Posts Tagged With Fraud

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New York Man Sentenced to 87 Months for Multi-State Biodiesel Fraud Scheme

On February 6, 2018, Andre Bernard was sentenced to 87 months in federal prison in connection with a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers.  According to court documents and his plea colloquy, Bernard and his co-conspirators fraudulently claimed tax credits for already-credited renewable fuels by using a series of false transactions to transform the fuel back into feedstock in order to produce more renewable fuel.  Between March 2013 and March 2014, Bernard
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Hedge Fund Manager Charged in Manhattan Federal Court with Scheme to Defraud Investors

On February 2, 2018, Nicholas Genovese was charged with securities fraud and wire fraud for allegedly inducing investments in a hedge fund that he founded, Willow Creek Investments LP, by misrepresenting his credentials and work experience.  Based on these representations, victims invested at least $4 million with Willow Creek.  When investors attempted to regain their investments, Genovese refused to return their money. United States v. Genovese, 18-cr-183 (S.D.N.Y.)

DOJ Press Release
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Arkansas State Senator Pleads Guilty to Wire Fraud, Money Laundering and Bank Fraud

On January 29, 2018, Arkansas State Senator Jake C. Files pled guilty before Chief U.S. District Court Judge P. K. Holmes III of the Western District of Arkansas to an information charging him with one count of wire fraud, one count of money laundering, and one count of bank fraud.  Files admitted that, between August 2016 and December 2016, he used his government position to obtain state funds, known as General Improvement Funds (“GIF”), through
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Three Defendants Convicted in Securities Fraud Investigation

On January 26, 2018, federal officials announced that three additional individuals have pled guilty to conspiracy charges in connection with several “pump and dump” and other stock manipulation schemes involving fraudulently registered companies.  According to public statements from the U.S. Attorney’s Office for the Southern District of Florida and court filings, owner of stock transfer agent Manhattan Transfer Registrar Co. (“Manhattan Transfer”) John Ahearn and California attorney Andrew H. Wilson each pled guilty to one
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Investment Fund Manager Sentenced to Prison for Orchestrating Multimillion-Dollar Fraud Schemes

On January 25, 2018, Diane W. Lamm, a manager of Capital L Financial Group, LLC (“Capital L”) and Aegis Capital Fund, LLC (“Aegis Capital Fund”), was sentenced by U.S. District Judge Frederic Block of the Eastern District of New York to 36 months in prison and ordered to pay restitution in the amount of $15,640,582.46.  Lamm pled guilty to two counts of securities fraud in two separate schemes.  U.S. Attorney for the Eastern District of
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Former Executive of New York Hotel Company Admits to Stealing over $13 Million from Employer

On January 24, 2018, George Dfouni pled guilty to an information charging him with one count of wire fraud and one count of tax evasion.  Interim U.S. Attorney for the District of New Jersey Craig Carpenito announced that Dfouni, the Chief Operating Officer of a New York-based hospitality company, admitted to embezzling millions of dollars.  According to court filings and statements made in court, from 2007 through September 2015, Dfouni negotiated multiple contracts on behalf
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Chicago Futures Trader Pleads Guilty to Wire Fraud in Options Trading Scheme

On January 24, 2018, Chicago futures trader Thomas Lindstrom pled guilty to one count of wire fraud before U.S. District Judge Harry D. Leinenweber.  Lindstrom gained $285,000 through his scheme, which caused losses of $13.7 million and led to the folding of the firm where he worked, Rock Capital Markets LLC.  Lindstrom fraudulently made it appear that his trading was profitable by using deep out-of-the-money options on ten-year Treasury Note futures, knowing that these options
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Five Former KPMG Executives and PCAOB Employees Charged for Fraudulent Scheme to Steal Valuable and Confidential PCAOB Information

On January 23, 2018, an indictment was unsealed in the Southern District of New York against David Middendorf, Thomas Whittle, and Davis Britt, former executives of accounting firm KPMG LLP (“KPMG”), Cynthia Holder, a former employee of KPMG and the Public Company Accounting Oversight Board (the “PCAOB”), and Jeffrey Wada, a former employee of the PCAOB, with conspiracy and wire fraud charges.  Brian Sweet, a former KPMG partner and PCAOB associate, pled guilty to his
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Securities Broker and Investment Adviser Sentenced for Securities Fraud after Three-Week Trial

