FraudChronicles roundup – cases in the news to Jan 15, 2014

The Fraud Chronicles roundup of recent fraud cases in the news…

The Madoff Affair

  • JPMorgan Chase & Co.’s quarterly profits fell 7.3 percent on $2.6 billion of settlements tied to Bernard Madoff’s Ponzi scheme. The firm has spent over $23 billion on legal settlements over the last year, coping with legal problems that include allegations that JPMorgan rigged markets, misled mortgage bond buyers, and fail to act on customers’ suspicious activities. (Bloomberg.com, Jan 14, 2014)
  • Madoff’s ex-finance chief changes testimony on scam insight: Frank DiPascali, the self-avowed “right hand man” in Madoff’s fraudulent investment-advisory business testified he learned of Madoff’s scheme in 1992 – contradicting previous testimony that he knew about the scheme since the 1970s. DiPascali is testifying against 5 former Madoff employees accused of complicity in the fraud. Former prosecutor Richard Scheff says, “Bottom line is that [DiPascali’s conflicting testimony] is a devastating change that helps the defense,” (Bloomberg.com, Jan 13, 2014)
  • Madoff trustee case against banks draws top court inquiry: Madoff trustee Irving Picard is seeking permission to sue three banks for $8 billion for allegedly helping funnel money into Madoff’s scheme. Picard argues these banks “are as responsible as Madoff for the enormous magnitude of customer losses”. The US Supreme Court is seeking guidance from the Obama administration. (Bloomberg.com, Jan 13, 2014)

Canada’s senate scandal

  • Mac Harb, former Liberal senator, target of RCMP fraud probe: RCMP allege Harb committed mortgage fraud against the Royal Bank of Canada. Evidence of the alleged fraud was uncovered by RCMP during an investigation into Harb’s inappropriate housing expense claims. (CBCNews, Jan 10, 2014)
  • On Nov 15, 2013, RCMP Corporal Greg Horton filed court documents alleging that Prime Minister Stephen Harper’s former chief of staff, Nigel Wright, and Senator Mike Duffy committed bribery, frauds on the government, and breach of trust. (read court documents filed Nov 13, 2013 and CBC article Nov 20)

Elsewhere in the world:

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