Fraud Chronicles roundup – Feb 19, 2014

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Bitcoin Fraud Warning

Bernard Madoff’s Former Aides on Trial

  • Fraud Case Jury to View Madoff Video. Over prosecution objections, U.S. District Judge Laura Taylor Swain has ruled in favor of a defense request for the jury in the Madoff ex-employees trial to have the opportunity to view a 2007 video of Bernard Madoff. In the video Madoff addresses a New York City conference on “The Future of the Stock Market”, arguing against increased securities regulations. In the video Madoff, who had secretly been running a Ponzi scheme for decades, said it was “impossible for [securities] violation to go undetected, certainly not for a considerable period of time.” (14 Feb 2014, USA Today)
  • Former Madoff operations manager Daniel Bonventre took the stand in his own defense Tuesday, changing his previous decision not to testify. The 67 year old defendant described Madoff as a generous, philanthropic man who could turn into a bully in an instant, and often said he was “surrounded by idiots and assassins.” Bonventre worked in the legitimate, broker dealer part of Madoff’s empire and denies knowledge of the scam prior to Madoff’s 2008 confession. Prosecutors will cross-examine Bonventre later this week. (18 Feb 2014, USA Today)

Other Fraud News

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 corruption

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/

24 thoughts on “Fraud Chronicles roundup – Feb 19, 2014”

  1. In this case, two individuals formed a business, that provided people with seminars and tutorials and even sold materials to encourage people to earn money in a particular way. They told the people who were involved that this income was not subject to any type of income tax. The amount of earning that they did not pay taxes on was huge, and they were charged with evading their own taxes, as well as, the others they suckered into the scam. This case can be found at http://canlii.org/en/bc/bcsc/doc/2012/2012bcsc67/2012bcsc67.html?searchUrlHash=AAAAAQAYZnJhdWQgYW5kIG5vdC1mb3ItcHJvZml0AAAAAAE

  2. John Kelly was convicted of fraud over $5000 and sentenced to 24 months in prison for his fraud against Big K fuels Incorporated. Mr. Kelly defrauded the company that he was one third owner in by forging signatures, misappropriating funds, and charging personal expenses on the company card. Mr. Kelly defrauded big K fuels out of over $700,000 of misappropriated funds.

    Website http://www.canlii.org/en/on/onsc/doc/2008/2008canlii12707/2008canlii12707.html?searchUrlHash=AAAAAQAFRnJhdWQAAAAAAQ

  3. Mark Johnston managed to defraud a hotel (Yonge Suites Hotel) in Ontario of $22,294.58. Mr. Johnston stayed for 56 days with a full intention of not paying his hotel bill. During his stay he requested changes and amassed charges to his room. When he was done, he provided a forged cheque for $20,168.43.

    Here is the reasons for judgement:

    http://www.canlii.org/en/on/onsc/doc/2013/2013onsc5658/2013onsc5658.html?searchUrlHash=AAAAAQAFRnJhdWQAAAAAAQ

    Here is the reason for sentencing:

    http://www.canlii.org/en/on/onsc/doc/2013/2013onsc5633/2013onsc5633.html?searchUrlHash=AAAAAQAFRnJhdWQAAAAAAQ

  4. Thomas Palantzas, a bank manager for the Toronto Dominion Bank Financial Group in Toronto from May 1982 to March 2004, he defrauded the bank of approximately $819,000 by opening 37 loan accounts in the name of 22 innocent people. The fraud came to light as people who’s names were used in the loan application began to receive calls from the banks collections department for loans they had no knowledge of.
    Palantzas was sentenced to a period of incarceration of four years and a restitution order under s. 738 of the Code in the amount of $819,000 was made in favour of the bank (TD).

    https://www.canlii.org/en/on/onsc/doc/2009/2009canlii49328/2009canlii49328.html?searchUrlHash=AAAAAQAUZnJhdWQgQU5EIGVtcGxveW1lbnQAAAAAAQ

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