On January 18, 2018, U.S. District Judge Andrew L. Carter sentenced Christopher Cervino to one year and one day in prison and Sheik F. Khan to 53 months in prison.  Following a three-week trial, Cervino and Khan were convicted of participating in a securities fraud scheme led by Edward Durante, who pled guilty in August 2016.  Cervino and Khan, along with Durante and other co-conspirators, artificially inflated the market for stock in a publicly traded
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Former Director of Barclays New York Foreign Exchange Trading Charged for Defrauding HP In Front-Running Scheme

On January 15, 2018, John P. Cronan, Acting Assistant Attorney General of the Criminal Division; Alex G. Tse, Acting U.S. Attorney for the Northern District of California; and Jay N. Lerner, Inspector of the Federal Deposit Insurance Corporation, announced that Robert Bogucki had been indicted in connection with an alleged multibillion dollar front-running scheme at Barclays Capital in September and October 2011.  Bogucki, the former head of Barclays’ foreign exchange trading operation, is alleged to
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Scott Tucker Sentenced to 200 Months in Prison for Operating Fraudulent Internet Payday Lender

On January 5, 2018, Acting Deputy U.S. Attorney for the Southern District of New York Joan Loughnane announced that Scott Tucker had been sentenced to 200 months in prison for his role in a fraudulent internet payday lending operation.  Tucker, along with attorney Timothy Muir, had been convicted on October 13, 2017, following a five-week trial, of fourteen counts of racketeering, wire fraud, money laundering, and Truth-In-Lending Act offenses.  Muir was sentenced to 84 months
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Turkish Banker Convicted of Conspiring to Evade U.S. Sanctions against Iran and Other Offenses

On January 3, 2018, Mehmet Hakan Atilla, a citizen and resident of Turkey, was found guilty of conspiring with others to use the U.S. financial system to conduct transactions on behalf of the Government of Iran and other Iranian entities and to defraud U.S. financial institutions by concealing the nature of these transactions.  After a four-week trial before U.S. District Judge Richard M. Berman, a federal jury convicted Atilla on five of six charges in
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Former Executive Managing Director of Och-Ziff Capital Management Indicted for Defrauding Charitable Foundation and Obstruction of Justice

On January 3, 2018, a ten-count indictment against Michael Leslie Cohen was unsealed in the Eastern District of New York.  Michael Leslie Cohen, a former executive managing director of New York-based hedge fund Och-Ziff Capital Management Group LLC (“Och-Ziff”), was indicted for his alleged participation in a scheme to defraud an Och-Ziff client, a large charitable foundation, by recommending financial investments relating to the African mining sector.  Cohen was charged with one count of conspiracy
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Former Partner at New York Law Firm Convicted of Conspiring with Martin Shkreli to Commit Securities, Wire Fraud

On December 27, 2017, Bridget M. Rohde, Acting U.S. Attorney for the Eastern District of New York, announced that Evan Greebel had been convicted of one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud, following an 11-week trial before U.S. District Judge Kiyo A. Matsumoto.  At one time a partner at Katten Muchin Rosenman LLP, Greebel served as outside counsel to biopharmaceutical company Retrophin Inc.  In this
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Former Chairman and CEO of Technology Start-Up Company Kit Digital and Associate Found Guilty of Securities Fraud Related Offenses

On December 26, 2017, after a six-week trial presided over by U.S. District Judge Paul G. Gardephe of the Southern District of New York, a federal jury found Kaleil Tuzman, former chairman and CEO of technology start-up company KIT digital (“KITD”), and Omar Amanat guilty of various securities fraud-related offenses in connection with three separate fraudulent schemes.  First, between in or about February 2009 and in or about June 2012, Amanat, along with Stephen Maiden,
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High-Ranking Soccer Officials Convicted in Multimillion-Dollar Bribery Schemes

On December 22, 2017, after a six-week trial before U.S. District Judge Pamela K. Chen of the Eastern District of New York, a federal jury convicted Juan Angel Napout and Jose Maria Marin, former high-ranking soccer officials, of racketeering conspiracy and related offenses.  As proved at trial, the defendants and their co-conspirators accepted or agreed to accept tens of millions of dollars in bribe payments in exchange for media and marketing rights to various soccer
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Former CFO of Florida Financial Services Company Indicted for Accounting, Securities Fraud

