The Fraud Chronicles Roundup – March 20, 2014

TheFraudChronicles.com

Jury Deliberates Bernard Madoff ex-employees fraud case

  • TheFraudChronicles.com Madoff jury seeks star witness testimony The jury in the Madoff ex-employees fraud case was given instructions by the judge Monday. After several hours of deliberation, they made a request to review evidence given by prosecution witnesses Frank DiPascali and Enrica Cotellessa-Pitz, both of whom have pled guilty to complicity in Madoff’s Ponzi scheme. The jury also requested to review testimony by defendant Daniel Bonventre. (17 Mar 2014, USA Today)
  • Madoff Five Trial Deliberations Delayed Over Sick Juror. With one juror ill for the second day, U.S. District Judge Laura Taylor Swain asked the lawyers to discuss backup plans if the juror doesn’t return. (20 Mar 2014, Bloomberg)
  • Bernie Madoff speaks: Politics, remorse and Wall Street. While the world waited for the jury verdict in the Madoff ex-employees case, Bernard Madoff gave a 3-hour interview from the prison camp at Butner, North Carolina. Among other things he recommended investors stay away from the stock market, made political comments, and while he expressed little remorse for the clients he defrauded, he stated that his own family’s estrangement was the hardest thing to bear. (20 Mar 2014, Politico.com)

Other Frauds in the News

March is fraud prevention month in Canada

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 “The Fraud Chronicles Roundup – March 20, 2014”

  1. This article is about a new scam in Canada that is targeting the Jewish community, particularly those who were in the holocaust.
    “Letters delivered in Alberta and Ontario ask for the recipients’ personal information, telling them they are entitled to a share of $75-million from the Holocaust Claims Processing Office.

    It says the money will be transferred to a “secure numbered account,” and asks for 60 per cent of the money as a fee. Scammers typically try to convince victims to pay “fees” in order to receive payoffs that never materialize”
    http://news.nationalpost.com/2014/03/27/obscene-scam-tries-to-trick-canadian-victims-of-the-holocaust-into-handing-over-cash/

  2. The company, Diamond Foods Inc, reported higher net income and beat analysts’ expectations for fiscal quarters in 2010 and 2011. They under reported how much money the company paid Walnut growers by pushing the recording of the payments into later fiscal periods. The accounting scheme led Diamond to restate its financial results in 2012- after the restatement, the company’s stock price fell to $17 per share from a high of $90 a share in2011.

    http://www.reuters.com/article/2014/01/09/us-diamond-sec-accountingfraud-idUSBREA0813020140109

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