Fraud Chronicles Roundup – cases in the news to Jan 29, 2014

TheFraudChronicles.com

David Michaels dba Michaels Wealth Management – BCSC Hearings Begin

Photograph by: Getty/Thinkstock , Financial Post (via VancouverSun.com)

The Madoff Affair – Ex-Employees on Trial for Role in The Madoff Affair

OTHER CANADIAN FRAUD NEWS

  • Parole in sight for Earl Jones after Quebec court ruling. Jones may benefit from a Quebec Superior Court ruling that the federal government’s decision to abolish early parole for white collar crimes as unconstitutional. Jones began serving his 11 year sentence in 2010 (CBCNews, 29 Jan 2014)

LIBOR Fraud Still in the news

ELSEWHERE IN THE WORLD:

That’s The Fraud Chronicles roundup for the week ending January 29, 2014.

Do you have a news, court or regulatory body information on an interesting fraud case?   Comment on this posting or Tweet @fighting_fraud to share your Web links of publicly available fraud news and case information.

Vanessa G. Oltmann
Education and integrity – the best weapons against fraud and corrupti

Author: V. G. Oltmann

V. G. Oltmann, MBA, CPA, CGA, CFI - Professor, Vancouver Island University 2002 - 2013 - Board Member, Association of Certified Forensic Investigators of Canada (ACFI): 2010-2013 - LinkedIn Profile: http://ca.linkedin.com/in/vgoltmann/

48 thoughts on “Fraud Chronicles Roundup – cases in the news to Jan 29, 2014”

    1. Hi, Meshal, and thanks for this new Ponzi. Except for the technologies used, Ponzi schemes haven’t changed in essence in the last hundred and fifty years. High return and high risk go together. It’s sad that so many people get taken in.

      Vanessa

  1. “Rampant Canadian pharmacy fraud sign of a broken system”. Fraudulent billing schemes and second chances… the article states that “When it comes to fraud, the precedent is often a second chance”. The article comments that the fraudulent activity is rampant, with hundreds of thousands of dollars being defrauded.

    KAREN HOWLETT AND DAVID ANDREATTA from the Globe and Mail reported on this fraud on December 23, 2013. You can find the article at:

    http://www.theglobeandmail.com/life/health-and-fitness/health/rampant-canadian-pharmacy-fraud-sign-of-a-broken-system/article16087916/

  2. Two men have been arrested in Los Angeles for allegedly getting involved with a ponzi scheme of $110 million.
    Stewart and Packard are accused of withdrawing $165,000 from one of the company’s accounts and hiding the money from creditors.

    Pfeifer, S. (2012 )FBI arrests two men in alleged $110-million Ponzi scheme [Online]. Los Angeles Times. Available from: [Accessed 6 February 2014].

    1. Hi, Mary-Anne
      This sounds like an interesting one. Could you post the Web address where we can find this article?

      Thanks
      Vanessa

    1. Interesting, Talia.
      I see that the Credit Union representative interviewed believes that almost every bank in Thunder Bay was affected and that, “criminals based overseas have apparently figured out a way to capture data from cards that use chips.”

      Vanessa

    1. Interesting. Thanks, Keisha. I see that the same two were supposed to appear at an Ontario Securities Commission hearing, but failed to appear.

      So far, i can’t find any indication of criminal charges on this matter.

      Vanessa

  3. Confidential resolution reached between more than a dozen victims of what the SEC called a Ponzi scheme and the alleged fraudsters. The ponzi scheme was one wherein which the accused fraudsters used their connection with the church and position of trust in the community to find investors in nonexistent ventures. Additional civil lawsuits filed by other victims and by the SEC are still ongoing.

    August 2013 civil suit

    February 2014 settlement

      1. I see in the settlement that neither Taylor party admits any wrongdoing. It will be interesting to see how the ongoing action by victims and the SEC plays out.
        Vanessa

  4. Two alleged fraudsters are in custody for what is believed to be a $6 million Ponzi scheme targeting senior citizens. They are charged with several offences, including racketeering, conspiring to engage in a pattern of racketeering activity, organized fraud, sale of unregistered securities, sale of securities by an unregistered dealer, and security fraud. Find out more at http://www.nydailynews.com/news/crime/christian-radio-host-arrested-6-million-ponzi-scheme-article-1.1598124.

    1. Although the bishop (Eddie Long) is controversial and it’s been alleged that he encouraged church members to invest, it’s Ephren Taylor who is alleged to have engineered the alleged Ponzi scheme itself.
      Vanessa

  5. While doing some research, I was able to find a list on Ponzi Schemes that happened in July, 2013. Kathy Phelps does an excellent job giving small comments to each of the individuals and their partners in crime. All these Ponzi Schemes were well over a million dollars. It is interesting to see how much these type of things happen! Actually, kind of frightening.

    http://www.lexisnexis.com/legalnewsroom/bankruptcy/b/bankruptcy-law-blog/archive/2013/08/05/july-2013-ponzi-scheme-roundup.aspx

    Hope you enjoy this as much as I did.

    1. Very interesting – and 20 years after William “520%” Miller’s notorious fraud, it’s sad that so many people invested in Ponzi.
      Vanessa

    1. Ponzi schemes are everywhere, and the fraudsters can be any age, as some of the comments to this blog reflect.

      Vanessa

  6. I found this case too be extremely interesting, as it occurred internally in the CRA’s auditing department. Several senior officials were charged with taking bribes and turning a blind eye too fraudulent tax returns. They were also involved in creating fraudulent investments in the classic form of a Ponzi scheme. This proves fraudsters come in all forms, and even the most trusted people in the eyes of the federal government dip into temptation. Very eye opening.

    Source:
    http://www.theglobeandmail.com/news/politics/rcmp-lays-charges-in-alleged-canada-revenue-agency-fraud-scheme/article16793066/

  7. http://www.theguardian.com/uk-news/2014/jan/21/horsemeat-scandal-probe-failure-authorities-dates-back-1998-rotherham

    Ever wonder if that roast your eating is actually pony from China? Now you might. The article “Horsemeat scandal: probe failure by authorities dates back to 1998” is based on fraudsters importing tainted chicken and pony from China into the European Union then illegally marketing and selling it for human consumption. I posted this since an actual investigation is being held, but North America also seems to have it’s fair share of food fraudsters too.

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