On December 20, 2017, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Benjamin Greenberg, Acting U.S. Attorney for the Southern District of Florida; and Regina Faulkerson, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group, announced the unsealing of an indictment charging the former CFO of Bankrate Inc. with participating in a securities and accounting fraud scheme.  The indictment, filed in the Southern District of Florida, charged
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Former New York Investment Broker Admits Accepting Hundreds of Thousands of Dollars in Bribes in Exchange for Stock

On December 19, 2017, a former broker of two New York-based investment banking firms pled guilty to one count of violating the Travel Act for accepting between $550,000 and $1.5 million in cash kickbacks in exchange for arranging more favorable allocations from initial and secondary stock offerings.  According to a criminal information filed in the U.S. District Court for the District of New Jersey, New York resident Brian M. Hirsch accepted numerous kickbacks from three
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Former CEO and Former Chief Loan Officer of Failed Sonoma Valley Bank Convicted After Trial of Bank Fraud and Other Crimes

On December 18, 2017, three individuals, including the former CEO and former Chief Loan Officer of defunct Sonoma Valley Bank (“SVB” or the “Bank”) were convicted by a federal jury of multiple criminal charges that stemmed from a series of schemes carried out between 2004 and the Bank’s collapse in August 2010.  Former SVB CEO Sean Clark Cutting and former CLO Brian Scott Melland were convicted following an eight-week trial in U.S. District Court for
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Former CEO of Mobile Aggregation Company Convicted in Consumer Fraud Auto-Subscription Scheme

On December 15, 2017, Joon H. Kim, then-Acting U.S. Attorney for the Southern District of New York, announced that Darcy Wedd had been convicted of two counts of conspiracy to commit wire fraud, two counts of wire fraud, two counts of conspiracy to commit money laundering, and two counts of aggravated identity theft.  Wedd, the former CEO of mobile aggregation company Mobile Messenger, had engaged in a scheme to defraud consumers of more than $100
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Former Comptroller of Mortgage Lender Charged with Bank Fraud and Wire Fraud

On December 14, 2017, John Reimer, the vice president and comptroller of a mortgage lending institution, was charged with bank fraud and wire fraud for his alleged participation in a scheme to defraud several financial institutions.  Then-Acting U.S. Attorney Joon H. Kim announced the unsealing of Reimer’s indictment and said that Reimer allegedly “defrauded several other financial institutions of more than $12 million, falsified documents, kept funding for mortgages that never closed, and even acquired
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Chicago Investment Manager Charged with Eight Counts of Wire Fraud

On December 12, 2017, John R. Lausch, Jr., the U.S. Attorney for the Northern District of Illinois, announced the unsealing of an indictment charging Shawn Baldwin with eight counts of wire fraud.  Baldwin, an investment manager based in Chicago, is alleged to have made false statements regarding his financial connections and professional qualifications to potential investors.  Baldwin allegedly told investors that their money would be invested in various stocks and funds, but actually used investors’
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Volkswagen Senior Manager Sentenced to 84 Months in Prison for Role in Conspiracy to Cheat U.S. Emissions Tests

On December 6, 2017, Oliver Schmidt, former general manager of Volkswagen AG’s (“VW”) U.S. Environment and Engineering Office, was sentenced to 84 months in federal prison in connection with the so-called “Dieselgate” scandal involving the use of software designed to cheat U.S. emissions tests.  German national Schmidt previously pled guilty to one count of conspiracy to defraud the United States, to commit wire fraud, and to violate the Clean Air Act, as well as one
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Two Men Plead Guilty to Conspiracy to Defraud Investors in Publicly Traded Fuel Cell Company

On December 1, 2017, Joon H. Kim, then-Acting U.S. Attorney for the Southern District of New York, announced that George Doumanis and Emanuel Pantelakis had each pled guilty to one count of conspiracy to commit securities fraud in connection with a scheme to defraud investors in Terminus Energy Inc., a publicly traded penny stock.  From 2008 to 2014, Doumanis and Pantelakis made misstatements to investors regarding Terminus, including that Terminus had developed a fuel cell
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