the case to the Dubai Rulers Court where auditors will examine al Boom’s accounts to determine where the money has gone,” the paper quoted Yousef Foulaz, the chief prosecutor for Deira First District as saying. "The final amount is likely to go up as we continue to receive and register more complaints."Mr Humaidan had earlier ordered the closure of the offices of Al Boom Holding LLC, and Abid Al Boom Management and Development Properties, the suspension of trading in shares owned by the accused and the freezing of all assets belonging to them, including any real estate and bank accounts held by the accused, in order to secure investors’ rights, the paper said.

Thursday, 31 July 2008

Hernan Arbizu has been arrested in Argentina on charges that he stole $5 million from the accounts of customers at UBS AG and JPMorgan Chase

Hernan Arbizu was arrested Monday in Buenos Aires on charges filed in U.S. District Court in May.Arbizu was a vice president in the private banking division at JPMorgan when he embezzled the money between March 2007 and April 2008, prosecutors said. He caused $5.37 million to be transferred out of private banking accounts at the UBS (nyse: UBS - news - people ) and JPMorgan financial services companies during that time, they said.Arbizu was responsible for maintaining and developing private banking relationships in Latin America at the time, court papers said.It wasn't immediately clear who would represent Arbizu on charges of embezzlement, bank fraud and aggravated identity theft.U.S. authorities were seeking to extradite Arbizu to New York.If convicted, Arbizu, 41, could face up to 30 years in prison and more than $5 million in fines.A spokesman for JPMorgan, which fired Arbizu in May, said the company "appreciates the cooperation and the prompt joint action of the Argentine and American authorities."

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